Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Industry, Business And Labor topic
No spam. Unsubscribe anytime.
Committee advances bill to raise contractor reporting threshold to $50,000
Summary
The Industry, Business and Labor Committee voted to give Senate Bill 2163 a favorable recommendation. The bill would raise the dollar threshold contractors must report on their annual renewal from $25,000 to $50,000; Secretary of State staff supported the change, saying the current threshold has not kept pace with costs.
Senate Bill 2163, which would raise the dollar threshold for contractor work that must be listed on annual contractor license renewals from $25,000 to $50,000, received a favorable recommendation from the Industry, Business and Labor Committee on a voice/roll-call vote Wednesday.
The bill was introduced in committee by Senator Greg Kessel, R-District 39 of Bellfield. "Contractors are required to obtain a contractor certificate each year, and at that time list all the projects, contracts and subcontracts completed within the preceding years that were above $25,000 under current law," Kessel said. He told the committee that the Secretary of State's office had asked for the change because "$25,000 doesn't get you much of a remodeling project" and the threshold has not been updated in roughly 20 years.
Beth Herzog, information management, licensing and notary director for the Office of the Secretary of State, testified in support. She said the reporting requirement is part of the annual contractor renewal, which is due March 1 each year, and that contractors report projects on that renewal form. Herzog recited the history of the threshold: no set threshold in 1963, raised to $10,000 in 1983 and to $25,000 in 2001, and said "due to increases of materials, labor, and costs ... contractors felt like this number was too low." She urged committee members to support the bill.
Committee members asked technical and implementation questions. Representative Schauer asked whether the 50,000 figure was chosen by analysis or simply a reasonable adjustment; Herzog and Senator Kessel said the number reflects how prior increases were phased and an attempt not to set the level "too high" to avoid potential concerns. Herzog also told the committee there are multiple contractor license classes (A, B, C, D) with differing limits; she said class D covers work under $100,000 and noted that license fee levels are set in statute and in code. Committee members also asked how enforcement proceeds for unlicensed contractors; Herzog said the Secretary of State's office works with the Attorney General's Consumer Protection Division on investigations.
After testimony and brief questions, Representative Ruby moved that the committee "do pass" Senate Bill 2163; Representative Schatz seconded the motion. The committee clerk called the roll and the motion carried. Representative Ruby and Representative Schatz were recorded as mover and seconder for the committee recommendation. The committee then asked a member to carry the bill to the floor (Representative Schatz volunteered).
What the bill does not change: the measure as presented only adjusts the reporting threshold amount on the contractor renewal form; it does not change license fee schedules or the structure of license classes. Herzog said she could analyze renewal data if the committee wanted information on how many reported projects currently fall below $50,000.
The committee closed the hearing on Senate Bill 2163 and advanced the bill to the next stage with a committee "do pass" recommendation.
The bill now moves to the next legislative step, where floor consideration and any amendments will be scheduled.
