Bill Text: MI HB4582 | 2013-2014 | 97th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Occupations; residential builders; prelicensure education requirements for residential builders and contractors; revise. Amends sec. 2404b of 1980 PA 299 (MCL 339.2404b).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2014-07-16 - Assigned Pa 175'14 With Immediate Effect [HB4582 Detail]

Download: Michigan-2013-HB4582-Engrossed.html

HB-4582, As Passed House, May 8, 2014

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 4582

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1980 PA 299, entitled

 

"Occupational code,"

 

by amending section 2404b (MCL 339.2404b), as amended by 2013 PA

 

169.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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 the prelicensure course of study as required

 

requirements under this subsection to obtain a license . A licensee

 

that unless he or she is exempt from those requirements under this

 

section. All of the following apply for purposes of this

 

subsection:

 

     (a) If an individual who holds a residential builder or a

 


residential maintenance and alteration contractor license, or an

 

individual who held a license as a qualifying officer of a licensed

 

residential builder or residential maintenance and alteration

 

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

 

capacity of an individual or qualifying officer, or both, he or she

 

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

 

     (b) If an individual is applying for a license or relicensure

 

as a residential builder or residential maintenance and alteration

 

contractor, he or she is exempt from the requirement of

 

successfully completing prelicensure courses described in this

 

subsection if all of the following are met:

 

     (i) His or her application is submitted before the expiration

 

of the 18-month period beginning on the effective date of the

 

amendatory act that added this subdivision. This subdivision does

 

not apply to applications that are submitted after that 18-month

 

period.

 

     (ii) He or she held an individual license as a residential

 

builder or residential maintenance and alteration contractor, or

 

held a license as a qualifying officer of a licensed residential

 

builder or residential maintenance and alteration contractor, at

 

any time within the 9-year period preceding his or her application.

 

     (c) Unless he or she is exempt under subdivision (a) or (b),

 

an applicant shall not receive an initial license under this act

 

unless he or she successfully complete completed 60 hours of

 


approved prelicensure courses consisting of that include at least 6

 

hours of courses in each of the following areas of competency:

 

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

 

     (ii) (b) Design and building science.

 

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

 

     (iv) (d) Marketing and sales.

 

     (v) (e) Project management and scheduling.

 

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

 

     (vii) (g) Construction safety standards promulgated under the

 

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

 

408.1001 to 408.1094.

 

     (2) An individual who receives his or her initial license

 

under this article All of the following apply to an individual

 

license under this article, as applicable:

 

     (a) Subject to subdivision (b), if the individual licensee

 

obtained his or her initial license as a residential builder or a

 

residential maintenance and alteration contractor on or after

 

January 1, 2009, shall he or she must successfully complete at

 

least 21 hours of activities that demonstrate continuing competence

 

in each 3-year license cycle, including both of the following:

 

     (i) At least 3 hours of activities demonstrating that

 

demonstrate 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.

 

     (ii) At least 3 hours shall be devoted to those of 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

 

     (b) If an individual licensee described in subdivision (a) was

 

exempt from the prelicensure course requirements of subsection (1)

 

under subsection (1)(b) when he or she obtained his or her initial

 

license as a residential builder or residential maintenance and

 

alteration contractor, the hours of activities that he or she must

 

complete in the first year of his or her first 3-year license cycle

 

under subdivision (a) must include successful completion of at

 

least 1 hour of codes, 1 hour of safety, and 1 hour of legal issues

 

described in this subsection.

 

     (c) If the licensee was initially licensed as a licensed

 

residential builder or residential maintenance and alteration

 

contractor, or held a license as a qualifying officer of a licensed

 

residential builder or residential maintenance and alteration

 

contractor, before January 1, 2009, he or she has held a license

 

for not more than two 3-year license cycles, and the department has

 

not taken disciplinary action against him or her for a violation of

 

this act or a rule promulgated under this act, he or she must

 

successfully complete at least 3 hours of activities that

 

demonstrate continuing competency in each 3-year license cycle that

 

includes at least 1 hour of codes, 1 hour of safety, and 1 hour of

 

legal issues described in this subsection.

 

     (d) If the licensee has held a license for more than 6 years

 

or who has not been the subject of a final order under subsection

 

(3), two 3-year license cycles, and the department has not taken

 

disciplinary action against him or her for a violation of this act

 


or a rule promulgated under this act, he or she must successfully

 

complete 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 In addition to the requirements of subsection (2), if

 

the department has determined in a final order that a licensee has

 

violated taken disciplinary action against a licensee for a

 

violation of this act or a rule adopted promulgated under this act,

 

the licensee must successfully complete, during the next complete

 

license cycle, up to at least 3 and not more than 21 hours of

 

activities that demonstrate the development of continuing

 

competency during that next license cycle as determined appropriate

 

by order of the department. , that includes at At least 3 hours of

 

the continuing competency must include 1 hour of codes, 1 hour of

 

safety, and 1 hour of legal issues as described in subsection (2).

 

     (4) As activities that demonstrate the development of

 

continuing competency, the education courses described in section

 

3, pages 3-6 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. section. 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.section.

 

     (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).

 

     (5) (6) The subject matter of the prelicensure and continuing

 

competency activities required under this section 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 licensed as a proprietary school by the department, or

 

a any other 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).

 

     (6) (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.

 

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

 

her subject matter area or specialty. Service A licensee's service

 

as a lecturer or discussion leader in an approved course shall be

 

counted count toward the his or her continuing competency

 

requirements of under this section. Alternate forms of continuing

 

competency may be earned and documented as promulgated in rules by

 

the department.

 

     (8) (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.

 

     (9) (10) A Before the effective date of the amendatory act

 

that added subsection (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

 

activities that demonstrate continuing competency for that calendar

 

year.

 

     (10) An individual licensee who applied for and was designated

 

inactive under subsection (9) before the effective date of this

 

subsection may remain in inactive status after that effective date

 

by complying with the requirements of subsection (9). A licensee

 

who remains in inactive status after the effective date of this

 

subsection is exempt from the continuing competency requirements of

 

this section while he or she remains in inactive status. A licensee

 

may activate his or her license by submitting an application to the

 

department requesting activation of the license. If his or her

 

license is activated, the licensee must complete at least 1 credit

 

hour of activities that demonstrate 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. This amendatory act takes effect upon the

 

expiration of 90 days after the date it is enacted into law.

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