HOUSE BILL No. 5832

February 17, 2010, Introduced by Rep. Durhal and referred to the Committee on Appropriations.

 

     A bill to amend 1984 PA 192, entitled

 

"Forbes mechanical contractors act,"

 

by amending sections 6, 11, and 16 (MCL 338.976, 338.981, and

 

338.986), section 6 as amended by 2004 PA 271 and section 11 as

 

amended by 1990 PA 5.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

prescribed by the department and payment of the examination fee

 

prescribed in section 10, the department shall conduct examinations

 

to establish the qualifications and competency of applicants

 

seeking licensing for the category for which the application is

 

submitted and shall issue licenses to those who pass the

 

examinations and pay the initial issuance fee, except as otherwise

 

provided for in this act. An applicant who seeks licensure in more

 


than 1 work classification listed in subsection (3) on a single

 

application shall only be required to pay 1 examination fee and 1

 

initial issuance fee as provided in section 10. A person applying

 

for a license under this act shall also pay the amount required to

 

be paid under the construction lien act, 1980 PA 497, MCL 570.1101

 

to 570.1305, which amount shall be paid to the department for

 

deposit in the homeowner construction lien recovery fund. A person

 

is not required to pay more than $50.00 in an assessment period

 

under that act, regardless of the number of licenses applied for or

 

held.

 

     (2) An applicant is not considered eligible for examination

 

unless the applicant is of good moral character, as defined in

 

section 1 of 1974 PA 381, MCL 338.41, to 338.47, and has a minimum

 

of 3 years of experience or an equivalent of that experience

 

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

 

1 or more of the work classifications listed in subsection (3).

 

     (3) A contractor's license obtained shall be classified and

 

limited as 1 or more of the following:

 

     (a) Hydronic heating and cooling and process piping.

 

     (b) HVAC equipment.

 

     (c) Ductwork.

 

     (d) Refrigeration.

 

     (e) Limited service, heating or refrigeration.

 

     (f) Unlimited service, heating or refrigeration.

 

     (g) Fire suppression.

 

     (h) Specialty.

 

     Sec. 11. (1) The department may investigate the activities of

 


a licensee related to the licensee's activities as a contractor.

 

The department may hold hearings, administer oaths, and order

 

relevant testimony to be taken and shall report its findings to the

 

board. The board shall proceed under section 16 if the board finds

 

that any of the following grounds exist:

 

     (a) The practice of fraud or deceit in obtaining a license

 

under this act.

 

     (b) The practice of fraud or deceit in the performance of work

 

for which a license is required under this act.

 

     (c) An act of gross negligence.

 

     (d) The practice of false advertising.

 

     (e) An act which that demonstrates incompetence.

 

     (f) A violation of this act or a rule promulgated under this

 

act.

 

     (2) The board, upon recommendation of the department, shall

 

suspend or revoke the license of any person whose failure to pay a

 

lien claimant results in a payment being made from the homeowner

 

construction lien recovery fund pursuant to the construction lien

 

act, Act No. 497 of the Public Acts of 1980, being sections

 

570.1101 to 570.1305 of the Michigan Compiled Laws. The license

 

shall not be renewed, nor shall a new license be issued until the

 

person whose license has been suspended or revoked under this

 

subsection has repaid in full to the fund the amount paid out plus

 

the costs of litigation and interest at the rate set by section

 

6013 of the revised judicature act of 1961, Act No. 236 of the

 

Public Acts of 1961, being section 600.6013 of the Michigan

 

Compiled Laws.

 


     (2) (3) The department shall conduct a review upon notice by

 

the department of public health that the licensee has violated the

 

asbestos abatement contractors licensing act, Act No. 135 of the

 

Public Acts of 1986, being sections 1986 PA 135, MCL 338.3101 to

 

338.3319, of the Michigan Compiled Laws, or sections 57 to 60f of

 

the Michigan occupational safety and health act, Act No. 154 of the

 

Public Acts of 1974, being sections 408.1057 to 408.1060f of the

 

Michigan Compiled Laws and may suspend or revoke that person's

 

license for a knowing violation of those acts that act.

 

     (3) (4) A revocation, suspension, or other sanction set forth

 

in subsection (3) (2) or section 16 shall be imposed only after a

 

hearing has been conducted pursuant to the administrative

 

procedures act of 1969, Act No. 306 of the Public Acts of 1969,

 

being sections 1969 PA 306, MCL 24.201 to 24.328. of the Michigan

 

Compiled Laws.

 

     (4) (5) The installation, alteration, or servicing of heating,

 

cooling, ventilating, or refrigerating equipment or systems shall

 

not be performed under a license that has been suspended, revoked,

 

or has expired. A license, other than a license issued under this

 

act, shall not be recognized for securing permits to install,

 

alter, or service heating, cooling, ventilating, or refrigerating

 

equipment or systems.

 

     Sec. 16. After finding the existence of 1 or more of the

 

grounds for board action described in section 11(1) and after an

 

opportunity for a hearing, the board , except as provided in

 

section 11(2), shall impose 1 or more of the following sanctions

 

for each violation:

 


     (a) Suspension of the license issued under this act.

 

     (b) Denial of the license required under this act.

 

     (c) Revocation of the license issued under this act.

 

     (d) A requirement that restitution be made.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 5830(request no.

 

04360'09 *) of the 95th Legislature is enacted into law.