September 11, 2008, Introduced by Senators PRUSI, WHITMER, CHERRY, BRATER and OLSHOVE and referred to the Committee on Economic Development and Regulatory Reform.
A bill to regulate certain activities involving fire sprinkler
and fire suppression systems; to establish certain licensing and
endorsement standards; to provide for certain powers and duties for
certain state agencies; to create certain boards; to create a fund
for certain purposes and to impose certain fees; and to provide for
certain penalties and remedies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the "fire
sprinkler regulatory act".
Sec. 3. As used in this act:
(a) "Apprentice" means a person who is working in a training
capacity to service or install special agent fire suppression
systems or fire extinguishing systems and who is studying in
accordance with a program approved by the bureau.
(b) "Apprentice fire sprinkler fitter permit" means a permit
issued to an apprentice sprinkler fitter.
(c) "Board" means the Michigan fire sprinkler board.
(d) "Bureau" means the bureau of fire services within the
department.
(e) "Contractor" means a person holding a Michigan fire
sprinkler contractor license.
(f) "Department" means the department of labor and economic
growth.
(g) "Endorsement" means a document, issued by the bureau, to
an individual who has met qualifications that authorizes the
individual to service or install fire alarm systems, special agent
fire suppression systems, or fire extinguishing systems.
(h) "Fire extinguishing system" means a fire sprinkler system
designed in accordance with nationally recognized standards that
consists of an assembly of piping or conduits that conveys water,
foam, or air with or without agents to dispersal openings or
devices to extinguish, control, or contain fire and that provides
protection from exposure to fire or the products of combustion.
Fire extinguishing system includes underground and overhead piping,
ponds, tanks, pumps, extra or special hazard applications, and
other related components or devices necessary for water supplies.
(i) "Fire sprinkler fitter" means an individual who works on
fire suppression systems.
(j) "Fund" means the fire sprinkler fitter fund created in
section 9.
(k) "Inspection" means the periodic examination of premises,
equipment, or procedures, or of a licensed or endorsed person or
entity, to determine whether the person's or entity's business or
profession is being conducted in a manner consistent with the
public health, safety, and welfare. Inspection includes the
inquiry, analysis, audit, or other pursuit of information, with
respect to a written complaint or other information before the
bureau, that is carried out for the purpose of assisting the bureau
in determining any of the following:
(i) Whether a person has violated a provision of law justifying
discipline against the person.
(ii) Whether a license should be granted or denied.
(iii) Whether the bureau should seek an injunction against
unlicensed practice.
(l) "Install" means the technical work that may be performed
only by an endorsed individual or an apprentice in the assembly of
a special agent fire suppression system or fire extinguishing
system but does not include the delivery of supplies or the off-
site cutting or threading of pipe. Install includes the following
tasks relative to the assembly of a special agent fire suppression
system or fire extinguishing system:
(i) Inspection of jobsites to determine the presence of
obstructions and to ascertain that holes will not cause structural
weaknesses.
(ii) A determination of the course or plan of installation.
(iii) Jobsite assembly and installation of metal or nonmetal
pipe fittings including, but not limited to, fittings made of
brass, copper, lead, glass, and plastic.
(iv) The joining of piping by any means, including pipes joined
by threaded, caulked, wiped, soldered, brazed, fused, or cemented
joints.
(v) The securing of a pipe to the structure by any means
including, but not limited to, clamps, brackets, hangers, and
welds.
(vi) The testing of the installed system for mechanical
malfunctions.
(m) "Journey fire sprinkler license" means a license issued to
a journey sprinkler fitter.
(n) "License" means the document issued by the bureau that
authorizes a person or entity to engage in the business of
servicing or installing special agent fire suppression systems or
fire extinguishing systems.
(o) "Registered fire sprinkler fitter apprenticeship program"
means a 5-year program of apprenticeship training with the United
States department of labor or a state apprentice council involving
at least 8,500 hours of documented practical experience in the
installation of fire protection equipment and at least 850 hours of
classroom, shop, or related instruction in the fire protection
trade.
(p) "Service", when referring to fire suppression systems,
means the maintenance and testing required to keep the protective
signaling, extinguishing, and suppression system and its component
parts in an operative condition at all times together with
replacement of the system, or its component parts, with listed or
approved parts when for any reason they become undependable,
defective, or inoperative.
(q) "Special agent fire suppression system" means an approved
system and components that require individual engineering in
accordance with manufacturer specifications and includes dry
chemical, carbon dioxide, halogenated, gaseous agent, foam, and wet
chemical systems. Special agent fire suppression system includes a
preengineered system but does not include a fire extinguishing
system.
Sec. 5. (1) An individual shall not engage in the business of
installing special agent fire suppression systems or fire
extinguishing systems unless holding a license issued by the
department in the appropriate endorsement.
(2) An individual shall obtain an endorsement for the
following services:
(a) Special agent fire suppression systems.
(b) Fire extinguishing systems.
(3) The license and any endorsement must be prominently
displayed at the business premises, and copies must be carried by
the person conducting each installation or servicing and must be
shown to anyone who requests to see the documents.
(4) The bureau shall enforce this act and may conduct
inspections regarding activities regulated under this act.
Sec. 7. (1) An application for a license and any endorsements
shall be made on a form prescribed by the bureau and accompanied by
the appropriate fee. The department shall issue a license only to
an individual. The department shall delineate licensure classes for
contractors, journey, and apprentice levels by rule promulgated
under the administrative procedures act of 1969, 1969 PA 306, MCL
24.201 to 24.328.
(2) The bureau shall issue a license and endorsement to an
applicant who submits a completed application, accompanied by the
appropriate fee, as well as satisfactory proof that the applicant
is insured to engage in the business covered by the license and any
endorsements.
(3) The department shall issue a license and endorsement for 3
years and shall issue a 1-year or 2-year license for an application
submitted after the due date for licenses and endorsements in the
particular license cycle. Licenses and endorsements shall be issued
on October 1 of each 3-year license cycle.
Sec. 9. (1) The fire sprinkler fitter fund is created as a
revolving fund in the state treasury. The state treasurer shall be
the custodian of the fund and may invest the money in the fund and
any surplus of the fund in investments as are in the best interests
of the fund. The department is considered the administrator of the
fund for purposes of auditing. Money in the fund at the close of
each fiscal year shall remain in the fund and shall not lapse to
the general fund. The state fire marshal shall supervise and
administer the fund. Fees received by the bureau and money
collected under this act shall be deposited in the fund and shall
be appropriated by the legislature for administration and
enforcement of this act and the operation of the bureau, including
indirect overhead expenses. The state treasurer shall notify the
state fire marshal and the legislature of interest credited and the
balance of the fund as of September 30 of each year.
(2) The department shall charge an application fee of $20.00,
a 3-year license fee of $150.00, and a 3-year fee of $40.00 for
each endorsement.
(3) Beginning 5 years after the effective date of this act,
the state fire marshal, after notifying the chairperson of the
senate and house appropriations committee of his or her intent to
establish the fees after approval of the board, and following a
public hearing held by the board, shall establish reasonable fees
to be charged by the bureau for issuance of certificates of
acceptability, testing, and evaluation.
(4) Within 30 days after the setting of fees under subsection
(3), the state fire marshal shall report to the legislature
regarding the following:
(a) The factors considered in the fee changes, including, but
not limited to, the increase in the nature and cost of the services
and the presence, absence, or change of any state or federal
mandates related to the services.
(b) Specific cost increases, if any, related to specific
services and the method of determining that increased cost.
(c) The individuals with direct knowledge of the fee changes
who are available to answer questions regarding those changes.
Sec. 11. (1) There is created a Michigan fire sprinkler board
within the department. The board shall consist of 9 members
appointed by the governor with the advice and consent of the
senate.
(2) Except as otherwise provided for in this section, the
board shall have not less than 5 members who are licensed under
this act. The terms of the board members is 3 years, except that
the initial board shall have 3 members appointed for 1 year, 3
members appointed for 2 years, and 3 members appointed for 3 years.
In the case of the initial board and in order to retain their
membership, the 5 licensed members shall become licensed under this
act within 12 months after the appointment of the board.
(3) The board shall advise the department and the bureau on
matters of qualifications, examinations, standards of practice, and
disciplinary actions against licensees.
Sec. 13. (1) An individual seeking licensure shall meet the
following qualifications and testing standards:
(a) Completion of a bona fide government-registered fire
sprinkler fitter apprenticeship program that establishes specified
minimum requirements for on-the-job training and classroom and shop
instruction and is approved by the board and the bureau.
(b) Passage of a test acceptable to the board.
(2) Beginning the effective date of this act and until the
expiration of 12 months after the effective date, the department
shall issue a license and appropriate endorsement, without meeting
the training, education, and examination requirements imposed in
this act, to an individual meeting standards determined by the
bureau.
Sec. 15. The following individuals are exempt from the
licensing requirements imposed by this act:
(a) Individuals who engage only in the routine visual
inspection of fire alarm systems, special agent fire suppression
systems, or fire extinguishing systems owned by the person or
entity and installed on property under their control.
(b) An individual engaging in activity under any other license
that may be similar to activities regulated by this act.
Sec. 17. (1) Beginning the license cycle after the initial
license and endorsement and as a condition of renewal, an endorsee
shall obtain a minimum of 24 hours of continuing education per
license cycle and submit copies of continuing education
certificates with the application for renewal.
(2) The following continuing education programs may be
preapproved by the bureau for continuing education credit:
(a) Workshops, seminars, and educational conferences sponsored
by fire protection equipment manufacturers or trade associations.
(b) Courses in specialized programs approved or sponsored by
the bureau.
(c) Distance learning, video, or correspondence course work
approved by the bureau.
(e) Any continuing education which has been obtained in
another state that meets the continuing education standards imposed
in this state and is approved by the bureau.
(f) College or vocational school course work, approved by the
bureau, which is germane to the profession and contributes directly
to the professional competence of the endorsed individual, subject
to the following limitations:
(i) The endorsed individual must pass the course.
(ii) One semester credit shall equal 15 hours of continuing
education, and 1/4 credit shall equal 10 hours of continuing
education.
Sec. 19. (1) All work performed by an apprentice must be
subject to direct and task-specific instruction and supervision of
an endorsed individual.
(2) The bureau shall approve an apprenticeship program of a
licensee that is approved by any state that the bureau determines
to meet the requirements of the national apprenticeship act, 29 USC
50, and CFR sections 29.1-29.13.
(3) Once an apprenticeship program has been approved, the
licensee shall provide the bureau with a list of all apprentices
performing work for the licensee and the name of the endorsed
individual under whom each apprentice will be working. The licensee
shall provide the bureau with updates of such list no later than 30
days after any addition or subtraction of an apprentice from its
program.
Sec. 21. An individual holding a license or endorsement under
this act shall submit an application for renewal, accompanied by
the appropriate license and endorsement fee.
Sec. 23. (1) As a condition to the issuance of a license, the
licensee shall obtain and maintain in full force, and file with the
bureau, a full-term commercial general liability insurance policy
from an insurance company authorized to do business in this state
and submit verification of worker's compensation insurance.
(2) As a condition to the issuance of a license, an individual
engaging in the business of servicing fire extinguishers shall
obtain and maintain commercial general liability insurance with a
minimum limit per occurrence of $500,000.00 that includes
premises/operations and products/completed operations coverage.
(3) As a condition to the issuance of a license, an individual
engaging in the business of selling, servicing, or installing fire
alarm systems, special agent fire suppression systems, or fire
extinguisher systems shall obtain and maintain commercial general
liability insurance with a minimum limit per occurrence of
$1,000,000.00 that includes premises/operations and
products/completed operations coverage.
(4) Failure to maintain liability insurance required under
this section constitutes grounds for denial, suspension, or
revocation of a license.
(5) The department may revoke, suspend, or deny a license or
endorsement under this act after notice and an opportunity for a
hearing under the administrative procedures act of 1969, 1969 PA
306, MCL 24.201 to 24.328.
(6) In a hearing conducted under subsection (5) and in lieu of
a revocation, suspension, or denial of a license or endorsement,
the department may impose an administrative fine not to exceed
$500.00 or issue an order containing any conditions or limitations
to the licensed or endorsed activity.
(7) This section does not prohibit the department or bureau
and any applicant, licensee, or endorsee from informally settling
any controversy before or after the filing of an administrative
complaint.
Sec. 25. A person engaged in activity regulated by this act
without a license and appropriate endorsement and without being
exempt from licensure under this act is guilty of a misdemeanor.
Sec. 27. The director of the department may promulgate rules
under the administrative procedures act of 1969, 1969 PA 306, MCL
24.201 to 24.328, for the purpose of administering and enforcing
this act.