September 14, 2006, Introduced by Rep. Pastor and referred to the Committee on Regulatory Reform.
A bill to amend 1980 PA 299, entitled
"Occupational code,"
by amending sections 2401, 2403, and 2404 (MCL 339.2401, 339.2403,
and 339.2404), section 2401 as amended by 1991 PA 166, section 2403
as amended by 1984 PA 191, and section 2404 as amended by 1988 PA
463, and by adding section 2408.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2401. As used in this article:
(a) "Carpentry" means activity regarding a residential
structure involving all footing and foundations; framing and
exterior doors and windows; siding; roofs; and drywall. For
purposes of this subdivision, wood construction and wooden
structure include construction methods utilizing substitute
materials including, but not limited to, metal stud and composite
framing and finish materials that replace or are used in
conjunction with traditional wood construction and the preparation
and installation of foundations of any material. Carpentry does not
include the construction, maintenance, or repair of farm buildings
and their appurtenances, greenhouses, fences, or structures used
for the production or care of farm plants and animals if that
construction, maintenance, or repair is performed by the owner on
his or her own structure.
(b) "Journey carpenter" means an individual who, as his or her
principal occupation, is engaged in carpentry for a fixed sum,
price, fee, percentage, or other valuable consideration and meets
the qualifications of this article.
(c) "Registered carpenter" means an individual registered
under this act as a carpenter, trainee, or journey carpenter.
(d) (a)
"Residential builder" means a person
engaged in the
construction of a residential structure or a combination
residential and commercial structure who, for a fixed sum, price,
fee, percentage, valuable consideration, or other compensation,
other than wages for personal labor only, undertakes with another
or offers to undertake or purports to have the capacity to
undertake with another for the erection, construction, replacement,
repair, alteration, or an addition to, subtraction from,
improvement, wrecking of, or demolition of, a residential structure
or combination residential and commercial structure; a person who
manufactures, assembles, constructs, deals in, or distributes a
residential or combination residential and commercial structure
which is prefabricated, preassembled, precut, packaged, or shell
housing; or a person who erects a residential structure or
combination residential and commercial structure except for the
person's own use and occupancy on the person's property.
(e) (b)
"Residential maintenance and alteration
contractor"
means a person who, for a fixed sum, price, fee, percentage,
valuable consideration, or other compensation, other than wages for
personal labor only, undertakes with another for the repair,
alteration, or an addition to, subtraction from, improvement of,
wrecking of, or demolition of a residential structure or
combination residential and commercial structure, or building of a
garage, or laying of concrete on residential property, or who
engages in the purchase, substantial rehabilitation or improvement,
and resale of a residential structure, engaging in that activity on
the same structure more than twice in 1 calendar year, except in
the following instances:
(i) If the work is for the person's own use and occupancy.
(ii) If the rehabilitation or improvement work of residential
type property or a structure is contracted for, with, or hired
entirely to be done and performed for the owner by a person
licensed under this article.
(iii) If work is performed by a person employed by the owner to
perform work for which the person is licensed by the state.
(f) (c)
"Residential structure" means a premises
used or
intended to be used for a residence purpose and related facilities
appurtenant to the premises, used or intended to be used, as an
adjunct of residential occupancy.
(g) (d)
"Salesperson" means an employee or agent,
other than
a qualifying officer, of a licensed residential builder or
residential maintenance and alteration contractor, who for a
salary, wage, fee, percentage, commission, or other consideration,
sells or attempts to sell, negotiates or attempts to negotiate,
solicits for or attempts to solicit for, obtains or attempts to
obtain a contract or commitment for, or furnishes or attempts or
agrees to furnish, the goods and services of a residential builder
or residential maintenance and alteration contractor, except a
person working for a licensed residential builder or residential
maintenance and alteration contractor who makes sales which are
occasional and incidental to the person's principal employment.
(h) (e)
"Wages" means money paid or to be paid on
an hourly
or daily basis by an owner, lessor, or occupant of a residential
structure or combination residential and commercial structure as
consideration for the performance of personal labor on the
structure by a person who does not perform or promise to perform
the labor for any other fixed sum, price, fee, percentage, valuable
consideration, or other compensation and who does not furnish or
agree to furnish the material or supplies required to be used in
the performance of the labor or an act defined in subdivision (a)
or (b).
Sec. 2403. (1) Notwithstanding article 6, a person may engage
in the business of or act in the capacity of a residential builder
or a residential maintenance and alteration contractor or
salesperson in this state without having a license or registration
issued under this article, if the person is 1 of the following:
(a) An authorized representative of the United States
government, this state, or a county, township, city, village, or
other political subdivision of this state.
(b) An owner of property, with reference to a structure on the
property for the owner's own use and occupancy.
(c) An owner of rental property, with reference to the
maintenance and alteration of that rental property.
(d) An officer of a court acting within the terms of the
officer's office.
(e) A person other than the salesperson who engages solely in
the business of performing work and services under contract with a
residential builder or a residential maintenance and alteration
contractor licensed under this article. A person engaged in
carpentry shall perform work and services only if registered under
this article to engage in carpentry.
(f) A person working on 1 undertaking or project by 1 or more
contracts, the aggregate contract price for which labor, material,
and any other item is less than $600.00. This exemption does not
apply if the work of a construction is only a part of a larger or
major operation, whether undertaken by the same or a different
residential builder or residential maintenance and alteration
contractor, or in which a division of the operation is made in
contracts of amounts less than $600.00, to evade this act.
(g)
An electrical contractor who is licensed under Act No.
217
of the Public Acts of 1956, as amended, being sections 338.881
to
338.892 of the Michigan Compiled Laws the electrical
administrative act, 1956 PA 217, MCL 338.881 to 338.892. This
exemption applies only to the electrical installation, electrical
maintenance, or electrical repair work performed by the electrical
contractor.
(h)
A plumbing contractor licensed under
Act No. 266 of the
Public
Acts of 1929, as amended, being sections 338.901 to 338.917
of
the Michigan Compiled Laws the
state plumbing act, 2002 PA 733,
MCL 338.901 to 338.917. This exemption applies only to plumbing
installation, plumbing maintenance, or plumbing repair work
performed by the plumbing contractor.
(i) A mechanical contractor who is licensed under the Forbes
mechanical contractors act, 1984 PA 192, MCL 338.971 to 338.988.
This exemption applies only to mechanical installation, mechanical
maintenance, or mechanical repair work performed by the mechanical
contractor.
(j) A person and a friend or relative of that person engaging
in carpentry on property owned by that person, or that upon
completion becomes the person's place of residence, so long as he
or she does not hold himself or herself out as a registered
carpenter. In such case, the owner or prospective owner must, upon
the application for the permit, affirm ownership and occupancy upon
completion. Any friend or relative helping the owner must not be
doing so for compensation. The owners shall apply for and obtain
the appropriate permits and obtain the required inspections.
(k) An individual involved in carpentry on an agricultural
structure.
(2) The department shall not condition the eligibility for
carpenter registration upon affiliation with or sponsorship by any
governmental, private, charitable, or fraternal organization and
shall not deny registration upon such affiliation or sponsorship.
(3) An applicant for registration for any class of carpenter
shall demonstrate citizenship or legal work status.
(4) Registration as a carpenter under this article does not
authorize the pulling of construction permits.
Sec.
2404. (1) The department may require
an a contractor
applicant ,
or licensee, or each
partner, trustee, director,
officer, member, or shareholder to submit evidence of good moral
character and financial stability. Before the issuance of a
contractor license, an applicant shall submit any amount required
to
be paid under the construction lien act, Act No. 497 of the
Public
Acts of 1980, being sections 570.1101 to 570.1305 of the
Michigan
Compiled Laws 1980 PA 497,
MCL 570.1101 to 570.1305.
(2) The department shall require an applicant for a license to
pass an examination establishing that the applicant has a fair
knowledge of the obligations of a residential builder or
residential maintenance and alteration contractor to the public and
the applicant's principal, and the statutes relating to the
applicant's licensure. Beginning the effective date of the
amendatory act that added this sentence, the department shall
require an initial applicant for a journey carpenter registration
to both pass an examination approved by the United States bureau of
apprenticeship training, or other examination meeting those
standards and approved by rule of the director and either complete
training whose curriculum is approved by the United States bureau
of apprenticeship training standards or demonstrate appropriate
carpentry experience for 3 of the preceding 5 years. Subject to any
rule adopted under this subsection, the United States bureau of
apprenticeship training examinations and training curriculum
standards, as they exist on the date of enactment of the amendatory
act that added this sentence and that involve journey carpenters,
are incorporated by reference.
(3) The department, upon application, may issue a residential
maintenance and alteration contractor's license to an applicant
who, upon examination, qualifies for a license, which shall
authorize the licensee according to the applicant's qualifications,
crafts, and trades to engage in the activities of a residential
maintenance
and alteration contractor. A Such
a contractor
license shall include the following crafts and trades: carpentry;
concrete; swimming pool installation; waterproofing a basement;
excavation;
insulation work; masonry work; painting and decorating;
roofing;
siding and gutters; screen or storm sash installation;
tile and marble work; and house wrecking. The license shall specify
the particular craft or trade for which the licensee has qualified.
This subsection shall not prohibit a specialty contractor from
taking and executing a contract involving the use of 2 or more
crafts or trades if the performance of the work in the craft or
trade, other than in which the person is licensed, is incidental
and supplemental to the performance of work in the craft for which
the specialty contractor is licensed.
(4) A residential builder or residential maintenance and
alteration contractor shall maintain a place of business in this
state. If a residential builder or residential maintenance and
alteration contractor maintains more than 1 place of business
within this state, a branch office license shall be issued to the
builder or contractor for each place of business so maintained.
Sec. 2408. (1) Beginning the effective date of the amendatory
act that added this subsection and upon approval of an application
properly submitted, the department shall issue a carpenter
registration for a term of 3 years and a trainee registration for a
period of 1 year.
(2) Beginning the effective date of the amendatory act that
added this subsection and until the expiration of 1 year after that
effective date, the department shall issue a registration to a
person that submits, by affidavit, proof of 3 of the preceding 5
years' experience as a carpenter.
(3) The department shall provide that a trainee carpenter be
eligible for registration as a carpenter based upon 2 years of
experience and demonstration of a lack of complaints or sanctions.
(4) An applicant for a registration as a carpenter or trainee
carpenter shall submit an application for registration, pay the
application and registration fees, and demonstrate compliance with
section 2403(3).
(5) The department shall issue picture identification cards to
anyone registered as a carpenter under this article.
(6) An individual registered under this article as a carpenter
shall carry the identification card described in subsection (5) at
all times while engaged in activity that is subject to registration
under this article and shall also carry not less than 1 piece of
identification containing the individual's picture. The individual,
upon request of an inspector, shall produce the identification card
described in subsection (5) as well as the picture identification.
An individual who fails to produce the card described in subsection
(5) is not considered in violation of this subsection if he or she
produces the card within 24 hours after being requested by an
inspector and presents it to the enforcing agency. Failure to
produce any identification upon the request of an inspector shall
be considered a violation of this act by the carpenter contractor
supervising the jobsite.
(7) The use by a homeowner acting as his or her own contractor
of unregistered carpenters or carpenters not exempt from
registration under this article is considered a threat to the
public health, safety, and welfare. The department or an enforcing
agency may issue a stop-work order based on an affidavit submitted
by a person familiar with the facts set forth in the affidavit, or,
if appropriate, based upon an affidavit on information and belief,
that an imminent threat to the public health, safety, and welfare
exists due to the use of unregistered carpenters or carpenters not
exempt from registration under this article. Thereafter, the
proceedings described in this article shall be promptly commenced
and decided in 3 or fewer business days.
(8) A stop-work order shall be conspicuously posted at a
jobsite. The issuance of a stop-work order operates to stop all
work at the jobsite.
(9) A person may petition the department or an enforcing
agency to dissolve the stop-work order. Upon receiving a petition,
the department or an enforcing agency immediately shall schedule a
hearing, within 3 business days or less, to decide whether to grant
or deny the requested relief. The filing of a petition does not
operate to stay the effect of a stop-work order.
(10) Upon a showing acceptable to the department or enforcing
agency of compliance with the provision of this article, the
violation of which was the basis of the stop-work order, the
department or enforcing agency may rescind the stop-work order.
(11) A hearings examiner shall grant the requested relief
dissolving the stop-work order, 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 department's or enforcing agency's stop-work order.
(12) Notwithstanding article 6, a licensed contractor who
violates this article by utilizing unregistered carpenters is
liable for a civil violation of not less than $500.00, to be
deposited into the builder enforcement fund created in section 39
of the state license fee act, 1979 PA 152, MCL 338.2239.
Enacting section 1. This amendatory act takes effect 18 months
after the date it is enacted.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 6534(request no.
03332'05 a) of the 93rd Legislature is enacted into law.