S.B. 894-896: COMMITTEE SUMMARY - ASBESTOS CONTRACTORS & WORKERS

Senate Bills 894, 895, and 896 (as introduced 2-18-98)

Sponsor: Senator Dale L. Shugars

Committee: Human Resources, Labor and Veterans Affairs

Date Completed: 2-25-98

CONTENT

Senate Bill 894 would amend the Asbestos Abatement Contractors Licensing Act to remove the June 1, 1998, expiration date on various provisions in the Act, including provisions that make exemptions from the Act's licensing requirement, create the Asbestos Abatement Fund, and require contractors to give notice of and pay a fee for certain abatement projects. The bill also would require licensees to pay an initial license fee, rather than a renewal fee, if their renewal applications were late.

Senate Bills 895 and 896 would amend the Asbestos Workers Accreditation Act to specify a time period for submitting reaccreditation applications, and to delete the June 30, 1998, expiration of the Act.

Senate Bills 894 and 895 also would redefine "department" as the Department of Consumer and Industry Services, instead of the Department of Public Health (pursuant to Executive Order 1996-1).

Senate Bill 894

The bill would remove a June 1, 1998, expiration date on provisions of the Asbestos Abatement Contractors Licensing Act that do the following:

-- Make an exception to the Act's licensing requirement for a business entity licensed under the Electrical Administrative Act, the Forbes Mechanical Contractors Act, or Public Act 266 of 1929 (which governs plumbers), or licensed as a residential builder or residential maintenance and alteration contractor under the Occupational Code.

-- Require asbestos abatement contractors and exempt business entities to notify the Department before beginning an asbestos abatement project exceeding 10 linear feet or 15 square feet of friable materials, and to pay a fee of 1% of the price of the contract for the asbestos abatement project or 1% of the asbestos abatement project portion of the contract price.

-- Create the Asbestos Abatement Fund.

-- Require the Department to report annually to the Legislature.

-- Exempt emergency abatement projects from the advance notice requirement.

-- Require a building or structure owner or lessee to have a postabatement air monitoring check performed at certain project sites.

In addition, the Act requires the Department to renew an asbestos abatement contractor's license if the contractor submits a completed application for renewal not sooner than 90 days before, and not later than 30 days after, the license expires. The bill specifies that a renewal application that was received after this time period would have to be treated as an initial application and would require payment of an initial license fee, rather than a renewal license fee. (Under the Act, if the number of employees to be engaged in a project is four or less, the license fee is $200 and the renewal fee is $100. If the number of employees to be engaged in a project is five or more, the license fee is $400 and the renewal fee is $300.)

Senate Bill 895

The Asbestos Workers Accreditation Act provides that a person desiring accreditation or reaccreditation must submit an application and the appropriate annual fee. The fees are as follows:

The bill provides that, if the application were for reaccreditation, the application and annual fee would have to be submitted not earlier than 90 days before, but not later than 30 days after, the accreditation expired. An application that was submitted later than this time period would have to be treated as an initial application for accreditation, and would require payment of the accreditation fee, rather than the reaccreditation fee.

In addition, the Act requires training course sponsors to issue a numbered certificate of course completion to a student who meets the Act's requirements and successfully completes the training and passes the course's examination. The certificate must contain information specified in the Act. The bill also would require the certificate to include the student's Social Security number.

MCL 338.3103 et al. (S.B. 894) - Legislative Analyst: S. Lowe

338.3402 et al. (S.B. 895)

338.3402 et al. (S.B. 896)

FISCAL IMPACT

The bills would have no fiscal impact on State or local government.

- Fiscal Analyst: M. Tyszkiewicz

S9798\S894SA

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.