HB 1262
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
House Bill 1262 (Delegate Hornberger)
Economic Matters Education, Health, and Environmental Affairs
Maryland Electricians Act - Revisions
This bill repeals local authority to license master, journeyperson, and apprentice
electricians beginning January 1, 2022, and instead requires a State license for each of those
classifications. However, a local jurisdiction may continue to issue or begin issuing local
registrations for those classifications, subject to specified requirements. Local jurisdictions
also retain the ability to establish a local board and require permits, fees, and inspections.
The bill also establishes a Workgroup to Study Limited Energy Services, staffed by the
Maryland Department of Labor (MDL), subject to specified requirements. The bill takes
effect July 1, 2021, but provisions related to licensing and registration of electricians
take effect January 1, 2022; the workgroup terminates December 31, 2021.
Fiscal Summary
State Effect: Special fund revenues and expenditures increase by $85,300 in FY 2022,
under assumptions discussed below. Out-year expenditures reflect ongoing expenditures
and termination of one-time costs, with corresponding special fund fee revenue increases.
General fund revenues due to annual special fund reversions may be affected, but the
amount cannot be reliably estimated at this time (not shown below). Costs associated with
the workgroup are assumed to be minimal and absorbable within existing budgeted
resources. Penalty provisions are not anticipated to materially affect State finances.
(in dollars) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
SF Revenue $85,300 $71,900 $74,000 $76,700 $79,400
SF Expenditure $85,300 $71,900 $74,000 $76,700 $79,400
Net Effect $0 $0 $0 $0 $0
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: The bill likely does not materially affect local government finances or
operations, as discussed below.
Small Business Effect: Meaningful.
Analysis
Bill Summary: Generally, an individual must be licensed by the State board beginning on
January 1, 2022, as a master, journeyperson, or apprentice electrician, as appropriate,
before engaging in the activities covered by each license. However, the bill allows local
jurisdictions that issue such licenses prior to that date to instead issue registrations with
comparable requirements, and for other local jurisdictions to begin to issue such
registrations, subject to specified requirements. Conforming and technical changes are
made to generally incorporate these provisions. Among other changes, the bill:
requires the board to adopt specified continuing education requirements for
electricians (which are already required of master electricians) and makes other
specified changes to continuing education requirements;
requires the board to enforce minimum standards for the provision of electrical
services consistent with the most recent version of the National Electrical Code;
establishes specified consumer protections, additional violations, and associated
fines and penalties; and
requires at least one licensed master electrician or journeyperson electrician to be
present at each job site in which electrical services are provided.
The board must provide notice to each local board in the State of the provisions of the bill
and the effect it will have on electricians (currently) licensed by local boards, including
information regarding how electricians with local licenses may obtain licenses issued by
the State board.
Workgroup to Study Limited Energy Services
The Workgroup to Study Limited Energy Services is established, is staffed by MDL, and
consists of specified government and industry stakeholders. A member of the workgroup
may not receive compensation as a member of the workgroup but is entitled to
reimbursement for travel expenses. The workgroup must study and make recommendations
regarding legislation for the licensing and regulation of, and qualifications for, individuals
who provide limited energy services in the State. By December 1, 2021, the workgroup
must report its recommendations to the Senate Education, Health, and Environmental
Affairs Committee and the House Economic Matters Committee.
If the State has not enacted legislation establishing a licensing program for individuals who
provide or assist in providing low-voltage electrical services by July 1, 2024, the
General Assembly must, by December 1, 2024, consider legislation proposed by the
workgroup necessary for the regulation and licensing of low-voltage electricians. The
Department of Legislative Services (DLS) notes that the General Assembly does not
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normally convene until January of each year, so a special session of the General Assembly
might be necessary to comply with this provision.
Current Law: The State Board of Master Electricians in MDL issues master electrician
licenses to qualified individuals under the Maryland Master Electricians Act. Each county
is required to adopt licensing qualifications comparable to or more stringent than specified
State qualifications or require a State license and enforce compliance with State licensing
requirements. In a local jurisdiction that requires a local license, the State license does not
authorize the provision of electrical services but serves only as a reciprocal mechanism for
obtaining licenses in each local jurisdiction. In the two jurisdictions that do not have local
licensing requirements, an electrician must have a State license to provide electrical
services as a master electrician.
To obtain a State license as a master electrician, the applicant must have seven years of
experience providing electrical services for all types of electrical equipment and apparatus,
under the supervision of a master electrician or a similarly qualified employee of a
governmental unit. The State board does not issue journeyperson, apprentice, or
low-voltage electrician licenses. The board is authorized to establish fees by regulation.
The initial licensing fee is $20 and the renewal fee is $25.
The State board shares licensing authority with local jurisdictions, all but two of which,
Allegany and Garrett counties, have a licensing program for master electricians.
Five counties – Calvert, Charles, Harford, Montgomery, and Prince George’s – also license
journeyperson electricians and/or apprentices. The remaining local jurisdictions that
license apprentices and/or some form of low-voltage or similar service is unknown.
Statute requires local jurisdictions to enforce licensing requirements. The local policing of
the electrical profession primarily occurs through locally issued permits and locally
conducted inspections. Every jurisdiction in Maryland has a building permit office that is
generally separate from the local licensing board.
State Fiscal Effect:
Implementation Costs
Given the enhanced regulatory oversight authority of the board under the bill and a larger
number of licensees to regulate, additional administrative support is needed at MDL.
Accordingly, special fund expenditures increase by $85,334 in fiscal 2022, which assumes
that new staff are hired as of July 1, 2021, in order to ensure that all electricians are licensed
by January 1, 2022, as required by the bill. The estimate includes the cost of hiring
one administrative specialist to implement the additional licensing and regulation of
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master, journeyperson, and apprentice electricians. It includes a salary, fringe benefits,
one-time start-up costs, travel expenses, and ongoing operating expenses.
Position 1.0
Salary and Fringe Benefits $74,589
One-time Programming Expense 5,000
Other Operating Expenses 5,745
Total FY 2022 MDL Implementation Costs $85,334
Future year special fund expenditures reflect annual salary increases and employee
turnover and ongoing operating expenses, as well as the termination of one-time expenses.
Licensing Revenues
The precise number of individuals that will ultimately receive a State license under the bill
is unknown; based on previous estimates, it is likely to be several thousand individuals, at
a minimum. Because most master electricians already have a State license, new licensees
are assumed to be primarily in the journeyperson and apprentice categories.
This estimate assumes that (1) MDL establishes fees to approximate the additional
implementation costs under the bill, based on anticipated licensure activity at the time of
implementation and (2) there is sufficient licensure activity, as the industry comes into
compliance, to create a generally stable annual revenue stream. Accordingly, special fund
revenues increase by about $85,300 in fiscal 2022 and by about $71,900 to $79,400
annually thereafter, which generally assumes that initial licensure fees are higher than
renewal licensure fees. Actual revenues may vary from this estimate, depending on the
number and timing of licenses issued, and the associated fees.
General Fund Reversions
The State Board of Master Electricians is one of four boards at MDL that share the
Mechanical Boards’ Fund. At the end of each fiscal year, any unspent and unencumbered
portion of the special fund in excess of $100,000 (i.e., the operating surplus) reverts to the
general fund. For example, if the fund has $130,000 at the end of a fiscal year, then $30,000
reverts to the general fund. Therefore, to the extent that MDL over- or under-collects
special fund revenues in a particular year, relative to the bill’s implementation costs,
general fund revenues may increase or decrease; however, this analysis assumes that
additional fee revenues collected each year approximate the additional expenditures, as
required by statute, so it does not include any estimate of such effects on the general fund.
Local Fiscal Effect: Local governments that license master electricians (nearly all
counties), journeyperson electricians (five counties), and apprentices (at least a few
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counties, but the total is unknown) are affected by the bill’s phase-out of local licensing.
Many counties collect a moderate amount of revenue from licensing fees. However, local
governments may continue to issue or begin issuing local master, journeyperson, and
apprentice registrations, subject to relatively modest requirements. Local governments
also retain their existing ability to regulate electricians through a system of permits, fees,
and inspections. Relevant fees can be adjusted as necessary to offset any costs associated
with the bill. Therefore, the bill likely has a minimal overall effect on local government
finances and operations.
Small Business Effect: Generally, master electricians must have licenses issued in each
local jurisdiction to provide electrical services in that jurisdiction. MDL advises that some
licensees carry as many as 22 different licenses in order to be able to work statewide.
Although the State passport license is available, it only expedites reciprocity; an individual
must still obtain the license in each local jurisdiction to work – and pay the licensing fee
and meet continuing education requirements. Potentially establishing a single license
removes a significant portion of the administrative time and expense necessary to comply
with existing local licensing laws. However, the benefit to an individual is lessened by the
likely transition to a local registration system, which may ultimately have similar overall
requirements.
The bill also requires at least one licensed master electrician or journeyperson electrician
to be present or at each job site where electrical services are provided. Depending on the
existing practices of a particular business, this may be a significant requirement and
increase operating costs. For example, the residential solar panel installation industry has
expressed concerns that this requirement may increase the cost of solar panel installations.
Currently, licensed master electricians are typically not on site during such installations. It
is assumed that any such increase in costs is passed on to consumers.
Additional Comments: Chapter 591 of 2020 required MDL to convene a workgroup to
study issues regarding the licensing of electricians and the provision of electrical services
and low-voltage electrical services in the State. The workgroup’s final report can be found
on the DLS website.
Counsel to the General Assembly advises that the provision requiring a future
General Assembly to consider legislation proposed by the workgroup established by the
bill is not binding and, thus, is unenforceable. Further, as noted above, if the intent of the
provision is followed, a special session could be necessary. This analysis does not include
any costs associated with any such special session.
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Additional Information
Prior Introductions: Multiple similar bills have been introduced over the past decade,
but none has been enacted in a posture that is similar to the bill. Most recently, SB 994 of
2020, which was a similar bill as introduced, was amended into a workgroup to study
related licensing and regulatory issues and enacted as Chapter 591.
Designated Cross File: SB 762 (Senator McCray) - Education, Health, and
Environmental Affairs.
Information Source(s): Maryland Department of Labor; Garrett and Montgomery
counties; Maryland Municipal League; Department of Legislative Services
Fiscal Note History: First Reader - March 2, 2021
rh/mcr Third Reader - April 8, 2021
Revised - Amendment(s) - April 8, 2021
Analysis by: Stephen M. Ross Direct Inquiries to:
(410) 946-5510
(301) 970-5510
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Statutes affected: Text - First - Maryland Electricians Act - Revisions: 6-101 Business Occupations and Professions, 6-102 Business Occupations and Professions, 6-103 Business Occupations and Professions, 6-104 Business Occupations and Professions, 6-201 Business Occupations and Professions, 6-202 Business Occupations and Professions, 6-205 Business Occupations and Professions, 6-301 Business Occupations and Professions, 6-103 Business Occupations and Professions, 6-302 Business Occupations and Professions, 6-602 Business Occupations and Professions, 6-303 Business Occupations and Professions, 6-304 Business Occupations and Professions, 6-305 Business Occupations and Professions, 6-306 Business Occupations and Professions, 6-307 Business Occupations and Professions, 6-305 Business Occupations and Professions, 2-022 Business Occupations and Professions, 6-307.1 Business Occupations and Professions, 6-308 Business Occupations and Professions, 6-205 Business Occupations and Professions, 6-310 Business Occupations and Professions, 6-311 Business Occupations and Professions, 6-310 Business Occupations and Professions, 6-312 Business Occupations and Professions, 6-315 Business Occupations and Professions, 6-316 Business Occupations and Professions, 6-103 Business Occupations and Professions, 6-319 Business Occupations and Professions, 6-321 Business Occupations and Professions, 6-603 Business Occupations and Professions, 6-401 Business Occupations and Professions, 6-309 Business Occupations and Professions, 6-309 Business Occupations and Professions, 6-402 Business Occupations and Professions, 6-501 Business Occupations and Professions, 6-502 Business Occupations and Professions, 6-503 Business Occupations and Professions, 6-504 Business Occupations and Professions, 6-505 Business Occupations and Professions, 6-506 Business Occupations and Professions, 6-601 Business Occupations and Professions, 6-602 Business Occupations and Professions, 6-603 Business Occupations and Professions, 6-604 Business Occupations and Professions, 6-605 Business Occupations and Professions, 6-606 Business Occupations and Professions, 6-607 Business Occupations and Professions, 6-608 Business Occupations and Professions, 6-701 Business Occupations and Professions
Text - Third - Maryland Electricians Act - Revisions: 6-101 Business Occupations and Professions, 6-102 Business Occupations and Professions, 6-103 Business Occupations and Professions, 6-104 Business Occupations and Professions, 6-201 Business Occupations and Professions, 6-202 Business Occupations and Professions, 6-205 Business Occupations and Professions, 6-301 Business Occupations and Professions, 6-103 Business Occupations and Professions, 6-302 Business Occupations and Professions, 6-602 Business Occupations and Professions, 6-303 Business Occupations and Professions, 6-304 Business Occupations and Professions, 6-305 Business Occupations and Professions, 6-306 Business Occupations and Professions, 6-307 Business Occupations and Professions, 6-305 Business Occupations and Professions, 2-022 Business Occupations and Professions, 6-307.1 Business Occupations and Professions, 6-308 Business Occupations and Professions, 6-205 Business Occupations and Professions, 6-310 Business Occupations and Professions, 6-311 Business Occupations and Professions, 6-310 Business Occupations and Professions, 6-312 Business Occupations and Professions, 6-315 Business Occupations and Professions, 6-316 Business Occupations and Professions, 6-103 Business Occupations and Professions, 6-319 Business Occupations and Professions, 6-321 B