HOUSE BILL No. 6079

 

December 5, 2012, Introduced by Reps. Wayne Schmidt and Opsommer and referred to the Committee on Regulatory Reform.

 

     A bill to amend 1984 PA 192, entitled

 

"Forbes mechanical contractors act,"

 

by amending the title and sections 2, 3, 5, 6, 7, 8, 10, 11, 13,

 

14, 15, and 16 (MCL 338.972, 338.973, 338.975, 338.976, 338.977,

 

338.978, 338.980, 338.981, 338.983, 338.984, 338.985, and 338.986),

 

section 3 as amended by 2006 PA 197, sections 6, 11, and 16 as

 

amended by 2010 PA 149, section 7 as amended by 1998 PA 300, and

 

section 10 as amended by 2008 PA 372, and by adding sections 2a,

 

5a, 6a, 8a, 10a, 10b, and 11a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

TITLE

 

     An act to regulate the use, installation, alteration, and

 

servicing of specified heating, cooling, ventilating, and

 

refrigerating equipment and systems; to provide for powers and

 


duties for state agencies and governmental subdivisions; to create

 

a board of mechanical rules; to provide for the licensing and

 

registration of installing contractors, of journey and apprentice

 

technicians, and of servicing contractors of heating, cooling,

 

ventilating, and refrigerating equipment and systems; to prescribe

 

fees; to provide for the promulgation of rules; and to prescribe

 

remedies and penalties.

 

     Sec. 2. (1) As used in this act:

 

     (a) "Board" means the board of mechanical rules.

 

     (b) "Department" means the department of labor.

 

     (c) "Air conditioning" means the process of treating air to

 

meet the requirements of a conditioned space by controlling, either

 

simultaneously or individually, the air's temperature, humidity,

 

cleanness, and distribution.

 

     (d) "Cooling" means air conditioning as defined in subdivision

 

(c).

 

     (e) "Ductwork" means the air distribution arrangement for

 

supply, return, and exhaust in air conditioning systems and in

 

nonair conditioning systems, the materials and methods of which are

 

specified in the Michigan mechanical code, or an equivalent

 

nationally recognized model mechanical code. Ductwork includes

 

flues, vents, and chimneys.

 

     (f) "Enforcing agency" means an enforcing agency as defined in

 

section 2 of the state construction code act of 1972, Act No. 230

 

of the Public Acts of 1972, being section 125.1502 of the Michigan

 

Compiled Laws.

 

     (g) "Equivalent nationally recognized model construction code"

 


means a nationally recognized model construction code adopted

 

pursuant to section 8 of the state construction code act of 1972,

 

Act No. 230 of the Public Acts of 1972, being section 125.1508 of

 

the Michigan Compiled Laws.

 

     (h) "Equivalent nationally recognized model mechanical code"

 

means a nationally recognized model mechanical code adopted

 

pursuant to section 8 of the state construction code act of 1972,

 

Act No. 230 of the Public Acts of 1972, being section 125.1508 of

 

the Michigan Compiled Laws.

 

     (i) "Fire suppression system" means an integrated combination

 

of a fire alarm system and fire suppression equipment which as a

 

result of predetermined temperature, rate of temperature rise,

 

products of combustion, flame, or human intervention will discharge

 

a fire extinguishing substance over a fire area.

 

     (j) "Governmental subdivision" means a governmental

 

subdivision as defined in section 2 of the state construction code

 

act of 1972, Act No. 230 of the Public Acts of 1972, being section

 

125.1502 of the Michigan Compiled Laws.

 

     (k) "Heating", used alone, means the use of any fuel or

 

electricity to generate heat in an air conditioning system. When

 

used with a qualifying term such as "hydronic", the term heating

 

assumes the limited meaning expressed by such qualification.

 

     (l) "Heating, ventilating, and air conditioning" or "HVAC"

 

means the application of equipment and systems to provide air

 

conditioning for occupants of buildings and structures. HVAC does

 

not include the installation of portable self-contained

 

refrigeration equipment and window-type air conditioners of not

 


more than 1-1/2 horsepower.

 

     (m) "Hydronic heating and cooling" means the application of

 

equipment and systems which provide air conditioning by the

 

controlled forced circulation of fluids or vapors in pipes.

 

     (n) "Michigan mechanical code" means part 9 of the general

 

rules of the state construction code commission, being R 408.30907

 

to R 408.30998 of the Michigan administrative code.

 

     (o) "Process piping" means any piping which is not part of a

 

system designed to provide air conditioning or of a refrigeration

 

system. Process piping includes pipes which transfer chemicals and

 

other fluids, gases, or vapors for systems other than air

 

conditioning systems as covered by the Michigan mechanical code or

 

an equivalent nationally recognized model mechanical code.

 

     (p) "Refrigeration" means the use of equipment and systems,

 

including refrigeration piping, employing the refrigeration cycle

 

to generate low temperatures for other than air conditioning

 

equipment and systems. Refrigeration includes such equipment and

 

systems as supermarket refrigeration, industrial refrigeration, the

 

preservation of biological materials, and food storage facilities.

 

Refrigeration does not include the installation of portable self-

 

contained units such as refrigerators, dehumidifiers, and other

 

similar equipment of not more than 1.5 horsepower or other

 

equipment exempted from the Michigan mechanical code.

 

     (q) "Specialty license" means a license granted pursuant to

 

this act which allows the licensee to perform work within limits

 

established by the board in 1 or more of the work classifications

 

set forth in section 6(3).

 


     (r) "Servicing" means the maintenance, repair, and servicing

 

of previously installed equipment and systems.

 

     (s) "State construction code" means the rules promulgated by

 

the state construction code commission under section 4 of the state

 

construction code act of 1972, Act No. 230 of the Public Acts of

 

1972, being section 125.1504 of the Michigan Compiled Laws.

 

     (t) "Limited heating service" means the servicing of gas-

 

designed sectional boilers having inputs of not more than 1 million

 

British thermal units, utilizing a combustion safeguard designed to

 

shut off the main gas supply 10 or more seconds after pilot flame

 

failure, and all other gas-fired or solid-fuel equipment and

 

systems limited to input ratings of less than 400,000 British

 

thermal units per unit; or oil-fired equipment and systems designed

 

for the use of number 1 or number 2 fuel oil, having a maximum

 

firing rate of less than 5 gallons per hour per unit; or electrical

 

furnaces and electric boilers using the same kilowatts that are

 

equivalent to the fossil fuel British thermal units generated.

 

     (u) "Limited refrigeration and air conditioning service" means

 

the servicing of refrigeration equipment and systems and air

 

conditioning equipment and systems employing the refrigeration

 

cycle of unlimited capacity utilizing group 1 refrigerants as

 

listed in the Michigan mechanical code or an equivalent nationally

 

recognized model mechanical code.

 

     (v) "Unlimited heating service" means the servicing of heating

 

equipment and systems without restrictions concerning thermal

 

capacity or grade of fuel oil or type of fuel.

 

     (w) "Unlimited refrigeration and air conditioning service"

 


means the servicing of refrigeration equipment and systems and air

 

conditioning equipment and systems employing the refrigeration

 

cycle unlimited as to thermal capacity or type of refrigerant.

 

     (a) "Air conditioning" or "cooling" means the process of

 

treating air to meet the requirements of a conditioned space by

 

controlling, either simultaneously or individually, the air's

 

temperature, humidity, cleanness, and distribution.

 

     (b) "Apprentice technician" means an individual who is engaged

 

in learning about and assisting in the installation or servicing of

 

mechanical equipment and who is employed by and under the direct

 

and daily supervision of a mechanical contractor.

 

     (c) "Board" means the board of mechanical rules.

 

     (d) "Boiler" means a closed vessel in which water is heated,

 

steam is generated, or steam is superheated, or in which any

 

combination of those functions are accomplished, under pressure or

 

vacuum, by the application of heat from combustible fuels, or

 

electricity. Boiler does not include a unit in the processing

 

system and associated equipment of an integral part of a continuous

 

processing unit, but does include a fired unit for heating or

 

vaporizing liquids other than water if the unit is separate from a

 

processing system and is complete within itself.

 

     (e) "Censure" means an expression of disapproval of a

 

licensee's or registrant's professional conduct, including conduct

 

that is not necessarily a violation of this act or a rule

 

promulgated or an order issued under this act.

 

     (f) "Completed application" means an application that is

 

complete on its face and is submitted with any applicable licensing

 


fees and any other information, records, approval, security, or

 

similar item required by law or rule from a local unit of

 

government, a federal agency, or a private entity but not from

 

another department or agency of this state.

 

     (g) "Department" means the department of licensing and

 

regulatory affairs.

 

     (h) "Director" means the director of the department or his or

 

her authorized representative.

 

     (i) "Ductwork" means the air distribution arrangement for

 

supply, return, and exhaust in air conditioning systems and in non-

 

air-conditioning systems, the materials and methods of which are

 

specified in the current Michigan mechanical code or Michigan

 

residential code.

 

     (j) "Enforcing agency" means an enforcing agency as defined in

 

section 2a of the Stille-DeRossett-Hale single state construction

 

code act, 1972 PA 230, MCL 125.1502a.

 

     (k) "Facility" means a utility or industrial business housed

 

in a building or group of buildings at 1 location.

 

     (l) "Fire suppression system" means an integrated combination

 

of fire suppression equipment that, as a result of predetermined

 

temperature, rate of temperature rise, products of combustion,

 

flame, or human intervention, is designed to discharge a fire

 

extinguishing substance over a fire area.

 

     (m) "Governmental subdivision" means a governmental

 

subdivision as defined in section 2a of the Stille-DeRossett-Hale

 

single state construction code act, 1972 PA 230, MCL 125.1502a.

 

     (n) "Heating" means any of the following:

 


     (i) Used alone, the use of any fuel or electricity to generate

 

heat in an air conditioning system.

 

     (ii) Used with a qualifying term such as "hydronic", the term

 

heating assumes the limited meaning expressed by that

 

qualification.

 

     (o) "Heating, ventilating, and air conditioning" or "HVAC"

 

means the application of equipment and systems to provide air

 

conditioning for occupants of buildings or structures. HVAC does

 

not include the installation of portable self-contained

 

refrigeration equipment or window-type air conditioners of not more

 

than 1.5 horsepower.

 

     (p) "Hydronic heating and cooling" means the application of

 

equipment and systems that provide air conditioning by the

 

controlled forced circulation of fluids or vapors in pipes.

 

     (q) "Journey technician" means an individual who holds a valid

 

journey technician license issued under this act and who engages in

 

the practical installation or servicing of mechanical equipment and

 

who is employed by and under the direct and daily supervision of a

 

licensed mechanical contractor.

 

     (r) "Limited heating service" means the servicing of any of

 

the following:

 

     (i) A gas-fired boiler that has an input rating that does not

 

exceed 1,000,000 British thermal units and utilizes a combustion

 

safeguard designed to shut off the main gas supply 10 or more

 

seconds after pilot flame failure.

 

     (ii) Any other gas-fired or solid-fuel heating equipment or

 

system that has an input rating of less than 400,000 British

 


thermal units per unit.

 

     (iii) An oil-fired heating equipment or system that is designed

 

to use number 1 or number 2 fuel oil and has a maximum firing rate

 

of less than 5 gallons per hour per unit.

 

     (iv) An electric furnace or electrically heated boiler rated at

 

300 kilowatt hours or less by the manufacturer.

 

     (s) "Limited refrigeration and air conditioning service" means

 

the servicing of refrigeration equipment or systems or the

 

servicing of air conditioning equipment or systems that utilize a

 

refrigeration cycle of limited capacity that does not exceed 40

 

tons.

 

     Sec. 2a. As used in this act:

 

     (a) "Mechanical contractor" means an individual who is

 

licensed under section 6; who supervises the installation and

 

servicing of mechanical equipment; and who is engaged in the

 

business of mechanical contracting for a fixed sum, price, fee

 

percentage, valuable consideration, or other compensation.

 

     (b) "Michigan mechanical code" means part 9A of the general

 

rules of the state construction code commission, R 408.30901a to R

 

408.30995a of the Michigan administrative code.

 

     (c) "Michigan residential code" means the Michigan residential

 

code promulgated by the director under section 4 of the Stille-

 

DeRossett-Hale single state construction code act, 1972 PA 230, MCL

 

125.1504.

 

     (d) "Minor repair" means the repair of any of the following:

 

     (i) A portable heating or gas appliance.

 

     (ii) Portable ventilation equipment.

 


     (iii) A portable cooling unit.

 

     (iv) Self-contained refrigeration equipment or a window-type

 

air conditioner that is not rated at more than 1.5 horsepower.

 

     (v) An oil burner that does not require connection to a flue,

 

including an oil stove or a heater equipped with a wick or similar

 

device.

 

     (e) "Probation" means a sanction that permits the board to

 

evaluate over a period of time a licensee's or registrant's fitness

 

to practice an occupation regulated under this act.

 

     (f) "Process piping" means any piping that is not part of a

 

system designed to provide air conditioning or of a refrigeration

 

system. Process piping includes pipes that transfer chemicals and

 

other fluids, gases, or vapors for systems other than air

 

conditioning systems that are covered by the Michigan mechanical

 

code.

 

     (g) "Qualified maintenance crew" means 1 or more individuals

 

responsible for maintaining mechanical equipment and systems in a

 

facility, at least 1 of whom holds a current mechanical contractor

 

license in the relevant work classification under this act and who

 

is responsible for securing applicable permits and inspections.

 

     (h) "Refrigeration" means the use of equipment and systems,

 

including refrigeration piping, that employ the refrigeration cycle

 

to generate low temperatures for other than air conditioning

 

equipment and systems. Refrigeration includes equipment and systems

 

such as supermarket refrigeration, industrial refrigeration, the

 

preservation of biological materials, and food storage facilities.

 

Refrigeration does not include the installation of portable self-

 


contained units such as refrigerators, dehumidifiers, or other

 

similar equipment that is not rated more than 1.5 horsepower or

 

other equipment exempted from the Michigan mechanical code.

 

     (i) "Restitution" means a requirement that if a person is

 

determined to have violated this act, a rule promulgated under this

 

act, or an order issued under this act and caused monetary damage

 

to another, the violator is required to compensate the injured

 

party in an amount determined equal to the amount of that monetary

 

damage.

 

     (j) "Servicing" means the maintenance, repair, and servicing

 

of previously installed equipment and systems.

 

     (k) "Specialty license" means a license granted under this act

 

that allows the licensee to perform work within limits established

 

by the board in 1 or more of the work classifications described in

 

section 6(3).

 

     (l) "State construction code" means the rules promulgated under

 

section 4 of the Stille-DeRossett-Hale single state construction

 

code act, 1972 PA 230, MCL 125.1504.

 

     (m) "Unlimited heating service" means the servicing of heating

 

equipment and systems, without restrictions concerning thermal

 

capacity of or grade of fuel oil or type of fuel used in the

 

equipment and systems.

 

     (n) "Unlimited refrigeration and air conditioning service"

 

means the servicing of refrigeration equipment and systems and air

 

conditioning equipment and systems that employ the refrigeration

 

cycle, without restrictions concerning thermal capacity of or type

 

of refrigerant used in the equipment and systems.

 


     Sec. 3. (1) There is created within the department a The board

 

of mechanical rules that consists is created in the department. The

 

boards shall consist of the state fire marshal or the state fire

 

marshal's designee, who shall be as a permanent member of the

 

board, and 14 residents of the state to be who are appointed by the

 

governor with the advice and consent of the senate. Appointed

 

members shall be not less than 18 years of age or older and

 

qualified in their respective fields. Appointed members of the

 

board shall include 1 person from the general public; a member of

 

organized labor representing the mechanical trades; a professional

 

mechanical engineer registered licensed in this state; a

 

representative of an energy-producing public utility of the state;

 

a representative from each of the work classifications set forth

 

described in section 6(3); and 2 chief mechanical inspectors of

 

governmental subdivisions. , 1 of whom enforces the building

 

officials and code administrators building code, and 1 of whom

 

enforces the international conference of building officials

 

building code. A member of the board appointed by the governor

 

before January 1, 2007 shall be is appointed for a term of 2 4

 

years, except that the governor shall fill a vacancy shall be

 

filled for the unexpired portion of the term. A member of the board

 

appointed by the governor after December 31, 2006 shall be

 

appointed for a term of 4 years, except that a vacancy shall be

 

filled for the unexpired portion of the term. A The governor may

 

remove a member of the board may be removed from office by the

 

governor in accordance with section 10 of article V of the state

 

constitution of 1963. A member of the board who has a pecuniary

 


interest in a matter shall disclose that interest before the board

 

takes action in the matter, which and the board secretary shall

 

include that disclosure shall be made a matter of record in the

 

record of the board's official proceedings. Each member of the

 

board, except the state fire marshal or the state fire marshal's

 

designee, shall receive reimbursement for actual expenses incurred

 

by the member in the performance of his or her duties as a member

 

of the board, subject to available appropriations. Travel The

 

department shall reimburse an appointed member of the board for

 

travel or other expenses incurred by a that member of a board in

 

the performance of an official function shall be payable by the

 

department pursuant to the standardized travel regulations of the

 

department of technology, management, and budget, subject to

 

available appropriations. A member of the board shall not serve

 

more than 2 consecutive terms.

 

     (2) At the first meeting of each year, the board shall elect

 

from its membership a vice-chairperson and a chair and vice-chair

 

of the board and a secretary . The vice-chairperson and secretary

 

shall be elected from those members appointed to the board by the

 

governor, except that the board members who are chief mechanical

 

inspectors are not eligible for election as vice-chairperson vice-

 

chair of the board. After December 31, 2006, the governor shall

 

designate 1 member of the board to serve as chairperson at the

 

pleasure of the governor.

 

     Sec. 5. (1) The board may recommend to the state construction

 

code commission the promulgation of director shall promulgate rules

 

under the administrative procedures act of 1969, 1969 PA 306, MCL

 


24.201 to 24.328, as he or she considers necessary for the safe

 

design, construction, installation, alteration, servicing, and

 

inspection of heating, cooling, ventilating, and refrigerating

 

systems used in compliance with the Michigan mechanical code and

 

Michigan residential code, and to further define minor repairs. The

 

director may recommend modifications, additions, or deletions to

 

the legislature any changes to this act to update and maintain this

 

act as an effective and enforceable instrument. he or she considers

 

appropriate. The board may also recommend to the state construction

 

code commission, after testing and evaluating a material, product,

 

method of manufacture, or method of construction or installation

 

for acceptability under the code, that the commission issue

 

certificates of acceptability for that material, product, or

 

method.

 

     (2) The board director, in consultation with the department,

 

board, may promulgate rules pursuant to under the administrative

 

procedures act of 1969, Act No. 306 of the Public Acts of 1969,

 

being sections 24.201 to 24.315 of the Michigan Compiled Laws 1969

 

PA 306, MCL 24.201 to 24.328, to provide an examination procedure

 

for applicants for licensure licenses under this act. Before an

 

examination or other test required under this act is administered,

 

the department and the board, acting jointly, shall review and

 

approve the form and content of the examination or other test.

 

     Sec. 5a. (1) A person shall not engage in, or work at, the

 

business of a mechanical contractor, journey technician, or

 

apprentice technician unless licensed or registered by the

 

department under this act. Except as provided in subsections (2),

 


(3), and (4), only a licensed mechanical contractor or journey

 

technician or a registered apprentice may perform installation or

 

servicing of mechanical equipment. A licensed mechanical contractor

 

shall be in charge and is responsible for proper installation of

 

mechanical equipment and meeting the requirements of the Michigan

 

mechanical code and Michigan residential code. A person shall not

 

install mechanical equipment unless the mechanical contractor who

 

is responsible for the installation obtains a mechanical permit

 

from this state or a governmental subdivision authorized to issue

 

mechanical permits.

 

     (2) A license or registration is not required for minor

 

repairs of mechanical equipment.

 

     (3) A homeowner who owns and occupies or will own and occupy a

 

single-family dwelling may install his or her own mechanical

 

equipment in that single-family dwelling if a permit is obtained

 

under section 10 of the Stille-DeRossett-Hale single state

 

construction code act, 1972 PA 230, MCL 125.1510.

 

     (4) This act does not prevent a person from performing any

 

activities within the scope of a license or registration under any

 

other licensure or registration act or any codes applicable to that

 

licensed or registered professional adopted as provided by law.

 

     Sec. 6. (1) Upon the filing of If an applicant for a license

 

as a mechanical contractor files an application on a form

 

prescribed by the department and payment of pays the examination

 

fee prescribed in required under section 10, the department shall

 

conduct examinations determine if the application is a completed

 

application. The department shall perform an examination of an

 


applicant that files a completed application to establish the his

 

or her qualifications and competency of applicants seeking

 

licensing for the category for a license as a mechanical contractor

 

in the work classification described in subsection (3) for which

 

the application is submitted and shall issue licenses to those who

 

pass the examinations and pay a license in that classification if

 

the applicant passes the examination and pays the initial issuance

 

fee. , except as otherwise provided for in this act. An applicant

 

who seeks licensure in a license for more than 1 work

 

classification listed described in subsection (3) on a single

 

application shall is only be required to pay 1 examination fee and

 

1 initial issuance fee as provided in under section 10.

 

     (2) An applicant is not considered eligible for an examination

 

unless the applicant is under this section if he or she meets all

 

of the following:

 

     (a) Is of good moral character, as defined in section 1 of

 

1974 PA 381, MCL 338.41. , and has

 

     (b) Meets 1 of the following:

 

     (i) Unless subparagraph (ii) applies, has a minimum of 3 5 years

 

of experience as an employee, and under the supervision, of a

 

licensed mechanical contractor, or has an equivalent of that

 

experience acceptable to the board, upon proper showing to the

 

department, in 1 or more of the work classifications listed

 

described in subsection (3).

 

     (ii) If the applicant files his or her license application in

 

the 1-year period that begins on the effective date of the

 

amendatory act that added this subparagraph, has a minimum of 3

 


years of experience as an employee, and under the supervision, of a

 

licensed mechanical contractor, or has an equivalent of that

 

experience acceptable to the board, in 1 or more of the work

 

classifications described in subsection (3).

 

     (c) For purposes of subdivision (b), submits an affidavit to

 

the department by the licensed mechanical contractor who supervised

 

the applicant's employment that describes the applicant's work

 

experience.

 

     (3) A contractor's license obtained shall be classified and

 

limited as If it grants a mechanical contractor's license under

 

this act, the department shall classify and limit that license to 1

 

or more of the following:

 

     (a) Hydronic heating and cooling and process piping.

 

     (b) HVAC equipment.

 

     (c) Ductwork.

 

     (d) Refrigeration.

 

     (e) Limited service, heating or refrigeration, and air

 

conditioning.

 

     (f) Unlimited service, heating or refrigeration, and air

 

conditioning.

 

     (g) Fire suppression.

 

     (h) Specialty Any additional specialty classifications

 

established in rules promulgated under this act.

 

     (4) The mechanical contractor's examination under this section

 

shall include questions designed to test an applicant's knowledge

 

of this act, any rules promulgated under this act, the Stille-

 

DeRossett-Hale single state construction code act, 1972 PA 230, MCL

 


125.1501 to 125.1531, and the administration and enforcement

 

procedures of the code approved by the board. The department shall

 

hold or arrange for the holding of mechanical contractor

 

examinations 4 times each year.

 

     (5) The department shall not renew a mechanical contractor's

 

license unless the mechanical contractor demonstrates to the

 

department that he or she successfully completed all of the

 

following in the contractor's current 3-year license period:

 

     (a) If there were any changes to the Michigan mechanical code

 

in that 3-year period, a 5-hour course approved by the department

 

concerning those changes, held within 12 months after those changes

 

were effective.

 

     (b) Ten hours of additional courses approved by the department

 

relating to rules, laws, referenced standards, or industry

 

practices.

 

     Sec. 6a. (1) If an applicant for a license as a journey

 

technician files an application on a form prescribed by the

 

department and pays the examination fee required under section 10,

 

the department shall determine if the application is a completed

 

application. Except for an applicant described in subsection (6),

 

the department shall conduct an examination of an applicant that

 

files a completed application to establish his or her

 

qualifications and competency for a license as a journey technician

 

in the work classification described in subsection (3) for which

 

the application is submitted. The department shall issue a license

 

in that classification to an applicant who passes the examination,

 

or is an applicant described in subsection (6), and pays the

 


initial issuance fee. An applicant who seeks a license for more

 

than 1 work classification described in subsection (3) on a single

 

application is only required to pay 1 examination fee and 1 initial

 

issuance fee under section 10.

 

     (2) An applicant is eligible for examination under this

 

section if he or she meets all of the following:

 

     (a) Is at least 18 years of age.

 

     (b) Is of good moral character, as defined in 1974 PA 381, MCL

 

338.41 to 338.47.

 

     (c) Meets any of the following:

 

     (i) Has a minimum of 3 years of experience as an employee, and

 

under the supervision, of a licensed mechanical contractor, or has

 

an equivalent of that experience acceptable to the board, in 1 or

 

more of the work classifications described in subsection (3), and

 

submits an affidavit to the department by the licensed mechanical

 

contractor who supervised the applicant's employment that describes

 

the applicant's work experience.

 

     (ii) Has at least 6,000 hours of experience gained over a

 

period of at least 3 years as an apprentice technician in 1 or more

 

of the work classifications described in subsection (3).

 

     (iii) Within the 5-year period preceding the date of his or her

 

application, while on active duty as a member of the armed forces,

 

has experience in 1 or more of the work classifications described

 

in subsection (3), or in an equivalent job classification, that the

 

board determines is the equivalent of the experience described in

 

subparagraph (ii). As used in this subparagraph, "armed forces"

 

means that term as defined in section 2 of the veteran right to

 


employment services act, 1994 PA 39, MCL 35.1092.

 

     (d) If he or she previously failed the examination under this

 

section 2 times in any 2-year period, at least 1 year has passed

 

since the date of the second examination he or she failed, and he

 

or she submits to the board proof that he or she has successfully

 

completed a course approved by the board on the mechanical code,

 

mechanical equipment fundamentals, or mechanical equipment theory.

 

     (3) If it grants a journey technician license under this act,

 

the department shall classify and limit that license to 1 or more

 

of the following:

 

     (a) Hydronic heating and cooling and process piping.

 

     (b) HVAC equipment.

 

     (c) Ductwork.

 

     (d) Refrigeration.

 

     (e) Limited service, heating or refrigeration, and air

 

conditioning.

 

     (f) Unlimited service, heating or refrigeration, and air

 

conditioning.

 

     (g) Fire suppression.

 

     (h) Any additional specialty classifications established in

 

rules promulgated under this act.

 

     (4) The journey technician examination under this section

 

shall include written and practical tests that cover the theory and

 

practice of mechanical equipment installation and servicing and

 

knowledge of the Michigan mechanical code, rules, and regulations.

 

The department shall hold or arrange for the holding of journey

 

technician examinations 4 times each year.

 


     (5) An applicant who provided a certification by a nationally

 

recognized certification program shall receive a credit against the

 

requirements of subsection (2)(c)(ii). The board shall review each

 

nationally recognized certification program and determine the

 

number of hours the department must credit an applicant under this

 

subsection.

 

     (6) If an applicant for a journey technician license submits a

 

completed application and pays the initial issuance fee under

 

section 10 in the 180-day period beginning on the effective date of

 

the amendatory act that added this section, and provides the

 

department with satisfactory evidence that he or she has been

 

employed by a licensed mechanical contractor for at least the last

 

5 years performing work in 1 or more of the classifications held by

 

the licensed mechanical contractor, the applicant is not required

 

to take and pass the examination described in subsection (1) to

 

receive a journey technician license.

 

     Sec. 7. (1) Except as provided in subsection subsections (3)

 

and (4) and section 14, an individual, partnership, association,

 

corporation, governmental subdivision, college, or university shall

 

not perform installations, alterations, or servicing of work

 

classifications under section 6(3), which are an installation,

 

alteration, or servicing in a work classification described in

 

section 6(3) that is regulated by under the Stille-DeRossett-Hale

 

single state construction code act, of 1972, 1972 PA 230, MCL

 

125.1501 to 125.1531, unless the individual, or an employee of the

 

individual, partnership, association, corporation, governmental

 

subdivision, college, or university has received a current

 


mechanical contractor's license, from the department, which has not

 

been revoked or suspended, and the license is either classified and

 

limited as provided in section 6 or is annotated as provided in

 

section 8, for that classification under this act, and the holder

 

of the mechanical contractor's license, or the property owner if

 

subsection (3) applies, has secured the appropriate mechanical

 

permit from the enforcing agency charged with the responsibility of

 

issuing mechanical permits.

 

     (2) An individual, partnership, association, corporation,

 

governmental subdivision, college, or university which that

 

performs installations, alterations, or servicing of work

 

classifications under section 6(3) an installation, alteration, or

 

servicing in a work classification described in section 6(3) shall

 

designate the holder of a mechanical contractor's license as

 

described in subsection (1) as the contractor of record . The and

 

notify the department shall be notified in writing of the that

 

designation. An individual, partnership, association, corporation,

 

governmental subdivision, college, or university may not designate

 

more than 2 additional licensed mechanical contractors of record

 

holding the same or different license classifications for an

 

installation, alteration, or servicing described in this

 

subsection. If an individual, partnership, association,

 

corporation, governmental subdivision, college, or university

 

designates more than 1 mechanical contractor of record for an

 

installation, alteration, or servicing described in this

 

subsection, those licensed mechanical contractors are jointly and

 

severally responsible for exercising the supervision of the

 


mechanical installation or mechanical service work to ensure full

 

compliance with this act, the rules promulgated under this act, and

 

all other laws and rules related to the installation or servicing

 

of mechanical equipment. A mechanical contractor of record shall

 

not represent more than 1 individual, partnership, association,

 

corporation, governmental subdivision, college, or university in a

 

single installation, alteration, or servicing described in this

 

subsection.

 

     (3) If the an installation, alteration, or service of

 

servicing in a work classification under described in section 6(3)

 

is performed without compensation by a person licensed under this

 

act for or on behalf of a charitable organization, the permit

 

required under subsection (1) may be obtained by meets all of the

 

following, the owner of the property on which the work is performed

 

. This subsection applies only to may obtain the appropriate

 

mechanical permit required under subsection (1):

 

     (a) The installation, alteration, or servicing is performed

 

without compensation, by an individual licensed under this act, and

 

for a charitable organization.

 

     (b) The installation, alteration, or servicing is performed

 

only in connection with the reconstruction, renovation, or

 

remodeling of 1- to 4-family dwellings.

 

     (4) This act does not require a contractor of record in a

 

facility that regularly employs a qualified maintenance crew. to

 

perform within the facility mechanical contracting work regulated

 

by this act.

 

     (5) As used in this section, "charitable organization" means a

 


not for profit tax-exempt religious, educational, or humane

 

organization.

 

     Sec. 8. (1) A person who was not required by statute before

 

the effective date of this act to be licensed, and who, on the

 

effective date of this act, was engaged in, or worked at, a

 

business as a mechanical contractor in 1 or more of the work

 

classifications set forth in section 6(3), and who is required to

 

be licensed under this act, shall, upon furnishing the department

 

with satisfactory evidence of having been engaged in a business as

 

a mechanical contractor in 1 or more of the work classifications

 

set forth in section 6(3) for a minimum of 3 out of the 5 years

 

immediately preceding the effective date of this act, and of having

 

the necessary qualifications, shall be granted the license for

 

which the applicant seeks licensure without examination, if the

 

applicant makes application within 1 year after the effective date

 

of this act and pays the initial license fee prescribed in section

 

10. If the applicant is approved for licensing, the applicant's

 

license shall be annotated showing the work classification or

 

classifications listed in section 6(3) in which the applicant has

 

demonstrated the requisite experience to engage.

 

     (2) A person who was not required by statute to be licensed

 

before the effective date of this act and, on the effective date of

 

this act, is licensed by a municipal licensing board as a

 

mechanical contractor in 1 or more of the work classifications set

 

forth in section 6(3), is required to be licensed under this act,

 

and can furnish the department with satisfactory evidence of the

 

municipal license shall be granted the license for which the person

 


seeks licensure without examination, if the person makes

 

application within 1 year after the effective date of this act and

 

pays the initial license fee prescribed in section 10.

 

     (3) A person who was not required by statute to be licensed

 

before the effective date of this act and, on the effective date of

 

this act, is employed as a mechanical code inspector for a

 

governmental subdivision and has engaged in, or worked at, a

 

business as a mechanical contractor in 1 or more of the work

 

classifications set forth in section 6(3) for 3 out of the 5 years

 

immediately preceding the date of the person's employment as a

 

mechanical code inspector and can furnish the department with

 

satisfactory evidence of the employment and mechanical contracting

 

experience, shall be granted the license for which the person seeks

 

licensure without examination if the person makes application

 

within 1 year after the effective date of this act and pays the

 

initial license fee prescribed in section 10.

 

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

 

licensed as a residential maintenance and alteration contractor in

 

the trade of heating and air conditioning installation pursuant to

 

section 2404 of the occupational code, Act No. 299 of the Public

 

Acts of 1980, being section 339.2404 of the Michigan Compiled Laws,

 

and can furnish the department with satisfactory evidence of the

 

license, may be granted a license under this act in the appropriate

 

work classification set forth in section 6(3) without examination

 

if the person makes application within 1 year after the effective

 

date of this act and pays the initial license fee prescribed in

 

section 10.

 


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

 

licensed as a residential builder under article 24 of the

 

occupational code, Act No. 299 of the Public Acts of 1980, being

 

sections 339.2401 to 339.2412 of the Michigan Compiled Laws, and

 

can furnish the department with satisfactory evidence of the

 

license and of having been engaged as a mechanical contractor in 1

 

or more of the work classifications set forth in section 6(3)

 

within the 5 years immediately preceding the effective date of this

 

act, may be granted a license under this act in the appropriate

 

work classification set forth in section 6(3) without examination

 

if the person makes application within 1 year after the effective

 

date of this act and pays the initial license fee prescribed in

 

section 10.

 

     (1) (6) The department may license , without examination and

 

upon the payment of the initial license fee prescribed in section

 

10, an applicant who is a legally authorized mechanical contractor

 

in another state or country if the board and the department

 

consider the licensing requirements of the state or country are

 

considered by the board and the department to be as substantially

 

equivalent to the licensing requirements of this state and the

 

state or country observes reciprocity in regard to for mechanical

 

contractors licensed in this state.

 

     (7) The department may license, without examination or payment

 

of the fees prescribed in section 10, an applicant who is certified

 

to install, modify, test, service, inspect, or maintain required

 

fire suppression systems under the fire prevention code, Act No.

 

207 of the Public Acts of 1941, being sections 29.1 to 29.33 of the

 


Michigan Compiled Laws and who seeks licensure under this act only

 

in the work classification set forth in section 6(3)(g).

 

     (8) The holder of a license issued pursuant to this section

 

shall have the right to renew the license pursuant to section 10.

 

     (2) An individual may renew a license granted under this

 

section in the same manner as a mechanical contractor's license

 

issued under section 6.

 

     Sec. 8a. (1) An individual who is employed as an apprentice

 

technician shall register with the department within 30 days after

 

he or she begins that employment, on a form provided by the

 

department.

 

     (2) An apprentice registration expires 5 years after the date

 

of initial registration unless the registered apprentice applies

 

for a journey technician license, and applies to take the next

 

scheduled examination for that license, in that 5-year period. If

 

the registered apprentice applies for the license and to take the

 

examination in that 5-year period, his or her registration remains

 

valid until he or she is issued a journey technician license, or

 

fails to take the examination, whichever occurs first.

 

     (3) If it receives a written request from the apprentice

 

technician, the board may grant an extension of an apprentice

 

registration for a period of time the board determines is

 

appropriate.

 

     (4) As his or her principal occupation, an apprentice

 

technician must be engaged in learning and assisting in the

 

installation or service of mechanical equipment under the

 

employment and supervision of a licensed mechanical contractor.

 


However, a registered apprentice may perform limited heating

 

service or limited refrigeration and air conditioning service, or

 

work a registered apprentice is permitted to perform under the

 

Michigan residential code, without direct supervision by a licensed

 

mechanical journey technician.

 

     (5) The department may publish the name, registration number,

 

and date of registration of an apprentice technician registered

 

under this section on its website or elsewhere. A registrant's

 

personal information is exempt from disclosure under the freedom of

 

information act, 1976 PA 442, MCL 15.231 to 15.246, and the

 

department shall not publish or otherwise disclose that

 

information.

 

     Sec. 10. (1) Subject to subsection (8), the The examination

 

fee for a mechanical contractor's and journey technician's license

 

is $25.00 if paid after September 30, 2012 and $100.00. if paid on

 

or before September 30, 2012. Except as otherwise provided in

 

subsections (2) and (4), (7), the initial and per-year annual fee

 

for the issuance of a mechanical contractor's license is $75.00 if

 

paid after September 30, 2012 and $100.00 if paid on or before

 

September 30, 2012. and the initial and annual fee for the issuance

 

of a journey technician's license is $75.00.

 

     (2) An initial or renewal mechanical contractor's or journey

 

technician's license issued under this act expires on August 31

 

every third year and is renewable if the licensee submits a renewal

 

application and pays the license fee not later than October 31 upon

 

application and payment of the license fee of that year. For If a

 

person is applying for an initial or reinstatement reinstated

 


mechanical contractor's or journey technician's license at a time

 

other than between August 31 and October 31 of the year in which

 

the department issues renewal licenses, the department shall

 

compute and charge the license fee on a yearly pro rata basis

 

beginning in the year of the application until the last year of the

 

3-year license cycle. All licenses A mechanical contractor's or

 

journey technician's license that is not renewed are void and

 

before it expires may only be reinstated only upon application by

 

applying for reinstatement and paying a reinstatement fee of $50.00

 

and the payment of the any unpaid license fee fees with the

 

application. A person who renews his or her license within 3 years

 

after the license is voided pursuant to this section is not subject

 

to reexamination for the license.

 

     (3) The department shall send a renewal application to the

 

last known address on file with the department of each person

 

licensed under this act within the 60-day period preceding the

 

expiration of a license.

 

     (4) A person licensed under this act shall promptly notify the

 

department of any change in his or her business or residence

 

address within 60 days after that change. A notification or failure

 

of a licensee to notify the department under this subsection does

 

not affect the expiration date of a license.

 

     (5) The department may not require that an individual

 

requesting renewal of a mechanical contractor's or journey

 

technician's license within 3 years after his or her license

 

expired retake the examination for that license, but he or she is

 

required to pay the reinstatement fee and a pro rata amount of any

 


unpaid renewal fee that is for each year he or she did not renew

 

the expired license. An individual who fails to renew a license for

 

1 license cycle is required to meet the experience and other

 

requirements and take an examination for the class of license he or

 

she seeks to renew.

 

     (6) (3) Beginning July 23, 2004, the department shall issue an

 

initial or renewal license not later than within 90 days after the

 

applicant files a completed application. Receipt of the An

 

application is considered filed on the date the application is

 

received by any agency or department of the this state. of

 

Michigan. If the an application is considered incomplete by the

 

department, the department shall notify the applicant of any

 

deficiencies in writing, or make the information notification

 

electronically available, within 30 days after receipt of the

 

filing of the incomplete application, describing the deficiency and

 

requesting the additional information needed to make the

 

application complete. The 90-day period is tolled upon notification

 

from the date of the notification by the department of a the

 

deficiency until the date the requested information is received by

 

the department. The determination of the completeness of an

 

application does not operate as an approval of the application for

 

the a license and does not confer eligibility of an applicant

 

determined the department determines is otherwise ineligible for

 

issuance of a license. If an applicant fails to complete an

 

application in the time periods and manner described in this

 

subsection, the department shall reject the application and shall

 

not issue a license if it does not receive a new application and

 


fee.

 

     (7) (4) If the department fails to issue or deny a license

 

within the time required by this section period described in

 

subsection (6), the department shall return the license fee to the

 

applicant and shall reduce the license fee for the applicant's next

 

renewal application, if any, by 15%. The a failure to issue a

 

license within the time required under this section period

 

described in subsection (6) does not allow the department to

 

otherwise delay the processing of the application, and the

 

department shall process that application, upon completion when

 

completed, shall be placed in sequence with other completed

 

applications received at that same time. The department shall not

 

discriminate against an applicant in the processing of the

 

application based upon on the fact that the a license fee was

 

refunded or discounted under this subsection.

 

     (8) (5) Beginning October 1, 2005, the director of the

 

department shall submit a report by December 1 of each year to the

 

standing committees and appropriations subcommittees of the senate

 

and house of representatives concerned with occupational issues.

 

The director shall include all of the following information in the

 

report concerning the preceding fiscal year:

 

     (a) The number of initial and renewal applications the

 

department received and completed within in the 90-day time period

 

described in subsection (3). (6).

 

     (b) The number of applications denied by the department.

 

     (c) The number of applicants who were not issued a license

 

within the 90-day time period and the described in subsection (6).

 


     (d) The amount of money returned to licensees under subsection

 

(4). (7).

 

     (9) (6) All fees and money received by the department for the

 

licensing of persons under this act, and any other income received

 

under this act except the proceeds of criminal fines, shall be paid

 

into the state construction code fund created by section 22 of the

 

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

 

230, MCL 125.1522.

 

     (10) (7) The department shall annually submit to the members

 

of the legislature a comprehensive report detailing the expenditure

 

of additional money resulting from the 1989 amendatory act that

 

increased the fees contained in this section.

 

     (8) As used in this section, "completed application" means an

 

application complete on its face and submitted with any applicable

 

licensing fees as well as any other information, records, approval,

 

security, or similar item required by law or rule from a local unit

 

of government, a federal agency, or a private entity but not from

 

another department or agency of the state of Michigan.

 

     Sec. 10a. (1) If a license or registration is lost or

 

destroyed, the department shall issue a new license or

 

registration, without examination, if it receives from the licensee

 

or registrant a $30.00 fee and a written statement from the

 

licensee or registrant that the license or registration has been

 

lost or destroyed.

 

     (2) A mechanical contractor, journey technician, or apprentice

 

technician is required to carry his or her license or registration

 

and a photo identification while performing activities regulated

 


under this act. If requested by a representative of an enforcing

 

agency, a licensee or registrant shall present his or her license

 

or registration and photo identification to that representative.

 

     Sec. 10b. If an individual licensed under this act is employed

 

or acting as a mechanical inspector, he or she shall not do any of

 

the following:

 

     (a) Engage in, or be directly or indirectly connected with, a

 

mechanical equipment installation business, including, but not

 

limited to, the furnishing of labor, materials, or appliances for

 

the construction, alteration, or maintenance of a building or the

 

preparation of plans or specifications for the construction,

 

alteration, or maintenance of a building.

 

     (b) Engage in any work that conflicts with his or her official

 

duties as an inspector.

 

     Sec. 11. (1) The department may investigate the activities of

 

a licensee or registrant related to the licensee's activities as a

 

contractor. The of the licensee or registrant regulated under this

 

act, including, but not limited to, any allegations of a violation

 

of subsection (2). For purposes of this subsection, the department

 

may hold hearings, administer oaths, and order relevant testimony

 

to be taken and shall report its findings to the board. The board

 

shall proceed under section 16 if the board finds that any of the

 

following grounds exist:

 

     (2) Each of the following is a violation of this act, and the

 

board shall proceed under section 16 if it finds that a violation

 

of any of the following has occurred:

 

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

 


license under this act.

 

     (b) The practice of fraud 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) The practice of false False advertising.

 

     (e) An act that demonstrates incompetence.

 

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

 

act.

 

     (3) (2) The department shall conduct a review upon If it

 

receives notice by from the department of public community health

 

that the a licensee has violated the asbestos abatement contractors

 

licensing act, 1986 PA 135, MCL 338.3101 to 338.3319, and the

 

department shall conduct a review and may suspend or revoke that

 

person's license for a knowing violation of that act.

 

     (3) A revocation, suspension, or other sanction set forth in

 

subsection (2) or section 16 shall be imposed only after a hearing

 

has been conducted pursuant to the administrative procedures act of

 

1969, 1969 PA 306, MCL 24.201 to 24.328.

 

     (4) The installation, alteration, or servicing of heating,

 

cooling, ventilating, or refrigerating equipment or systems shall

 

not be performed A person shall not perform an activity regulated

 

under this act under a license that has been suspended, revoked, or

 

has expired license. A license, other than a license issued under

 

this act, shall not be recognized for securing permits

 

     (5) An enforcing agency shall only recognize a license issued

 

under this act as a valid license for securing an appropriate

 


mechanical permit to install, alter, or service a heating, cooling,

 

ventilating, or refrigerating equipment or systems.

 

     Sec. 11a. (1) If it receives a complaint alleging that a

 

violation of this act or a rule promulgated or order issued under

 

this act has occurred, the department shall immediately begin an

 

investigation of the allegations of the complaint. Within 15 days

 

after receiving the complaint, the department shall notify the

 

person that made the complaint in writing that it received the

 

complaint. If the department made the complaint, the director shall

 

designate 1 or more employees of the department to act as the

 

person that made the complaint. As part of its investigation, the

 

department may request that the attorney general petition the

 

circuit court to issue a subpoena requiring a person to appear

 

before the department and be examined with reference to any matter

 

within the scope of the investigation and to produce books, papers,

 

or documents pertaining to the investigation.

 

     (2) Within 30 days after the department receives the

 

complaint, the department shall report to the director on the

 

status of the investigation. If, for good cause shown, an

 

investigation cannot be completed within 30 days, the director may

 

extend the 30-day time period.

 

     (3) If the report of the department under subsection (2) does

 

not disclose a violation of this act or a rule promulgated or an

 

order issued under this act, the department shall end the

 

investigation and close the complaint. The department shall provide

 

the reasons it closed the complaint to the person that made the

 

complaint and the person that was the subject of the complaint, and

 


either person may then provide additional information to reopen the

 

complaint to the department.

 

     (4) If the report of the department under subsection (2)

 

discloses evidence of a violation of this act or a rule promulgated

 

or order issued under this act, the department or the department of

 

attorney general shall prepare the appropriate action against the

 

person that is the subject of the complaint. That action may

 

include any of the following:

 

     (a) A formal complaint seeking a penalty or remedy under

 

section 15 or 16.

 

     (b) A cease and desist order.

 

     (c) A notice of summary suspension of a license or

 

registration.

 

     (5) At any time during its investigation or after a formal

 

complaint is issued, the department may bring together the person

 

that made the complaint and the person that was the subject of the

 

complaint for an informal conference. At the informal conference,

 

the department shall attempt to resolve issues raised in the

 

complaint and may attempt to aid the parties in reaching a formal

 

settlement or resolution of the complaint.

 

     Sec. 13. (1) A If a mechanical contractor licensed under this

 

act who performs work in a governmental subdivision, he or she

 

shall register his or her license with the enforcing agency which

 

that issues mechanical permits and provides inspection services of

 

mechanical contractor's work for that subdivision. The A

 

registration shall be valid until under this subsection expires on

 

the expiration date of the individual's mechanical contractor's

 


license. Registration shall be granted by all

 

     (2) Each governmental subdivisions subdivision in this state

 

shall grant registration to a mechanical contractor on request if

 

he or she is licensed under this act upon payment of a fee not to

 

exceed $15.00 and pays a fee to that subdivision, in an amount

 

established by that subdivision, that does not exceed $45.00 per

 

licensing cycle.

 

     Sec. 14. (1) The owner of a single-family dwelling which that

 

is, or upon on completion becomes, the owner's place of residence

 

may personally install a heating or refrigerating air conditioning

 

system in the dwelling if the owner , upon application applies for

 

a permit , and affirms in the application that he or she is the

 

owner and occupant of the dwelling, or shall become the owner and

 

occupant upon on completion of the dwelling in which the

 

installation is done, and that the applicant will install the

 

equipment in the dwelling for which the permit is requested. The

 

     (2) An applicant described in subsection (1) shall apply for

 

and secure the any required mechanical permits from the enforcing

 

agency of the governmental subdivision and shall obtain the

 

required mechanical inspection after the installation is completed

 

and the equipment is placed in operation.

 

     Sec. 15. (1) Except as provided in subsection (2), an

 

individual, partnership, association, or corporation who violates

 

this act 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.

 

     (2) A member of the board who intentionally violates section

 


4(4) shall be subject to the penalties prescribed in the open

 

meetings act, Act No. 267 of the Public Acts of 1976, being

 

sections 15.261 to 15.275 of the Michigan Compiled Laws.

 

     (1) If an individual licensed or registered under this act

 

commits a violation of this act, he or she may be ordered to pay a

 

civil fine of not less than $1,000.00 per day for each day the

 

violation continues, except that a fine shall not exceed $5,000.00

 

in total per violation. For a second or subsequent violation, a

 

licensee or registrant may be ordered to pay a civil fine of not

 

less than $2,000.00 per day for each day the violation continues,

 

except that a fine shall not exceed $10,000.00 in total per

 

violation.

 

     (2) A member of the board who intentionally violates section

 

5(4) of the open meetings act, 1976 PA 267, MCL 15.265, is subject

 

to the penalties imposed under that act.

 

     (3) If an individual who is not licensed or registered under

 

this act performs any work regulated by this act, and is not exempt

 

from licensure or registration under this act, he or she is guilty

 

of a misdemeanor punishable by a fine of not less than $2,500.00

 

per day for each day the violation continues, except that a fine

 

shall not exceed $25,000.00 in total per violation, or punishable

 

by imprisonment for not more than 1 year, or both.

 

     (4) The attorney general or a local prosecuting attorney may

 

initiate an action to enforce this act, rules promulgated under

 

this act, or an order issued under this act.

 

     Sec. 16. (1) After finding the existence of 1 or more of the

 

grounds for board action described in section 11(1) and after If

 


the board finds that a person has violated section 11(2), after

 

providing that person an opportunity for a hearing, the board shall

 

impose 1 or more of the following sanctions for each violation:

 

     (a) Suspension of the a license or registration issued under

 

this act.

 

     (b) Denial of the a license required or registration issued

 

under this act.

 

     (c) Revocation of the a license or registration issued under

 

this act.

 

     (d) A requirement that for payment of restitution. be made.

 

     (e) Denial of renewal of a license or registration issued

 

under this act.

 

     (f) Censure of the licensee or registrant.

 

     (g) Probation.

 

     (h) If a person is a licensee or registrant, an administrative

 

fine of not more than $2,500.00. If the board finds that the person

 

has committed 2 or more violations of section 11(2) in a 1-year

 

period, the board may impose an administrative fine of not more

 

than 2 times that amount, and if it finds 3 or more violations in a

 

2-year period, the board may impose an administrative fine of not

 

more than 3 times that amount.

 

     (2) In addition to any other sanction described in subsection

 

(1), if the board finds that a licensee or registrant has violated

 

section 11(2) at least 3 times in a 2-year period, the board must

 

revoke the person's license or registration and shall not issue

 

that person another license or registration if the person reapplies

 

for a license or registration of the same type.

 


     (3) For purposes of this section, 1 or more violations that

 

occur on the same date on the same jobsite are considered 1

 

violation.