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License fees may change

Published (2/25/2010)
By Nick Busse
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If you work in the construction trades, take note: the state’s annual license fees for contractors may change.

A House division approved a bill Feb. 19 that would change the fee structure at the Department of Labor and Industry, which licenses plumbers, electricians and dozens of other types of contractors.

Rep. Mike Obermueller (DFL-Eagan) sponsors HF2781, which would reorganize license fees so that they are tied more closely to the four trade skill levels — entry-level, journey-level, master-level and business-level — and also to the cost the department actually incurs in licensing each trade.

“It’s a bill that seeks to essentially take our license system and make it more efficient and more transparent,” Obermueller said, adding that he is sponsoring the legislation on the department’s behalf.

Approved by the House Labor and Consumer Protection Division, the bill now awaits action by the House Commerce and Labor Committee.

Steve Sviggum, labor and industry commissioner, said the bill would not raise any new or additional revenues for the department. He said the goal is merely to add transparency and consistency to the fees for the roughly 108,000 licenses the department issues annually.

“These changes are very reflective of — and respective of — the services, the time that labor and industry puts into issuing a license,” Sviggum said, adding that licenses currently range from $0 up to $450.

According to Sviggum, of the total number of licenses issued annually by the department, 51 percent will see their fee decrease, 36 percent will see their fee increase, and 13 percent will see no change. If enacted, the fee changes would take effect Jan. 1, 2012.

Sviggum added that the department consulted with all interested stakeholder groups before proposing the new fees.

A companion, SF2510, sponsored by Sen. Dan Sparks (DFL-Austin), awaits action by the Senate Business, Industry and Jobs Committee.

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