SENATE BILL No. 983

 

 

June 11, 2014, Introduced by Senator BOOHER and referred to the Committee on Regulatory Reform.

 

 

 

     A bill to amend 1980 PA 299, entitled

 

"Occupational code,"

 

by amending sections 103, 316, and 2404b (MCL 339.103, 339.316, and

 

339.2404b), section 103 as amended by 1994 PA 257, section 316 as

 

amended by 1998 PA 90, and section 2404b as amended by 2013 PA 169,

 

and by adding section 604a and article 14A; and to repeal acts and

 

parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 103. (1) "Armed forces" means that term as defined in

 

section 2 of the veteran right to employment services act, 1994 PA

 

39, MCL 35.1092.

 

     (2) (1) "Board" means, in each article which deals with a

 

specific occupation, the agency created in that article composed

 

principally of members of the regulated occupation. In all other

 


contexts, board means each agency created under this act.

 

     (3) (2) "Censure" means an expression of disapproval of a

 

licensee's or registrant's professional conduct. , which The term

 

includes an expression of disapproval of professional conduct that

 

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

 

an order issued under this act.

 

     (4) (3) "Competence" means a degree of expertise which that

 

enables a person to engage in an occupation at a level which that

 

meets or exceeds minimal standards of acceptable practice for the

 

occupation.

 

     (5) (4) "Complaint" means an oral or written grievance.

 

     (6) (5) "Controlled substance" means a drug, substance, or

 

immediate precursor as set forth in section 7212, 7214, 7216, 7218,

 

or 7220 of the public health code, Act No. 368 of the Public Acts

 

of 1978, being sections 333.7212, 333.7214, 333.7216, 333.7218, and

 

333.7220 of the Michigan Compiled Laws, not excluded pursuant to

 

section 7227 of Act No. 368 of the Public Acts of 1978, being

 

section 333.7227 of the Michigan Compiled Laws.that term as defined

 

in section 7104 of the public health code, 1978 PA 368, MCL

 

333.7104.

 

     Sec. 316. (1) Unless otherwise provided in an article, a board

 

and the department shall develop an examination or test required by

 

an article. The board and the department in developing an

 

examination or test may adopt an examination or test prepared by

 

another agency if the board and the department determine that the

 

examination or test serves as a basis for determining whether a

 

person an individual has the knowledge and skills to perform an

 


occupation with competence.

 

     (2) The material required by the board and the department to

 

develop an examination or test may be considered by the board in a

 

closed session, if the board meets the requirements of section 7 of

 

the open meetings act, 1976 PA 267, MCL 15.267.

 

     (3) A board and the department, in determining the form the

 

recommended examination or test shall take, shall give special

 

emphasis to an alternative form of testing which permits a person

 

to demonstrate a special qualification a person may have which is

 

not evident under a written examination, but which is related to an

 

occupation. The alternative form of testing shall be structured to

 

give weight to a person's experience, noninstitutional training,

 

and innate skills and shall be flexible enough to enable a person

 

with a mental or physical disability to demonstrate that the person

 

has the requisite knowledge and skills.

 

     Sec. 604a. If the parties in a contested case under article 5

 

agree to any fact involved in the controversy by stipulation or

 

there is a finding of fact and conclusion of law in an action under

 

article 5 that a person has violated this act, the hearings

 

examiner shall assess costs related to the investigation of the

 

violation and costs related to the prosecution of the action. The

 

costs related to the investigation and prosecution include, but are

 

not limited to, salaries and benefits of personnel, costs related

 

to the time spent by the attorney general's office and other

 

personnel working on the action, and any other expenses incurred by

 

the department for the action.

 

 

 


                             ARTICLE 14A

 

     Sec. 1421. As used in this article:

 

     (a) "Bodyguard" means an individual who works for a fee or

 

other consideration and whose primary responsibility is to protect

 

another individual from physical harm from another person, whether

 

the individual under protection is on-premises or is in transit

 

from 1 location to another.

 

     (b) "Disqualifying misdemeanor" means a misdemeanor that

 

involves any of the following:

 

     (i) Dishonesty or fraud.

 

     (ii) Unauthorized divulging or selling of information or

 

evidence.

 

     (iii) Impersonation of a law enforcement officer or employee of

 

the United States, this state, or a political subdivision of this

 

state.

 

     (iv) Illegally using, carrying, or possessing a dangerous

 

weapon.

 

     (v) Two or more alcohol-related offenses.

 

     (vi) A controlled substance under the public health code, 1978

 

PA 368, MCL 333.1101 to 333.25211.

 

     (vii) An assault.

 

     (c) "Patrol service" means roving on foot or in a vehicle, to

 

provide security for persons or property by observation, direct or

 

indirect intervention, or both.

 

     (d) "Principal license holder" means an individual designated

 

under section 1431.

 

     (e) "Private security business and security alarm act" means

 


the private security business and security alarm act, 1968 PA 330,

 

MCL 338.1051 to 338.1092.

 

     (f) "Security alarm system" means that term as defined in

 

section 2 of the security alarm systems act, MCL 338.2182.

 

     (g) "Security alarm system provider" means a system provider

 

as that term is defined in section 2 of the security alarm systems

 

act, MCL 338.2182.

 

     (h) "Security alarm systems act" means the security alarm

 

systems act, 2012 PA 580, MCL 338.2181 to 338.2187.

 

     (i) "Security consultant services" means doing any of the

 

following for another person for a fee or other consideration:

 

     (i) Direct or indirect aid in the evaluation, development, or

 

implementation of security policies, security procedures, or

 

security alarm systems.

 

     (ii) Providing security management services.

 

     (iii) Hiring, training, or deployment of security guards.

 

     (j) "Security guard" means an individual who provides

 

protection for persons or property on the premises of another as an

 

agent or employee of a security guard agency. The term includes a

 

bodyguard or an individual engaged in patrol service.

 

     (k) "Security guard agency" means a person, other than a

 

person described in section 1423(1) or (3)(b), that is engaged in

 

the business of arranging for or providing any of the following:

 

     (i) Security guards.

 

     (ii) Security consultant services.

 

     (iii) Bodyguards.

 

     (iv) Patrol service.

 


     (v) Security management services.

 

     (l) "Security management services" means providing, by contract

 

or agreement, security-related evaluation or oversight or

 

supervision or training of security guards for deployment. Security

 

management services do not include acting as a security

 

administrator who is employed under a bona fide employer-employee

 

relationship to oversee security operations for another.

 

     Sec. 1423. (1) This article does not apply to any of the

 

following:

 

     (a) A security alarm systems provider that has filed a

 

registration statement under the security alarm systems act.

 

     (b) A private college security force or private security

 

police force that is subject to the private security business and

 

security alarm act.

 

     (2) All of the following apply to the licensing under this

 

article of an individual currently employed as a law enforcement

 

officer:

 

     (a) If a law enforcement officer described in subdivision (b)

 

or (c) has a license as a security guard or security guard agency

 

under the private security business and security alarm act, he or

 

she may retain that license. However, he or she must renew that

 

license under this article.

 

     (b) Except as provided in subdivision (a), if an individual is

 

employed as a law enforcement officer by the federal government or

 

another state, territory, or country, or is engaged in domestic or

 

foreign intelligence gathering on behalf of the federal government

 

or another country, he or she is not eligible for a new license or

 


to renew a license under this article.

 

     (c) Except as provided in subdivision (a), if an individual is

 

employed as a law enforcement officer, as that term is defined in

 

section 2 of the commission of law enforcement standards act, 1965

 

PA 203, MCL 28.602, he or she is not eligible for a new or renewal

 

license under this article unless he or she does all of the

 

following:

 

     (i) In a form acceptable to the department, provides the

 

department written permission from his or her employer to provide

 

services regulated under this article, executed by the chief of

 

police, county sheriff, or other official who has executive

 

authority and responsibility over law enforcement matters for his

 

or her employer.

 

     (ii) Provides the department documentation acceptable to the

 

department of any written policies or procedures published by his

 

or her employer that address off-duty employment; place any

 

limitation on or prohibition of off-duty use of investigative tools

 

or equipment provided by the employer exclusively for law

 

enforcement; or indicate that off-duty employment providing

 

services under this article is not considered in conflict with

 

employment as a law enforcement officer.

 

     (3) All of the following apply to a person that is licensed as

 

a professional investigator under the professional investigator

 

licensure act, 1965 PA 285, MCL 338.821 to 338.851:

 

     (a) Except as provided in subdivision (b), the person's

 

license under that act does not allow that person to perform the

 

services of a security guard business without a security agency

 


license under this article.

 

     (b) The person may perform services as a bodyguard without a

 

license under this article.

 

     (4) If a license to conduct business as a security guard or

 

security guard agency is issued to a person, that licensee is not

 

required to obtain any other license to conduct the business as a

 

security guard or security guard agency from a municipality or

 

political subdivision of this state.

 

     Sec. 1425. (1) The department shall issue a license to conduct

 

business as a security guard agency if it is satisfied that the

 

applicant, if the applicant is an individual, or if it is satisfied

 

that the principal license holder, if the applicant is not an

 

individual, meets all of the following qualifications:

 

     (a) Is at least 21 years of age.

 

     (b) Graduated from high school or passed the general

 

educational development (GED) test or another graduate equivalency

 

examination approved by the department.

 

     (c) Is of good moral character.

 

     (d) Has not been convicted of either of the following:

 

     (i) A felony.

 

     (ii) Within the 5-year period preceding the date of

 

application, a disqualifying misdemeanor.

 

     (e) If he or she served in the armed forces, was separated

 

from that service, and provides a form DD214 or DD215 or any other

 

form satisfactory to the department that demonstrates that he or

 

she was separated from that service, with an honorable character of

 

service or under honorable conditions (general) character of

 


service.

 

     (f) Meets any of the following:

 

     (i) Was lawfully engaged in business as a security guard agency

 

in another state for a period of at least 3 years.

 

     (ii) Was lawfully engaged as a security guard for a security

 

guard agency for at least 4 years and has at least 4 years of

 

experience supervising security guards.

 

     (iii) Was lawfully engaged in law enforcement employment as a

 

certified police officer on a full-time basis for at least 4 years

 

for a city, county, or state government or for the United States

 

government.

 

     (iv) Is a graduate with a baccalaureate degree or its

 

equivalent in the field of police administration, criminal justice,

 

or industrial security from an accredited college or university;

 

and for a period of 2 years on a full-time basis was an employee of

 

a security guard agency or was engaged on his or her own account as

 

a security administrator or loss prevention manager in private

 

business.

 

     (v) Served in the armed forces; while serving in the armed

 

forces, acted as a military police officer or in an equivalent job

 

classification for at least 2 years; was separated from that

 

service, and provides a form DD214 or DD215 or any other form

 

satisfactory to the department that demonstrates that he or she was

 

separated from that service, with an honorable character of service

 

or under honorable conditions (general) character of service; and

 

has, and provides with his or her application an affidavit signed

 

by a commanding officer, supervisor, or military superior with

 


direct knowledge of the applicant's service that he or she has,

 

entry-level experience in or basic knowledge of each of the

 

following:

 

     (A) Enforcing rules, regulations, and guidelines.

 

     (B) Providing security and physical protection.

 

     (C) Area and site security operations.

 

     (D) Overseeing prisoners and correctional facilities.

 

     (E) Reconnaissance and surveillance.

 

     (g) Has provided the department the bond or insurance required

 

under subsection (3) or (4).

 

     (h) Has not been adjudged insane, unless he or she has been

 

adjudged restored to sanity by court order.

 

     (i) Is not subject to any outstanding warrants for his or her

 

arrest.

 

     (j) Has provided the department with the approval of the

 

prosecuting attorney and the sheriff of the county in this state in

 

which an office, including a branch office, of the applicant is or

 

will be located. If the office is or will be located in a city,

 

township, or village, the applicant may obtain the approval of the

 

chief of police instead of the sheriff. Similar approval is

 

required for each branch office.

 

     (2) An application for a license as a security guard agency

 

under this article must contain at least all of the following:

 

     (a) The name and address of the applicant's principal place of

 

business in this state.

 

     (b) If the applicant is not the security guard agency, the

 

security guard agency's name and principal place of business in

 


this state.

 

     (c) The address and location of any branch offices in this

 

state at which the security guard agency conducts or will conduct

 

business.

 

     (d) If applicable, the name of the individual designated by

 

the applicant or licensee as the principal license holder of the

 

security guard agency.

 

     (3) The department shall not issue a license under this

 

article if the applicant does not comply with subsection (4) or

 

provide a bond to the department that meets all of the following:

 

     (a) Is in the principal amount of $25,000.00.

 

     (b) Is payable to the department for the benefit of the people

 

of this state and any person injured by the willful, malicious, and

 

wrongful act of the licensee or any of the licensee's agents or

 

employees.

 

     (c) Is conditioned on the faithful and honest conduct of the

 

business by the applicant.

 

     (d) Is approved by the department.

 

     (4) In lieu of a bond required under subsection (3), an

 

applicant may furnish a policy of insurance issued by an insurer

 

authorized to do business in this state that names the licensee and

 

the state as coinsured in the amount of $25,000.00 for property

 

damage, $100,000.00 for injury to or death of 1 individual, and

 

$200,000.00 for injuries to or deaths of more than 1 individual

 

arising out of the operation of the licensed activity.

 

     (5) A person may bring an action on a bond described in

 

subsection (3) or an insurance policy described in subsection (4)

 


in that person's own name to recover damages suffered by reason of

 

a wrongful act of the licensee or an agent or employee of the

 

licensee.

 

     (6) If a licensee opens a branch office, the licensee must

 

first obtain a license for that branch and post that license in a

 

conspicuous place in the branch office.

 

     Sec. 1427. A license issued under this article is valid for 2

 

years.

 

     Sec. 1429. (1) A licensee shall post its license in a

 

conspicuous place in the licensee's office.

 

     (2) A licensee shall notify the department in writing of any

 

name or address change within 30 days after the date of the change.

 

     Sec. 1431. (1) A licensee that is not an individual, or an

 

applicant that is applying for a license on behalf of a person that

 

is not an individual, as applicable, shall designate an individual

 

as the principal license holder of that licensee.

 

     (2) An individual designated as a licensee's principal license

 

holder is authorized to act on behalf of the licensee for purposes

 

of this article.

 

     (3) If its principal license holder is no longer authorized to

 

act in that capacity on the licensee's behalf, or is no longer

 

available to act in that capacity for any reason, the licensee

 

shall designate a different individual, who meets the requirements

 

of section 1425(1), as its principal license holder and shall do

 

all of the following within 10 days after it makes that

 

designation:

 

     (a) Provide written notice to the department that it has

 


designated a different individual as its principal license holder.

 

     (b) Provide to the department the name of that individual and

 

any other information about that individual that is reasonably

 

required by the department.

 

     (4) If a licensee designating a different individual as its

 

principal license holder does not comply with subsection (3), or

 

the department does not approve of the designation of that

 

individual as the licensee's principal license holder, the

 

department shall notify the licensee of its disapproval. Within 30

 

days after receiving that notification, the licensee shall

 

designate another individual under subsection (3) and meet the

 

requirements of this section for approval of that individual by the

 

department as its principal license holder.

 

     (5) If a security guard agency is required to have a principal

 

license holder under this section, the security guard agency's

 

license under this article is automatically suspended during any

 

period of time the licensee has not designated a principal license

 

holder and notified the department of that designation. However, on

 

request, the department may permit the license to stay in force for

 

60 days to allow the licensee to designate a principal license

 

holder.

 

     Sec. 1433. (1) A licensee shall not employ an individual that

 

does not meet all of the following:

 

     (a) Meets the qualifications described in section 1425(1)(d),

 

(h), and (i).

 

     (b) Meets either of the following:

 

     (i) Is at least 18 years old and graduated from high school or

 


passed the general educational development (GED) test or another

 

graduate equivalency examination approved by the department.

 

     (ii) Is at least 25 years old.

 

     (2) A licensee shall maintain and keep in this state adequate

 

and complete personnel information on all of its employees.

 

     (3) A licensee shall not falsely state or represent that an

 

individual is or has been in the licensee's employ. A licensee that

 

violates this subsection is subject to the penalties under article

 

6.

 

     Sec. 1435. (1) A licensee shall not allow an individual who is

 

convicted of a felony or a disqualifying misdemeanor while in the

 

employ of the licensee as a security guard to continue that

 

employment.

 

     (2) Before a licensee makes an offer of employment to an

 

individual, or engages an individual as a contractor, to provide

 

services as a security guard directly to the licensee's customers,

 

the licensee shall perform a criminal history check on that

 

individual using ICHAT, or obtain an equivalent check on that

 

individual from his or her state or province of residence. If the

 

results of the ICHAT search or the results of the equivalent check

 

reveal that he or she has been convicted of a felony or a

 

disqualifying misdemeanor, the licensee shall not make an offer of

 

employment to, or engage, that individual to provide services as a

 

security guard directly to the licensee's customers.

 

     (3) Within 180 days after the effective date of the amendatory

 

act that added this article, a licensee shall perform a criminal

 

history check using ICHAT, or obtain an equivalent check from his

 


or her state or province of residence, on each individual employed

 

or engaged by, the licensee to provide services as a security guard

 

directly to the licensee's customers. If the results of the ICHAT

 

search or the results of the equivalent check reveal that the

 

individual has been convicted of a felony or a disqualifying

 

misdemeanor, the licensee shall not continue to employ or engage

 

that individual.

 

     (4) As used in this section, "ICHAT" means the internet

 

criminal history access tool maintained by the department of state

 

police.

 

     Sec. 1437. (1) A licensee shall not wear or allow an employee

 

to wear a particular type of uniform and insignia that deceives or

 

confuses the public, or that is identical with that of a law

 

enforcement officer of the federal government, this state, or a

 

political subdivision of this state. Each uniform jacket, coat, or

 

shirt worn by a licensee or its employees shall have an

 

identification patch on each shoulder that includes the name of the

 

licensee. A shoulder identification patch described in this

 

subsection may be any color or colors, must be at least 12 square

 

inches in size, and may not be in the shape of a shield or any

 

shape that is used by any public law enforcement agency in this

 

state. A breast patch of any color shall be at least 4-1/2 inches

 

long and 1 inch high, with clearly legible lettering containing the

 

words "security", "security guard", or "loss prevention". Shirt

 

epaulets may be any color.

 

     (2) A licensee or employee of a licensee may wear a badge or

 

shield as part of a security guard uniform. A badge or shield shall

 


not be similar in shape to that of any law enforcement officer of

 

the federal government, this state, or a political subdivision of

 

this state. A badge or shield may contain the flag of the United

 

States of America or the scale of justice. A uniform may include

 

designations of rank, emblems, or other garnishments that may be

 

any color, except that they shall not bear the seal of the state of

 

Michigan.

 

     (3) If a licensee considers alternative apparel to be more

 

appropriate for a location or event, the licensee may authorize

 

either of the following in place of a uniform described in this

 

section:

 

     (a) Dress slacks and shirt with a blazer. The blazer must bear

 

an emblem or a crest on the left breast that includes the full name

 

of the licensee. The emblem or crest may be any color.

 

     (b) Dress slacks with a button-down polo shirt. The shirt must

 

bear an emblem or a crest on the left breast that includes the full

 

name of the licensee. The polo shirt may include lettering on the

 

back with the words "security" or "loss prevention".

 

     (4) In inclement weather, a licensee or employee may wear a

 

vinyl raincoat over a uniform described in this section. A licensee

 

or employee may wear a uniform hat or cap with the uniform. The hat

 

or cap may bear an emblem that does not include the state of

 

Michigan seal.

 

     Sec. 1439. (1) A licensee that employs or engages an

 

individual to provide services as a security guard directly to the

 

licensee's customers shall ensure that all of the following are

 

met:

 


     (a) Before he or she acts as a security guard without direct

 

supervision, the individual completes at least 16 hours of on-the-

 

job, site-specific training under the immediate supervision of an

 

experienced supervisor.

 

     (b) In the first 90 days of his or her employment, the

 

individual completes at least 16 hours of classroom training

 

provided by the licensee.

 

     (c) Before he or she is authorized to use a weapon or

 

restraint device while on duty, he or she completes the following

 

required training:

 

     (i) For an aerosol spray or conducted energy device, any

 

manufacturer-authorized certification in the use of the device for

 

security or law enforcement personnel. The licensee shall ensure

 

that the individual maintains that certification at all times while

 

he or she is employed or engaged by the licensee to provide

 

services as a security guard.

 

     (ii) For a tactical baton, 4 class hours of training selected

 

by the licensee.

 

     (iii) For a restraint device, 2 class hours of training selected

 

by the licensee.

 

     (iv) For a firearm, 4 hours of specialized training in the use

 

of a firearm for security or law enforcement personnel selected by

 

the licensee. In addition, the licensee shall ensure that the

 

individual completes an additional 4 hours of that specialized

 

training annually.

 

     (d) Every 2 years, the individual completes at least 4 hours

 

of continuing classroom training in the use of a tactical baton, in

 


the use of a restraint device, and in the subjects described in

 

subsection (2)(a) to (c).

 

     (2) The classroom training described in subsection (1)(b)

 

shall include, but not be limited to, the following subjects:

 

     (a) A minimum of 6 hours of company and position orientation

 

that includes minimum uniform requirements and appearance; limits

 

of authority and employment; legal aspects of the use of force and

 

the power to arrest; persons or authorities to be contacted in

 

emergencies or unusual occurrences; licensee or parent company

 

structure that affects guards' duties; guard courtesy and public

 

demeanor; and report writing.

 

     (b) A minimum of 8 hours involving defensive tactics that

 

include self-defense; correct use of restraining devices; pressure

 

point training; detection of substance abuse and mental illness;

 

and verbal and sensitivity training.

 

     (c) A minimum of 2 hours regarding emergency preparedness that

 

includes the general responsibilities pertaining to medical

 

emergencies and response; first aid and cardiopulmonary

 

resuscitation, and foreign body obstruction of the airway; crowd

 

control; exposure to bodily fluid; fire prevention and safety; bomb

 

threats; searches; weather emergencies; chemical spills, leaks, and

 

related waste; and evacuation procedures.

 

     (3) A licensee shall prepare and retain a record of an

 

individual's completion of the training described in this section

 

and make that record available to the department on request.

 

     Sec. 1441. A licensee shall not use any designation or trade

 

name that implies any association with any municipal, county, or

 


state government, with the federal government, or with an agency of

 

the federal government.

 

     Sec. 1443. (1) This article does not impair or affect any act

 

done, offense committed, or right accruing, accrued, or acquired or

 

any penalty, forfeiture, or punishment incurred before the

 

effective date of this act.

 

     (2) A license that was issued under the private security

 

business and security alarm act and is currently in effect on the

 

date of the amendatory act that added this article shall remain in

 

effect for the time period for which that license would have

 

remained in effect if this article had not been enacted; and that

 

licensee is not required to obtain a license under this article to

 

conduct business as a security guard agency during that time

 

period.

 

     (3) R 28.4001 to R 28.4007 of the Michigan administrative code

 

are rescinded.

 

     Sec. 2404b. (1) Beginning June 1, 2008, an applicant for

 

initial licensure either as a residential builder or as a

 

residential maintenance and alteration contractor must successfully

 

complete a prelicensure course of study as required under this

 

subsection to obtain a license. A licensee that holds a residential

 

builder or a residential maintenance and alteration contractor

 

license on June 1, 2008 and is renewing a license in the capacity

 

of an individual or qualifying officer, or both, is exempt from the

 

requirement of successfully completing prelicensure courses

 

described in this subsection. Subject to subsections (11), (12),

 

and (13), the department shall require an applicant who is not

 


exempt 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) An individual who receives his or her initial license

 

under this article as a residential builder or a residential

 

maintenance and alteration contractor on or after January 1, 2009

 

shall successfully complete at least 3 hours of activities

 

demonstrating continuing competency in each calendar year, during

 

the first 6 calendar years of licensure, and 21 hours in each 3-

 

year time period after 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 the

 

subject of a final order under subsection (3), at least 3 hours of

 

activities demonstrating continuing competency in each license

 

cycle that includes 1 hour of codes, 1 hour of safety, and 1 hour

 


of legal issues as described in this subsection.

 

     (3) If the department has determined in a final order that a

 

licensee has violated this act or a rule adopted under this act,

 

the licensee must 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, that includes

 

at least 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 to 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 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 to 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 that is 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 trade

 

journals or regional magazines 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 licensed 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. If a completed application is submitted, the department

 

shall designate the licensee as inactive and note that status on

 

records available to the public. A licensee who is 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.

 

If the department activates an inactive license, the licensee must

 

complete at least 1 credit hour of continuing competency for that

 

calendar year.

 

     (11) Subject to subsection (13), an applicant for initial

 

licensure as a residential builder or residential maintenance and

 

alteration contractor is exempt from the requirements of subsection

 

(1) if he or she meets all of the following:

 

     (a) Served in the armed forces.

 

     (b) While serving in the armed forces, was engaged in the

 

erection, construction, replacement, repair, alteration, or

 


demolition of buildings or other structures.

 

     (c) Was separated from service in the armed forces, and

 

provides to the department a form DD214, form DD215, or any other

 

form that is satisfactory to the department that demonstrates that

 

he or she was separated from that service, with an honorable

 

character of service or under honorable conditions (general)

 

character of service.

 

     (d) Has, and provides with his or her application an affidavit

 

signed by a commanding officer, supervisor, or military superior

 

with direct knowledge of the applicant's service that he or she

 

has, entry-level experience in or basic knowledge of each of the

 

areas of competency described in subsection (1)(a) to (g).

 

     (12) If an applicant who otherwise meets the requirements of

 

subsection (11) does not have entry-level experience in or basic

 

knowledge of each of the areas of competency described in

 

subsection (1)(a) to (g), he or she may provide with his or her

 

application an affidavit signed by a commanding officer,

 

supervisor, or military superior with direct knowledge of the

 

applicant's service that states in which of those areas of

 

competency the applicant has entry-level experience or basic

 

knowledge, and the department may in its discretion grant the

 

applicant credit toward the 60-hour prelicensure education

 

requirement of subsection (1) based on that experience or

 

knowledge.

 

     (13) If an applicant for initial licensure as a residential

 

builder or residential maintenance and alteration contractor

 

described in subsection (11) does not pass the examination for that

 


license the first time he or she takes the examination, that

 

applicant may not retake the examination until he or she

 

successfully completes a prelicensure course of study described in

 

subsection (1).

 

     (14) As used in the section, "armed forces" means that term as

 

defined in section 2 of the veteran right to employment services

 

act, 1994 PA 39, MCL 35.1092.

 

     Enacting section 1. Section 517 of the occupational code, 1980

 

PA 299, MCL 339.517, is repealed.

 

     Enacting section 2. This amendatory act takes effect 90 days

 

after the date it is enacted into law.

 

     Enacting section 3. This amendatory act does not take effect

 

unless all of the following bills of the 97th Legislature are

 

enacted into law:

 

     (a) Senate Bill No. 986.                                   

 

           

 

     (b) Senate Bill No. 985.                                   

 

            

 

     (c) Senate Bill No. 984.