ELECTRICAL LICENSE/PERMIT EXEMPTION                            H.B. 4591 (S-2), 4592, & 4737:

                                                                                                      FLOOR SUMMARY

House Bill 4591 (Substitute S-2 as reported)

House Bills 4592 and 4737 (as reported without amendment)

Sponsor:  Representative Aric Nesbitt (H.B. 4591 & 4737)

               Representative Bradford Jacobsen (H.B. 4592)

House Committee:  Energy and Technology

Senate Committee:  Energy and Technology

CONTENT

House Bill 4591 (S-2) would amend the Electrical Administrative Act to prohibit a local ordinance regulating electricians from doing either of the following:

-- Requiring a provider to procure a permit to install, maintain, replace, or service any electrical wiring, equipment, or devices associated with a home monitoring system.

-- Requiring a provider to procure a license or permit to install, maintain, replace, or service a security alarm system.

"Provider" would mean a system provider that is registered under the Security Alarm Systems Act or a security alarm system contractor licensed under the Private Security Business and Security Alarm Act.

(Generally, a person may not install any electric wiring, devices, appliances, or appurtenances for the generation, distribution, or use of electrical energy without being licensed under the Act or a city, village, or township ordinance that is at least as stringent as the Act.)

House Bill 4592 would amend the Mechanical Contractors Act to do the following:

-- Exempt a registered security system provider or licensed security alarm system contractor from a requirement to obtain a license to do work related to a thermostat for a heating, ventilation, and air conditioning system or a hydronic heating and cooling system.

-- Prohibit a governmental subdivision from disallowing a registered system provider or licensed system contractor from engaging in work for which he or she is registered, with regard to a thermostat for the specified systems.

House Bill 4737 would amend the Single State Construction Code Act to provide that a permit would not be required under the Act or the State Construction Code for electrical work associated with a home monitoring system, if performed by a registered system provider or licensed system contractor.

MCL 338.886 & 338.887 (H.B. 4591)                                 Legislative Analyst:  Julie Cassidy

       338.977 & 338.979 (H.B. 4592)

Proposed MCL 125.1528a (H.B. 4737)

FISCAL IMPACT

House Bill 4591 (S-2) and House Bill 4592 would have no fiscal impact on the Department of Licensing and Regulatory Affairs and a minor, but negative, fiscal impact on local units of government.  Under the bills, people licensed under the Private Security Business and Security Alarm Act or registered under the Security Alarm Systems Act would not be required to seek local permits for certain types of work.  This would reduce the amount received by local units from fees associated with the issuance of these types of permits.

House Bill 4737 would have no fiscal impact on State or local government.

Date Completed:  6-5-13                                                       Fiscal Analyst:  Josh Sefton

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.