HB-5833, As Passed House, August 18, 2010

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5833

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

 

     A bill to amend 2002 PA 733, entitled

 

"State plumbing act,"

 

by amending sections 21, 43, and 47 (MCL 338.3531, 338.3553, and

 

338.3557).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 21. (1) To qualify for a plumbing contractor license, the

 

applicant must either hold a master plumber license or employ the

 

holder of a master plumber license as his or her representative.

 

Only an owner of a sole proprietorship or partnership, or an

 

officer of a corporation or limited liability company, may apply

 

for licensure as a plumbing contractor.

 

     (2) The department shall issue a plumbing contractor's license

 

to a person who does all of the following:

 

     (a) Files a completed application on a form provided by the

 

department that includes the following information:


 

     (i) A statement listing the complete address of each place

 

where the applicant has resided and has been engaged in business

 

during the last 5 years including the length of residences and

 

types of businesses engaged in or employments.

 

     (ii) The name of the applicant, the name of the business, and

 

the location of the place for which the license is desired.

 

     (iii) The name of the business owner or president of the

 

corporation and the name of the applicant, if different from the

 

name of the business owner or president, and his or her title.

 

     (iv) The name, residence address, and license number of the

 

licensed master plumber who represents the person.

 

     (b) Pays the examination fee prescribed in section 31 and

 

passes an examination provided for by the board and the department.

 

     (c) Pays the license fee prescribed in section 31.

 

     (3) A licensed plumbing contractor may operate 1 or more

 

branch offices in this state bearing the same firm name provided if

 

a licensed master plumber is in charge and has the responsibility

 

of supervision at each branch.

 

     (4) When If a license is issued to a plumbing contractor

 

represented by a master plumber, the plumbing contractor and the

 

master plumber are jointly and severally responsible for exercising

 

the supervision or control of the plumbing operations necessary to

 

secure full compliance with this act, the rules promulgated under

 

this act, and all other laws and rules related to the installation

 

of plumbing.

 

     (5) Both a person other than a plumbing contractor and the

 

master plumber are jointly and severally responsible for exercising


 

the supervision or control of the plumbing operations necessary to

 

secure full compliance with this act, the rules promulgated under

 

this act, and all other laws and rules related to the installation

 

of plumbing.

 

     (6) If a plumbing contractor is represented by a licensed

 

master plumber who ceases to represent the plumbing contractor, the

 

plumbing contractor has 30 days thereafter in which to designate

 

another licensed master plumber as the representative of the

 

plumbing contractor. The plumbing contractor shall notify the

 

department in writing of the change.

 

     (7) A person applying for a plumbing contractor license shall

 

also pay any amount required to be paid under the construction lien

 

act, 1980 PA 497, MCL 570.1101 to 570.1305, which amount shall be

 

paid to the department for deposit in the homeowner construction

 

lien recovery fund. An assessment imposed upon a master plumber is

 

considered sufficient to fulfill any assessment obligation that may

 

exist for a plumbing contractor.

 

     (8) A person who, on the effective date of this act, is

 

licensed as a master plumber under former 1929 PA 266 or employing

 

a licensed master plumber shall, upon payment of the plumbing

 

contractor license fee and upon furnishing the department with

 

satisfactory evidence of having been engaged in a business as a

 

master plumber for a minimum of 3 out of the 5 years immediately

 

preceding the effective date of this act, be granted a plumbing

 

contractor license without examination if the person applies within

 

6 months after the effective date of this act.

 

     (7) (9) A licensed plumbing contractor shall display in a


 

conspicuous place at the entrance of the place of business a sign

 

bearing the company name and the name of the licensed master

 

plumber and license number in letters not less than 3 inches high.

 

     Sec. 43. (1) The department may investigate the activities of

 

a person licensed or registered under this act which that are

 

related to the person's licensure or registration as a plumbing

 

contractor, master plumber, journey plumber, or apprentice plumber

 

for activities that include, but are not limited to, the grounds

 

described in subsection (2)(a) through (f). The department may hold

 

hearings pursuant to the administrative procedures act of 1969,

 

1969 PA 306, MCL 24.201 to 24.328, and shall report its findings to

 

the board.

 

     (2) After an administrative hearing, the board shall proceed

 

under section 47 against a person if the board finds that 1 or more

 

of the following grounds for board action exist:

 

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

 

registration under this act.

 

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

 

for which a license or registration is required under this act.

 

     (c) An act of gross negligence.

 

     (d) False advertising.

 

     (e) An act that demonstrates incompetence.

 

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

 

act.

 

     (3) Notwithstanding section 47, the board upon recommendation

 

of the department shall suspend or revoke the license of a person

 

whose failure to pay a lien claimant results in a payment being


 

made from the homeowner construction lien recovery fund pursuant to

 

the construction lien act, 1980 PA 497, MCL 570.1101 to 570.1305.

 

The license shall not be renewed and a new license shall not be

 

issued until that person has made full restitution to the fund,

 

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

 

section 6013 of the revised judicature act of 1961, 1961 PA 236,

 

MCL 600.6013.

 

     (3) (4) Activity regulated under this act shall not be

 

performed by a person whose license or registration has been

 

suspended or revoked or whose license or registration has expired.

 

     Sec. 47. (1) After finding the existence of a violation

 

described in section 43 and after an opportunity for a hearing, the

 

board, except as otherwise provided in section 43(3) and section

 

45, shall impose 1 or more of the following sanctions for a

 

violation:

 

     (a) Suspension of the license or registration.

 

     (b) Denial of the license or registration.

 

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

 

     (d) Censure.

 

     (e) Probation.

 

     (f) Revocation of the license or registration.

 

     (g) Restitution.

 

     (2) If restitution is required to be made under this section,

 

the license or registration of the person required to make

 

restitution may be suspended until restitution is made.

 

     Enacting section 1. This amendatory act does not take effect

 

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


 

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