HOUSE BILL No. 5284

 

February 6, 2014, Introduced by Rep. Lane and referred to the Committee on Regulatory Reform.

 

     A bill to amend 1980 PA 299, entitled

 

"Occupational code,"

 

by amending sections 2404 and 2405 (MCL 339.2404 and 339.2405),

 

section 2404 as amended by 2010 PA 151 and section 2405 as amended

 

by 2007 PA 157, and by adding section 2404c.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2404. (1) The Except as provided in section 2404c, the

 

department may require an applicant, a licensee, or each partner,

 

trustee, director, officer, member, or shareholder of an applicant

 

or licensee to submit evidence of good moral character , and or

 

evidence of financial stability. Before the issuance of department

 

issues a license, an applicant shall submit a copy of an his or her

 

operator's license or state personal identification card , to be

 

used by the department. The department may use the license or card

 

only for proof of identity of the applicant.


 

     (2) The Except as provided in section 2404c, the department

 

shall require that an applicant for a license to under this article

 

pass an examination establishing that establishes that the

 

applicant has a fair knowledge of the obligations of a residential

 

builder or residential maintenance and alteration contractor to the

 

public and the applicant's principal, and the statutes relating to

 

the applicant's licensure.

 

     (3) The Except as provided in section 2404c, the department ,

 

upon application, may issue a residential maintenance and

 

alteration contractor's license to an applicant who, upon

 

examination, an individual who applies for the license and who

 

qualifies for a the license , which by passing the examination. A

 

license authorizes the licensee, according to the applicant's

 

qualifications, crafts, and trades, to engage in the activities of

 

a residential maintenance and alteration contractor. A license

 

includes the following crafts and trades: carpentry; concrete;

 

swimming pool installation; waterproofing a basement; excavation;

 

insulation work; masonry work; painting and decorating; roofing;

 

siding and gutters; screen or storm sash installation; tile and

 

marble work; and or house wrecking. The A license shall specify the

 

particular craft or trade for which the licensee has is qualified.

 

This subsection does not prohibit a specialty contractor from

 

taking and executing a contract involving the use of 2 performance

 

of the contractor's licensed craft or trade and 1 or more other

 

crafts or trades if the performance of the work in the other craft

 

or trade other than the craft for which the person is licensed is

 

incidental and supplemental to the performance of work in the craft


 

or trade for which the specialty contractor is licensed.

 

     (4) A residential builder or residential maintenance and

 

alteration contractor shall maintain a place of business in this

 

state. If a residential builder or residential maintenance and

 

alteration contractor maintains more than 1 place of business

 

within in this state, the department shall issue a branch office

 

license shall be issued to the builder or contractor for each place

 

of business so maintained by the builder or contractor.

 

     (5) Beginning the license cycle after December 21, 2007, the

 

The department shall issue the license of a residential builder and

 

residential maintenance and alteration contractor for a period of 3

 

years in duration. Beginning December 21, 2007, an

 

     (6) An applicant for renewal of a residential builder or

 

maintenance and alteration contractor license shall state to the

 

department that he or she has a current copy of the Michigan

 

residential code and has fulfilled meets the appropriate

 

requirements regarding continuing competency described in this

 

article or rules promulgated under this article.

 

     (7) (6) Beginning December 21, 2007, a A licensee shall

 

maintain documentation, for at least 5 years, of activities meeting

 

that meet the continuing competency requirements as prescribed

 

under this article.

 

     Sec. 2404c. All of the following apply to an individual

 

described in section 2404b(1)(b) who is applying for a license or

 

relicensure as a residential builder or residential maintenance and

 

alteration contractor:

 

     (a) The board in its sole discretion shall determine whether


 

the applicant should receive a license under this article and what

 

requirements described in section 2404 the applicant must meet to

 

qualify for that license.

 

     (b) If directed by the board, the department shall issue a

 

license to the applicant.

 

     (c) For purposes of the board's determination under

 

subdivision (a), the department shall provide to the board all of

 

the information it required the applicant to submit under section

 

2404(1).

 

     (d) In making its determination under subdivision (a), the

 

board shall consider the information it receives under subdivision

 

(c) concerning the good moral character or financial stability of

 

the applicant and other persons described in section 2404(1), shall

 

determine whether the applicant is required to pass an examination

 

under section 2404(2) or (3) or 2405(1), and may require that the

 

applicant meet other requirements to qualify for a license.

 

     (e) If section 411(3), (4), or (5) applies to the applicant,

 

the board, not the department, shall determine whether the

 

applicant is eligible for relicensure or license reinstatement.

 

     Sec. 2405. (1) If a license is applied for by Subject to

 

section 2404c, if a corporation, partnership, association, limited

 

liability company, or other entity applies for a license, the

 

applicant shall designate 1 of its officers, partners, or members ,

 

or its managing agent as a qualifying officer. who, upon taking and

 

passing the examination, and upon meeting all A qualifying officer

 

who takes and passes the examination and meets any other

 

requirements of this article , is entitled to a license to act for


 

the corporation, partnership, association, limited liability

 

company, or other entity. The A qualifying officer shall also

 

obtain and maintain a license under this article as an individual.

 

The A qualifying officer shall be is responsible for exercising the

 

supervision or control of the building or construction operations

 

necessary to secure full compliance with this article and the rules

 

promulgated under this article. A The department shall not issue a

 

license shall not be issued to a corporation, partnership,

 

association, limited liability company, or other entity unless each

 

partner, trustee, director, officer, or member, and a each person

 

exercising that exercises control over the entity, is at least 18

 

years of age , and meets the requirements for a license under this

 

article other than those relating to knowledge and experience. If

 

an individual licensee is also a qualifying officer, the department

 

shall include the individual's name and license number shall be

 

listed on any license issued to the individual as a qualifying

 

officer. In the case of If the department issues a license issued

 

under this subsection , each to an officer, partner, member, or

 

managing agent, whether or not he or she is the qualifying officer,

 

that individual shall provide a copy of his or her operator's

 

license or state personal identification card to the department.

 

for use by the The department shall use the license or card only

 

for identification purposes. A licensee granted inactive status

 

under section 2404b is not eligible to serve as a qualifying

 

officer.

 

     (2) The license of a corporation, partnership, association,

 

limited liability company, or other entity shall be is suspended


 

when a license or license application of a qualifying officer,

 

partner, trustee, director, officer, or member, or a person

 

exercising that exercises control of the corporation, partnership,

 

association, limited liability company, or other entity, is

 

suspended, revoked, or denied. The suspension shall remain in force

 

until the board determines that the disability created by the

 

suspension, revocation, or denial has been is removed.

 

     (3) A suspension, revocation, or denial of a license of an

 

individual shall suspend, revoke, or deny any other license held or

 

applied for by that individual issued under this article. A

 

suspension, revocation, or denial of a license by the department

 

shall suspend, revoke, or deny any other license held or applied

 

for under this article by the qualifying officer If an individual's

 

license under this article is suspended, revoked, or denied by the

 

board, any other license issued or applied for under this article

 

is suspended, revoked, or denied. If the license of a corporation,

 

partnership, association, limited liability company, or other

 

entity whose license is suspended, revoked, or denied, any other

 

license issued to or applied for by the qualifying officer of that

 

entity is suspended, revoked, or denied.

 

     (4) If the qualifying officer of a licensee ceases to be its

 

qualifying officer, the license is suspended. However, upon on

 

request, the department may permit the license to remain in force

 

for a reasonable time to permit the qualification of a new

 

qualifying officer.

 

     Enacting section 1. This amendatory act does not take effect

 

unless House Bill No. 4582 of the 97th Legislature is enacted into


 

law.