HOME BUILDER: CONTRACT; PAMPHLET S.B. 1273 (S-1): FLOOR ANALYSIS






Senate Bill 1273 (Substitute S-1 as reported by the Committee of the Whole)
Sponsor: Senator Alan Sanborn
Committee: Economic Development, Small Business and Regulatory Reform

CONTENT
The bill would amend Article 24 (Residential Builders) of the Occupational Code to do the following:

-- Require a residential builder and a residential maintenance and alteration contractor performing services valued at more than $600 to furnish the owner with a written contract or work order.
-- Require the Department of Labor and Economic Growth (DLEG) to make available a pamphlet on how to find reputable builders or remodelers.
-- Require a residential builder or residential maintenance and alteration contractor to give the owner a copy of the pamphlet and, if the work were valued at $600 or more, to get a written acknowledgement.
-- Provide that failure to supply a homeowner with a contract or work order or a copy of the pamphlet would be punishable only by a maximum administrative fine of $250.


The administrative fine would apply only if DLEG found a residential builder or residential maintenance and alteration contractor to be in violation the Code regarding an offense punishable under Section 602 (which prescribes administrative penalties, including license sanctions, for a violation of the Code or a rule or order promulgated or issued under it).


The bill would take effect 90 days after the date it was enacted.


Proposed MCL 339.2408 Legislative Analyst: J.P. Finet

FISCAL IMPACT
The bill would prescribe a $250 maximum administrative fine that could be imposed on a licensee found in violation of the bill. The amount of revenue that would be generated depends on the number of fines assessed and paid.


Date Completed: 6-8-06 Fiscal Analyst: Elizabeth Pratt Maria Tyszkiewicz


floor\sb1273 Analysis available @ http://www.michiganlegislature.org
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. 1273/0506