ASBESTOS ABATEMENT CONTRACTOR LIC. S.B. 1223: COMMITTEE SUMMARY


Senate Bill 1223 (as introduced 5-13-04)
Sponsor: Senator Virg Bernero
Committee: Economic Development, Small Business and Regulatory Reform


Date Completed: 5-19-04

CONTENT The bill would amend the Asbestos Abatement Contractors Licensing Act to require the Department of Labor and Economic Growth (DLEG) to return a person's application fee, and reduce the fee for his or her next renewal application, if DLEG failed to issue or deny a license within the time required. The bill also would require DLEG to report to the Legislature regarding license applications.

The Act requires DLEG, within 15 working days after receiving a license application, to acknowledge receipt of the application and notify the applicant of any deficiency in it. Within 60 days after receiving a completed application, including all additional information requested, DLEG must issue a license or deny the application. The Act prescribes the following license fees based on the number of employees to be engaged in asbestos abatement projects:

Number of Employees License Fee License Renewal Fee
4 or fewer $200 $100
5 or more $400 $300

Beginning on the bill's effective date, if DLEG failed to issue or deny a license within the time required, it would have return the application fee and reduce the fee for applicant's next renewal application, if any, by 15%. The Department would be prohibited from discriminating against an applicant in the processing of the application based upon the fact that the application fee was refunded or discounted.


By January 31 of each year, beginning in 2005, the DLEG Director would have to submit a report to the standing committees and Appropriations subcommittees of the Senate and House of Representatives concerned with asbestos and regulatory issues. The Director would have to include all of the following information in the report concerning the preceding calendar year:

-- The number of initial and renewal applications DLEG received and completed within 60-day period.
-- The number of applications requiring a request for additional information.
-- The average time for an applicant to respond to a request for additional information.
-- The number of applications rejected, categorized by reason for rejection.
-- The amount of application fees returned to licensees.
-- The number of applications not issued within the 60-day period.
-- The average processing time for initial and renewal applications granted after the 60-day period.


MCL 338.3209 & 338.3211 Legislative Analyst: Suzanne Lowe


FISCAL IMPACT
In FY 2002-03, the Department collected $5,000 for initial and $30,300 for renewal licenses for asbestos contractors. The potential loss of revenue from the 15% reduction for future years would equate to $4,500.


The bill also would require a report that would include new or additional information not currently collected. The database adjustment required to accommodate this requirement could increase Information Technology costs.

Fiscal Analyst: Maria Tyszkiewicz

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. sb1223/0304