HOUSE BILL No. 5502

 

March 21, 2012, Introduced by Rep. Foster and referred to the Committee on Regulatory Reform.

 

     A bill to amend 1980 PA 299, entitled

 

"Occupational code,"

 

by amending section 2404b (MCL 339.2404b), as added by 2007 PA 157.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

act that added this section, applicants for initial licensure

 

either June 1, 2008, the department shall not issue a license to an

 

individual applying for an initial individual license 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 unless he

 

or she has successfully met the prelicensure course of study

 

requirements of this subsection or is exempt from those

 

requirements under this subsection. All of the following apply to

 

the prelicensure course of study required under this subsection:


 

     (a) If a residential builder or a residential maintenance and

 

alteration contractor who held an individual license on the

 

effective date of the amendatory act that added this section that

 

are June 1, 2008 is renewing a that license, in the capacity of an

 

individual or qualifying officer, or both, are he or she is exempt

 

from the requirement of successfully completing prelicensure

 

courses described in this subsection.

 

     (b) If an individual is applying for a license as a

 

residential builder or residential maintenance and alteration

 

contractor, and he or she held a license as a residential builder

 

or residential maintenance and alteration contractor at any time

 

within the 9-year period preceding his or her application, that

 

individual is exempt from the requirement of successfully

 

completing prelicensure courses described in this subsection.

 

     (c) The department shall require an applicant not exempted

 

under this subsection to not issue an initial license to an

 

individual unless he or she successfully complete completes 60

 

hours of approved prelicensure courses consisting of or he or she

 

is exempt from those requirements under this subsection.

 

     (d) The 60 hours of prelicensure courses described in

 

subdivision (c) shall include at least 6 hours of courses in each

 

of the following areas of competency:

 

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

 

     (ii) (b) Design and building science.

 

     (iii) (c) Contracts, liability, and risk management.

 

     (iv) (d) Marketing and sales.

 

     (v) (e) Project management and scheduling.


 

     (vi) (f) The current Michigan residential code.

 

     (vii) (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 in

 

the 2009 calendar year, an individual who obtains an initial

 

licensure license under this article as a residential builder or a

 

residential maintenance and alteration contractor shall must

 

successfully complete not less than at least 3 hours of activities

 

demonstrating continuing competency per in each calendar year,

 

during the first 6 calendar years of licensure, and 21 hours per

 

for each 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 an individual 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 If an individual licensee who has held

 

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

 

and the department has not determined in a final order to have that

 

he or she has violated this act or a rule adopted under this act,

 

shall he or she must successfully complete at least 3 hours of

 

activities demonstrating continuing competency per in each license

 

cycle to include that includes at least 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 If

 

the department determines in a final order to have that an


 

individual licensee has violated this act or a rule adopted under

 

this act, he or she shall must successfully complete, during the

 

next complete license cycle, up to not more than 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 At least 3 hours of that

 

continuing competency to must 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 An individual 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 and any 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, an

 

intermediate school district, a community college, a university,

 

the bureau of construction codes, the Michigan occupational safety

 

and health administration, a 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 an

 

individual licensee's ability to perform the occupation with

 

competence and shall prescribe proofs that are necessary to

 

demonstrate that the licensee he or she has fulfilled the

 

requirements of continuing competency.

 

     (8) Each An individual licensee may select approved courses in

 

his or her subject matter area or specialty. Service An

 

individual's service as a lecturer or discussion leader in an

 

approved course shall be counted toward the count toward his or her

 

continuing competency requirements of obligations under this

 

section. Alternate An individual may earn and document any

 

alternative 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.