Bill Text: MI SB1012 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Occupations; construction; persons engaged in certain occupations related to residential building and contracting; revise exemptions from and requirements for licensure. Amends secs. 2403 & 2404b of 1980 PA 299 (MCL 339.2403 & 339.2404b). TIE BAR WITH: SB 1011'16
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2016-12-08 - Referred To Committee On Regulatory Reform [SB1012 Detail]
Download: Michigan-2015-SB1012-Engrossed.html
SB-1012, As Passed Senate, December 8, 2016
SUBSTITUTE FOR
SENATE BILL NO. 1012
A bill to amend 1980 PA 299, entitled
"Occupational code,"
by amending sections 2403 and 2404b (MCL 339.2403 and 339.2404b),
section 2403 as amended by 1984 PA 191 and section 2404b as amended
by 2014 PA 175.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2403. Notwithstanding article 6, a person may engage in
the business of or act in the capacity of a residential builder or
a residential maintenance and alteration contractor or salesperson
in this state without having a license, if the person is 1 of the
following:
(a) An authorized representative of the United States
government, this state, or a county, township, city, village, or
other political subdivision of this state.
(b)
An owner of property , with reference to engaged in
construction of a structure on the property for the owner's own use
and occupancy.
(c)
An owner of rental property , with reference to the
engaged in maintenance and alteration of that rental property.
(d)
An officer of a court acting within the terms scope of
the
officer's
that office.
(e) A person, other than the salesperson, who engages solely
in the business of performing work and services under contract with
a residential builder or a residential maintenance and alteration
contractor licensed under this article.
(f) A person working on 1 undertaking or project by 1 or more
contracts,
if the aggregate contract price for which the labor,
material,
and any other item is less than $600.00. This for the
undertaking or project is $4,000.00 or less. The exemption
described in this subdivision does not apply if the work of a
construction is only a part of a larger or major operation, whether
undertaken by the same or a different residential builder or
residential maintenance and alteration contractor, or in which a
division
of the operation is made in contracts of amounts less than
$600.00,
of $4,000.00 or less, to evade this act.
(g)
An electrical contractor who that
is licensed under Act
No.
217 of the Public Acts of 1956, as amended, being sections
338.881
to 338.892 of the Michigan Compiled Laws. This exemption
the electrical administrative act, 1956 PA 217, MCL 338.881 to
338.892. The exemption described in this subdivision applies only
to the electrical installation, electrical maintenance, or
electrical repair work performed by the electrical contractor.
(h)
A plumbing contractor that is licensed under Act No. 266
of
the Public Acts of 1929, as amended, being sections 338.901 to
338.917
of the Michigan Compiled Laws. This exemption the state
plumbing act, 2002 PA 733, MCL 338.3511 to 338.3569. The exemption
described in this subdivision applies only to plumbing
installation, plumbing maintenance, or plumbing repair work
performed by the plumbing contractor.
(i)
A mechanical contractor who that
is licensed under the
mechanical
contractors act. This exemption Forbes
mechanical
contractors act, 1984 PA 192, MCL 338.971 to 338.988. The exemption
described in this subdivision applies only to mechanical
installation, mechanical maintenance, or mechanical repair work
performed by the mechanical contractor.
Sec. 2404b. (1) Beginning June 1, 2008, an applicant for
initial licensure either as a residential builder or as a
residential maintenance and alteration contractor must successfully
complete the prelicensure course of study requirements under this
subsection to obtain a license unless he or she is exempt from
those requirements under this section. All of the following apply
for purposes of this subsection:
(a) If an individual who holds a residential builder or a
residential maintenance and alteration contractor license, or an
individual who held a license as a qualifying officer of a licensed
residential builder or residential maintenance and alteration
contractor, on June 1, 2008 is renewing a license, he or she is
exempt from the requirement of successfully completing prelicensure
courses described in this subsection.
(b) If an individual is applying for a license or relicensure
as a residential builder or residential maintenance and alteration
contractor, he or she is exempt from the requirement of
successfully completing prelicensure courses described in this
subsection if all of the following are met:
(i) His or her application is submitted before the expiration
of
the 18-month period beginning on the effective date of the
amendatory
act that added this subdivision. September
16, 2014.
This subdivision does not apply to applications that are submitted
after that 18-month period.
(ii) He or she held an individual license as a residential
builder or residential maintenance and alteration contractor, or
held a license as a qualifying officer of a licensed residential
builder or residential maintenance and alteration contractor, at
any time within the 9-year period preceding his or her application.
(c) Unless he or she is exempt under subdivision (a) or (b),
an applicant for an initial license as a residential builder shall
not receive an initial license under this act unless he or she
successfully completed 60 hours of approved prelicensure courses
that include at least 6 hours of courses in each of the following
areas of competency:
(i) Business management, estimating, and job costing.
(ii) Design and building science.
(iii) Contracts, liability, and risk management.
(iv) Marketing and sales.
(v) Project management and scheduling.
(vi) The current Michigan residential code.
(vii) Construction safety standards promulgated under the
Michigan occupational safety and health act, 1974 PA 154, MCL
408.1001 to 408.1094.
(d) Unless he or she is exempt under subdivision (a) or (b),
an applicant for an initial license as a residential maintenance
and alteration contractor that is applicable to 1 or more crafts or
trades shall not receive an initial license under this act unless
he or she successfully completed 5 hours of prelicensure courses
that are pertinent to each of those crafts or trades.
(2) All of the following apply to an individual license under
this article, as applicable:
(a) Subject to subdivision (b), if the individual licensee
obtained his or her initial license as a residential builder or a
residential maintenance and alteration contractor on or after
January 1, 2009, he or she must successfully complete at least 21
hours of activities that demonstrate continuing competence in each
3-year license cycle, including both of the following:
(i) At least 3 hours of activities that demonstrate continuing
competency in each calendar year, during the first 6 calendar years
of licensure.
(ii) At least 3 hours of activities designed to develop a
licensee's understanding and ability to apply state building codes
and laws relating to the licensed occupation, safety, and changes
in construction and business management laws.
(b) If an individual licensee described in subdivision (a) was
exempt from the prelicensure course requirements of subsection (1)
under subsection (1)(b) when he or she obtained his or her initial
license as a residential builder or residential maintenance and
alteration contractor, the hours of activities that he or she must
complete in the first year of his or her first 3-year license cycle
under subdivision (a) must include successful completion of at
least 1 hour of codes, 1 hour of safety, and 1 hour of legal issues
described in this subsection.
(c) If the licensee was initially licensed as a licensed
residential builder or residential maintenance and alteration
contractor, or held a license as a qualifying officer of a licensed
residential builder or residential maintenance and alteration
contractor, before January 1, 2009, he or she has held a license
for not more than two 3-year license cycles, and the department has
not taken disciplinary action against him or her for a violation of
this act or a rule promulgated under this act, he or she must
successfully complete at least 3 hours of activities that
demonstrate continuing competency in each 3-year license cycle that
includes at least 1 hour of codes, 1 hour of safety, and 1 hour of
legal issues described in this subsection.
(d) If the licensee has held a license for more than two 3-
year license cycles, and the department has not taken disciplinary
action against him or her for a violation of this act or a rule
promulgated under this act, he or she must successfully complete at
least 3 hours of activities demonstrating continuing competency in
each license cycle that includes 1 hour of codes, 1 hour of safety,
and 1 hour of legal issues as described in this subsection.
(3) In addition to the requirements of subsection (2), if the
department has taken disciplinary action against a licensee for a
violation of this act or a rule promulgated under this act, the
licensee must successfully complete, during the next complete
license cycle, at least 3 and not more than 21 hours of activities
that demonstrate the development of continuing competency during
that next license cycle as determined appropriate by order of the
department. At least 3 hours of the continuing competency must
include 1 hour of codes, 1 hour of safety, and 1 hour of legal
issues as described in subsection (2).
(4) Any construction code update courses approved by the
bureau of construction codes and any fire safety or workplace
safety courses approved or sponsored by the department are also
considered appropriate for fulfilling the continuing competency
requirements of this section. The department may, by rule, amend,
supplement, update, substitute, or determine equivalency regarding
any courses or alternate activities for developing continuing
competency described in this section.
(5) The subject matter of the prelicensure and continuing
competency activities required under this section may be offered by
a high school, an intermediate school district, a community
college, a university, the bureau of construction codes, the
Michigan occupational safety and health administration, a trade
association, or any other proprietary school that is licensed by
the department.
(6) The department shall promulgate rules to provide for the
following:
(a)
Requirements, other than those listed described in
subsection (4), for determining that a course meets the minimum
criteria for developing and maintaining continuing competency.
(b) Requirements for acceptable courses offered at seminars
and conventions by trade associations, research institutes, risk
management entities, manufacturers, suppliers, governmental
agencies
other than those named described
in subsection (4),
consulting agencies, or other entities.
(c) Acceptable distance learning.
(d) Alternate forms of continuing competency, including
comprehensive testing, participation in mentoring programs,
research, participation in code hearings conducted by the
international
code council, International
Code Council or code
committees and hearings conducted by this state, and publication of
articles in trade journals or regional magazines as an expert in
the field. The alternate forms shall be designed to maintain and
improve the licensee's ability to perform the occupation with
competence and shall prescribe proofs that are necessary to
demonstrate that the licensee has fulfilled the requirements of
continuing competency.
(7) Each licensee may select approved courses in his or her
subject matter area or specialty. A licensee's service as a
lecturer or discussion leader in an approved course shall count
toward his or her continuing competency requirements under this
section. Alternate forms of continuing competency may be earned and
documented as promulgated in rules by the department.
(8) The department may audit a predetermined percentage of
licensees who renew in a year for compliance with the requirements
of this section. Failure to comply with the audit or the
requirements shall result in the investigation of a complaint
initiated by the department, and the licensee is subject to the
penalties prescribed in this act.
(9)
Before the effective date of the amendatory act that added
subsection
(10), September 16, 2014, a licensed residential builder
or residential alteration and maintenance contractor may apply for
inactive status by completing an application, made available by the
department, in which he or she declares that he or she is no longer
actively engaged in the practice authorized by his or her license
and temporarily intends to suspend activity authorized by his or
her license. If a completed application is submitted, the
department shall designate the licensee as inactive and note that
status on records available to the public. A licensee who is
designated as inactive must have a current copy of the Michigan
residential code and is exempt from the continuing competency
requirements imposed under this section, but must still pay the
per-year license fee. An inactive licensee may activate his or her
license by submitting an application to the department requesting
activation of the license. If the department activates an inactive
license, the licensee must complete at least 1 credit hour of
activities that demonstrate continuing competency for that calendar
year.
(10) An individual licensee who applied for and was designated
inactive
under subsection (9) before the effective date of this
subsection
September 16, 2014 may remain in inactive status after
that effective date by complying with the requirements of
subsection
(9). A licensee who remains in inactive status after the
effective
date of this subsection on or
after September 16, 2014 is
exempt from the continuing competency requirements of this section
while he or she remains in inactive status. A licensee may activate
his or her license by submitting an application to the department
requesting activation of the license. If his or her license is
activated, the licensee must complete at least 1 credit hour of
activities that demonstrate continuing competency for that calendar
year.
(11) Subject to subsection (13), an applicant for initial
licensure as a residential builder or residential maintenance and
alteration contractor is exempt from the requirements of subsection
(1) if he or she meets all of the following:
(a) Served in the armed forces.
(b) While serving in the armed forces, was engaged in the
erection, construction, replacement, repair, alteration, or
demolition of buildings or other structures.
(c) Was separated from service in the armed forces, and
provides to the department a form DD214, form DD215, or any other
form that is satisfactory to the department that demonstrates that
he or she was separated from that service, with an honorable
character of service or under honorable conditions (general)
character of service.
(d) Has, and provides with his or her application an affidavit
signed by a commanding officer, supervisor, or military superior
with direct knowledge of the applicant's service that he or she
has, entry-level experience in or basic knowledge of each of the
areas
of competency described in subsection (1)(a) to (g).(1)(c)(i)
to (vii).
(12) If an applicant who otherwise meets the requirements of
subsection (11) does not have entry-level experience in or basic
knowledge of each of the areas of competency described in
subsection
(1)(a) to (g), (1)(c)(i) to (vii), he
or she may provide
with his or her application an affidavit signed by a commanding
officer, supervisor, or military superior with direct knowledge of
the applicant's service that states in which of those areas of
competency the applicant has entry-level experience or basic
knowledge, and the department may in its discretion grant the
applicant credit toward the 60-hour prelicensure education
requirement of subsection (1) based on that experience or
knowledge.
(13) If an applicant for initial licensure as a residential
builder or residential maintenance and alteration contractor
described in subsection (11) does not pass the examination for that
license the first time he or she takes the examination, that
applicant may not retake the examination until he or she
successfully completes a prelicensure course of study described in
subsection (1).
(14)
As used in the this section, "armed forces" means that
term as defined in section 2 of the veteran right to employment
services act, 1994 PA 39, MCL 35.1092.
(15) As used in this section and section 2404, "Michigan
residential code" means the Michigan residential code promulgated
by the director under section 4 of the Stille-DeRossett-Hale single
state construction code act, 1972 PA 230, MCL 125.1504.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No. 1011 of the 98th Legislature is enacted into
law.