SB-0452, As Passed Senate, December 13, 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 452

 

 

April 26, 2007, Introduced by Senators CASSIS and BASHAM and referred to the Committee on Economic Development and Regulatory Reform.

 

 

 

     A bill to amend 1980 PA 299, entitled

 

"Occupational code,"

 

by amending sections 601, 602, 605, 2402, 2404, 2405, and 2411 (MCL

 

339.601, 339.602, 339.605, 339.2402, 339.2404, 339.2405, and

 

339.2411), sections 601 and 602 as amended by 2005 PA 278, section

 

2404 as amended by 1988 PA 463, and section 2411 as amended by 2001

 

PA 113, and by adding sections 2404b and 2411a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 601. (1) A person 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 person possesses a

 

license or registration issued by the department for the

 

occupation.

 

     (2) A school, institution, or person shall not operate or

 


Senate Bill No. 452 as amended December 11, 2007

attempt to operate a barber college, school of cosmetology, or real

 

estate school unless the school, institution, or person is licensed

 

or approved by the department.

 

     (3) Subject to section 411, a person whose license or

 

registration is suspended, revoked, or lapsed, as determined by the

 

records of the department, is considered unlicensed or

 

unregistered.

 

     (4) (3) A Except as otherwise provided for in section 735, a

 

person, school, or institution that violates subsection (1) or (2)

 

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.

 

     (5) (4) A Except as otherwise provided for in section 735, a

 

person, school, or institution that violates subsection (1) or (2)

 

a second or any subsequent time is guilty of a misdemeanor,

 

punishable , except as provided in section 735, by a fine of not

 

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

 

both.

 

     (6) Notwithstanding subsections (4) and (5), a person not

 

licensed under article 24 as a residential builder or a residential

 

maintenance and alteration contractor who violates subsection (1)

 

or (2) is guilty as follows:

 

     (a) In the case of a first offense, a misdemeanor punishable

 

by a fine of not less than $5,000.00 or more than $25,000.00, or

 

imprisonment for not more than 1 year, or both.

 

     (b) In the case of a second [or subsequent] offense, a misdemeanor

 punishable

by a fine of not less than $5,000.00 or more than $25,000.00, or

 

imprisonment for not more than 2 years, or both.

 


Senate Bill No. 452 as amended December 11, 2007

     (c) In the case of [an offense that causes death or serious

 injury], a felony

punishable by a fine of not less than $5,000.00 or more than

 

$25,000.00, or imprisonment for not more than 4 years, or both.

 

     (7) Any violation of this act shall include a requirement that

 

restitution be made, based upon proofs submitted to and findings

 

made by the trier of fact as provided by law.

 

     (8) (5) Notwithstanding the existence and pursuit of any other

 

remedy, an affected person may maintain injunctive action to

 

restrain or prevent a person from violating subsection (1) or (2).

 

If successful in obtaining injunctive relief, the affected person

 

shall be entitled to actual costs and attorney fees.

 

     (9) (6) This act does not apply to a person engaging in or

 

practicing the following:

 

     (a) Interior design.

 

     (b) Building design.

 

     (c) Any activity for which the person is licensed under the

 

state plumbing act, 2002 PA 733, MCL 338.3511 to 338.3569.

 

     (d) Any activity for which the person is licensed under the

 

Forbes mechanical contractors act, 1984 PA 192, MCL 338.971 to

 

338.988.

 

     (e) Any activity for which the person is licensed under the

 

electrical administrative act, 1956 PA 217, MCL 338.881 to 338.892.

 

     (10) (7) As used in subsection (5) (8), "affected person"

 

means a person directly affected by the actions of a person

 

suspected of violating subsection (1) or (2) and includes, but is

 

not limited to, a licensee or registrant, a board established

 

pursuant to this act, the department, a person who has utilized the

 


services of the person engaging in or attempting to engage in an

 

occupation regulated under this act or using a title designated by

 

this act without being licensed or registered by the department, or

 

a private association composed primarily of members of the

 

occupation in which the person is engaging in or attempting to

 

engage in or in which the person is using a title designated under

 

this act without being registered or licensed by the department.

 

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

 

enforce this section. A person who violates this section shall be

 

subject to this section and section sections 506, 602, and 606.

 

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

 

prosecutor may utilize forfeiture as a remedy in the manner

 

provided for in section 606.

 

     (13) (9) The remedies under this section are independent and

 

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

 

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

 

remedy by another person.

 

     (14) (10) An interior designer may perform services in

 

connection with the design of interior spaces including preparation

 

of documents relative to finishes, systems furniture, furnishings,

 

fixtures, equipment, and interior partitions that do not affect the

 

building mechanical, structural, electrical, or fire safety

 

systems.

 

     (15) Upon entering a conviction under subsection (4), (5), or

 

(6), a court entering the conviction shall notify, by mail,

 

facsimile transmission, or electronic mail, the bureau of

 

commercial services at the department.

 


     Sec. 602. A person, school, or institution that violates this

 

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

 

be assessed 1 or more of the following penalties:

 

     (a) Placement of a limitation on a license or certificate of

 

registration for an occupation regulated under articles 8 to 25.

 

     (b) Suspension of a license or certificate of registration.

 

     (c) Denial of a license, certificate of registration, or

 

renewal of a license or certificate of registration.

 

     (d) Revocation of a license or certificate of registration.

 

     (e) An In the case of a person licensed or registered under

 

this act and except as otherwise provided for by this act, an

 

administrative fine to be paid to the department, not to exceed

 

$10,000.00.

 

     (f) Censure.

 

     (g) Probation.

 

     (h) A requirement that restitution be made, based upon proofs

 

submitted to and findings made by the hearing examiner after a

 

contested case.

 

     Sec. 605. (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 all cases arising

 

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 unlicensed practice of an occupation.

 

     Sec. 2402. (1) A residential builders' and maintenance and

 

alteration contractors' board is created. Four Of the 9-member

 

board, 4 members shall be licensed residential builders, and 2

 

members shall be licensed maintenance and alteration contractors.

 

     (2) Of the members representing the general public, at least 1

 

member shall be registered under the building officials and

 

inspectors registration act, 1986 PA 54, MCL 338.2301 to 338.2313.

 

     Sec. 2404. (1) The department may require an applicant,

 

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 license, an applicant

 

shall submit any the following:

 

     (a) 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.

 

     (b) A copy of an operator's license or state personal

 

identification card, to be used by the department only for proof of

 

identity of the applicant.

 

     (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.

 

     (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 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.

 

     (5) Beginning the license cycle after the effective date of

 


the amendatory act that added this subsection, the department shall

 

issue the license of a residential builder and residential

 

maintenance and alteration contractor for a period of 3 years in

 

duration. Beginning the effective date of the amendatory act that

 

added this subsection, an applicant for renewal of a residential

 

builder or maintenance and alteration contractor license shall

 

state that he or she has a current copy of the Michigan residential

 

code and has fulfilled the appropriate requirements regarding

 

continuing competency.

 

     (6) Beginning the effective date of the amendatory act that

 

added this subsection, a licensee shall maintain documentation, for

 

at least 5 years, of activities meeting the continuing competency

 

requirements as prescribed under this article.

 

     Sec. 2404b. (1) Beginning the effective date of the amendatory

 

act that added this section, applicants for initial licensure

 

either as a residential builder or as a residential maintenance and

 

alteration contractor shall successfully complete a prelicensure

 

course of study as prescribed by this subsection. Licensees holding

 

a residential builder or a residential maintenance and alteration

 

contractor license on the effective date of the amendatory act that

 

added this section that are renewing a license in the capacity of

 

an individual or qualifying officer, or both, are exempt from the

 

requirement of successfully completing prelicensure courses

 

described in this subsection. The department shall require an

 

applicant not exempted under this subsection to successfully

 

complete 60 hours of approved prelicensure courses consisting of at

 

least 6 hours of courses in each of the following areas of

 


competency:

 

     (a) Business management, estimating, and job costing.

 

     (b) Design and building science.

 

     (c) Contracts, liability, and risk management.

 

     (d) Marketing and sales.

 

     (e) Project management and scheduling.

 

     (f) The current Michigan residential code.

 

     (g) Construction safety standards promulgated under the

 

Michigan occupational safety and health act, 1974 PA 154, MCL

 

408.1001 to 408.1094.

 

     (2) Beginning the calendar year after the effective date of

 

the amendatory act that added this section, a person obtaining

 

initial licensure under this article as a residential builder or a

 

residential maintenance and alteration contractor shall

 

successfully complete not less than 3 hours of activities

 

demonstrating continuing competency per calendar year, during the

 

first 6 calendar years of licensure, and 21 hours per 3-year time

 

period since the issuance of his or her license. At least 3 hours

 

shall be devoted to those activities designed to develop a

 

licensee's understanding and ability to apply state building codes

 

and laws relating to the licensed occupation, safety, and changes

 

in construction and business management laws. A licensee who has

 

held a license for more than 6 years or who has not been determined

 

by the department in a final order to have violated this act or a

 

rule adopted under this act shall successfully complete at least 3

 

hours of activities demonstrating continuing competency per license

 

cycle to include 1 hour of codes, 1 hour of safety, and 1 hour of

 


legal issues as described in this subsection.

 

     (3) In the case of a licensee who has been determined by the

 

department in a final order to have violated this act or a rule

 

adopted under this act, he or she shall successfully complete,

 

during the next complete license cycle, up to 21 hours of

 

activities that demonstrate the development of continuing

 

competency during that next license cycle as determined appropriate

 

by order of the department, at least 3 hours of that continuing

 

competency to include 1 hour of codes, 1 hour of safety, and 1 hour

 

of legal issues as described in subsection (2).

 

     (4) As activities that demonstrate the development of

 

continuing competency, the education courses described in section

 

3, pages 3-6 through 3-58 of the January 2005 edition of the

 

publication "NAHB University of Housing, Blueprint for Success",

 

published by the national association of home builders, and taught

 

by instructors meeting the requirements of section 4, pages 4-5

 

through 4-9 of the January 2005 edition of "NAHB University of

 

Housing, Blueprint for Success", are considered approved, are

 

considered appropriate for fulfilling the prelicensure and

 

continuing competency requirements of subsections (1), (2), and

 

(3), and are incorporated by reference. A licensee may take any

 

courses equivalent to those courses incorporated by reference by

 

this subsection. Updates to the courses described in this

 

subsection or equivalent courses are acceptable unless the

 

department determines that the courses do not provide a means of

 

developing and maintaining continuing competency for those

 

applicants or licensees who successfully fulfill the course

 


requirements. Any construction code update courses approved by the

 

bureau of construction codes as well as fire safety or workplace

 

safety courses approved or sponsored by the department are also

 

considered appropriate for fulfilling the continuing competency

 

requirements of this subsection. The department may, by rule,

 

amend, supplement, update, substitute, or determine equivalency

 

regarding any courses or alternate activities for developing

 

continuing competency described in this subsection.

 

     (5) The department may waive the requirement of membership in

 

a local, state, or national trade association contained in the

 

instructor standards of section 4, pages 4-5 through 4-9 of the

 

January 2005 edition of the publication "NAHB University of

 

Housing, Blueprint for Success", published by the national

 

association of home builders, and incorporated by reference. By

 

rule, the department may amend, supplement, update, substitute, or

 

determine equivalency regarding the standards in this subsection

 

and shall establish instructor qualifications for courses not

 

incorporated by reference in subsection (4).

 

     (6) The subject matter of the prelicensure and continuing

 

competency activities may be offered by a high school, intermediate

 

school district, community college, university, bureau of

 

construction codes, Michigan occupational safety and health

 

administration, trade association, or a proprietary school licensed

 

by the department as meeting the subject matter qualifications

 

described in subsection (4) and the instructional qualifications

 

described in subsection (5).

 

     (7) The department shall promulgate rules to provide for the

 


following:

 

     (a) Requirements other than those listed in subsection (4) for

 

determining that a course meets the minimum criteria for developing

 

and maintaining continuing competency.

 

     (b) Requirements for acceptable courses offered at seminars

 

and conventions by trade associations, research institutes, risk

 

management entities, manufacturers, suppliers, governmental

 

agencies other than those named in subsection (4), consulting

 

agencies, or other entities.

 

     (c) Acceptable distance learning.

 

     (d) Alternate forms of continuing competency, including

 

comprehensive testing, participation in mentoring programs,

 

research, participation in code hearings conducted by the

 

international code council, and publication of articles in a trade

 

journal or regional magazine as an expert in the field. The

 

alternate forms shall be designed to maintain and improve the

 

licensee's ability to perform the occupation with competence and

 

shall prescribe proofs that are necessary to demonstrate that the

 

licensee has fulfilled the requirements of continuing competency.

 

     (8) Each licensee may select approved courses in his or her

 

subject matter area or specialty. Service as a lecturer or

 

discussion leader in an approved course shall be counted toward the

 

continuing competency requirements of this section. Alternate forms

 

of continuing competency may be earned and documented as

 

promulgated in rules by the department.

 

     (9) The department may audit a predetermined percentage of

 

licensees who renew in a year for compliance with the requirements

 


of this section. Failure to comply with the audit or the

 

requirements shall result in the investigation of a complaint

 

initiated by the department, and the licensee is subject to the

 

penalties prescribed in this act.

 

     (10) A licensee as a residential builder or residential

 

alteration and maintenance contractor may apply for inactive status

 

by completing an application, made available by the department, in

 

which he or she declares that he or she is no longer actively

 

engaged in the practice authorized by his or her license and

 

temporarily intends to suspend activity authorized by his or her

 

license. Upon submission of a completed application, the department

 

shall designate the licensee as inactive and note that status on

 

records available to the public. A licensee designated as inactive

 

must have a current copy of the Michigan residential code and is

 

exempt from the continuing competency requirements imposed under

 

this section, but must still pay the per-year license fee. An

 

inactive licensee may activate his or her license by submitting an

 

application to the department requesting activation of the license.

 

Upon activation of a license, the licensee must complete at least 1

 

credit hour of continuing competency for that calendar year.

 

     Sec. 2405. (1) If a license is applied for by a corporation,

 

partnership, or association, limited liability company, or other

 

entity, the applicant shall designate 1 of its officers, partners,

 

members, or managing agent as a qualifying officer who, upon taking

 

and passing the examination, and upon meeting all other

 

requirements of this article, shall be is entitled to a license to

 

act for the corporation, partnership, or association, limited

 


liability company, or other entity. The qualifying officer shall

 

also obtain and maintain a license under this article as an

 

individual. The qualifying officer shall be responsible for

 

exercising the supervision or control of the building or

 

construction operations necessary to secure full compliance with

 

this article and the rules promulgated under this article. A

 

license shall not be issued to a corporation, partnership, or

 

association, limited liability company, or other entity unless each

 

partner, trustee, director, officer, member, and a person

 

exercising control is at least 18 years of age, and meets the

 

requirements for a license under this article other than those

 

relating to knowledge and experience. If an individual licensee is

 

also a qualifying officer, the individual's name and license number

 

shall be listed on any license issued to the individual as a

 

qualifying officer. In the case of a license issued under this

 

subsection, each officer, partner, member, or managing agent,

 

whether or not he or she is the qualifying officer, shall provide a

 

copy of his or her operator's license or state personal

 

identification card to the department for use by the department

 

only for identification purposes. A licensee granted inactive

 

status under section 2404b is not eligible to serve as a qualifying

 

officer.

 

     (2) The license of a corporation, partnership, association,

 

limited liability company, or other association entity shall be

 

suspended when a license or license application of a qualifying

 

officer, partner, trustee, director, officer, member, or a person

 

exercising control of the corporation, partnership, association,

 


limited liability company, or other association entity is

 

suspended, revoked, or denied. The suspension shall remain in force

 

until the board determines that the disability created by the

 

suspension, revocation, or denial has been removed.

 

     (3) A suspension, revocation, or denial of a license of an

 

individual shall suspend, revoke, or deny any other license held or

 

applied for by that individual issued under this article. A

 

suspension, revocation, or denial of a license by the department

 

may shall suspend, revoke, or deny any other license held or

 

applied for under this article by the qualifying officer of a

 

corporation, partnership, association, limited liability company,

 

or other association entity whose license is suspended, revoked, or

 

denied.

 

     (4) If the qualifying officer of a licensee ceases to be its

 

qualifying officer, the license is suspended. However, upon

 

request, the department may permit the license to remain in force

 

for a reasonable time to permit the qualification of a new

 

qualifying officer.

 

     Sec. 2411. (1) A complaint filed under this section or article

 

5, or both, shall be made within 18 months after completion,

 

occupancy, or purchase, whichever occurs later, of the latest of

 

the following regarding a residential structure or a combination of

 

residential and commercial structure . as follows:

 

     (a) In the case of a maintenance and alteration contract:

 

     (i) Completion.

 

     (ii) Occupancy.

 

     (iii) Purchase.

 


     (b) In the case of a project requiring an occupancy permit:

 

     (i) Issuance of the certificate of occupancy or temporary

 

certificate of occupancy.

 

     (ii) Closing.

 

     (2) A licensee or applicant who commits 1 or more of the

 

following shall be subject to the penalties set forth in article 6:

 

     (a) Abandonment without legal excuse of a contract,

 

construction project, or operation engaged in or undertaken by the

 

licensee.

 

     (b) Diversion of funds or property received for prosecution or

 

completion of a specific construction project or operation, or for

 

a specified purpose in the prosecution or completion of a

 

construction project or operation, and the funds or property

 

application or use for any other construction project or operation,

 

obligation, or purposes.

 

     (c) Failure to account for or remit money coming into the

 

person's possession which belongs to others.

 

     (d) A willful departure from or disregard of plans or

 

specifications in a material respect and prejudicial to another,

 

without consent of the owner or an authorized representative and

 

without the consent of the person entitled to have the particular

 

construction project or operation completed in accordance with the

 

plans and specifications.

 

     (e) A willful violation of the building laws of the state or

 

of a political subdivision of the state.

 

     (f) In a residential maintenance and alteration contract,

 

failure to furnish to a lender the purchaser's signed completion

 


certificate executed upon completion of the work to be performed

 

under the contract.

 

     (g) If a licensed residential builder or licensed residential

 

maintenance and alteration contractor, failure to notify the

 

department within 10 days of a change in the control or direction

 

of the business of the licensee resulting from a change in the

 

licensee's partners, directors, officers, or trustees, or a change

 

in the control or direction of the business of the licensee

 

resulting from any other occurrence or event.

 

     (h) Failure to deliver to the purchaser the entire agreement

 

of the parties including finance and any other charge arising out

 

of or incidental to the agreement when the agreement involves

 

repair, alteration, or addition to, subtraction from, improvement

 

of, wrecking of, or demolition of a residential structure or

 

combination of residential and commercial structure, or building of

 

a garage, or laying of concrete on residential property, or

 

manufacture, assembly, construction, sale, or distribution of a

 

residential or combination residential and commercial structure

 

which is prefabricated, preassembled, precut, packaged, or shell

 

housing.

 

     (i) If a salesperson, failure to pay over immediately upon

 

receipt money received by the salesperson, in connection with a

 

transaction governed by this article to the residential builder or

 

residential maintenance and alteration contractor under whom the

 

salesperson is licensed.

 

     (j) Aiding or abetting an unlicensed person to evade this

 

article, or knowingly combining or conspiring with, or acting as

 


agent, partner, or associate for an unlicensed person, or allowing

 

one's license to be used by an unlicensed person, or acting as or

 

being an ostensible licensed residential builder or licensed

 

residential maintenance and alteration contractor for an

 

undisclosed person who does or shall control or direct, or who may

 

have the right to control or direct, directly or indirectly, the

 

operations of a licensee.

 

     (k) Acceptance of a commission, bonus, or other valuable

 

consideration by a salesperson for the sale of goods or the

 

performance of service specified in the article from a person other

 

than the residential builder or residential maintenance and

 

alteration contractor under whom the person is licensed.

 

     (l) Becoming insolvent, filing a bankruptcy action, becoming

 

subject to a receivership, assigning for the benefit of creditors,

 

failing to satisfy judgments or liens, or failing to pay an

 

obligation as it becomes due in the ordinary course of business.

 

     (m) Poor workmanship or workmanship Workmanship not meeting

 

the standards of the custom or trade verified by a building code

 

enforcement official Michigan residential code as promulgated under

 

the Stille-DeRossett-Hale single state construction code act, 1972

 

PA 230, MCL 125.1501 to 125.1531.

 

     (3) The department shall suspend or revoke the license of a

 

person licensed under this article 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, regardless of whether

 

the person was performing services as a licensee under this

 


article; under the electrical administrative act, 1956 PA 217, MCL

 

338.881 to 338.892; or under 1929 PA 266, MCL 338.901 to 338.917

 

the state plumbing act, 2002 PA 733, MCL 338.3511 to 338.3569. The

 

department shall not renew a license or issue a new license until

 

the licensee has repaid in full to the fund the amount paid out

 

plus 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.

 

     (4) The department shall conduct a review upon notice that the

 

licensee has violated the asbestos abatement contractors licensing

 

act, 1986 PA 135, MCL 338.3101 to 338.3319. The department may

 

suspend or revoke that person's license for a knowing violation of

 

the asbestos abatement contractors licensing act, 1986 PA 135, MCL

 

338.3101 to 338.3319.

 

     (5) Notwithstanding article 5, the following apply to

 

administrative proceedings regarding workmanship under subsection

 

(2)(m):

 

     (a) A complaint submitted by an owner shall describe in

 

writing to the department the factual basis for the allegation. The

 

homeowner shall send a copy of the initial complaint to the

 

licensee concurrent with the submission of the complaint to the

 

department.

 

     (b) The department shall presume the innocence of the licensee

 

throughout the proceeding until the administrative law hearing

 

examiner finds otherwise in a determination of findings of fact and

 

conclusions of law under article 5. The licensee has the burden of

 

refuting evidence submitted by a person during the administrative

 


hearing. The licensee also has the burden of proof regarding the

 

reason deficiencies were not corrected.

 

     (c) Upon receipt of a building inspection report issued to the

 

department by a state or local building enforcement official

 

authorized to do so under the Stille-DeRossett-Hale single state

 

construction code act, 1972 PA 230, MCL 125.1501 to 125.1531, which

 

report verifies or confirms the substance of the complaint, the

 

department shall send by certified mail a copy of the verified

 

complaint to both the complainant and the licensee. Failure of the

 

department to send a copy of the verified complaint within 30 days

 

of receipt of the building inspection report prevents the

 

department from assessing a fine against the licensee under article

 

6 but does not prevent the department from pursuing restitution,

 

license suspension, or other remedies provided under this act.

 

     (d) A licensee may contractually provide for an alternative

 

dispute resolution procedure to resolve complaints filed with the

 

department. The procedure shall be conducted by a neutral third

 

party for determining the rights and responsibilities of the

 

parties and shall be initiated by the licensee, who shall provide

 

notice of the initiation of the procedure to the complainant by

 

certified mail not less than 30 days before the commencement of

 

that procedure. The procedure shall be conducted at a location

 

mutually agreed to by the parties.

 

     (e) The department shall not initiate a proceeding against a

 

licensee under this subsection in the case of a licensee who

 

contractually provides for an alternative dispute resolution

 

procedure that has not been utilized and completed unless it is

 


determined that the licensee has not complied with a decision or

 

order issued as a result of that alternative dispute resolution

 

procedure, that alternative dispute resolution procedure was not

 

fully completed within 90 days after the filing of the complaint

 

with the department, or an alternative dispute resolution procedure

 

meeting the requirements of subdivision (D) (d) is not available to

 

the complainant.

 

     (f) The complainant shall demonstrate that notice has been

 

provided to the licensee describing reasonable times and dates that

 

the residential structure was accessible for any needed repairs and

 

proof acceptable to the department that the repairs were not made

 

within 60 days after the sending of the notice. This subdivision

 

does not apply where the department determines a necessity to

 

safeguard the structure or to protect the occupant's health and

 

safety and, in such case, the department may utilize any remedy

 

available under section 504(3)(a) through (d).

 

     (g) In the case where the owner and licensee have agreed

 

contractually on mutually acceptable performance guidelines

 

relating to workmanship, the department shall consider those

 

guidelines in its evaluation of a complaint. The guidelines shall

 

be consistent with the Stille-DeRossett-Hale single state

 

construction code act, 1972 PA 230, MCL 125.1501 to 125.1531.

 

     (6) In any case where the licensee or respondent fails to

 

appear, participate, or defend any action, the board shall issue an

 

order granting by default the relief requested, based upon proofs

 

submitted to and findings made, by the hearing examiner after a

 

contested case.

 


Senate Bill No. 452 as amended July 17, 2007

                     as amended December 11, 2007

     (7) (6) As used in this section, "verified complaint" means a

 

complaint in which all or a portion of the allegations have been

 

confirmed by the building inspection report an affidavit of the

 

state or local building official.

 

     Sec. 2411a. (1) The department shall post on its website any

 

final order of the board and the date it was issued. The posting

 

shall occur within 30 days after the final order is issued.

 

     (2) The department shall annually post on its website the

 

number of final orders of the board.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 94th Legislature are

 

enacted into law:

 

     (a) Senate Bill No. 453.                                   

 

              

 

     (b) Senate Bill No. 450.                                   

 

            

 

     (c) Senate Bill No. 451.                                   

 

              

     [Enacting section 2. Sections 2402, 2404, 2405, and 2411 of the occupational code, 1980 PA 299, MCL 339.2402, 339.2404, 339.2405, and 339.2411, as amended by this amendatory act, and sections 2404b and 2411a of the occupational code, 1980 PA 299, as added by this amendatory act, take effect June 1, 2008.]