SB0157: SUMMARY OF BILL REPORTED FROM COMMITTEE (Date Completed: 3-8-21)

CONTENT

Senate Bill 157 (S-1) would amend the Public Health Code to do the following:

-- Require the Department of Licensing and Regulatory Affairs (LARA) to waive the fee for an initial license or initial registration otherwise required under Article 15 (Occupations), or an application processing fee, if the applicant were actively serving in the Armed Forces or the uniformed services, served in the Armed Forces or the uniformed services and was discharged honorably, or was a dependent of a member of the Armed Forces, a member of the uniformed services, or a veteran.

-- Require an applicant to be granted an initial license or registration, without examination, if the applicant demonstrated to the satisfaction of LARA that he or she was a member of the Armed forces or the uniformed services, a veteran, or a dependent of a member of the Armed forces, a member of the uniformed services, or a veteran, and that the applicant held a current license or registration in good standing in another State or country for the health profession for which he or she was seeking licensure or registration, among other criteria.

-- Modify the requirements an applicant who was a dependent of a member of the Armed Forces, a dependent of a member of the uniformed services, or a dependent of a veteran would have to meet to receive a temporary license or registration.

Senate Bill 158 (S-1) would amend the Occupational Code to do the following:

-- Require LARA to issue a license or certificate of registration for an occupation under the Code without examination to an individual who demonstrated to the satisfaction of LARA that he or she was a member of the Armed Forces or uniformed services, a veteran, or a dependent of a member in the Armed Forces, a member of the uniformed services, or a veteran, and held a valid license or registration in that occupation from another state, among other criteria.

-- Prohibit LARA from issuing a license or registration as described above if it determined that the issuance of a license or registration for an occupation under the Code could result in a violation of a Federal oversight or licensing guideline for that occupation.

MCL 333.16103 et al. (S.B. 157) Legislative Analyst: Tyler VanHuyse

339.103 et al. (S.B. 158)

FISCAL IMPACT

The bills would have an indeterminate, likely moderate, negative fiscal impact on LARA. An increase in available exemptions to active members of the qualified organizations, veterans, and their dependents would result in decreased fee revenue to the respective bureaus within the Department. Most revenue from these fees is dedicated to administering licensing and regulatory programs. In addition, processing applications would require additional staff time. It is unlikely that the volume of work resulting from the bill would require an additional FTE.

The magnitude of the revenue loss and costs associated with the bills would depend on the number of applications for exemptions received in the affected professions. The Department does not have sufficient data to predict the potential increase in exemptions at this time, as it does not track military activity or other qualifying associations of applicants at this time.

The Department of Military and Veterans Affairs estimates that there are approximately 11,000 Michigan National Guard personnel and approximately 550,000 veterans in Michigan. These incomplete figures indicate that LARA could have to waive a moderately significant amount of fees and exams under the bills; however, there is not enough information to predict how many applicants would qualify for a waiver.

For fiscal year 2018-19, the Department reported the following figures for exemptions because of veteran status:

Bureau	Exemptions	Total Fees Exempted
Construction Codes	295	$33,975
Corporations, Securities, and Commercial Licensing	6	835
Professional Licensing	204	20,550
Total	505	55,360

The substantially higher number of individuals who could seek similar exemptions under the bill likely would result in an increase in exemptions over time.

Date Completed: 3-8-21 Fiscal Analyst: Elizabeth Raczkowski

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.