SENATE BILL No. 1123

 

 

October 18, 2016, Introduced by Senators SCHUITMAKER, HORN and KNOLLENBERG and referred to the Committee on Regulatory Reform.

 

 

     A bill to regulate the inspection, construction, installation,

 

alteration, maintenance, repair, and operation of elevators and the

 

licensing of elevator contractors, elevator journeymen, and

 

elevator inspectors; to prescribe the powers and duties of the

 

elevator safety board; to establish the powers and duties of

 

certain state and local governmental officers and entities; to

 

provide for the promulgation of rules; to provide for certain fees;

 

to provide for penalties and civil fines; and to repeal acts and

 

parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

                              ARTICLE 1

 

         SHORT TITLE, DEFINITIONS, AND EFFECTS OF FORMER ACTS

 

     Sec. 101. This act shall be known and may be cited as the

 


"elevator regulation act".

 

     Sec. 103. As used in this act:

 

     (a) "Administrative procedures act of 1969" means the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328.

 

     (b) "Board" means the elevator safety board.

 

     (c) "Board files" means the records, memoranda, opinions,

 

minutes, and similar written materials of the board.

 

     (d) "Censure" means an expression of disapproval of a

 

licensee's professional conduct, whether or not the conduct is a

 

violation of this act or a rule promulgated or an order issued

 

under this act.

 

     (e) "Competence" means a degree of expertise that enables an

 

individual to engage in an occupation at a level that meets or

 

exceeds minimal standards of acceptable practice for the

 

occupation.

 

     (f) "Complaint" means a written grievance.

 

     (g) "Completed application" means an application for

 

licensure, renewal of a license, relicensure, a certificate of

 

competency, or a certificate of operation under this act that is

 

complete on its face, is submitted to the department on a form

 

provided by the department, is signed by an individual who

 

certifies that the application is complete and accurate, and is

 

submitted with any applicable fees established by the department

 

under section 207 and with any other information, records,

 

approval, security, or similar item required by law or rule from a

 

local unit of government, a federal agency, or a private entity but


not from another department or agency of this state.

 

     (h) "Department" means the department of licensing and

 

regulatory affairs.

 

     (i) "Director" means the director of the department of

 

licensing and regulatory affairs or his or her authorized

 

representative.

 

     (j) "Disability" means an infirmity that prevents a board

 

member from performing a duty assigned to the board member.

 

     Sec. 105. As used in this act:

 

     (a) "Formal complaint" means a document that states the

 

charges of each alleged violation and is prepared by the department

 

or the department of attorney general after a complaint is received

 

by the department.

 

     (b) "General public" means each individual who resides in this

 

state and is 18 years of age or older, other than an individual or

 

the spouse of an individual who is licensed under this act or who

 

has a material financial interest in an occupation that is

 

regulated under this act.

 

     (c) "Incompetence" means a departure from, or a failure to

 

conform to, minimal standards of acceptable practice for an

 

occupation.

 

     (d) "Knowledge and skill" means the information, education,

 

practical experience, and the facility in applying that

 

information, education, and practical experience.

 

     (e) "License" includes the whole or part of a governmental

 

permit, certificate, approval, registration, charter, or similar

 

form of permission required under this act.


     (f) "Licensee" means an individual who is granted a license

 

under this act.

 

     (g) "Limitation" means a condition, stricture, constraint,

 

restriction, or probation attached to a license that relates to the

 

scope of practice of that occupation by the licensee. The term

 

includes, but is not limited to, any of the following:

 

     (i) A requirement that the licensee perform only specified

 

functions of the licensee's occupation.

 

     (ii) A requirement that the licensee perform the licensee's

 

occupation only for a specified period of time.

 

     (iii) A requirement that the licensee perform the licensee's

 

occupation only within a specified geographical area.

 

     (iv) A requirement that restitution be made or certain work be

 

performed before a license is issued or renewed or the licensee is

 

relicensed.

 

     (v) A requirement that a licensee file a financial statement

 

certified by an individual who is licensed as a certified public

 

accountant under article 7 of the occupational code, 1980 PA 299,

 

MCL 339.720 to 339.736, with the department at regular intervals.

 

     (vi) A requirement that reasonably assures a licensee's

 

competence to perform the licensee's occupation.

 

     (vii) A requirement that all contracts of a licensee are

 

reviewed by an attorney.

 

     (viii) A requirement that a licensee have on file with the

 

department a bond issued by a surety insurer that is approved by

 

the department or cash in an amount determined by the department.

 

     (ix) A requirement that a licensee deposit money received in


an escrow account from which money may be disbursed only under

 

certain conditions as determined by the licensee and another party.

 

     (x) A requirement that a licensee file reports with the

 

department at intervals determined by the department.

 

     Sec. 107. As used in this act:

 

     (a) "Occupation" means a field of endeavor regulated under

 

this act.

 

     (b) "Person" means an individual, sole proprietorship,

 

partnership, association, limited liability company, corporation,

 

common law trust, or a combination of those legal entities. Person

 

includes a department, board, school, institution, establishment,

 

or governmental entity.

 

     (c) "Probation" means a sanction that permits the board to

 

evaluate over a period of time a licensee's fitness to practice an

 

occupation regulated under this act.

 

     (d) "Public access" means the right of a person to view and

 

copy files under the freedom of information act, 1976 PA 442, MCL

 

15.231 to 15.246.

 

     (e) "Rule" means a rule authorized under this act and

 

promulgated under the administrative procedures act of 1969.

 

     Sec. 109. (1) An individual who holds a license on the day

 

immediately preceding the effective date of this act that was

 

issued under a former act is considered the holder of a license

 

under this act until that license expires. An individual who holds

 

a license described in this subsection may renew that license in

 

the manner described in this act.

 

     (2) An individual who holds an inspector's certificate of


competency on the day immediately preceding the effective date of

 

this act that was issued under former 1967 PA 227 is considered the

 

holder of a license as an elevator inspector under this act until

 

the expiration date of that certificate. An individual who holds a

 

certificate of competency described in this subsection may renew

 

that certificate in the manner described in this act for renewal of

 

an elevator inspector license.

 

     (3) A certificate of operation for an elevator issued under

 

former 1967 PA 227 and in effect on the day immediately preceding

 

the effective date of this act is considered a certificate of

 

operation issued under this act until that certificate of operation

 

expires. A person may renew a certificate of operation described in

 

this subsection in the manner described in this act.

 

     (4) The elevator safety board created in former 1967 PA 227 is

 

abolished. However, the members of the elevator safety board

 

created in former 1967 PA 227 shall serve as the initial members of

 

the elevator safety board under this act until the members of the

 

elevator safety board are appointed under this act or until the

 

expiration of their respective terms, whichever occurs first.

 

     (5) Rules that were promulgated by the department or by the

 

elevator safety board under a former act and were in effect on the

 

day immediately preceding the effective date of this act shall

 

continue in effect to the extent that they do not conflict with

 

this act. The rules shall be enforced by and may be amended or

 

rescinded by the department or the board under this act.

 

     (6) As used in this section, "former act" means former 1967 PA

 

227 or former 1976 PA 333.


                              ARTICLE 2

 

                          GENERAL PROVISIONS

 

     Sec. 201. (1) An individual shall apply for a license, renewal

 

of a license, relicensure, or a certificate of competency under

 

this act by submitting a completed application that includes the

 

appropriate fee or fees established under section 207.

 

     (2) Subject to the exceptions described in section 203, the

 

department shall grant a license to an individual who meets the

 

licensure requirements set forth in this act and in rules

 

promulgated under this act.

 

     (3) The department shall establish the expiration date of

 

licenses issued under this act by rule promulgated by the

 

department under section 207. However, the department shall not

 

issue, and the rules shall not permit the issuance of, a permanent

 

license.

 

     Sec. 202. An individual who holds a license or certificate of

 

competency under this act shall report to the department a change

 

of his or her name or address within 30 days after the change

 

occurs.

 

     Sec. 203. (1) The department may grant a license to an

 

individual under this act if the individual demonstrates to the

 

satisfaction of the department and the board, in the manner

 

required under article 5, that the licensure requirements do not

 

constitute a fair and adequate measure of the individual's

 

knowledge and skills or that an examination required for licensure

 

does not serve as an adequate basis for determining whether an

 

individual could perform an occupation with competence.


     (2) The department shall not grant and an individual shall not

 

receive a license under this act until the department receives the

 

individual's completed application, including the appropriate fee

 

or fees established by the department under section 207.

 

     (3) If the department does not grant a license under this

 

section, the department shall notify the applicant of the denial in

 

writing, and the applicant may appeal that decision to the board

 

under the administrative procedures act of 1969.

 

     (4) The department may grant a license under this act with a

 

limitation. If the department intends to impose a limitation on the

 

issuance of a license of an individual under this act, the

 

department shall notify the board of its intent, and the department

 

may impose the limitation only with the approval of the board.

 

However, if the board, within 60 days after it receives

 

notification by the department under this subsection, does not

 

approve or disapprove of the imposition of the limitation, the

 

department may impose the limitation. An individual who receives a

 

license with a limitation may receive a review of the limitation

 

under section 533.

 

     Sec. 205. (1) Unless otherwise provided in this act and

 

subject to the limitations set forth in this section, the

 

department shall renew the license of an individual who fulfills

 

all of the following requirements:

 

     (a) Has applied for renewal by submitting a completed

 

application for renewal, including the appropriate fee or fees

 

established under section 207. The completed application for

 

renewal, including the appropriate fee or fees, must be received by


the department on or before the date prescribed by the department

 

for the expiration of the current license.

 

     (b) Has met the renewal requirements set forth in this act, a

 

rule promulgated under this act, or an order issued under this act.

 

     (2) Except as otherwise provided in this act, the department

 

may renew the license of an individual who does not meet the

 

requirements for renewal if the individual demonstrates to the

 

satisfaction of the department and the board, if applicable, in the

 

manner required under article 5, that the requirements for renewal

 

as set forth in this act or a rule promulgated under this act do

 

not constitute a fair and adequate measure of the individual's

 

knowledge and skills or that the requirements for renewal do not

 

serve as an adequate basis for determining whether an individual

 

could continue to perform an occupation with competence. However,

 

if attendance in a continuing education program is a requirement

 

for renewal of a license, the department shall not waive that

 

requirement under this subsection.

 

     (3) The department shall not grant a license under this act

 

until the individual who is seeking renewal pays the appropriate

 

fees established by rule promulgated by the department under

 

section 207.

 

     (4) If the department does not renew a license under this

 

section, the department shall notify the applicant of the denial in

 

writing, and the applicant may appeal that decision to the board

 

under the administrative procedures act of 1969.

 

     (5) The department may grant a license under this act with a

 

limitation. If the department intends to impose a limitation on the


issuance of a license of an individual under this act, the

 

department shall notify the board of its intent, and the department

 

may impose the limitation only with the approval of the board.

 

However, if the board, within 60 days after it receives

 

notification by the department under this subsection, does not

 

approve or disapprove of the imposition of the limitation, the

 

department may impose the limitation. An individual who receives a

 

license renewal with a limitation may receive a review of the

 

limitation under section 533.

 

     (6) It is the responsibility of the licensee to renew his or

 

her license. The department shall send a renewal application form

 

to the last known physical or electronic address of a licensee on

 

file with the department. The failure of a licensee to notify the

 

department of a change of address does not extend the expiration

 

date of a license and may result in disciplinary action.

 

     Sec. 207. (1) The department shall promulgate any rules it

 

considers necessary and appropriate to implement and administer

 

this act and to enable the department to fulfill its

 

responsibilities under this act.

 

     (2) The department shall promulgate rules to establish the

 

fees for licenses, examinations, and inspections. The fees shall

 

reflect the actual costs and expenses of the department in issuing

 

licenses and conducting inspections. The fees in effect on the day

 

immediately preceding the effective date of this act shall continue

 

in effect until the department promulgates rules under this

 

subsection.

 

     (3) The department shall promulgate rules to establish the fee


schedules for items, including, but not limited to, variance

 

requests, product approvals, or special inspections. The fees shall

 

reflect the actual costs and expenses of the department for those

 

items.

 

     (4) The department may promulgate rules to set the minimal

 

standards of acceptable practice for an occupation.

 

     Sec. 209. (1) Before an examination or other test required

 

under this act is administered and except as otherwise provided in

 

this act, the department, in consultation with the board, shall

 

review and approve the form and content of the examination or other

 

test. The examination or test shall be structured to provide a

 

measure of whether an individual has sufficient knowledge and

 

skills to perform an occupation with competence.

 

     (2) Except as otherwise provided in this act, subject to

 

subsection (4), the department shall administer, score, and monitor

 

an examination or test under this section.

 

     (3) Except as otherwise provided in this act, subject to

 

subsection (4), the department shall provide the equipment,

 

examination room, written form, and any other item needed to

 

administer an examination or test under this section.

 

     (4) The department may enter into an agreement with an entity

 

that is not an agency of a state or the federal government that

 

authorizes the entity to fulfill the department's responsibilities

 

under subsection (2) or (3). The department shall promulgate any

 

rules it considers appropriate to implement and administer this

 

subsection.

 

     Sec. 211. The department shall have control over and physical


possession of the board files. The department shall ensure that

 

applicable laws concerning public access to the board files are

 

met.

 

     Sec. 213. (1) The department shall furnish office services to

 

the board and perform managerial, administrative, and budgetary

 

functions for the board.

 

     (2) The department shall appoint administrative and

 

secretarial staff, clerks, and employees necessary for the proper

 

exercise of the powers and duties of the board.

 

     (3) The department, subject to any limitations imposed by the

 

civil service commission, may fire, suspend, promote, demote, or

 

transfer an individual who is providing administrative or

 

secretarial service for the board.

 

     Sec. 215. The department shall provide a comprehensive

 

orientation program for each individual who is appointed and

 

confirmed as a member of the board.

 

     Sec. 217. The department shall prepare and publish an annual

 

report describing the activities of the department and the board.

 

The annual report shall be filed with the governor and the

 

legislature.

 

     Sec. 219. (1) If an individual has not previously been denied

 

a license or had a license revoked or suspended, the department may

 

grant a nonrenewable temporary license to an applicant for

 

licensure under this act.

 

     (2) If approved by the board, a temporary license that is

 

granted under subsection (1) is valid until 1 or more of the

 

following occur:


     (a) The results of the next scheduled examination are

 

available.

 

     (b) The results of the next required evaluation procedure are

 

available.

 

     (c) A license is issued.

 

     (d) The next examination date of an examination for licensure

 

in the applicable occupation, if the applicant does not take the

 

examination.

 

     (e) The applicant fails to meet the requirements for a

 

license.

 

     (f) A change in employment is made.

 

     (3) In addition to a temporary license under subsection (1),

 

the department shall grant a temporary license for an occupation

 

under this act to an individual who applies for a temporary license

 

if the applicant meets all of the following:

 

     (a) He or she provides proof acceptable to the department that

 

he or she is married to an individual who is serving in the armed

 

forces and is on active duty.

 

     (b) He or she provides proof acceptable to the department that

 

he or she holds a current license in good standing, or a current

 

registration in good standing, in that occupation, issued by an

 

equivalent licensing department, board, or authority, as determined

 

by the department, in another state of the United States, the

 

District of Columbia, Puerto Rico, the United States Virgin

 

Islands, another territory or protectorate of the United States, or

 

a foreign country.

 

     (c) He or she provides proof acceptable to the department that


his or her spouse is assigned to a duty station in this state and

 

that he or she is also assigned to a duty station in this state

 

under his or her spouse's permanent change of station orders.

 

     (4) A temporary license that is granted under subsection (1)

 

is valid for 6 months and may be renewed for 1 additional 6-month

 

term if the department determines the temporary licensee continues

 

to meet the requirements of subsection (1) and needs additional

 

time to fulfill the requirements for initial licensure in this

 

state.

 

     (5) If the department does not grant a temporary license under

 

this section, the department shall notify the applicant of the

 

denial in writing, and the applicant may appeal that decision to

 

the board under the administrative procedures act of 1969.

 

     (6) The department may place a limitation on a temporary

 

license granted under this section.

 

     Sec. 221. If the records of an applicant for licensure under

 

this act related to the education or experience required under this

 

act are unavailable from a foreign country, the applicant may, with

 

the approval of the board and the department, take an examination

 

or apply for a reciprocal license after submitting all of the

 

following to the department:

 

     (a) A notarized affidavit approved by the department that

 

states the total number of years of education received, the name of

 

the school or schools attended, the dates each school was attended,

 

the degree obtained, the courses taken, the grades received, and

 

the names of each former employer of the applicant.

 

     (b) A notarized statement approved by the department from a


governmental official testifying to the unavailability of the

 

necessary records.

 

                              ARTICLE 3

 

                           BOARDS GENERALLY

 

     Sec. 301. (1) The elevator safety board is created in the

 

department. The board shall consist of the director, who is a

 

nonvoting, ex officio member of the board and is not a member for

 

purposes of section 5 of article V of the state constitution of

 

1963 or for determining a quorum, and 9 voting members as follows:

 

     (a) One member who is a holder of a certificate of operation

 

for an elevator.

 

     (b) One member who represents insurance companies that are

 

authorized to insure elevators in this state.

 

     (c) One member who is a licensed elevator contractor and

 

member of a union.

 

     (d) One member who is a licensed elevator contractor and not a

 

member of a union.

 

     (e) One member who represents a city, village, township, or

 

county in this state that has a population of at least 500,000

 

according to the most recent decennial census.

 

     (f) One member who is a licensed architect or consulting

 

engineer.

 

     (g) One member who represents the manufacturers of elevators

 

used in this state.

 

     (h) Two members who represent the general public.

 

     (2) In addition to meeting any additional eligibility

 

requirements under this act, each member of the board must be at


least 18 years old and a resident of this state.

 

     Sec. 303. Each of the following applies to the appointment of

 

a voting member of the board after the effective date of this act:

 

     (a) The governor shall appoint an individual as a member of

 

the board with the advice and consent of the senate, including an

 

individual appointed to fill a vacancy on the board.

 

     (b) In making an appointment, the governor shall seek

 

nominations from a wide range of interested groups and persons,

 

including appropriate professional associations, consumer

 

associations, labor unions, and other organizations or individuals.

 

     Sec. 305. Beginning on the effective date of this act, all of

 

the following apply to the members of the board:

 

     (a) Except for a member described in subdivision (b), the term

 

of a member appointed to the board is 4 years.

 

     (b) An individual who is appointed to fill a vacancy on the

 

board that is the result of a member's resignation, death,

 

disability, or removal for cause by the governor shall serve for

 

the balance of the term of the member he or she replaced and he or

 

she may be reappointed for not more than 2 full terms.

 

     (c) A vacancy is filled in the same manner as the original

 

appointment was made. The governor shall appoint an individual as a

 

member of the board, subject to the advice and consent of the

 

senate under section 303, within 60 days after a vacancy occurs and

 

within 60 days after the senate disapproves an appointment by the

 

governor.

 

     (d) The governor may remove a member of the board under

 

section 10 of article V of the state constitution of 1963.


     (e) Except as provided in subdivision (b), the governor shall

 

not appoint an individual to serve for more than 2 consecutive

 

terms.

 

     Sec. 309. Annually, the legislature shall fix the per diem

 

compensation of a member of the board. Travel or other expenses

 

incurred by a member of the board in the performance of an official

 

function is payable by the department under the standardized travel

 

regulations of the department of technology, management, and

 

budget.

 

     Sec. 311. All of the following apply to the meetings of the

 

board:

 

     (a) The board shall meet as often as necessary to fulfill its

 

duties under this act, but shall meet at least once a year and at

 

other dates set by the director.

 

     (b) A majority of the voting members appointed and serving on

 

the board constitute a quorum.

 

     (c) A member of the board shall not vote by proxy.

 

     (d) The board shall conduct its meetings pursuant to the open

 

meetings act, 1976 PA 267, MCL 15.261 to 15.275.

 

     Sec. 313. All of the following apply to the operation of the

 

board:

 

     (a) Annually, the board shall elect a chairperson, a vice-

 

chairperson, and any other officers the board determines are

 

necessary. The board may fill a vacancy in an office of the board

 

for the balance of the 1-year term.

 

     (b) The board may adopt bylaws for the regulation of its

 

internal affairs.


     (c) The board shall report its activities to the department

 

annually and as often as the director orders.

 

     Sec. 315. (1) The board shall be within the department.

 

     (2) The board's duties shall include the interpretation of a

 

licensure or permit requirement of this act, and, if necessary, the

 

furnishing of aid in an investigation conducted under article 5. At

 

the discretion of the board, a member of the board may attend an

 

informal conference conducted under section 515. The board shall

 

assist the department in the implementation of this act.

 

     Sec. 317. After completion of a hearing conducted under

 

section 519, the board shall assess a penalty or penalties under

 

article 6.

 

     Sec. 319. The board shall aid the department in interpreting a

 

licensure or permit requirement described in this act that is

 

incomplete or subjective in nature to determine whether the

 

individual who is seeking a license or permit or a renewal has met

 

the requirements for the issuance or renewal.

 

     Sec. 321. (1) The department, in consultation with the board,

 

shall develop an examination or test required for licensure under

 

this act. The department in developing an examination or test may

 

adopt an examination or test prepared by another agency if the

 

department, in consultation with the board, determines that the

 

examination or test serves as a basis for determining whether an

 

individual has the knowledge and skills to perform an occupation

 

with competence.

 

     (2) The material required by the board and the department to

 

develop an examination or test may be considered by the board in a


closed session, if the board meets the requirements of section 7 of

 

the open meetings act, 1976 PA 267, MCL 15.267.

 

     Sec. 323. (1) The board shall surrender control and physical

 

possession of any board files to the department.

 

     (2) The board, until the department determines otherwise,

 

shall utilize the personnel, office space, and items or equipment

 

that were utilized by the board under former 1967 PA 227 and that

 

are needed for the board to function.

 

                              ARTICLE 4

 

                             LICENSE FEES

 

     Sec. 401. (1) By rule promulgated under section 207, the

 

department shall establish the specific amounts of the fees charged

 

for licenses, permits, and other activities under this act.

 

     (2) If a license is lost or destroyed, and if the department

 

receives an application and the applicable fee, the department

 

shall issue a new license to replace it, without another

 

examination.

 

     (3) If the department receives an application and the

 

applicable fee, the department shall issue a license verification

 

for a current license that is granted under this act.

 

     (4) If the department receives a request in writing for a

 

replacement elevator serial plate or elevator tag number, and an

 

appropriate fee established by rule, the department shall issue a

 

replacement elevator serial plate or elevator tag number.

 

     Sec. 403. (1) This act does not prohibit a person that has a

 

contract with the department, or any other person that provides

 

direct services to an applicant or licensee, from collecting fees


directly from that applicant or licensee.

 

     (2) If the department terminates a contract with a person that

 

has been administering a licensing examination to applicants for

 

licensure in a specific occupation, and the department itself

 

begins to administer the examination, the department shall not

 

charge an applicant a fee that is greater than the fee charged

 

under the terminated contract, unless the examination fee for that

 

occupation is increased by rule promulgated by the department under

 

section 207.

 

     Sec. 405. An applicant must include a nonrefundable

 

application processing fee with an application for a license. The

 

department may also require that applicant include with the

 

application any fee required for an examination or inspection or

 

the fee for the initial license period.

 

     Sec. 407. (1) An individual who is required to take an

 

examination shall pay an examination fee before being scheduled for

 

an examination.

 

     (2) An individual who is scheduled for examination or

 

reexamination and who fails to appear shall forfeit the examination

 

fee.

 

     (3) An individual who fails all or part of an examination may

 

be reexamined, if eligible, after paying the fee for the complete

 

examination or those parts of the examination he or she failed, as

 

applicable.

 

     (4) The department shall publish in its application

 

instructions the deadline by which it must receive an application

 

in order for an applicant to be scheduled for a required


examination.

 

     Sec. 409. (1) Except as otherwise provided in section 411, the

 

department shall not grant a license to an individual who has

 

completed the requirements for a license or who seeks to renew a

 

license until the individual has paid the license fee.

 

     (2) The department shall establish license fees on a per year

 

basis. If licenses are established by rules promulgated by the

 

department under section 207 as biennial or triennial renewals, the

 

fee required shall be 2 or 3 times, as appropriate, the per year

 

amount.

 

     (3) Unless otherwise provided under this act or rules

 

promulgated under this act, an applicant must complete all

 

requirements for licensure within 1 year after the department

 

received the license application or the department mails a notice

 

of an incomplete application to the applicant at the applicant's

 

last known physical or electronic address on file with the

 

department, whichever is later. If the requirements for licensure

 

are not completed within that period, the fees paid are forfeited

 

to the department and the application is void. To obtain a license

 

under this act, an individual whose application is void under this

 

subsection must submit a new application and fees and meet the

 

requirements of this act and rules promulgated under this act that

 

are in effect on the date the department receives the new

 

application.

 

     Sec. 411. (1) Subject to subsection (2), an individual who

 

fails to renew a license on or before the expiration date of the

 

license shall not practice the occupation, operate, or use the


title of that occupation after that date. A license shall lapse on

 

the day after the expiration date.

 

     (2) An individual who fails to renew a license on or before

 

the expiration date is permitted to renew the license by payment of

 

the required license fee and a late renewal fee within 60 days

 

after the expiration date.

 

     (3) Except as otherwise provided in this act, the department

 

shall relicense an individual who fails to renew a license within

 

the time period set forth in subsection (2), without examination

 

and without meeting additional education or training requirements

 

in force at the time of application for relicensure, if all of the

 

following conditions are met:

 

     (a) The individual applies within 3 years after the expiration

 

date of the last license.

 

     (b) The individual pays an application processing fee, the

 

late renewal fee, and the per year license fee for the upcoming

 

licensure period.

 

     (c) Any penalties or conditions imposed by disciplinary action

 

in this state or any other jurisdiction have been satisfied.

 

     (4) Except as otherwise provided in this act, the department

 

shall relicense an individual whose last license expired 3 or more

 

years before the application for relicensure if the individual

 

shows that he or she meets the requirements for licensure

 

established by the department in rules or procedures. The rules or

 

procedures may require that an individual pass all or part of a

 

required examination, complete continuing education requirements,

 

or meet current education or training requirements.


     (5) Unless otherwise provided in this act, an individual who

 

seeks relicensure shall file a completed application on a form

 

provided by the department, pay the application processing fee, and

 

file a petition with the department and the board stating reasons

 

for relicensure and including evidence that the individual can and

 

is likely to serve the public in the regulated activity with

 

competence and in conformance with all other requirements

 

prescribed by law, rule, or an order of the department or board.

 

The department shall review a petition for relicensure in the

 

manner described in article 5. If approved for relicensure, the

 

individual shall pay the per year license fee for the upcoming

 

license period if appropriate.

 

     (6) If the department does not grant relicensure under this

 

section, the department shall notify the applicant of the denial in

 

writing, and the applicant may appeal that decision to the board

 

under the administrative procedures act of 1969.

 

     (7) Notwithstanding any provision in this act to the contrary,

 

an individual or qualifying officer who is a licensee under this

 

act and who is on active duty in the armed forces of the United

 

States is temporarily exempt from any renewal license fee,

 

continuing education requirements, or other related requirements of

 

this act applicable to that license. It is the obligation of the

 

licensee to inform the department by written or electronic mail of

 

the desire to exercise the temporary exemption under this

 

subsection. If the licensee applying for the temporary exemption is

 

the individual responsible for supervision and oversight of

 

licensed activities, the licensee shall provide notice of


arrangements for adequate provision of that supervision and

 

oversight to the department. The licensee shall accompany the

 

request with proof, as determined by the department, to verify the

 

mobilized duty status. If it receives a request for a temporary

 

exemption under this subsection, the department shall make a

 

determination of the requestor's status and grant the temporary

 

exemption after verification of mobilized duty status under this

 

subsection. A temporary exemption is valid until 90 days after the

 

licensee's release from the mobilized duty on which the exemption

 

was based, but shall not exceed 36 months from the date of

 

expiration of the license.

 

     Sec. 413. (1) It is a condition of licensure, renewal, or

 

relicensure that all fees and fines owed to the department are

 

paid.

 

     (2) It is a condition to obtaining a permit that all fees and

 

fines owed to the department are paid, including, but not limited

 

to, current and previous permit fees, inspection fees, plan review

 

fees, and administrative fines.

 

     (3) The amounts owed for permitting, inspections, plan review,

 

and administrative fines shall become a lien on the real property

 

90 days after issuance if not paid. The lien for those amounts, and

 

for all interest and penalties on those amounts, shall continue

 

until paid.

 

     Sec. 415. The department shall waive the fee for an initial

 

license that is otherwise required under this act, or an

 

application processing fee charged by the department for an initial

 

license, if the applicant is an individual who served in the armed


forces and he or she provides to the department a form DD214, form

 

DD215, or any other form that is satisfactory to the department

 

that demonstrates he or she was separated from that service with an

 

honorable character of service or under honorable conditions

 

(general) character of service.

 

     Sec. 417. All fees and money received by the department for

 

the licensing of individuals under this act, and any other income

 

the department receives under this act, shall be paid into the

 

state construction code fund created in section 22 of the Stille-

 

DeRossett-Hale single state construction code act, 1972 PA 230, MCL

 

125.1522.

 

                              ARTICLE 5

 

      COMPLAINTS, INVESTIGATIONS, AND ADMINISTRATIVE PROCEEDINGS

 

     Sec. 501. A complaint that alleges that a person has violated

 

this act or a rule promulgated or an order issued under this act

 

shall be submitted to the department. The department of attorney

 

general, the department, the board, or any other person may file a

 

complaint.

 

     Sec. 503. If it receives a complaint, the department shall

 

immediately begin an investigation of the allegations of the

 

complaint and shall open a correspondence file. Within 15 days

 

after it receives a complaint, the department shall make a written

 

acknowledgment of the complaint to the person that made the

 

complaint. If the complaint is made by the department, the director

 

shall designate 1 or more employees of the department to act as the

 

person that made the complaint.

 

     Sec. 505. The department shall conduct the investigation


required under section 503. In furtherance of that investigation,

 

the department may request that the attorney general petition a

 

circuit court of this state to issue a subpoena that requires an

 

individual to appear before the department and be examined with

 

reference to a matter within the scope of the investigation and to

 

produce books, papers, or documents pertaining to the

 

investigation.

 

     Sec. 507. (1) The investigative unit of the department, within

 

30 days after the department receives the complaint, shall report

 

to the director on the status of the investigation. If, for good

 

cause shown, an investigation cannot be completed within 30 days,

 

the director may extend the time in which a report may be filed.

 

The total number of extensions permitted under this section shall

 

be included in the report required under section 217.

 

     (2) If the report of the investigative unit of the department

 

does not disclose a violation of this act or a rule promulgated or

 

an order issued under this act, the department shall close the

 

complaint. The department shall forward the reasons for closing the

 

complaint to the respondent and complainant, who then may provide

 

additional information to reopen the complaint.

 

     (3) If the report of the investigative unit made under

 

subsection (1) discloses evidence of a violation of this act or a

 

rule promulgated or an order issued under this act, the department

 

or the department of attorney general shall prepare the appropriate

 

action against the respondent which may be any of the following:

 

     (a) A formal complaint.

 

     (b) A cease and desist order.


     (c) A notice of summary suspension.

 

     (d) A citation.

 

     Sec. 509. (1) After an investigation is conducted, the

 

department may issue an order summarily suspending a license that

 

is granted under this act based on an affidavit by an individual

 

who is familiar with the facts set forth in the affidavit, or, if

 

appropriate, based on an affidavit made on information and belief,

 

that an imminent threat to the public health, safety, and welfare

 

exists. After a summary suspension order is issued under this

 

section, the department shall promptly commence the administrative

 

proceedings described in this article to determine what additional

 

administrative action is appropriate.

 

     (2) If an individual's license is summarily suspended under

 

this section, the individual may petition the department to

 

dissolve the order. If it receives a petition under this

 

subsection, the department shall immediately schedule a hearing to

 

decide whether to grant or deny the request to dissolve the order.

 

     (3) An administrative law hearings examiner shall grant a

 

request to dissolve a summary suspension order made under

 

subsection (2), unless sufficient evidence is presented that an

 

imminent threat to the public health, safety, and welfare exists

 

that requires emergency action and continuation of the director's

 

summary suspension order.

 

     (4) The record created at the hearing to dissolve a summary

 

suspension order shall become part of the record on the complaint

 

at a subsequent hearing in a contested case.

 

     Sec. 511. (1) After an investigation is conducted, the


director may order a person to cease and desist from a violation of

 

this act or a rule promulgated or an order issued under this act.

 

     (2) A person that is ordered to cease and desist under

 

subsection (1) is entitled to a hearing before the department if a

 

written request for a hearing is filed within 30 days after the

 

effective date of the order.

 

     (3) If a cease and desist order issued under this section is

 

violated, the department of the attorney general may apply in a

 

circuit court of this state to restrain and enjoin, temporarily or

 

permanently, or both, a person from further violating the cease and

 

desist order.

 

     Sec. 513. A summary suspension order, cease and desist order,

 

or injunctive relief issued or granted in relation to a license or

 

permit issued under this act is in addition to and not in place of

 

an informal conference; criminal prosecution; or proceeding to

 

deny, revoke, suspend, or place a limitation on, a license or

 

permit or any other action authorized under this act.

 

     Sec. 515. (1) After an investigation is conducted and a formal

 

complaint is prepared, the department shall serve the formal

 

complaint on the respondent and the complainant. At the same time,

 

the department shall serve the respondent with a notice that

 

describes the compliance conference and hearing processes and

 

offers the respondent a choice of 1 of the following opportunities:

 

     (a) An opportunity to meet with the department to negotiate a

 

settlement of the matter.

 

     (b) If the respondent is a licensee under this act, an

 

opportunity to demonstrate compliance before a contested case


hearing is held, as required under section 92 of the administrative

 

procedures act of 1969, MCL 24.291.

 

     (c) An opportunity to proceed to a contested case hearing

 

under section 71 of the administrative procedures act of 1969, MCL

 

24.271.

 

     (2) A respondent that is served with notice of a formal

 

complaint under this section may select, within 15 days after the

 

respondent receives the notice, 1 of the options described in

 

subsection (1). If a respondent does not select 1 of those options

 

within the time period described in this subsection, then the

 

department shall proceed to a contested case hearing as described

 

in subsection (1)(c).

 

     (3) An informal conference may be attended by a member of the

 

board, at the discretion of the board, and may result in a

 

settlement, consent order, waiver, default, or other method of

 

settlement agreed on by the parties and the department. A

 

settlement may include the revocation, suspension, or limitation of

 

a license; censure; probation; restitution; or a penalty under

 

article 6.

 

     (4) The board may reject a settlement and require a contested

 

case hearing under section 71 of the administrative procedures act

 

of 1969, MCL 24.271.

 

     (5) An authorized employee or agent of the department may

 

represent the department in any contested case hearing held under

 

the administrative procedures act of 1969.

 

     Sec. 517. This act does not prevent a person against which a

 

complaint is filed from showing compliance with this act, or a rule


promulgated or an order issued under this act, under section 92 of

 

the administrative procedures act of 1969, MCL 24.292.

 

     Sec. 519. If an informal conference is not held or does not

 

result in a settlement of a complaint, the department shall hold a

 

hearing under section 92 of the administrative procedures act of

 

1969, MCL 24.292. A member of the board may attend a hearing under

 

this section.

 

     Sec. 521. The department or the department of the attorney

 

general may petition a circuit court to issue a subpoena that

 

requires the individual subpoenaed to appear or testify or produce

 

relevant documentary material for examination at a proceeding

 

conducted under section 515 or 519.

 

     Sec. 523. (1) At the conclusion of a hearing conducted under

 

section 519, the administrative law hearings examiner shall submit

 

a determination of findings of fact and conclusions of law to the

 

department and the department of the attorney general and the board

 

in a hearing report. The submitted hearing report may recommend the

 

assessment of penalties under article 6.

 

     (2) The department shall submit a copy of a hearing report

 

described in subsection (1) to the person that made the complaint

 

and to the person against which the complaint was lodged.

 

     Sec. 525. (1) Within 60 days after the board receives an

 

administrative law hearings examiner's hearing report under section

 

523, the board shall meet and make a determination of the penalties

 

to be assessed under article 6. The board shall make its

 

determination based on the administrative law hearings examiner's

 

report. A transcript of a hearing or a portion of the transcript


shall be made available to the board on request. If a transcript or

 

a portion of the transcript is requested, the board shall make its

 

determination of the penalty or penalties to be assessed under

 

article 6 at a meeting of the board held within 60 days after it

 

receives the transcript or portion of the transcript.

 

     (2) If the board does not determine the appropriate penalty or

 

penalties to be assessed within the time limits described in

 

subsection (1), the director may determine the appropriate penalty

 

and issue a final order assessing that penalty.

 

     (3) A member of the board who has participated in an

 

investigation on a complaint filed with the department or who has

 

attended an informal conference shall not participate in making a

 

final determination in a proceeding on that complaint.

 

     Sec. 527. An individual who is seeking a license or renewal

 

under this act may petition the department and the board for a

 

review if that individual does not receive a license or renewal.

 

     Sec. 529. A petition submitted under section 527 shall be in

 

writing and shall set forth the reasons the petitioner believes

 

that the department should issue the license or permit.

 

     Sec. 531. The department may grant a license or renewal for an

 

occupation regulated under this act, if, based on a review of the

 

qualifications of the individual who submitted a petition under

 

section 527, the department determines that the individual could

 

perform the occupation with competence.

 

     Sec. 533. (1) If a limitation is placed on a license or the

 

renewal of a license under section 203 or 205, the licensee, within

 

30 days after the limitation is placed on the license or renewal of


the license, may petition the department in writing for a review of

 

the decision to place the limitation.

 

     (2) The department, in reply to a petition submitted under

 

subsection (1), shall set forth the reasons the department

 

determined that the limitation should be placed on the license or

 

renewal of a license. The department shall send its reply to a

 

petition submitted under subsection (1) to the petitioner within 15

 

days after the department receives the petition.

 

     (3) The department and the board may remove a limitation on a

 

license or renewal of a license, if, based on a review of the

 

petitioner's qualifications, the department and the board determine

 

that the individual who submitted a petition under subsection (1)

 

could perform with competence each function of the occupation

 

without the limitation.

 

     Sec. 535. Notwithstanding any other provision of this act, if

 

an oral or written grievance was lodged before the effective date

 

of this act against a person that is licensed under a former act,

 

the department shall conduct the proceedings on that grievance in

 

the manner prescribed in the former act. As used in this section,

 

"former act" means that term as defined in section 109.

 

     Sec. 537. (1) An employee of the department may issue a

 

citation to an individual who is licensed under this act or

 

required to obtain a license under this act if the employee

 

observes or deduces from an investigation, inspection, or complaint

 

that conduct or conditions exist or have existed that violate this

 

act or rules promulgated or orders issued under this act.

 

     (2) The department may send a citation to a respondent by


certified mail, return receipt requested, or by electronic mail if

 

the department has an electronic mail address for the respondent on

 

file, or the employee of the department who issued the citation may

 

deliver it in person.

 

     (3) A citation shall contain all of the following:

 

     (a) The date of the citation.

 

     (b) The name and title of the employee of the department who

 

issued the citation.

 

     (c) The name and address of the respondent, and a statement

 

indicating that the respondent is being cited for a violation of

 

the act or rules promulgated or orders issued under the act.

 

     (d) A brief description of the conduct or conditions that the

 

employee of the department who issued the citation considers a

 

violation of the act or rules or orders issued under this act and a

 

reference to the section of this act, the rule, or the order the

 

respondent is alleged to have violated.

 

     (e) The proposed penalties or actions required for compliance,

 

including the payment of a fine in an amount that does not exceed

 

$100.00 for each violation.

 

     (f) A space for the respondent to sign as a receipt for the

 

citation.

 

     (g) A space where the respondent may accept the citation and

 

agree to comply or may indicate that the violation contained in the

 

citation is contested.

 

     (h) A notice that the respondent must accept or reject the

 

terms of the citation within 30 days.

 

     (i) A brief description of the hearing process and the process


for settlement through an informal conference under section 515.

 

     (4) As used in this section, "employee of the department"

 

means an individual who is employed by the department, or a person

 

that is under contract to the department, whose duty it is to

 

enforce the provisions of this act or rules promulgated or orders

 

issued under this act.

 

     Sec. 539. (1) A respondent has 30 days to notify the

 

department in writing that the person accepts the conditions

 

described in a citation or that the person does not admit to the

 

violation alleged in the citation.

 

     (2) If a respondent accepts the conditions described in a

 

citation under subsection (1), the respondent, within 30 days after

 

receiving the citation, shall sign the citation and return it to

 

the department along with any fine or other material the respondent

 

is required to submit under the terms of the citation. The

 

department shall place the citation and accompanying material in

 

the person's records with the department, and include in those

 

records the nature of the violation and that the person accepted

 

the conditions imposed. A citation issued under this section has

 

the same force and effect as a final order issued by the board and

 

may be disclosed to the public. If the department does not take any

 

additional disciplinary actions against the person within 5

 

calendar years after the citation is issued, the department shall

 

remove the citation and accompanying material from its records. If

 

requested by the respondent, the department shall place a 1-page

 

explanation prepared by the respondent in the department's files

 

and shall disclose the explanation each time the department


discloses the issuance of the citation.

 

     (3) If the respondent does not admit to the violation alleged

 

in a citation, the person may so state on the citation and return 1

 

copy to the department within the 30 days after the respondent

 

receives the citation. If a respondent returns a copy of the

 

citation that includes this statement within the 30-day time

 

period, the citation is considered a formal complaint under section

 

515 and the administrative process described in that section shall

 

be invoked.

 

     Sec. 541. If a citation is signed as an indication that the

 

respondent received the citation, the signature is considered a

 

receipt of the citation and not an admission to the violation

 

alleged in the citation.

 

                              ARTICLE 6

 

                        PENALTIES AND REMEDIES

 

     Sec. 601. (1) An individual shall not engage in or attempt to

 

engage in the practice of an occupation regulated under this act or

 

use a title designated in this act unless the individual possesses

 

a license that is granted by the department for the occupation.

 

     (2) Subject to section 411, an individual whose license is

 

suspended, revoked, or lapsed, as determined by the records of the

 

department, is considered unlicensed.

 

     (3) An individual who violates subsection (1) is guilty of a

 

misdemeanor punishable by a fine of not more than $500.00 or

 

imprisonment for not more than 90 days, or both.

 

     (4) An individual who violates subsection (1) a second time is

 

guilty of a misdemeanor punishable by a fine of not more than


$1,000.00 or imprisonment for not more than 1 year, or both.

 

     (5) An individual who violates subsection (1) a third or

 

subsequent time is guilty of a felony punishable by a fine of not

 

more than $25,000.00 or imprisonment for not more than 5 years, or

 

both.

 

     (6) The remedies or penalties imposed for a violation of

 

subsection (1) may include a requirement that restitution be made,

 

based on proofs submitted to and findings made by the trier of fact

 

as provided by law.

 

     (7) Notwithstanding the existence and pursuit of any other

 

remedy or penalty, an affected person may pursue an action for

 

injunctive relief to restrain or prevent an individual from

 

violating subsection (1). If successful in obtaining injunctive

 

relief, the affected person is entitled to actual costs and

 

attorney fees. As used this subsection, "affected person" means a

 

person that is directly affected by the actions of an individual

 

who is suspected of violating subsection (1) and includes, but is

 

not limited to, a licensee, the board, the department, a person

 

that has utilized the services of the individual who is suspected

 

of violating subsection (1), or a private association that is

 

composed primarily of members of the occupation in which the

 

individual is engaging in or attempting to engage in or in which

 

the individual is using a title designated under this act without a

 

license under this act.

 

     (8) An investigation may be conducted under article 5 to

 

enforce this section. A person that violates this section is

 

subject to this section and sections 511, 603, and 611.


     (9) The department, the attorney general, or a county

 

prosecutor may utilize forfeiture as a remedy in the manner

 

provided for in section 613.

 

     (10) The remedies under this section are independent and

 

cumulative. The use of 1 remedy by a person does not bar the use of

 

other lawful remedies by that person or the use of a lawful remedy

 

by another person.

 

     (11) If a conviction under subsection (4) or (5) is entered by

 

a court, the court shall notify the department by mail, facsimile

 

transmission, or electronic mail.

 

     (12) The attorney general or the prosecuting attorney of a

 

county may bring an action in a court of competent jurisdiction to

 

enforce this section.

 

     Sec. 603. If a person violates this act or a rule or order

 

promulgated or issued under this act, the department shall assess 1

 

or more of the following penalties:

 

     (a) Placement of a limitation on a license.

 

     (b) Suspension of a license.

 

     (c) Denial of a license or renewal of a license.

 

     (d) Revocation of a license.

 

     (e) If the individual is licensed under this act and except as

 

otherwise provided in this act, an administrative fine to be paid

 

to the department of not more than $10,000.00.

 

     (f) Censure.

 

     (g) Probation.

 

     (h) A requirement for the payment of restitution, based on

 

proof submitted to and findings made by the hearing examiner after


a contested case.

 

     Sec. 605. If payment of restitution is required under section

 

603, the department may suspend the license of the individual who

 

is required to pay the restitution until the restitution is made.

 

     Sec. 607. A person that violates 1 or more of the provisions

 

of this act or that commits 1 or more of the following is subject

 

to the penalties described in section 603:

 

     (a) Practices fraud or deceit in obtaining a license.

 

     (b) Practices fraud, deceit, or dishonesty in practicing an

 

occupation.

 

     (c) Violates a rule of conduct of an occupation.

 

     (d) Commits an act of gross negligence in practicing an

 

occupation.

 

     (e) Practices false advertising.

 

     (f) Commits an act that demonstrates incompetence.

 

     (g) Violates any other provision of this act or a rule

 

promulgated under this act for which a penalty is not otherwise

 

prescribed.

 

     (h) Fails to comply with a subpoena issued under this act.

 

     (i) Fails to respond to a citation under section 539.

 

     (j) Violates or fails to comply with a final order issued by

 

the board, including a stipulation, settlement agreement, or a

 

citation.

 

     (k) Aids or abets an individual in the unlicensed practice of

 

an occupation.

 

     Sec. 609. If the parties in a contested case under article 5

 

agree to any fact involved in the controversy by stipulation or


there is a finding of fact and conclusion of law in an action under

 

that article that a person has violated this act, the hearings

 

examiner shall assess costs related to the investigation of the

 

violation and costs related to the prosecution of the action. The

 

costs related to the investigation and prosecution include, but are

 

not limited to, salaries and benefits of personnel, costs related

 

to the time spent by the attorney general's office and other

 

personnel working on the action, and any other expenses incurred by

 

the department for the action.

 

     Sec. 611. (1) The department may bring any appropriate action,

 

including mediation or other alternative dispute resolution, in the

 

name of the people of this state to carry out this act and to

 

enforce this act.

 

     (2) If the attorney general considers it necessary, the

 

attorney general shall intervene in and prosecute any case that

 

arises under this act.

 

     (3) This section does not prohibit the department from

 

bringing any civil, criminal, or administrative action for the

 

enforcement of section 601.

 

     (4) The department has standing to bring an administrative

 

action or to directly bring an action in a court of competent

 

jurisdiction regarding the unlicensed practice of an occupation

 

regulated under this act.

 

     Sec. 613. The department, the attorney general, and a county

 

prosecutor may utilize the forfeiture provisions of chapter 47 of

 

the revised judicature act of 1961, 1961 PA 236, MCL 600.4701 to

 

600.4710, for items seized and determined to be proceeds of a


crime, substituted proceeds of a crime, or the instrumentality of a

 

crime as those terms are defined in section 4701 of the revised

 

judicature act of 1961, 1961 PA 236, MCL 600.4701.

 

                              ARTICLE 7

 

             ELEVATOR LICENSES, PERMITS, AND INSPECTIONS

 

     Sec. 701. As used in this article:

 

     (a) "Certificate of operation" means a certificate of

 

operation that is issued by the department under section 717.

 

     (b) "Elevator" means the machinery, construction, apparatus,

 

and equipment of an incline lift, escalator, moving walk, or device

 

that serves 2 or more landings and is used in raising and lowering

 

a guided car, cage, or platform. The term includes a passenger

 

elevator, freight elevator, gravity elevator, workmen's elevator,

 

manlift, or other lifting or lowering apparatus that is guided. The

 

term does not include any of the following:

 

     (i) An elevating device that is subject to the authority of

 

the inspectors of mines under 1911 PA 163, MCL 425.101 to 425.113.

 

     (ii) A feeding machine or belted bucket, scoop, roller, or any

 

similar type of freight conveyor.

 

     (iii) A lubrication hoist or other similar mechanism.

 

     (iv) A piling or stacking machine that is used within 1 story

 

and does not penetrate a floor.

 

     (v) An elevator, dumbwaiter, or incline lift that is located

 

in a private, single-family dwelling.

 

     (vi) An outside material hoist that is used for raising or

 

lowering construction materials while a building or structure is

 

under construction and is subject to the Michigan occupational


safety and health act, 1974 PA 154, MCL 408.1001 to 408.1094, and

 

the rules promulgated under that act.

 

     (c) "Elevator contractor" means an individual who is engaged

 

in the business of constructing, installing, maintaining,

 

repairing, or altering elevators, including the installing or

 

maintaining of electric wiring, fixtures, apparatus, and appliances

 

in connection with the operation or control of elevators.

 

     (d) "Elevator contractor license" means a license that is

 

granted by the director that authorizes the licensee to engage in

 

the business of an elevator contractor at a single location in this

 

state.

 

     (e) "Elevator inspector" means an individual who is licensed

 

under section 705 to perform, or to provide supervision in the

 

performance of, the work of installation, alteration, maintenance,

 

repair, servicing, adjusting, inspecting, or testing of elevators.

 

     (f) "Elevator journeyman" means an individual who is qualified

 

and licensed under this article to perform, or to provide

 

supervision in the performance of, the work of installation,

 

alteration, maintenance, repair, servicing, adjusting, inspecting,

 

or testing of elevators.

 

     (g) "Incline lift" means an elevator that is designed and

 

operated for the conveyance of individuals or material from 1 level

 

to another. The term does not include the enclosure or building in

 

which the incline lift is located, or a ski lift that is defined in

 

and subject to the ski area safety act of 1962, 1962 PA 199, MCL

 

408.321 to 408.344.

 

     (h) "Major alteration" means any work other than an exact


replacement of an elevator part or component, any change to the

 

elevator cab, hoistway, mechanical room, elevator room, or elevator

 

pit, or any other alteration defined as a major alteration in a

 

standard approved by the department.

 

     (i) "Repairs" means only the work that is necessary to

 

maintain present equipment in a safe and serviceable condition; and

 

to adjust or replace defective, broken, or worn parts with parts

 

that are made of equivalent material, strength, and design, and

 

that perform the same function as the replaced part.

 

     Sec. 703. This act does not apply in the jurisdiction of a

 

city that has a population of 500,000 or more according to the most

 

recent decennial census and has adopted an ordinance that includes

 

requirements that are comparable to this act and the rules

 

promulgated under this act.

 

     Sec. 705. (1) An individual must meet all of the following

 

requirements to obtain a license as an elevator journeyman:

 

     (a) Be at least 18 years of age.

 

     (b) Have a high school diploma or its equivalent.

 

     (c) Have passed the examination required by the department to

 

test the applicant's qualifications to perform, or to provide

 

supervision in the performance of, the work of installation,

 

alteration, maintenance, repair, servicing, adjusting, inspecting,

 

or testing of elevators.

 

     (d) Provide evidence of at least 3 years of continuous

 

employment as an elevator constructor, serviceman, maintenance man,

 

or repairman. This experience must consist of work performed that

 

complies with the requirements of this article and rules


promulgated under this act.

 

     (2) An individual must meet all of the following requirements

 

to obtain a license as an elevator contractor:

 

     (a) Be at least 18 years of age.

 

     (b) Have a high school diploma or its equivalent.

 

     (c) Have passed the examination required by the department to

 

test the applicant's qualifications to engage in constructing,

 

installing, maintaining, repairing, or altering elevators,

 

including the installing or maintaining of electric wiring,

 

fixtures, apparatus, and appliances in connection with the

 

operation or control of elevators, or provide equivalent proof of

 

qualification acceptable to the department.

 

     (d) Provide evidence of at least 7 years of experience as an

 

elevator journeyman, or equivalent experience acceptable to the

 

department.

 

     (3) An individual must meet all of the following requirements

 

to obtain a license as an elevator inspector:

 

     (a) Have passed the examination required by the department to

 

test the applicant's qualifications to inspect elevators.

 

     (b) Provide evidence of at least 3 years of experience as an

 

elevator constructor, serviceman, maintenance man, or repairman.

 

     (c) Provide at least 1 reference from a previous employer that

 

certifies to the applicant's experience.

 

     (4) The department may consider a degree in electrical or

 

mechanical engineering from an accredited college or university as

 

the equivalent of 1 year of experience for purposes of subsection

 

(1), (2), or (3).


     (5) Only an individual who is licensed under this article is

 

allowed to work in the installation, alteration, maintenance,

 

repair, servicing, inspecting, adjusting, or testing of elevators.

 

The individual must perform that work under the immediate

 

supervision of a licensed elevator contractor.

 

     Sec. 707. (1) An individual who is not a resident of this

 

state and who meets the requirements of this article may apply to

 

obtain a license under this act. All of the following apply to a

 

nonresident individual or foreign entity that applies for licensure

 

under this act:

 

     (a) The director may interview the applicant to determine

 

eligibility for licensure.

 

     (b) The applicant shall file an irrevocable consent to service

 

of process with the department, on a form prescribed by the

 

department, appointing the department as its attorney to receive

 

service of lawful process in a noncriminal action or proceeding

 

against the applicant or licensee that arises under this act or a

 

rule promulgated or order issued under this act. The consent must

 

include the notarized signature of the applicant or an authorized

 

officer, member, or partner of the applicant. If the applicant is a

 

corporation, the applicant must include with the consent a

 

certified copy of the resolution of the board or shareholders of

 

the corporation that authorizes the consent.

 

     (2) After the filing of the consent described in subsection

 

(1)(c), process received by the department has the same force and

 

validity as if served personally on the applicant or licensee. A

 

person that serves a pleading or process under this section shall


serve the pleading or process on the department in duplicate. The

 

department immediately shall forward by registered mail 1 copy of

 

the process or pleading to the last known address of the applicant

 

or licensee in the department's records.

 

     Sec. 709. (1) The work of installation, alteration,

 

maintenance, repair, servicing, inspecting, adjusting, or testing

 

of an elevator shall be performed by an individual who is licensed

 

under this article.

 

     (2) An individual who enters an elevator hoistway, pit,

 

machinery space, or machine room for any reason, except under an

 

emergency situation, must be a licensed elevator inspector or an

 

individual who is employed as a helper and is under the immediate

 

supervision of an individual who is licensed under this article.

 

     (3) A building owner must display a sign on the machine room

 

door that identifies the room as the machine room, states that only

 

authorized personnel are to be admitted, and states that the room

 

may not be used for storage.

 

     (4) Storage of any items other than elevator materials in a

 

machine room is a violation of this article.

 

     (5) A building owner shall ensure that all keys to the

 

elevator system that are required under the standard approved by

 

the department, including the hoistway door unlocking device, are

 

stored in the machine room and made available to an elevator

 

inspector.

 

     Sec. 711. An elevator shall be constructed, equipped,

 

maintained, repaired, and used with respect to the supporting

 

members, car or platform, hoistways, guides, cables, doors and


gates, safety stops and mechanisms, electrical apparatus and

 

wiring, mechanical apparatus, counterweights, and all other

 

appurtenances, in a manner that complies with the requirements of

 

this act and rules promulgated under this act.

 

     Sec. 713. (1) The holder of the certificate of operation for

 

an elevator shall permanently attach to the elevator in an approved

 

area an identification plate that shows the rated load and the

 

serial number of each elevator.

 

     (2) The department shall furnish 1 serial number tag to the

 

holder of a certificate of operation for an elevator and the holder

 

shall permanently attach the tag to the elevator machine

 

controller. The holder may obtain a replacement elevator serial

 

plate or elevator tag number under section 401(4).

 

     Sec. 715. (1) An individual shall not install or alter an

 

elevator, hoistway, pit, machine room, or machinery space without

 

first obtaining a permit from the department. The department shall

 

only issue a permit to an individual who is licensed under this

 

article.

 

     (2) An individual must have a permit when performing any major

 

alteration, including, but not limited to, any of the following:

 

     (a) A replacement that requires the performance of a test.

 

     (b) Work that requires depressurization of an elevator

 

hydraulic system.

 

     (c) Replacement of suspension equipment or parts, including,

 

but not limited to, belts and cables.

 

     (d) Replacement of equipment or parts for an escalator or

 

moving walk, including, but not limited to, a chain or handrail.


     (3) A permit shall expire after 180 days of inactivity. An

 

individual may renew a permit, at the discretion of the department,

 

for 1 additional 180-day period if the individual pays a permit

 

renewal fee in an amount established by the department by rule.

 

     (4) An elevator hoistway enclosure must meet the requirements

 

of this act and rules promulgated under this act.

 

     (5) A licensee who applies for a permit must submit detailed

 

plans and specifications of all elevator equipment and the elevator

 

hoistway enclosure to the department, and the department shall not

 

issue a permit unless it approves the plans and specifications.

 

     (6) An elevator must be approved for use by the department

 

before operation.

 

     Sec. 717. (1) Each year, the department shall inspect each

 

elevator that is located in this state. If the department

 

determines that an elevator has been inspected, tested, and

 

maintained in a safe operating condition in compliance with the

 

requirements of this act and the rules promulgated under this act

 

that are in effect on the date of the inspection, the department

 

shall issue a certificate of operation for the elevator to the

 

owner of the elevator.

 

     (2) A certificate of operation is valid for 1 year and expires

 

1 year after the date of issuance, unless renewed within 60 days

 

after the date of expiration.

 

     (3) A renewal application shall include an inspection form

 

signed by a licensed elevator contractor or a licensed elevator

 

inspector. The department shall schedule an elevator inspection

 

when it receives the renewal application and inspection fee. The


department may issue a letter of conditional compliance to the

 

owner, by mail or electronically, and add the elevator to the

 

department's inspection schedule.

 

     (4) If a person does not submit a renewal application and the

 

renewal fee before the expiration of a certificate of operation,

 

the department shall schedule the elevator for an inspection, but

 

the person must pay an additional late fee, in an amount determined

 

by the department by rule, before the department will issue a

 

certificate of operation.

 

     Sec. 719. (1) A building owner shall ensure that each elevator

 

on the premises is serviced and examined for defects by a licensed

 

elevator journeyman as often as necessary, but at least every 90

 

days, to maintain the equipment in a safe operating condition. The

 

department by rule shall establish minimum requirements for

 

maintenance and inspection.

 

     (2) A building owner shall keep reports and logs of all

 

maintenance, repairs, tests performed, and inspections of an

 

elevator in the elevator machine room, on a form prescribed by the

 

department. The department may request copies or physical

 

inspection of the reports and logs at any time.

 

     Sec. 721. During reasonable hours, the director may enter any

 

premises in this state without hindrance for the purpose of

 

examining equipment covered by this article in accordance with the

 

rules promulgated under this article. The holder of a certificate

 

of operation shall provide any assistance required by the director

 

in making the inspection.

 

     Sec. 723. The department, an elevator journeyman, or an


elevator inspector may seal an elevator out of service in

 

accordance with the rules promulgated under this article or if any

 

of the following occur:

 

     (a) In an emergency, if in the opinion of the journeyman or

 

inspector the condition of the elevator renders it unsafe for

 

operation.

 

     (b) A failure to obtain a permit or renew a permit.

 

     (c) A failure to comply with an order issued by the

 

department.

 

     (d) A failure to renew a certificate of operation.

 

     Sec. 725. (1) If an intact elevator is sealed out of service

 

by the department for more than 1 year or the elevator is inactive

 

for more than 1 year, and the premises are not vacated, the owner

 

of the premises in which the elevator is located must make the

 

elevator dormant by ensuring that the elevator equipment is

 

entirely disconnected in a manner that complies with the

 

requirements of this act and rules promulgated under this act.

 

     (2) An individual who is licensed under this article must

 

first obtain a dormant elevator permit and pay any associated fees

 

before making an elevator dormant under subsection (1).

 

     (3) The department shall void the certificate of operation for

 

an elevator that is made dormant under subsection (1).

 

     (4) An elevator shall not be made dormant if the elevator is

 

required for the building to meet requirements established within

 

the Americans with disabilities act of 1990, Public Law 101-336.

 

     (5) If a building owner wishes to make a dormant elevator

 

operational, the building owner must apply for a new certificate of


operation, meet the requirements of this act and any rules

 

promulgated by the department under this act, and pay the

 

applicable fees established by the department under this act.

 

     (6) The department may promulgate rules concerning the process

 

of making an elevator dormant and making a dormant elevator

 

operational under this section.

 

     Sec. 727. (1) The holder of a certificate of operation for an

 

elevator shall notify the department, on a form provided by the

 

department, within 24 hours after the holder knows of an accident

 

that involves personal injury or damage to the elevator.

 

     (2) The building owner shall keep a copy of all accident

 

reports for at least 3 years from the date of the accident.

 

     Sec. 729. The department, after consultation with the board,

 

shall promulgate rules regarding periodic inspections by the

 

department and shall include, but not be limited to, frequency,

 

documentation, and required examinations.

 

     Sec. 731. An owner of an elevator device that is not subject

 

to this article may request the department to perform an inspection

 

of an elevating device that is not covered under this article and

 

will be required to pay the special inspection fee promulgated by

 

rule.

 

     Enacting section 1. The following acts and parts of acts are

 

repealed:

 

     (a) 1976 PA 333, MCL 338.2151 to 338.2160.

 

     (b) 1967 PA 227, MCL 408.801 to 408.824.

 

     Enacting section 2. This act takes effect 90 days after the

 

date it is enacted into law.