HOUSE BILL No. 6094

 

 

June 5, 2018, Introduced by Rep. Brann and referred to the Committee on Regulatory Reform.

 

     A bill to amend 2016 PA 407, entitled

 

"Skilled trades regulation act,"

 

by amending sections 105 and 109 (MCL 339.5105 and 339.5109) and by

 

adding article 12; and to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 105. As used in this act:

 

     (a) "Enforcing agency" means that term as defined in section

 

2a of the Stille-DeRossett-Hale single state construction code act,

 

MCL 125.1502a.

 

     (b) "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.

 

     (c) "Former act" means former 1956 PA 217; former 1984 PA 192;

 


former 1986 PA 54; former 2002 PA 733; or former 1965 PA 290; ,

 

former 1976 PA 333; or former 1967 PA 227, as applicable.

 

     (d) "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 or registered in the

 

occupation or who has a material financial interest in the

 

occupation that is regulated by the specific article in which the

 

term is used.

 

     (e) "Good moral character" means good moral character as

 

defined in section 1 of and determined under 1974 PA 381, MCL

 

338.41 to 338.47.

 

     (f) "Governmental subdivision" means a governmental

 

subdivision as defined in section 2a of the Stille-DeRossett-Hale

 

single state construction code act, MCL 125.1502a.

 

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

 

conform to, minimal standards of acceptable practice for an

 

occupation.

 

     (h) "Knowledge and skill" means information, education,

 

practical experience, and the facility to apply that information,

 

education, and practical experience.

 

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

 

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

 

form of permission required under a specific article of this act.

 

     (j) "Licensee" means a person that is issued a license under

 

this act.

 

     (k) "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 person 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. 109. (1) A Except as provided in section 1207, a person

 

that holds a license, registration, or certification issued under a

 

former act on the day immediately preceding the effective date of

 

this act April 3, 2017 is considered licensed, registered, or

 

certified under this act until that license, registration, or

 

certification expires, and the person may renew that license,

 

registration, or certification in the manner described in this act.

 

     (2) A Except as provided in section 1207, a board created in a

 

former act shall continue as a board under this act, subject to the

 

provisions of this act. The Except as provided in section 1207, the

 

members of a board created under a former act serve as the initial

 

members of the equivalent board under this act until their

 

successors are appointed under this act or until the expiration of

 

their respective terms, whichever occurs first.

 

     (3) Rules Except as provided in section 1207, rules

 

promulgated by the department or by a board under a former act and

 

in effect on the day immediately preceding the effective date of

 

this act April 3, 2017 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 a board under this

 

act.

 

     (4) Any proceedings pending before the electrical

 

administrative board under the authority of former 1956 PA 217, the

 

board of mechanical rules under the authority of former 1984 PA

 

192, the board of boiler rules under the authority of former 1965

 

PA 290, the building officials advisory board under the authority

 

of former 1986 PA 54, or the state plumbing board under the


authority of former 2002 PA 733 shall be continued and be conducted

 

and determined in accordance with that former act.

 

     (5) A reference in any other law of this state to a former act

 

is considered a reference to this act.

 

                              ARTICLE 12

 

             ELEVATOR LICENSES, PERMITS, AND INSPECTIONS

 

     Sec. 1201. As used in this article:

 

     (a) "Board" means the elevator safety board created under

 

section 1205.

 

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

 

operation that is issued by the department under section 1221.

 

     (c) "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.

 

     (d) "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.

 

     (e) "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.

 

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

 

under section 1209 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) "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.

 

     (h) "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.

 

     (i) "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.

 

     (j) "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. 1203. This article 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 article and the

 

rules promulgated under this article.

 

     Sec. 1205. (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 its duties under article 3, the board shall

 

review any substantive revisions made by the American Society of

 

Mechanical Engineers to the Safety Code for Elevators and

 

Escalators, ASME A17.1/CSA B44, within 6 months of the publication

 

of those revisions, and make recommendations to the director for

 

any amendments to the Michigan elevator rules, R 408.7001 to R

 

408.8695 of the Michigan Administrative Code, or recommendations to

 

the state construction code commission for any amendments to the

 

state construction code, that the board considers appropriate to

 

reflect those revisions. The board shall hold at least 1 public

 

hearing and solicit and consider input from stakeholders before

 

making any recommendations to the director under this subsection.

 

     Sec. 1207. (1) An individual who holds a license on the day

 

immediately preceding the effective date of this article that was

 

issued under former 1967 PA 227 or former 1976 PA 333 is considered

 

the holder of a license under this article 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 article that was issued under former 1967 PA 227 is considered

 

the holder of a license as an elevator inspector under this article

 

until the expiration date of that certificate. An individual who

 

holds a certificate of competency described in this subsection may

 

obtain a license as an elevator inspector 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 article is considered a certificate of

 

operation issued under this article until that certificate of

 

operation expires. A person may renew a certificate of operation

 

described in this subsection in the manner described in this

 

article.

 

     (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 article until the members of

 

the elevator safety board are appointed under this article 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 former 1967 PA 227 or former 1976 PA

 

333 and were in effect on the day immediately preceding the


effective date of this article shall continue in effect to the

 

extent that they do not conflict with this article. The rules shall

 

be enforced by and may be amended or rescinded by the department or

 

the board.

 

     Sec. 1209. (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 article.

 

     (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. 1211. (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 article. All of the following apply to

 

a nonresident individual or foreign entity that applies for

 

licensure under this article:


     (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)(b), 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. 1213. (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. 1215. 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 article and rules promulgated under this article.

 

     Sec. 1217. (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 1237(3).

 

     Sec. 1219. (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 article and rules promulgated under this article.

 

     (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. 1221. (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 article and the rules promulgated under this

 

article 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. 1223. (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. 1225. 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. 1227. 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. 1229. (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 article and rules promulgated under this

 

article.

 

     (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 article and any rules

 

promulgated by the department under this article, 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 article.

 

     Sec. 1231. (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. 1233. 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. 1235. 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.

 

     Sec. 1237. (1) The department shall promulgate rules to

 

establish the fees for certificates of occupancy and elevator

 

inspections. The fees shall reflect the actual costs and expenses

 

of the department in issuing certificates of occupancy and

 

conducting elevator inspections. The fees in effect on the day

 

immediately preceding the effective date of this article shall

 

continue in effect until the department promulgates rules under

 

this subsection.

 

     (2) If a license issued under this article is lost or

 

destroyed, the department shall issue a new license, without

 

examination, if a fee of $25.00 is paid and an application for a

 

new license is submitted, accompanied by a written statement made

 

by the licensee that the license was lost or destroyed.

 

     (3) 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.

 

     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 amendatory act takes effect 90 days

 

after the date it is enacted into law.