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.

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