HB-5894, As Passed Senate, July 6, 2004                                     

SUBSTITUTE FOR

HOUSE BILL NO. 5894

                                                                             A bill to amend 1984 PA 192, entitled                                             

"Forbes mechanical contractors act,"                                        

by amending sections 6 and 10 (MCL 338.976 and 338.980), section            

10 as amended by 1997 PA 119.                                               

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 6.  (1) Upon the filing of an application on a form                    

2   prescribed by the department and payment of the examination fee             

3   prescribed in section 10, the department shall conduct                      

4   examinations to establish the qualifications and competency of              

5   applicants seeking licensing for the category for which the                 

6   application is  made submitted and  , except as otherwise                  

7   provided,  shall issue licenses to those who pass the                       

8   examinations and pay the initial issuance fee, except as                    

9   otherwise provided for in this act.  An applicant who seeks                 

10  licensure in more than 1 work classification  as set forth

1   listed in subsection (3) on a single application shall only be              

2   required to pay 1 examination fee and 1 initial issuance fee as             

3   provided in section 10.  A person applying for a license under              

4   this act shall also pay the amount required to be paid under the            

5   construction lien act,  Act No. 497 of the Public Acts of 1980,             

6   being sections 570.1101 to 570.1305 of the Michigan Compiled                

7   Laws 1980 PA 497, MCL 570.1101 to 570.1305, which amount shall             

8   be paid to the department  of licensing and regulation  for                 

9   deposit in the homeowner construction lien recovery fund.  A                

10  person  shall is not  be  required to pay more than $50.00 in an           

11  assessment period under  the construction lien that act,  Act              

12  No. 497 of the Public Acts of 1980,  regardless of the number of            

13  licenses applied for or held.                                               

14      (2) An applicant  shall is not  be  considered eligible for                

15  examination unless the applicant is of good moral character, as             

16  defined in  Act No. 381 of the Public Acts of 1974, being                   

17  sections 338.41 to 338.47 of the Michigan Compiled Laws 1974 PA            

18  381, MCL 338.41 to 338.47, and has a minimum of 3 years of

19  experience  ,  or an equivalent of that experience  that is

20  acceptable to the board, upon proper showing to the department,             

21  in 1 or more of the work classifications  set forth listed in              

22  subsection (3).                                                             

23      (3) A contractor's license obtained  by licensure or                        

24  examination  shall be classified and limited as 1 or more of the            

25  following:                                                                  

26      (a) Hydronic heating and cooling and process piping.                        

27      (b) HVAC equipment.                                                         

1       (c) Ductwork.                                                               

2       (d) Refrigeration.                                                          

3       (e) Limited service, heating or refrigeration.                              

4       (f) Unlimited service, heating or refrigeration.                            

5       (g) Fire suppression.                                                       

6       (h) Specialty.                                                              

7       Sec. 10.  (1) The examination fee for a contractor's license                

8   is $25.00.  Except as otherwise provided in  subsection (2)

9   subsections (2) and (4), the initial and per-year fee for the               

10  issuance of a contractor's license is $75.00.                               

11      (2)  Beginning January 1, 1998, an An initial or renewal                   

12  contractor's license issued under this act expires on August 31             

13  , 2001.  Beginning January 1, 1998, the board shall charge a               

14  license fee of $200.00 for the years 1998 through 2000 as well as           

15  a pro rata license fee of $44.00 representing the time between              

16  January 1, 2001 and August 31, 2001.  The applicant's license               

17  expires  every third year after August 31, 2001 and is renewable            

18  not later than October 31 upon application and payment of the               

19  $200.00  license fee.   In the case of For a person applying              

20  for an initial or reinstatement contractor's license at a time              

21  other than between August 31 and October 31 of the year in which            

22  the department issues renewal licenses, the department shall                

23  compute and charge the license fee on a yearly pro rata basis               

24  beginning in the year of the application until the last year of             

25  the 3-year license cycle.  All licenses not renewed are void and            

26  may be reinstated only upon application for reinstatement and the           

27  payment of the license fee.  A person who renews his or her                 

1   license within 3 years after the license is voided pursuant to              

2   this section is not subject to reexamination for the license.               

3   (3) Beginning on the effective date of the amendatory act                   

4   that added subsection (5), the department shall issue an initial            

5   or renewal license not later than 90 days after the applicant               

6   files a completed application.  Receipt of the application is               

7   considered the date the application is received by any agency or            

8   department of the state of Michigan.  If the application is                 

9   considered incomplete by the department, the department shall               

10  notify the applicant in writing, or make the information                    

11  electronically available, within 30 days after receipt of the               

12  incomplete application, describing the deficiency and requesting            

13  the additional information.  The 90-day period is tolled upon               

14  notification by the department of a deficiency until the date the           

15  requested information is received by the department.  The                   

16  determination of the completeness of an application does not                

17  operate as an approval of the application for the license and               

18  does not confer eligibility of an applicant determined otherwise            

19  ineligible for issuance of a license.                                       

20      (4) If the department fails to issue or deny a license within               

21  the time required by this section, the department shall return              

22  the license fee and shall reduce the license fee for the                    

23  applicant's next renewal application, if any, by 15%.  The                  

24  failure to issue a license within the time required under this              

25  section does not allow the department to otherwise delay the                

26  processing of the application, and that application, upon                   

27  completion, shall be placed in sequence with other completed                

1   applications received at that same time.  The department shall              

2   not discriminate against an applicant in the processing of the              

3   application based upon the fact that the license fee was refunded           

4   or discounted under this subsection.                                        

5       (5) Beginning October 1, 2005, the director of the department               

6   shall submit a report by December 1 of each year to the standing            

7   committees and appropriations subcommittees of the senate and               

8   house of representatives concerned with occupational issues.  The           

9   director shall include all of the following information in the              

10  report concerning the preceding fiscal year:                                

11      (a) The number of initial and renewal applications the                      

12  department received and completed within the 90-day time period             

13  described in subsection (3).                                                

14      (b) The number of applications denied.                                      

15      (c) The number of applicants not issued a license within the                

16  90-day time period and the amount of money returned to licensees            

17  under subsection (4).                                                       

18      (6)  (3)  All fees and money received by the department for                 

19  the licensing of persons under this act, and any other income               

20  received under this act, shall be paid into the state                       

21  construction code fund created by section 22 of the                         

22  Stille-DeRossett-Hale single state construction code act,  of               

23  1972,  1972 PA 230, MCL 125.1522.                                           

24  (7)  (4)  The department shall annually submit to the members               

25  of the legislature a comprehensive report detailing the                     

26  expenditure of additional money resulting from the 1989                     

27  amendatory act that increased the fees contained in this                    

1   section.                                                                    

2   (8) As used in this section, "completed application" means an               

3   application complete on its face and submitted with any                     

4   applicable licensing fees as well as any other information,                 

5   records, approval, security, or similar item required by law or             

6   rule from a local unit of government, a federal agency, or a                

7   private entity but not from another department or agency of the             

8   state of Michigan.