LICENSING REQ.; VETERAN EXEMPTIONS                           H.B. 4376 (H-1) & 4377 (S-1):

                                                                                                    SUMMARY OF BILL

                                                                                     REPORTED FROM COMMITTEE

House Bill 4376 (Substitute H-1 as reported without amendment)

House Bill 4377 (Substitute S-1 as reported)

Sponsor:  Representative Andrea Schroeder (H.B. 4376)

               Representative Sarah Anthony (H.B. 4377)

House Committee:  Regulatory Reform

Senate Committee:  Families, Seniors, and Veterans

CONTENT

House Bill 4376 (H-1) would amend the State License Fee Act to require the Department of Licensing and Regulatory Affairs (LARA) to waive the fee for an initial license or initial registration otherwise required under the Act, or an application processing fee, if the applicant were actively serving in the Armed Forces or the uniformed services, was an individual who served in the Armed Forces or uniformed services and was discharged honorably, or 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.

House Bill 4377 (S-1) would amend the Skilled Trades Regulation Act to do the following:

-- Require LARA to waive the fee for an initial license or initial registration that is otherwise required under the Act, or an application processing fee, if the applicant were actively serving in the Armed Forces or the uniformed services, was an individual who served in the Armed Forces or uniformed services and was discharged honorably, or 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.

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

-- Require LARA to issue a license or a certificate of registration for an occupation under the Act 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 of 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.

House Bill 4376 is tie-barred to Senate Bill 158 which would amend the Occupational Code to amend certain definitions and 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 under the Code.

MCL 328.2204 (H.B. 4376)                                        Legislative Analyst:  Tyler VanHuyse

       339.5103 (H.B. 4377)

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, 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 members 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.

Date Completed:  5-4-21                                         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.