Michigan Contractor Licensing Law

Michigan Code · 49 sections

The following is the full text of Michigan’s contractor licensing law statutes as published in the Michigan Code. For the official version, see the Michigan Legislature.

MCL 338.2239

STATE LICENSE FEE ACT (EXCERPT)

Act 152 of 1979

338.2239 Residential builder or residential maintenance and alteration contractor, salesperson, or branch office; fees; builder enforcement fund; creation; administration; allocation; use; carryforward of unexpended balance.

Sec. 39.

(1) Fees for a person licensed or seeking licensure as a residential builder or residential maintenance and alteration contractor, salesperson, or branch office under article 24 of the occupational code, MCL 339.2401 to 339.2412, are as follows:

(a) Application processing fee $ 15.00 (b) Examination fees:
(i) Complete builder or maintenance and alteration contractor examination 50.00 (ii) Law and rules portion 30.00 (iii) Practice or trades portion 30.00 (iv) Salesperson examination 30.00 (c) Examination review 20.00 (d) License fee only for the first license
cycle of an initial or renewal licensee following the effective date of the amendatory act that added subsection (2),
per year 60.00 (e) License fee, per year 50.00 (2) The builder enforcement fund is created in the state treasury. All of the following apply to the builder enforcement fund:

(a) The department is the administrator of the fund for auditing purposes.

(b) A 1-time-only $30.00 allocation from a license fee received by the department under subsection (1)(d) during a single 3-year license cycle shall be deposited into the builder enforcement fund. The department shall make the $30.00 allocation only once per licensee.

(c) Five dollars of the $50.00 license fee paid under subsection (1)(e) shall be deposited into the builder enforcement fund. If on December 1 of any calendar year the department determines that the balance in the builder enforcement fund is more than $3,000,000.00, the $5.00 allocation to the builder enforcement fund from the $50.00 renewal fee due after January 1 of the following year shall not be made. If on any subsequent December 1 the department determines that the balance in the fund is less than $750,000.00, the $5.00 allocation shall resume for any renewal fee due after January 1 of the following year.

(d) The department shall utilize the builder enforcement fund only for the enforcement of article 24 of the occupational code, MCL 339.2401 to 339.2412, regarding unlicensed activity as further described in section 601(1) and (2) of the occupational code, MCL 339.601, and to reimburse the attorney general for the reasonable cost of services provided to the department and for expenses incurred in prosecutions of unlicensed activity or prosecuting attorney for expenses incurred in conducting prosecutions of unlicensed practice.

(e) The state treasurer shall direct the investment of the fund and shall credit to the fund interest and earnings from fund investments.

(f) Money in the fund at the close of the fiscal year shall remain in the fund and shall not lapse to the general fund.

History: 1979, Act 152, Eff. Jan. 1, 1980 ;-- Am. 1980, Act 295, Eff. Jan. 1, 1981 ;-- Am. 1988, Act 461, Eff. Sept. 1, 1989 ;-- Am. 2003, Act 87, Imd. Eff. July 23, 2003 ;-- Am. 2007, Act 77, Imd. Eff. Sept. 30, 2007 ;-- Am. 2007, Act 158, Eff. June 1, 2008 ;-- Am. 2012, Act 308, Imd. Eff. Oct. 1, 2012 Compiler's Notes: For transfer of powers and duties of certain occupational functions, boards, and commissions from the Department of Licensing and Regulation to the Department of Commerce, see E.R.O. No. 1991-9, compiled at MCL 338.3501 of the Michigan Compiled Laws.

MCL 339.210

OCCUPATIONAL CODE (EXCERPT)

Act 299 of 1980

339.210 Contracting with persons or agencies to implement act and fulfill responsibilities of department or board; electronic continuing education tracking system; agreement; provisions; rules.

Sec. 210.

(1) The department, on its own behalf and on behalf of a board created under this act, may contract with persons or agencies who are not employees or agencies of the department to implement this act and to fulfill the responsibilities of the department or a board.

(2) Under subsection (1), the department may enter into an agreement with any of the following to provide an electronic continuing education tracking system that provides an electronic record of the continuing education courses, classes, or programs completed by individuals who are licensed or registered under this act:

(a) For individuals who are licensed under article 7, a statewide accountancy trade organization.

(b) For individuals who are licensed under article 25, a statewide real estate trade organization.

(c) For the individuals who are licensed or registered under all of the other specific articles of this act, except the individuals described in subdivision (a) or (b), an entity that is not an agency of a state or the federal government.

(3) All of the following apply to an electronic system provided by an agreement under subsection (2):

(a) All continuing education tracking provided by the system must accurately reflect the continuing education requirements under this act and rules promulgated under this act.

(b) A confirmation of completion of continuing education requirements generated by the system is considered verification of completion of those requirements for renewal of a license or registration and for purposes of any audit of licensees or registrants conducted by the department.

(c) The system must provide access to continuing education information about an individual who is licensed or registered under this act to the individual, to the appropriate board for the individual's occupation, and to the department.

(4) The department shall promulgate any rules it considers appropriate to implement and administer subsections (2) and (3).

History: 1980, Act 299, Imd. Eff. Oct. 21, 1980 ;-- Am. 2016, Act 30, Eff. June 6, 2016 Popular Name: Act 299

MCL 339.2401

OCCUPATIONAL CODE (EXCERPT)

Act 299 of 1980

339.2401 Definitions.

Sec. 2401.

As used in this article:

(a) "Residential builder" means any of the following:

(i) A person engaged in the construction of a residential structure that, for a fixed sum, price, fee, percentage, valuable consideration, or other compensation, other than wages for personal labor only, undertakes with another or offers to undertake, or purports to have the capacity to undertake with another, for the erection, construction, replacement, repair, alteration, or addition to, subtraction from, improvement, wrecking of, or demolition of, a residential structure.

(ii) A person that manufactures, assembles, constructs, deals in, or distributes a residential structure that is prefabricated, preassembled, precut, packaged, or shell housing.

(iii) A person that erects a residential structure except for the person's own use and occupancy on the person's property.

(b) "Residential maintenance and alteration contractor" means a person that, for a fixed sum, price, fee, percentage, valuable consideration, or other compensation, other than wages for personal labor only, does any of the following:

(i) Undertakes with another for the repair, alteration, or addition to, subtraction from, improvement of, wrecking of, or demolition of a residential structure, or building of a garage, or laying of concrete on residential property.

(ii) Engages in the purchase, substantial rehabilitation or improvement, and resale of a residential structure or property and engages in that activity on the same structure more than twice in 1 calendar year, except in the following instances:

(A) If the work is for the person's own use and occupancy.

(B) If the rehabilitation or improvement work on the residential property or structure is contracted for, with, or hired entirely to be done and performed for the owner by a person licensed under this article.

(C) If work is performed by a person employed by the owner to perform work for which the person is licensed by the state.

(c) "Residential structure" means 1 or both of the following:

(i) A detached 1- or 2-family dwelling and all related facilities appurtenant to that dwelling, used or intended to be used as an adjunct of residential occupancy.

(ii) A townhouse of not more than 3 stories above the grade plane in height with a separate means of egress and all related facilities appurtenant to that townhouse, used or intended to be used as an adjunct of residential occupancy.

(d) "Salesperson" means an employee or agent, other than a qualifying officer, of a licensed residential builder or residential maintenance and alteration contractor, who for a salary, wage, fee, percentage, commission, or other consideration, sells or attempts to sell, negotiates or attempts to negotiate, solicits for or attempts to solicit for, obtains or attempts to obtain a contract or commitment for, or furnishes or attempts or agrees to furnish, the goods and services of a residential builder or residential maintenance and alteration contractor, except an individual working for a licensed residential builder or residential maintenance and alteration contractor who makes sales that are occasional and incidental to the individual's principal employment.

(e) "Wages" means money paid or to be paid on an hourly or daily basis by an owner, lessor, or occupant of a residential structure as consideration for the performance of personal labor on the structure by an individual who does not perform or promise to perform the labor for any other fixed sum, price, fee, percentage, valuable consideration, or other compensation and who does not furnish or agree to furnish the material or supplies required to be used in the performance of the labor or an act described in subdivision (a) or (b).

History: 1980, Act 299, Imd. Eff. Oct. 21, 1980 ;-- Am. 1991, Act 166, Imd. Eff. Dec. 19, 1991 ;-- Am. 2020, Act 341, Imd. Eff. Dec. 30, 2020 Compiler's Notes: For transfer of powers and duties of certain occupational functions, boards, and commissions from the Department of Licensing and Regulation to the Department of Commerce, see E.R.O. No. 1991-9, compiled at MCL 338.3501 of the Michigan Compiled Laws.Enacting section 1 of Act 341 of 2020 provides:"Enacting section 1. Section 2401 of the occupational code, 1980 PA 299, MCL 339.2401, as amended by this amendatory act, applies retroactively to January 1, 2019." Popular Name: Act 299

MCL 339.2402

OCCUPATIONAL CODE (EXCERPT)

Act 299 of 1980

339.2402 Residential builders' and maintenance and alteration contractors' board; creation; qualifications of members.

Sec. 2402.

A residential builders' and maintenance and alteration contractors' board is created. The board shall consist of 9 individuals, as follows:

(a) Four individuals who are licensed residential builders.

(b) Two individuals who are licensed maintenance and alteration contractors.

(c) Three individuals representing the general public, at least 1 of whom is registered under article 10 of the skilled trades regulation act, MCL 339.6001 to 339.6023.

History: 1980, Act 299, Imd. Eff. Oct. 21, 1980 ;-- Am. 2007, Act 157, Eff. June 1, 2008 ;-- Am. 2016, Act 412, Eff. Apr. 4, 2017 Compiler's Notes: For the revision of the membership requirements of the residential builders' and alteration contractors' board, see E.R.O. No. 2024-2, compiled at MCL 16.735. Popular Name: Act 299

MCL 339.2403

OCCUPATIONAL CODE (EXCERPT)

Act 299 of 1980

339.2403 Engaging in business or acting in capacity of residential builder or residential maintenance and alteration contractor or salesperson without license.

Sec. 2403.

Notwithstanding article 6, a person may engage in the business of or act in the capacity of a residential builder or a residential maintenance and alteration contractor or salesperson in this state without a license under this article, if the person is 1 of the following:

(a) An authorized representative of the United States government, this state, or a county, township, city, village, or other political subdivision of this state.

(b) An owner of property, with reference to a structure on the property for the owner's own use and occupancy.

(c) An owner of rental property, with reference to the maintenance and alteration of that rental property.

(d) An officer of a court who is acting within the scope of that office.

(e) A person other than the salesperson that engages solely in the business of performing work and services under contract with a residential builder or a residential maintenance and alteration contractor that is licensed under this article.

(f) A person that is working on 1 undertaking or project by 1 or more contracts, if the aggregate contract price for the labor, material, and any other items for the undertaking or project is less than $600.00. The exemption described in this subdivision does not apply if the work of a construction is only a part of a larger or major operation, whether undertaken by the same or a different residential builder or residential maintenance and alteration contractor, or in which a division of the operation is made in contracts of amounts less than $600.00, to evade this act.

(g) An electrical contractor that is licensed under article 7 of the skilled trades regulation act, MCL 339.5701 to 339.5739. The exemption described in this subdivision applies only to the electrical installation, electrical maintenance, or electrical repair work that is performed by the electrical contractor.

(h) A plumbing contractor that is licensed under article 11 of the skilled trades regulation act, MCL 339.6101 to 339.6133. The exemption described in this subdivision applies only to plumbing installation, plumbing maintenance, or plumbing repair work that is performed by the plumbing contractor.

(i) A mechanical contractor that is licensed under article 8 of the skilled trades regulation act, MCL 339.5801 to 339.5819. The exemption described in this subdivision applies only to mechanical installation, mechanical maintenance, or mechanical repair work that is performed by the mechanical contractor.

History: 1980, Act 299, Imd. Eff. Oct. 21, 1980 ;-- Am. 1982, Act 6, Imd. Eff. Feb. 15, 1982 ;-- Am. 1984, Act 191, Imd. Eff. July 3, 1984 ;-- Am. 2016, Act 412, Eff. Apr. 4, 2017 Popular Name: Act 299

MCL 339.2404

OCCUPATIONAL CODE (EXCERPT)

Act 299 of 1980

339.2404 Evidence of good moral character; proof of identity; examination; issuance of residential maintenance and alteration contractor's license; scope of crafts and trades; place of business; branch office license; duration of license; renewal; documentation of continuing competency requirements.

Sec. 2404.

(1) Except as provided in section 2404c, the department may require an applicant, a licensee, or each partner, trustee, director, officer, member, or shareholder of an applicant or licensee to submit evidence of good moral character. Before the department issues a license, an applicant shall submit a copy of his or her operator's license or state personal identification card to the department. The department may use the license or card only for proof of identity of the applicant.

(2) Except as provided in section 2404c, the department shall require that an applicant for a license under this article pass an examination that establishes that the applicant has a fair knowledge of the obligations of a residential builder or residential maintenance and alteration contractor to the public and the applicant's principal, and the statutes relating to the applicant's licensure.

(3) Except as provided in section 2404c, the department may issue a residential maintenance and alteration contractor's license to an individual who applies for the license and who qualifies for the license by passing the examination. A license authorizes the licensee, according to the applicant's qualifications, crafts, and trades, to engage in the activities of a residential maintenance and alteration contractor. A license includes the following crafts and trades: carpentry; concrete; swimming pool installation; waterproofing a basement; excavation; insulation work; masonry work; roofing; siding and gutters; screen or storm sash installation; tile and marble work; and house wrecking. A license shall specify the particular craft or trade for which the licensee is qualified. This subsection does not prohibit a specialty contractor from taking and executing a contract involving the performance of the craft or trade for which the contractor holds a license and 1 or more other crafts or trades if the performance of the work in the other craft or trade is incidental and supplemental to the performance of work in the craft or trade for which the specialty contractor is licensed.

(4) A residential builder or residential maintenance and alteration contractor shall maintain a place of business in this state. If a residential builder or residential maintenance and alteration contractor maintains more than 1 place of business in this state, the department shall issue a branch office license to the builder or contractor for each place of business maintained by the builder or contractor.

(5) The department shall issue the license of a residential builder and residential maintenance and alteration contractor for a period of 3 years in duration.

(6) An applicant for renewal of a residential builder or maintenance and alteration contractor license shall state to the department that he or she has a current copy of the Michigan residential code and meets the appropriate requirements regarding continuing competency described in this article or rules promulgated under this article.

(7) A licensee shall maintain documentation, for at least 5 years, of activities that meet the continuing competency requirements under this article.

History: 1980, Act 299, Imd. Eff. Oct. 21, 1980 ;-- Am. 1980, Act 496, Eff. Mar. 31, 1981 ;-- Am. 1981, Act 83, Imd. Eff. July 1, 1981 ;-- Am. 1984, Act 193, Imd. Eff. July 3, 1984 ;-- Am. 1988, Act 463, Eff. Sept. 1, 1989 ;-- Am. 2007, Act 157, Eff. June 1, 2008 ;-- Am. 2010, Act 151, Imd. Eff. Aug. 23, 2010 ;-- Am. 2014, Act 176, Imd. Eff. June 17, 2014 ;-- Am. 2018, Act 527, Eff. Mar. 28, 2019 Popular Name: Act 299

MCL 339.2404B

OCCUPATIONAL CODE (EXCERPT)

Act 299 of 1980

339.2404b Licensure as residential builder or residential maintenance and alteration contractor; completion of prelicensure course of study; disciplinary action; continuing competency requirements; approved courses; subject matter; rules; alternate forms of continuing competency; department audit; application for inactive status; designation of licensee as inactive; exemption from requirements in subsection (1); affidavit signed by commanding officer, supervisor, or military superior; retaking examination.

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 the prelicensure course of study requirements under this subsection to obtain a license 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 is renewing a license, he or she is exempt from the requirement of successfully completing prelicensure courses described in this subsection.

(b) If an individual is applying for a license 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 September 16, 2014. 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 must not receive an initial license under this act unless he or she successfully completed 60 hours of approved prelicensure courses that include at least 6 hours of courses in each of the following areas of competency:

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

(ii) Design and building science.

(iii) Contracts, liability, and risk management.

(iv) Marketing and sales.

(v) Project management and scheduling.

(vi) The current Michigan residential code.

(vii) Construction safety standards promulgated under the Michigan occupational safety and health act, 1974 PA 154, MCL 408.1001 to 408.1094.

(2) 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, 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 that demonstrate continuing competency in each calendar year, during the first 6 calendar years of licensure.

(ii) At least 3 hours 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.

(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 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) In addition to the requirements of subsection (2), if the department has taken disciplinary action against a licensee for a violation of this act or a rule promulgated under this act, the licensee must successfully complete, during the next complete license cycle, 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. 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) 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 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 section.

(5) 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, or any other proprietary school that is licensed by the department.

(6) 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 must be designed to maintain and improve the licensee's ability to perform the occupation with competence and must prescribe proofs that are necessary to demonstrate that the licensee has fulfilled the requirements of continuing competency.

(7) Each licensee may select approved courses in his or her subject matter area or specialty. A licensee's service as a lecturer or discussion leader in an approved course must count toward his or her continuing competency requirements under this section. Alternate forms of continuing competency may be earned and documented as promulgated in rules by the department.

(8) 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 results in the investigation of a complaint initiated by the department, and the licensee is subject to the penalties prescribed in this act.

(9) Before September 16, 2014, 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 September 16, 2014 may remain in inactive status after that date by complying with the requirements of subsection (9). A licensee who remains in inactive status after September 16, 2014 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)(c).

(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)(c), 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).

History: Add. 2007, Act 157, Eff. June 1, 2008 ;-- Am. 2013, Act 169, Eff. Feb. 12, 2014 ;-- Am. 2014, Act 175, Eff. Sept. 16, 2014 ;-- Am. 2021, Act 26, Eff. Sept. 7, 2021 Popular Name: Act 299

MCL 339.2404C

OCCUPATIONAL CODE (EXCERPT)

Act 299 of 1980

339.2404c Individual denied license because of financial instability.

Sec. 2404c.

All of the following apply to an individual who is applying for a license or relicensure as a residential builder or residential maintenance and alteration contractor, who was a qualifying officer on December 21, 2007, and who was subsequently denied an individual license because of financial instability:

(a) The department shall determine whether the applicant should receive a license under this article and what requirements described in section 2404 the applicant must meet to qualify for that license.

(b) In making its determination under subdivision (a), the department shall consider the information it receives under section 2404(1) concerning the good moral character of the applicant and other persons described in section 2404(1), shall determine whether the applicant is required to pass an examination under section 2404(2) or (3) or 2405(1), and may require that the applicant meet other requirements to qualify for a license.

(c) The applicant shall certify that he or she successfully completed at least 3 hours of activities that demonstrate continuing competency, that include 1 hour of codes, 1 hour of safety, and 1 hour of legal issues described in section 2404b(2), in the 12 months immediately preceding the date of application.

History: Add. 2014, Act 176, Imd. Eff. June 17, 2014 Popular Name: Act 299

MCL 339.2407

OCCUPATIONAL CODE (EXCERPT)

Act 299 of 1980

339.2407 Licensing salesperson in employ of 1 builder or contractor; application for transfer and issuance of new license; submission of salesperson's license application.

Sec. 2407.

(1) A salesperson shall be licensed in the employ of only 1 residential builder or maintenance and alteration contractor. If a salesperson desires to change employment from 1 residential builder or maintenance and alteration contractor to another, the license shall be forwarded to the department and application made for a transfer and the issuance of a new license under the salesperson's new employer.

(2) An application for a salesperson's license shall be submitted by the employing residential builder or residential maintenance and alteration contractor.

History: 1980, Act 299, Imd. Eff. Oct. 21, 1980 ;-- Am. 1988, Act 463, Eff. Sept. 1, 1989 Popular Name: Act 299

MCL 339.2410

OCCUPATIONAL CODE (EXCERPT)

Act 299 of 1980

339.2410 Repeating examination not required when making application for additional license.

Sec. 2410.

A person or qualifying officer for a corporation or member of a partnership or other business association who currently holds a residential builder or maintenance and alteration contractor license shall not be required to repeat an examination for that license when making application for an additional license. However, a maintenance and alteration contractor who currently holds a license and makes application for a residential builders' license shall be required to take an examination for that license.

History: 1980, Act 299, Imd. Eff. Oct. 21, 1980 Popular Name: Act 299

MCL 339.2411

OCCUPATIONAL CODE (EXCERPT)

Act 299 of 1980

339.2411 Complaint; conduct subject to penalty; violations; review; administrative proceedings regarding workmanship; order of default; "verified complaint" defined.

Sec. 2411.

(1) A complaint filed under this section or article 5, or both, shall be made within 18 months after the latest of the following regarding a residential structure as follows:

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

(i) Completion.

(ii) Occupancy.

(iii) Purchase.

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

(i) Issuance of the certificate of occupancy or temporary certificate of occupancy.

(ii) Closing.

(2) A licensee or applicant who commits 1 or more of the following is subject to the penalties set forth in article 6:

(a) Abandonment without legal excuse of a contract, construction project, or operation engaged in or undertaken by the licensee.

(b) Diversion of funds or property received for prosecution or completion of a specific construction project or operation, or for a specified purpose in the prosecution or completion of a construction project or operation, and the funds or property application or use for any other construction project or operation, obligation, or purposes.

(c) Failure to account for or remit money coming into the person's possession that belongs to others.

(d) A willful departure from or disregard of plans or specifications in a material respect and prejudicial to another, without consent of the owner or an authorized representative and without the consent of the person entitled to have the particular construction project or operation completed in accordance with the plans and specifications.

(e) A willful violation of the building laws of this state or of a political subdivision of this state.

(f) In a residential maintenance and alteration contract, failure to furnish to a lender the purchaser's signed completion certificate executed upon completion of the work to be performed under the contract.

(g) If a licensed residential builder or licensed residential maintenance and alteration contractor, failure to notify the department within 10 days of a change in the control or direction of the business of the licensee resulting from a change in the licensee's partners, directors, officers, or trustees, or a change in the control or direction of the business of the licensee resulting from any other occurrence or event.

(h) Failure to deliver to the purchaser the entire agreement of the parties including any finance or other charge arising out of or incidental to the agreement if the agreement involves repair, alteration, or addition to, subtraction from, improvement of, wrecking of, or demolition of a residential structure, building of a garage, laying of concrete on residential property, or manufacture, assembly, construction, sale, or distribution of a residential structure that is prefabricated, preassembled, precut, packaged, or shell housing.

(i) If a salesperson, failure to pay over immediately upon receipt money received by the salesperson, in connection with a transaction governed by this article to the residential builder or residential maintenance and alteration contractor under whom the salesperson is licensed.

(j) Aiding or abetting an unlicensed person to evade this article, or knowingly combining or conspiring with, or acting as agent, partner, or associate for an unlicensed person, allowing one's license to be used by an unlicensed person, or acting as or being an ostensible licensed residential builder or licensed residential maintenance and alteration contractor for an undisclosed person who does or shall control or direct, or who may have the right to control or direct, directly or indirectly, the operations of a licensee.

(k) Acceptance of a commission, bonus, or other valuable consideration by a salesperson for the sale of goods or the performance of service specified in the article from a person other than the residential builder or residential maintenance and alteration contractor under whom the person is licensed.

(l) Becoming insolvent, filing a bankruptcy action, becoming subject to a receivership, assigning for the benefit of creditors, failing to satisfy judgments or liens, or failing to pay an obligation as it becomes due in the ordinary course of business.

(m) Workmanship not meeting the standards of the Michigan residential code as promulgated under the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531.

(3) The department shall conduct a review upon notice that the licensee has violated the asbestos abatement contractors licensing act, 1986 PA 135, MCL 338.3101 to 338.3319. The department may suspend or revoke that person's license for a knowing violation of the asbestos abatement contractors licensing act, 1986 PA 135, MCL 338.3101 to 338.3319.

(4) Notwithstanding article 5, the following apply to administrative proceedings regarding workmanship under subsection (2)(m):

(a) A complaint submitted by an owner shall describe in writing to the department the factual basis for the allegation. The homeowner shall send a copy of the initial complaint to the licensee concurrent with the submission of the complaint to the department.

(b) The department shall presume the innocence of the licensee throughout the proceeding until the administrative law hearing examiner finds otherwise in a determination of findings of fact and conclusions of law under article 5. The licensee has the burden of refuting evidence submitted by a person during the administrative hearing. The licensee also has the burden of proof regarding the reason deficiencies were not corrected.

(c) Upon receipt of a building inspection report issued to the department by a state or local building enforcement official authorized to do so under the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531, which report verifies or confirms the substance of the complaint, the department shall send by certified mail a copy of the verified complaint to the licensee. If the department does not send a copy of the verified complaint within 30 days after receipt of the building inspection report, the department shall not assess a fine against the licensee under article 6, but the department may pursue restitution, license suspension, or other remedies provided under this act.

(d) A licensee may contractually provide for an alternative dispute resolution procedure to resolve complaints filed with the department. The procedure shall be conducted by a neutral third party for determining the rights and responsibilities of the parties and shall be initiated by the licensee, who shall provide notice of the initiation of the procedure to the complainant by certified mail not less than 30 days before the commencement of that procedure. The procedure shall be conducted at a location mutually agreed to by the parties.

(e) The department shall not initiate a proceeding against a licensee under this subsection if the licensee has contractually provided for an alternative dispute resolution procedure that has not been utilized and completed unless it is determined that the licensee has not complied with a decision or order issued as a result of that alternative dispute resolution procedure, that alternative dispute resolution procedure was not fully completed within 90 days after the filing of the complaint with the department, or an alternative dispute resolution procedure meeting the requirements of subdivision (d) is not available to the complainant.

(f) The complainant shall demonstrate that notice has been provided to the licensee describing reasonable times and dates that the residential structure was accessible for any needed repairs and proof acceptable to the department that the repairs were not made within 60 days after the sending of the notice. This subdivision does not apply if the department determines a necessity to safeguard the structure or to protect the occupant's health and safety and, in such case, the department may utilize any remedy available under section 504(3).

(g) If the owner and licensee have agreed contractually on mutually acceptable performance guidelines relating to workmanship, the department shall consider those guidelines in its evaluation of a complaint. The guidelines shall be consistent with the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531.

(5) If the licensee or respondent fails to appear or participate in or defend any action, the board shall issue an order granting by default the relief requested, based upon proofs submitted to and findings made by the hearing examiner after a contested case.

(6) As used in this section, "verified complaint" means a complaint in which all or a portion of the allegations have been confirmed by an affidavit of the state or local building official.

History: 1980, Act 299, Imd. Eff. Oct. 21, 1980 ;-- Am. 1980, Act 496, Eff. Mar. 31, 1981 ;-- Am. 1982, Act 410, Imd. Eff. Dec. 28, 1982 ;-- Am. 1990, Act 6, Imd. Eff. Feb. 12, 1990 ;-- Am. 1991, Act 166, Imd. Eff. Dec. 19, 1991 ;-- Am. 2001, Act 113, Imd. Eff. July 31, 2001 ;-- Am. 2007, Act 155, Eff. June 1, 2008 ;-- Am. 2007, Act 157, Eff. June 1, 2008 ;-- Am. 2010, Act 151, Imd. Eff. Aug. 23, 2010 ;-- Am. 2020, Act 341, Imd. Eff. Dec. 30, 2020 Popular Name: Act 299

MCL 339.2412

OCCUPATIONAL CODE (EXCERPT)

Act 299 of 1980

339.2412 Action for collection of compensation for performance of act or contract; alleging and proving licensure; failure to use alternative dispute resolution; other legal action; civil violation.

Sec. 2412.

(1) A person or qualifying officer for a corporation or member of a residential builder or residential maintenance and alteration contractor shall not bring or maintain an action in a court of this state for the collection of compensation for the performance of an act or contract for which a license is required by this article without alleging and proving that the person was licensed under this article during the performance of the act or contract.

(2) Failure of the person bringing a complaint against a licensee to utilize a contractually provided alternative dispute resolution procedure shall be an affirmative defense to an action brought in a court of this state against a licensee under this article.

(3) A person or qualifying officer for a corporation or a member of a residential builder or residential maintenance and alteration contractor shall not impose or take any legal or other action to impose a lien on real property unless that person was licensed under this article during the performance of the act or contract.

(4) A prosecuting attorney and the attorney general may bring an action for a civil violation in a court of competent jurisdiction against a person not licensed under this article that has violated section 601(1) or (2). The court shall assess a civil fine, to be paid to the prosecuting attorney or the attorney general bringing the action, of not less than $5,000.00 and not more than $25,000.00, aside from any civil damages or restitution.

History: 1980, Act 299, Imd. Eff. Oct. 21, 1980 ;-- Am. 1980, Act 496, Eff. Mar. 31, 1981 ;-- Am. 2001, Act 113, Imd. Eff. July 31, 2001 ;-- Am. 2007, Act 155, Eff. June 1, 2008 Popular Name: Act 299

MCL 339.2501

OCCUPATIONAL CODE (EXCERPT)

Act 299 of 1980

339.2501 Definitions.

Sec. 2501.

As used in this article:

(a) "Associate broker" or "associate real estate broker" means an individual who meets the requirements for licensure as a real estate broker under this article and who is licensed as an associate real estate broker under section 2505 to provide real estate brokerage services as an employee or independent contractor of a real estate broker.

(b) "Business entity" means a person described in section 105(5)(b) or (c), except a sole proprietorship.

(c) "Classroom course" means an educational course of instruction that is provided at either of the following:

(i) A physical location where instruction is offered and students and an instructor are present.

(ii) A location where a student receives instruction provided by distance learning.

(d) "Clock hour" means either of the following:

(i) For a classroom course at a location described in subdivision (c)(i), a period of 50 to 60 minutes of actual classroom instruction, not including outside assignments and reading.

(ii) For a classroom course at a location described in subdivision (c)(ii), the period required for a student to process the amount of material provided in 50 minutes of distance learning instruction.

(e) "Control person" means an individual who is a sole proprietor, is a partner in a partnership or limited partnership, is an officer, director, or shareholder in a corporation, is a member or manager in a limited liability company, or holds a responsible position in any other form of business entity authorized under the laws of this state or the state in which the entity is organized or formed.

(f) "Distance learning" means the technology and educational process used to provide instruction to a student when the student and the instructor are not necessarily physically present at the same time or place. The term includes, but is not limited to, instruction provided through an interactive classroom, computer conferencing, or an interactive computer system.

(g) "Employ" or "employment" means the relationship between a real estate broker and an associate real estate broker or a real estate salesperson which may include an independent contractor relationship. The existence of an independent contractor relationship between a real estate broker and an individual licensed to the real estate broker does not relieve the real estate broker of the responsibility to supervise acts of the licensee that are regulated under this article.

(h) "Independent contractor relationship" means a relationship between a real estate broker and an associate real estate broker or real estate salesperson that satisfies both of the following conditions:

(i) A written agreement exists in which the real estate broker does not consider the associate real estate broker or real estate salesperson as an employee for federal and state income tax purposes.

(ii) At least 75% of the annual compensation paid by the real estate broker to the associate real estate broker or real estate salesperson is from commissions from the sale of real estate.

(i) "License cycle" means the term of a license issued under this article.

(j) "Limited service agreement" means a written service provision agreement by which a real estate broker and client establish an agency relationship in which certain enumerated services, as set forth in section 2512d(3)(b), (c), and (d), are knowingly waived in whole or part by the client.

(k) "Negotiate the mortgage of real estate" means engaging in activity in connection with a mortgage that is not regulated under the mortgage brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 445.1651 to 445.1684, the secondary mortgage loan act, 1981 PA 125, MCL 493.51 to MCL 493.81, or the mortgage loan originator licensing act, 2009 PA 75, MCL 493.131 to 493.171.

(l) A "nonprincipal" of a real estate broker means a control person who is licensed as an associate real estate broker under this article, but is not designated as a principal under section 2505(1).

(m) "Place of business" means a physical location that a real estate broker, by advertisement, signage, or otherwise, represents to the public is a place where clients and customers may consult or do business with a licensee.

(n) "Pocket card" means the card that contains information about a licensee's license that the department provides under section 2506 when it issues a license under this article.

(o) "Prelicensure course" means a course that is represented to the public as fulfilling, in whole or in part, the requirements of section 2504.

(p) A "principal" of a real estate broker means a control person who is licensed as an associate real estate broker and is designated as a principal under section 2505(1).

(q) "Professional designation" means a certification from a real estate professional association that demonstrates that an individual has attained proven skills or education in a real estate occupational area and may include the right to use a title or letters after the licensee's name that represent the designation awarded by the certifying entity.

(r) "Property management" means leasing or renting, or offering to lease or rent, real property of others for a fee, commission, compensation, or other valuable consideration pursuant to a property management employment contract.

(s) "Property management account" means an interest-bearing or noninterest-bearing account or instrument used in the operation of property management.

(t) "Property management employment contract" means a written agreement that is entered into between a real estate broker and client concerning the real estate broker's employment as a property manager for the client; that describes the real estate broker's duties, responsibilities, and activities as a property manager; and that describes the handling, management, safekeeping, investment, disbursement, and use of property management money, funds, and accounts.

(u) "Real estate broker" means an individual or business entity that, with intent to collect or receive a fee, compensation, or valuable consideration, sells or offers for sale, buys or offers to buy, provides or offers to provide market analyses of, lists or offers or attempts to list, or negotiates the purchase, sale, or exchange of real estate; that negotiates the mortgage of real estate; that negotiates for the construction of a building on real estate; that leases or offers or rents or offers for rent real estate or the improvements on the real estate for others, as a whole or partial vocation; that engages in property management as a whole or partial vocation; that sells or offers for sale, buys or offers to buy, leases or offers to lease, or negotiates the purchase or sale or exchange of a business, business opportunity, or the goodwill of an existing business for others; or that, as owner or otherwise, engages in the sale of real estate as a principal vocation.

(v) "Real estate salesperson" means an individual who for compensation or valuable consideration is employed either directly or indirectly by a licensed real estate broker to sell or offer to sell, buy or offer to buy, provide or offer to provide market analyses of, list or offer or attempt to list, or negotiate the purchase, sale, or exchange of real estate; to negotiate the mortgage of real estate; to negotiate for the construction of a building on real estate, or to lease or offer to lease, or rent or offer for rent, real estate; who is employed by a real estate broker to engage in property management; or who sells or offers for sale, buys or offers to buy, leases or offers to lease, or negotiates the purchase or sale or exchange of a business, business opportunity, or the goodwill of an existing business for others, as a whole or partial vocation.

(w) "Right-to-list home sale agreement" means an agreement between an owner of residential real estate and a real estate broker that obligates the owner to list the residential real estate for sale with the real estate broker at a future date in exchange for consideration. As used in this subdivision, "residential real estate" means the type of real estate described in section 2517(3). Right-to-list home sale agreement does not include a service provision agreement.

(x) "Service provision agreement" means a buyer agency agreement or listing agreement that is executed by a real estate broker and a client and establishes an agency relationship.

(y) "Sponsor" means a person that represents to the public that the courses it conducts for purposes of this article fulfill the requirements of section 2504a for continuing education.

History: 1980, Act 299, Imd. Eff. Oct. 21, 1980 ;-- Am. 1988, Act 16, Imd. Eff. Feb. 18, 1988 ;-- Am. 1990, Act 269, Eff. July 1, 1991 ;-- Am. 1993, Act 93, Imd. Eff. July 13, 1993 ;-- Am. 1994, Act 333, Imd. Eff. Oct. 18, 1994 ;-- Am. 2003, Act 196, Imd. Eff. Nov. 10, 2003 ;-- Am. 2008, Act 90, Eff. July 1, 2008 ;-- Am. 2016, Act 502, Eff. Mar. 29, 2017 ;-- Am. 2024, Act 122, Imd. Eff. July 25, 2024 Compiler's Notes: For transfer of powers and duties of certain occupational functions, boards, and commissions from the Department of Licensing and Regulation to the Department of Commerce, see E.R.O. No. 1991-9, compiled at MCL 338.3501 of the Michigan Compiled Laws. Popular Name: Act 299

MCL 339.411

OCCUPATIONAL CODE (EXCERPT)

Act 299 of 1980

339.411 Failure to renew license or registration; conditions to relicensing or reregistration; report; exceptions; mobilized for military duty status; temporary exemption; "completed application" defined.

Sec. 411.

(1) Subject to subsection (2), a person that fails to renew a license or registration on or before the expiration date shall not practice the occupation, operate, or use the title of that occupation after the expiration date printed on the license or registration. A license or registration shall lapse on the day after the expiration date.

(2) A person that fails to renew a license or registration on or before the expiration date is permitted to renew the license or registration by payment of the required license or registration fee and a late renewal fee within 60 days after the expiration date.

(3) Except as otherwise provided in this act, a person that fails to renew a license or registration within the time period set forth in subsection (2) may be relicensed or reregistered without examination and without meeting additional education or training requirements in force at the time of application for relicensure or reregistration if all of the following conditions are met:

(a) The person applies within 3 years after the expiration date of the last license or registration.

(b) The person pays an application processing fee, the late renewal fee, and the per year license or registration fee for the upcoming licensure or registration period, subject to subsection (8).

(c) Any penalties or conditions imposed by disciplinary action in this state or any other jurisdiction have been satisfied.

(d) The person submits proof of having completed the equivalent of 1 year of continuing education within the 12 months immediately preceding the date of application or as otherwise provided in a specific article or by rule, if continuing education is required of licensees or registrants under a specific article.

(4) Except as otherwise provided in this act, a person may be relicensed or reregistered subsequent to 3 or more years after the expiration date of the last license or registration if the person shows that the person meets the requirements for licensure or registration as established by the department in rules or procedures, which may require a person to pass all or part of a required examination, to complete continuing education requirements, or to meet current education or training requirements.

(5) Unless otherwise provided in this act, a person that seeks reinstatement of a license or registration shall file an application on a form provided by the department, pay the application processing fee, and file a petition to the department and the appropriate board stating reasons for reinstatement and including evidence that the person can and is likely to serve the public in the regulated activity with competence and in conformance with all other requirements prescribed by law, rule, or an order of the department or board. The procedure for conducting the review of a petition for reinstatement is prescribed in article 5. If approved for reinstatement, the person shall pay the per year license or registration fee for the upcoming license or registration period if appropriate, in addition to completing any requirements imposed under section 203(2).

(6) The department shall issue an initial or renewal license or registration not later than 90 days after the applicant files a completed application. The application is considered received on the date the application is received by any agency or department of this state. If the application is considered incomplete by the department, the department shall notify the applicant in writing, or make information electronically available, within 30 days after receipt of the incomplete application, describing the deficiency and requesting the additional information. The 90-day period is tolled from the date the department notifies the applicant of a 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 license or registration and does not confer eligibility of an applicant determined otherwise ineligible for issuance of a license or registration.

(7) Notwithstanding the time periods described in subsection (6), in the case of a real estate broker and associate broker licensed under article 25, the time period for approval by the department of a completed application is 30 days and the time period for notification sent in writing, or made electronically available, by the department to the applicant regarding an incomplete application is 15 days after the receipt of the application by any agency or department of this state.

(8) If the department fails to issue or deny a license or registration within the time required by this section, the department shall return the license or registration fee, and shall reduce the license or registration fee for the applicant's next renewal application, if any, by 15%. A failure to issue or deny a license or registration within the time required under this section does not allow the department to otherwise delay the processing of the application, and the department shall place that application, when completed, in sequence with other completed applications received at that same time. The department shall not discriminate against an applicant in the processing of an application based on the fact that the license or registration fee was refunded or discounted under this subsection.

(9) The director 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 state fiscal year:

(a) The number of initial and renewal applications the department received and completed within the 90-day time period described in subsection (6) and the 30-day time period described in subsection (7).

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

(c) The number of applicants that were not issued a license or registration within the applicable time period and the amount of money returned to licensees and registrants under subsection (8).

(d) The number of applications denied by the department because of an applicant's lack of good moral character and a summary, by category of offense, of the criminal convictions on which those denials were based.

(10) Subsection (6) does not apply to a license or registration for any of the following:

(a) A certified public accountant and registered accountant under article 7.

(b) An agency non-owner manager of a collection agency under article 9.

(c) A barber, student barber, student instructor, or barber instructor under article 11.

(d) An employment and consulting agent of a personnel agency under article 10.

(e) A cosmetologist, manicurist, natural hair culturist, esthetician, electrologist, instructor, or registered student under article 12.

(f) A hearing aid salesperson and trainee under article 13.

(g) A mortuary science licensee, embalmer, or resident trainee in mortuary science under article 18.

(h) An individual architect, surveyor, or engineer under article 20.

(i) An individual landscape architect under article 22.

(j) An individual residential builder and alteration and maintenance contractor or a salesperson for a residential builder and alteration and maintenance contractor under article 24.

(k) A real estate salesperson under article 25.

(l) A real estate appraiser under article 26.

(11) Notwithstanding any provision in this act to the contrary, an individual or qualifying officer who is a licensee or registrant under this act and who is mobilized for military duty in the Armed Forces of the United States by the President of the United States is temporarily exempt from any renewal license fee, continuing education requirements, or other related requirements of this act applicable to that license or registration. It is the obligation of the licensee or registrant to inform the department by written or electronic mail of the desire to exercise the temporary exemption under this subsection. If the licensee applying for the temporary exemption is the individual responsible for supervision and oversight of licensed activities, the licensee shall provide notice of arrangements for adequate provision of that supervision and oversight to the department. The licensee or registrant shall accompany the request with proof, as determined by the department, to verify the mobilized duty status. If it receives a request for a temporary exemption under this subsection, the department shall make a determination of the requestor's status and grant the temporary exemption after verification of mobilized duty status under this subsection. A temporary exemption is valid until 90 days after the licensee's or registrant's release from the mobilized duty on which the exemption was based, but shall not exceed 36 months from the date of expiration of the license or registration.

(12) As used in this section, "completed application" means an application that is complete on its face and submitted with any applicable licensing or registration 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.

History: Add. 1988, Act 463, Eff. Sept. 1, 1989 ;-- Am. 1989, Act 261, Eff. Jan. 1, 1990 ;-- Am. 2002, Act 611, Imd. Eff. Dec. 20, 2002 ;-- Am. 2004, Act 264, Imd. Eff. July 23, 2004 ;-- Am. 2004, Act 373, Imd. Eff. Oct. 11, 2004 ;-- Am. 2008, Act 309, Imd. Eff. Dec. 18, 2008 ;-- Am. 2014, Act 265, Imd. Eff. July 1, 2014 ;-- Am. 2020, Act 388, Eff. Apr. 4, 2021 Popular Name: Act 299 Admin Rule: R 339.1001 et seq.; R 339.3101 et seq.; R 339.15101 et seq.; R 339.16001 et seq.; R 339.17101 et seq.; R 339.18001 et seq.; and R 339.19001 et seq. of the Michigan Administrative Code.

MCL 339.5701

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.5701 Definitions; A to F.

Sec. 701.

As used in this article:

(a) "Apprentice electrician" means an individual other than an electrical contractor, master electrician, or electrical journeyman, who is engaged in learning about and assisting in the installation or alteration of electrical wiring and equipment under the direct personal supervision of an electrical journeyman or master electrician.

(b) "Board" means the electrical administrative board described in section 705.

(c) "Electrical contractor" means a person that is engaged in the business of erecting, installing, altering, repairing, servicing, or maintaining electrical wiring.

(d) "Electrical journeyman" means an individual other than an electrical contractor who, as his or her principal occupation, is engaged in the practical installation or alteration of electrical wiring. An electrical contractor or master electrician may also be an electrical journeyman.

(e) "Electric sign" means fixed, stationary, or portable self-contained, electrically illuminated equipment that has words or symbols designed to convey information or attract attention. Electric sign includes outline lighting. Electric sign does not include those signs that are indoor or outdoor portable applications or recognized holiday residential signs listed with a recognized testing and approval agency and that use a cord cap-110 volt plug as the electrical energizing attachment method.

(f) "Electrical wiring" means all wiring, generating equipment, fixtures, appliances, devices, and appurtenances in connection with the generation, distribution, and utilization of electrical energy, in or on a building, residence, structure, or properties, regardless of whether or not the electrical wiring is energized at the time of installation. The term includes service entrance wiring as defined in the Michigan electrical code.

(g) "Fire alarm contractor" means a person that is engaged in the business of erecting, installing, altering, repairing, servicing, or maintaining wiring, devices, appliances, or equipment of a fire alarm system.

(h) "Fire alarm specialty apprentice technician" means an individual other than a fire alarm contractor or a fire alarm specialty technician who is engaged in learning about and assisting in the installation or alteration of fire alarm system wiring and equipment under the direct personal supervision of a fire alarm specialty technician.

(i) "Fire alarm specialty licensure" means licensure as a fire alarm contractor or a fire alarm specialty or apprentice technician.

(j) "Fire alarm specialty technician" means an individual other than a fire alarm contractor who, as his or her principal occupation, is engaged in the design and practical installation or alteration of fire alarm systems. An individual who is a fire alarm contractor may also be a fire alarm specialty technician.

(k) "Fire alarm system" means a system that is designed to detect and annunciate the presence of fire, or by-products of fire, installed in a building or structure. Fire alarm system does not include a single station smoke detector.

History: 2016, Act 407, Eff. Apr. 4, 2017 ;-- Am. 2018, Act 151, Eff. Aug. 14, 2018

MCL 339.5703

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.5703 Definitions; J to S.

Sec. 703.

As used in this article:

(a) "Jobsite" means the immediate work area within the property lines of a single construction project, alteration project, or maintenance project where electrical construction or alteration of electrical wiring is in progress.

(b) "Master electrician" means an individual who has the necessary qualifications, training, experience, and technical knowledge to supervise the installation of electrical wiring and equipment in accordance with the standard rules and regulations governing that work.

(c) "Minor repair work" means electrical wiring that has a value of $100.00 or less.

(d) "Outline lighting" means an arrangement of incandescent lamps or electric discharge tubing that is an integral part of an electrical sign that outlines certain features, such as the shape of a building or the decoration of a window.

(e) "Related wiring" means any of the following:

(i) Except as otherwise provided in subparagraphs (i), (ii), (iii), and (iv), that portion of the electric sign wiring that originates at the load-side terminals of a disconnecting means located in the vicinity of the electric sign involved but does not include the installation of the disconnecting means, complete with line-side connections.

(ii) In the case of electric sign installations that have sign transformers installed physically apart from the electric sign, that portion of the electric sign wiring that originates at the load-side terminals of a disconnecting means located in the vicinity of the electric sign involved but does not include the installation of the disconnecting means, complete with line-side connections.

(iii) In the case of free-standing electric sign installations supplied through underground circuit conductors, that portion of the electric sign wiring that originates at a wiring termination point adjacent to, within, or immediately above the permanent base for the electric sign but does not include, if the base of the sign structure is suitable for use as a raceway, the installation of bushing, complete with free-length circuit conductors extending through to accommodate the connection of the related wiring within the sign structure raceway.

(iv) In the case of electric signs specifically designed to be connected directly to the building wiring raceway or cable supply, that portion of the electric sign wiring that originates at the point where the free-length circuit conductors extend through the building wiring raceway or cable at the specifically designed supply location for the electric sign involved but does not include the installation of the building wiring raceway or cable system to the specifically designated point of supply for the electric sign involved, complete with free-length circuit conductors extending through the building wiring raceway or cable to accommodate the connection of the related wiring.

(f) "Sign specialist" means an individual who, as his or her principal occupation, is engaged in the installation, alteration, or repair of electric signs.

(g) "Sign specialty contractor" means a person that is engaged in the business of manufacturing, installing, maintaining, connecting, or repairing electric sign wiring or devices, including wiring that is directly related to electric signs and is electrically dedicated as a sign circuit.

(h) "Sign specialty licensure" means licensure as a sign specialist or sign specialty contractor.

History: 2016, Act 407, Eff. Apr. 4, 2017

MCL 339.5705

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.5705 Electrical administrative board; creation; membership; ex officio member; chairperson; vice-chairperson.

Sec. 705.

(1) The electrical administrative board created in section 2 of former 1956 PA 217 shall continue in existence and is designated as the board for purposes of this article.

(2) The board shall consist of 10 members, as follows:

(a) The state fire marshal or his or her representative.

(b) Nine members, who are residents of this state and appointed by the governor, including each of the following:

(i) One member who is a representative of an insurance inspection bureau that operates in this state.

(ii) One member who is a representative of an electrical energy supply agency that operates in this state.

(iii) One member who is an electrical contractor that operates in this state.

(iv) One member who is a master electrician who serves as a supervisor.

(v) One member who is an electrical journeyman.

(vi) One member who is a chief electrical inspector of a municipality.

(vii) One member who is a representative of distributors of electrical apparatus and supplies.

(viii) One member who is a representative of manufacturers primarily and actively engaged in producing material fittings, devices, appliances, fixtures, apparatus, and similar products, used as a part of, or in connection with, an electrical installation.

(ix) One member who is a representative of the general public.

(3) The director of the department, or the authorized representative of the director, is an ex officio member of the board without vote.

(4) The governor shall designate a member of the board to serve as its chairperson at the pleasure of the governor and the members of the board may annually elect a vice-chairperson.

History: 2016, Act 407, Eff. Apr. 4, 2017 Compiler's Notes: For transfer of authority, powers, duties, functions, and responsibilities of electrical administrative board to department of licensing and regulatory affairs, see E.R.O. No. 2017-1, compiled at MCL 339.3102.For the reduction of the number of members from 10 to 9 and abolishment of the requirement that one member be a representative of the general public, see E.R.O. No. 2024-2, compiled at MCL 16.735.For the modification of the membership of the electrical administrative board, see E.R.O. No. 2025-2, compiled at MCL 16.736.

MCL 339.5707

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.5707 Fees.

Sec. 707.

(1) The examination fee for licensure of any of the following is $100.00:

(a) Master electrician.

(b) Electrical contractor.

(c) Electrical journeyman.

(d) Fire alarm contractor.

(e) Fire alarm specialty technician.

(f) Sign specialty contractor.

(g) Sign specialist.

(2) The fee for an initial license, an apprentice electrician registration, or renewal of a license relating to electricians is as follows:

(a) Master electrician $ 50.00. (b) Electrical journeyman $ 40.00. (c) Apprentice electrician $ 15.00. (3) The fee for an initial fire alarm specialty technician license, a fire alarm specialty apprentice technician registration, or renewal of that license or registration is as follows: (a) Fire alarm specialty technician $ 50.00. (b) Fire alarm specialty apprentice technician $ 15.00. (4) The fee for an initial sign specialist license or renewal of a sign specialist license is $40.00.

(5) An apprentice electrician or specialty apprentice technician registration expires on August 31 of each year and is renewable within 30 days after that date if a renewal fee is paid. The amount of the fee is $15.00. An applicant for registration under this subsection must submit proof of a sponsoring employer for initial or renewal registration.

(6) Except as otherwise provided in subsection (5) or (7), a license expires on December 31 of each year and is renewable not more than 60 days after that date if an application is submitted and the appropriate fee is paid. After March 1 of each year or after March 1 of the renewal year in the case of electrical contractors, fire alarm contractors, or sign specialty contractors, a license that is not renewed is void and the contractor may only be relicensed if an application for relicensure is submitted and the appropriate license fee for the appropriate class is paid.

(7) A license for an electrical contractor, fire alarm contractor, or sign specialty contractor expires December 31 of every third year. A license for an electrical contractor, fire alarm contractor, or sign specialty contractor is renewable not later than on March 1 every third year by submitting an application and paying 1 of the following amounts:

(a) A fee of $300.00 by electrical contractors and fire alarm contractors.

(b) A fee of $200.00 by sign specialty contractors.

(8) If a person that is applying for an initial contractor's license or for relicensure at a time other than between December 31 and March 1 of the year in which the department issues renewal licenses, the department shall compute and charge the 3-year license fee described in subsection (7) on a yearly pro rata basis beginning in the year of the application until the last year of the 3-year license cycle.

History: 2016, Act 407, Eff. Apr. 4, 2017

MCL 339.5711

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.5711 Electrical contractor's license; requirements.

Sec. 711.

The department shall issue an electrical contractor's license to a person that meets the requirements described in article 2 and either of the following:

(a) Is an individual who holds a master electrician's license.

(b) Has at least 1 full-time employee who is a master electrician, resides in this state, and is actively in charge of and responsible for Michigan electrical code compliance of all installations of electrical wiring and equipment.

History: 2016, Act 407, Eff. Apr. 4, 2017

MCL 339.5713

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.5713 Master electrician's license; requirements; failure to pass examination; using license to meet eligibility requirement for more than 1 electrical contractor's license prohibited; condition of renewal.

Sec. 713.

(1) The department shall issue a master electrician's license to an individual who is at least 22 years old, meets the requirements described in article 2, and meets all of the following:

(a) Has at least 12,000 hours of experience that was obtained over a period of 6 years or more, is related to electrical construction, the maintenance of buildings, or electrical wiring or equipment, and was performed under the supervision of a master electrician.

(b) Has held an electrical journeyman's license for at least 2 years.

(2) If he or she fails to pass the master electrician examination 2 times within a period of 2 years, an applicant is ineligible to sit for another examination for at least 1 year from the date of failure of the second examination. After that 1-year period, he or she is again eligible to sit for a master electrician examination if he or she presents to the board proof of the successful completion of a course on Michigan electrical code, electrical fundamentals, or electrical theory approved by the board.

(3) A holder of a master electrician's license cannot be used to meet the eligibility requirement described in section 711(a) or (b) for more than 1 electrical contractor's license.

(4) As a condition of renewal of a master electrician's license, the master electrician must demonstrate the successful completion of a course, approved by the board, concerning any update or change in the state construction code within 12 months after the update or change in that code. This requirement applies only during or after those years that the state construction code is updated or changed.

History: 2016, Act 407, Eff. Apr. 4, 2017 ;-- Am. 2018, Act 151, Eff. Aug. 14, 2018

MCL 339.5719

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.5719 Fire alarm contractor's license; requirements.

Sec. 719.

Subject to section 731(3), the department shall issue a fire alarm contractor's license to a person that meets the requirements described in article 2 and meets either of the following:

(a) Is an individual who holds a fire alarm specialty technician's license.

(b) Has at least 1 full-time employee who is a fire alarm specialty technician, resides in this state, and is actively in charge of and responsible for Michigan electrical code compliance of all installations of fire alarm system wiring and equipment.

History: 2016, Act 407, Eff. Apr. 4, 2017

MCL 339.5721

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.5721 Fire alarm specialty technician's license; requirements; renewal; use to meet requirements for more than 1 license prohibited.

Sec. 721.

(1) Subject to section 731(3), the department shall issue a fire alarm specialty technician's license to an individual who is at least 20 years old, meets the requirements described in article 2, and is certified by the National Institute for Certification in Engineering Technology as an associate engineering technician, level II, or holds an equivalent certification in the field of fire alarm systems technology as determined by the board.

(2) As a condition of renewal of a fire alarm specialty technician's license, the fire alarm specialty technician must demonstrate the successful completion of a course, approved by the board, concerning any update or change in the state construction code relating to fire alarm systems within 12 months after the update or change in that code. This requirement applies only during or after those years that the state construction code is updated or changed.

(3) A holder of a fire alarm specialty technician's license cannot be used to meet the eligibility requirement described in section 719(a) or (b) for more than 1 fire alarm contractor's license.

History: 2016, Act 407, Eff. Apr. 4, 2017

MCL 339.5725

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.5725 Specialty license not required.

Sec. 725.

A person that holds a valid electrical contractor's license, master electrician's license, electrical journeyman's license, or apprentice electrician's registration is not required to hold any specialty licenses in order to perform specialty installations.

History: 2016, Act 407, Eff. Apr. 4, 2017

MCL 339.5727

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.5727 Sign specialty contractor's license; requirements; failure to pass examination; condition of renewal; license not required.

Sec. 727.

(1) Subject to section 731(5), the department shall issue a sign specialty contractor's license to a person that does all of the following:

(a) Meets the requirements described in article 2.

(b) Meets 1 of the following:

(i) Is an individual who holds a sign specialist's license.

(ii) Has at least 1 full-time employee who is a sign specialist, resides in this state, and is actively in charge of and responsible for Michigan electrical code compliance of all installations, maintenance, connection, and repair of electric signs and related wiring.

(c) Provides evidence of public liability insurance coverage.

(2) A licensed electrical contractor is not required to have a sign specialty.

History: 2016, Act 407, Eff. Apr. 4, 2017

MCL 339.5729

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.5729 Sign specialist's license; issuance; failure to pass examination; condition of renewal; license not required.

Sec. 729.

(1) The department shall issue a sign specialist's license to an individual who meets all of the following:

(a) Is at least 18 years old.

(b) Meets the requirements described in article 2.

(c) Has at least 4,000 hours of experience, obtained over a period of at least 2 years, related to the manufacture, installation, maintenance, connection, or repair of electric signs and related wiring, as verified by a contractor that is licensed under this article that is the current employer of the applicant. The individual may obtain the hours of experience required under this subdivision from multiple employers; and if the board determines that he or she has completed education that is equivalent to the work experience described in this subdivision, the department shall credit the number of hours of equivalent education that the individual completed, as determined by the board, toward the hours of experience required under this subdivision.

(d) Demonstrates the successful completion of a course concerning the installation, maintenance, connection, or repair of electric signs and related wiring as contained in the sign electrician's workbook published by the American Technical Publishers, Inc. or any other course designed to address the installation, maintenance, connection, or repair of electric signs and related wiring, as approved by the board.

(2) If an applicant fails to pass the sign specialist examination 2 times within a period of 2 years, the applicant is ineligible to sit for another examination until he or she presents to the board proof of the successful completion of a course on the Michigan electrical code and electrical fundamentals approved by the board.

(3) As a condition of renewal of a sign specialist's license, the sign specialist must demonstrate the successful completion of a course, approved by the board, concerning any update or change in applicable sections of the state construction code within 12 months after the update or change in that code. This requirement applies only during or after those years that the state construction code is updated or changed.

(4) A licensed master electrician, journeyman electrician, or apprentice electrician is not required to hold a sign specialist's license to perform those work activities.

History: 2016, Act 407, Eff. Apr. 4, 2017

MCL 339.5733

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.5733 Applicability of article to municipality; definitions.

Sec. 733.

(1) Except as otherwise provided in this section, this article does not apply in the jurisdiction of a municipality that adopts or has adopted an ordinance that does all of the following:

(a) Provides standards for the examination and licensing of master electricians, electrical or specialty contractors, electrical journeymen, sign specialists, and fire alarm specialty technicians and the registration of apprentice electricians and fire alarm specialty apprentice technicians that are at least as stringent as those established in this article.

(b) Provides for enforcement that is substantially similar to this article.

(c) Provides for civil and criminal penalties and a citation system for minor violations substantially similar to article 5.

(d) Provides for the inspection of electrical wiring and equipment.

(2) This article shall not be construed as limiting the power of a municipality to enact an ordinance described in subsection (1), to provide for the licensing of persons as electrical or specialty contractors that have a place of business located in the municipality, or to provide for the licensing of journeymen electricians, sign specialists, or fire alarm specialty technicians who reside in the municipality, except that the ordinance shall not require any of the following:

(a) The procurement of a license or permit to execute any class of work specified in section 737(3)(c), (d), (e), or (f).

(b) The procurement of a permit by a provider to install, maintain, replace, or service any electrical wiring, equipment, or devices associated with a business monitoring system, a home monitoring system, or a low-voltage electric fence.

(c) The procurement of a license or permit by a provider to install, maintain, replace, or service a security alarm system.

(d) The procurement of public liability insurance in excess of the coverage required under this article.

(e) That an individual be licensed with, register with, or obtain the approval of the municipality or of the municipality's licensing board to participate in an apprenticeship or training program.

(3) A license or registration issued by the board under this article and licenses issued by a municipality that has standards for licensing at least as stringent as those established by the board shall be recognized by all municipalities.

(4) A municipality that provides for electrical inspection by local ordinance may require all electrical or specialty contractors, sign specialists, fire alarm specialty technicians, and classes of electricians doing work in the municipality to register in accordance with its local ordinance.

(5) Municipal registration requirements shall be reciprocal between the municipalities and between municipalities and the board as to registration requirements and fees, except that licensed electrical journeymen, sign specialists, and fire alarm specialty technicians are not required to register to work in municipalities under the jurisdiction of the board. A municipality shall officially recognize a license or registration issued under this article for purposes of its ordinance.

(6) As used in this section:

(a) "Business monitoring system" means a device or an assembly of equipment and devices, less than 50 volts, that allows a business to remotely monitor its business premises through audio, video, or sensor detection systems. A business monitoring system does not include a fire alarm system or a life safety system designed to protect and evacuate building occupants in the event of emergencies such as fire, smoke, or power outages.

(b) "Home monitoring system" means a device or an assembly of equipment and devices that allows individuals to remotely monitor their home through audio, video, or sensor detection systems and that may allow them to remotely control the home's environment, including, but not limited to, controlling temperature, humidity, lighting, doors, or locks.

(c) "Low-voltage electric fence" means an alarm system that consists of a fence structure and an energizer that produces an electric charge on contact with the fence structure and meets all of the following:

(i) The low-voltage electric fence is installed in a location that is zoned for nonresidential use.

(ii) The energizer is powered by a commercial storage battery that does not exceed 12 volts.

(iii) The electric charge produced by the low-voltage electric fence upon contact does not exceed energizer characteristics set forth in paragraph 22.108 and depicted in figure 102 of international electrotechnical commission standard, IEC 60335-2-76, current edition.

(d) "Provider" means a system provider that is registered under the security alarm systems act, 2012 PA 580, MCL 338.2181 to 338.2187, or a security alarm system contractor that is licensed under the private security business and security alarm act, 1968 PA 330, MCL 338.1051 to 338.1092.

(e) "Security alarm system" means that term as defined in section 2 of the security alarm systems act, 2012 PA 580, MCL 338.2182, or section 2 of the private security business and security alarm act, 1968 PA 330, MCL 338.1052.

History: 2016, Act 407, Eff. Apr. 4, 2017 ;-- Am. 2017, Act 125, Eff. Jan. 15, 2018 ;-- Am. 2018, Act 331, Imd. Eff. July 2, 2018 ;-- Am. 2018, Act 441, Eff. Mar. 21, 2019

MCL 339.5735

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.5735 Ordinance requiring application to and licensing by board.

Sec. 735.

A municipality that provides standards for electrical wiring and for inspection and licensing under section 733 may require by ordinance that all electrical or specialty contractors, master electricians, fire alarm specialty technicians, sign specialists, and electrical journeymen that are within its licensing jurisdiction must apply to and be licensed by the board under this article.

History: 2016, Act 407, Eff. Apr. 4, 2017

MCL 339.5737

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.5737 Electrical contracting; license required; classes of work.

Sec. 737.

(1) Except as otherwise provided in this article or in subsection (3), a person shall not engage in the business of electrical contracting unless the person has received from the board or from the appropriate municipality an electrical contractor's license.

(2) Except as otherwise provided in this article or in subsection (3), an individual, other than an individual who is licensed under this article and employed by and working under the direction of a holder of an electrical contractor's license, shall not in any manner undertake to execute any electrical wiring.

(3) A licensee is not required to perform any of the following classes of work:

(a) Minor repair work.

(b) The installation, alteration, repairing, rebuilding, or remodeling of elevators, dumbwaiters, escalators, or man lifts performed under a permit issued by an elevator inspection agency of this state or a municipality of this state.

(c) The installation, alteration, or repair of electrical equipment and its associated wiring installed on the premises of consumers or subscribers by or for an electrical energy supply or communication agency for use by that agency in the generation, transmission, distribution, or metering of electrical energy or for the operation of signals or transmission of intelligence.

(d) The installation, alteration, or repair of electrical wiring for the generation and primary distribution of electric current, or the secondary distribution system up to and including the meters, if that work is an integral part of the system owned and operated by an electric light and power utility in rendering its duly authorized service.

(e) Any work involved in the manufacture of electric equipment, including the testing and repairing of that manufactured equipment.

(f) The installation, alteration, or repair of equipment and its associated wiring for the generation or distribution of electric energy for the operation of signals or transmission of intelligence if that work is performed in connection with a communication system owned or operated by a telephone or telegraph company in rendering its authorized service as a telephone or telegraph company.

(g) Any installation, alteration, or repair of electrical equipment by a homeowner in a single family home and accompanying outbuildings owned and occupied or to be occupied by the individual who is performing the installation, alteration, or repair of electrical equipment.

(h) Any work involved in the use, maintenance, operation, dismantling, or reassembling of motion picture and theatrical equipment used in any building with approved facilities for entertainment or educational use and that has the necessary permanent wiring and floor and wall receptacle outlets designed for the proper and safe use of that theatrical equipment, but not including any permanent wiring.

(i) Work performed by a person that is licensed as a mechanical contractor in a classification described in section 807(2)(a), (b), (d), (e), and (f), a person that is licensed as a plumbing contractor under article 11, and employees of those persons, while performing maintenance, service, repair, replacement, alteration, modification, reconstruction, or upgrading of control wiring circuits and electrical component parts in existing mechanical systems defined in the Michigan mechanical code and the Michigan plumbing code, including, but not limited to, energy management systems, relays and controls on boilers, water heaters, furnaces, air conditioning compressors and condensers, fan controls, thermostats and sensors, and all interconnecting wiring associated with the mechanical systems in buildings that are on the load side of the unit disconnect, that is located on or immediately adjacent to the equipment, except for life safety systems wiring.

(j) Electrical wiring associated with the installation, removal, alteration, or repair of a water well pump on a single family dwelling to the first point of attachment in the house from the well, by a pump installer registered under part 127 of the public health code, 1978 PA 368, MCL 333.12701 to 333.12771.

(k) The installation, maintenance, or servicing of security alarm systems in a building or structure. As used in this subdivision, "security alarm system" means that term as defined in section 733(2)(c).

(l) The installation, maintenance, or servicing of listed residential and commercial lawn irrigation equipment, except any permanent wired connections exceeding 30 volts.

(m) The installation, maintenance, or servicing of listed landscape lighting systems and equipment, except any permanent wired connections exceeding 30 volts.

(n) The installation, alteration, maintenance, or repair of electric signs and related wiring by an unlicensed individual under the direct supervision of a licensed sign specialist except that the ratio of unlicensed individuals engaged in this activity shall not exceed 2 unlicensed individuals to 1 licensed sign specialist. An enforcing agency shall enforce this ratio on a jobsite basis.

(o) The construction, installation, maintenance, repair, and renovation of telecommunications equipment and related systems by a person that is primarily engaged in the telecommunications and related information systems industry. This exemption does not include the construction, installation, maintenance, repair, or renovation of a fire alarm system.

History: 2016, Act 407, Eff. Apr. 4, 2017 Compiler's Notes: In subsection (3), the reference to "A licensee" evidently should read "A license".

MCL 339.5807

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.5807 Work classification examination; eligibility; classifications and limitations; "experience" defined; affidavit or letter signed by commanding officer, supervisor, or military superior; completion of 2-year program.

Sec. 807.

(1) An applicant is not eligible for a work classification examination under this article unless the applicant meets the requirements provided in article 2, is of good moral character, and meets 1 or more of the following:

(a) Has a minimum of 3 years or 6,000 hours of experience in the work classification for which he or she is seeking a license, or an equivalent of that experience, that is acceptable to the board and shown to the department, in 1 or more of the work classifications described in subsection (2). For purposes of this subdivision, and except in the case of equivalent experience, an applicant must provide to the board and the department a statement signed under penalty of perjury from each contractor of record that is the present or former mechanical contractor employer of the applicant. The statement must indicate that the applicant has a minimum of 3 years or 6,000 hours of performance in each work classification for which the applicant is seeking a license and must include a detailed and specific description of the type of work performed by the applicant and the length of time he or she performed that work.

(b) Currently holds, and has continuously held for at least 3 years immediately preceding his or her application, an active license under this act in a work classification listed in subsection (2)(b), (d), (e), or (f) and is applying for licensure in the following work classifications, as applicable:

(i) If he or she currently holds a license in the work classification listed in subsection (2)(b), a work classification listed in subsection (2)(c), (e), (f), (g), (h), or (j).

(ii) If he or she currently holds a license in the work classification listed in subsection (2)(d), a work classification listed in subsection (2)(f) or (h).

(iii) If he or she currently holds a license in the work classification listed in subsection (2)(e), a work classification listed in subsection (2)(g).

(iv) If he or she currently holds a license in the work classification listed in subsection (2)(f), a work classification listed in subsection (2)(h).

(2) The department shall issue a mechanical contractor's license under this article with 1 or more of the following classifications and limitations:

(a) Hydronic heating and cooling and process piping.

(b) HVAC equipment.

(c) Ductwork.

(d) Refrigeration.

(e) Limited heating service.

(f) Limited refrigeration and air conditioning service.

(g) Unlimited heating service.

(h) Unlimited refrigeration and air conditioning service.

(i) Fire suppression.

(j) Specialty.

(3) For purposes of subsection (1), "experience" includes experience acquired while serving in the armed forces by an individual who provides to the department a form DD214, form DD215, or any other form satisfactory to the department that demonstrates that the individual was separated from that service with an honorable discharge or under honorable conditions (general).

(4) An individual described in subsection (3) shall submit with his or her application for licensure an affidavit or letter signed by a commanding officer, supervisor, or military superior with direct knowledge of the applicant's service that describes the applicant's experience as a mechanical contractor in 1 or more of the classifications described in subsection (2).

(5) If an applicant provides evidence satisfactory to the department that he or she has successfully completed a 2-year, or equivalent, HVAC program provided by a recognized trade school, community college, or university, or a 2-year HVAC training program approved by the United States Department of Labor, the department shall credit the completion of that program toward the 3 years or 6,000 hours of work experience required under subsection (1)(a). The amount credited, as determined by the department, must not exceed 1 year or 2,000 hours of the 3 years or 6,000 hours required.

History: 2016, Act 407, Eff. Apr. 4, 2017 ;-- Am. 2021, Act 68, Imd. Eff. July 29, 2021

MCL 339.5809

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.5809 Installations, alterations, or servicing of work classifications; designation of contractor of record; performance of work without compensation or on behalf of charitable organization; person registered as system provider or licensed as security alarm system contractor; contractor employing qualified maintenance crew.

Sec. 809.

(1) Except as provided in subsection (3) or (4) and section 819, an individual or other person shall not perform installations, alterations, or servicing of work classifications under section 807(2) that are regulated under the Stille-DeRossett-Hale single state construction code act unless the person, if the person is an individual, or an employee of the person has received a mechanical contractor's license from the department that has not been revoked or suspended, the license is classified and limited under section 807, and the holder of the license has secured the appropriate permit from the enforcing agency charged with the responsibility of issuing permits.

(2) A person that performs installations, alterations, or servicing of work classifications under section 807(2) shall designate the holder of a mechanical contractor's license described in subsection (1) as the contractor of record notify the department in writing of the designation.

(3) If work that is within 1 of the classifications described in section 807(2) is performed without compensation by a person that is licensed under this article for or on behalf of a charitable organization, the owner of the property on which the work is performed may obtain the permit required under subsection (1). However, this subsection applies only to the reconstruction, renovation, or remodeling of 1- to 4-family dwellings.

(4) A person that is registered as a system provider under the security alarm systems act, 2012 PA 580, MCL 338.2181 to 338.2187, or licensed as a security alarm system contractor under the private security business and security alarm act, 1968 PA 330, MCL 338.1051 to 338.1092, is not required to obtain a license from the department under this article or obtain a license or permit from a governmental subdivision or enforcing agency to perform work described in subsection (1) in connection with the installation, maintenance, replacement, or servicing of a thermostat for a heating, ventilating, and air conditioning system or a hydronic heating and cooling system.

(5) If a contractor of record regularly employs a qualified maintenance crew to perform mechanical contracting work regulated under this article in a facility, this article does not require that the contractor of record perform work in that facility.

History: 2016, Act 407, Eff. Apr. 4, 2017

MCL 339.5811

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.5811 Local licensing requirements.

Sec. 811.

A municipality shall not establish or maintain local licensing requirements for the work classifications described in section 807(2) or work described in section 809(4). A governmental subdivision shall not prohibit a mechanical contractor that is licensed under this article from engaging in the work classification or classifications for which the mechanical contractor has a license, or a person described in section 809(4) from engaging in work for which that person is licensed or registered, unless the mechanical contractor is in violation of this act.

History: 2016, Act 407, Eff. Apr. 4, 2017

MCL 339.5813

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.5813 Work classification examination fee; initial and per-year fee; expiration of initial or renewal mechanical contractor's license; reinstatement; computation of fee on pro rata basis.

Sec. 813.

(1) Each work classification examination fee for a mechanical contractor's license is $100.00 or less, as determined by the department. Except as otherwise provided in subsection (2), the initial and per-year fee for the issuance of a mechanical contractor's license is $100.00.

(2) An initial or renewal mechanical contractor's license expires on August 31 every third year and is renewable by filing an application and paying the license fee on or before October 31. If an individual is applying for an initial mechanical contractor's license or relicensure 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. A license that is not renewed is void for the purpose of obtaining a permit, and the contractor is eligible for relicensure only by applying for reinstatement and paying the license fee. The department shall not compute and charge a license fee for a renewal license on a pro rata basis. An individual who renews his or her license within 3 years after the license is voided under this section is not subject to reexamination for the license.

History: 2016, Act 407, Eff. Apr. 4, 2017

MCL 339.5815

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.5815 Designation as contractor of record.

Sec. 815.

(1) If an individual who is an employee of a person, or who is an officer of a person that is not an individual, and who is authorized to perform installations, alterations, or servicing in any of the work classifications described in section 807(2), is designated as the contractor of record for that person under section 809 and ceases to be an employee or officer of that person, the person has 90 days after the date the contractor of record ceases to be an employee or officer in which to designate an employee or officer who is a holder of a mechanical contractor's license as the new contractor of record. The person shall notify the department in writing of the designation.

(2) If an individual is licensed to perform installations, alterations, or servicing in 1 or more of the work classifications described in section 807(2) and is also the contractor of record, and that individual ceases to do business as a mechanical contractor and sells his or her business interest to another person, the buyer has 90 days to designate an employee or officer who is the holder of a mechanical contractor's license as the contractor of record. The buyer shall notify the department in writing of the designation.

History: 2016, Act 407, Eff. Apr. 4, 2017

MCL 339.5817

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.5817 Mechanical contractor performing work in municipality; registration of license with enforcing agency.

Sec. 817.

A mechanical contractor that is licensed under this article and performs work in a municipality shall register his or her license with the enforcing agency that issues permits and provides inspection services of mechanical contractor's work for that municipality. A registration under this section is valid until the expiration date of the mechanical contractor's license. A municipality shall grant registration to a mechanical contractor under this section if the mechanical contractor is licensed under this act and pays a fee established by the municipality in an amount that does not exceed $15.00.

History: 2016, Act 407, Eff. Apr. 4, 2017

MCL 339.5905

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.5905 Board of boiler rules; appointment and qualifications of members; quorum.

Sec. 905.

(1) The board of boiler rules created in section 3 of former 1965 PA 290 shall continue in existence and is designated as the board for purposes of this article.

(2) The board shall consist of the director or the director's designee, who is a permanent member, and 13 individuals appointed by the governor. All of the following apply to the appointed members of the board:

(a) Except for the representative of the general public, an appointed member must have substantial experience in the design, erection, fabrication, installation, operation, repair, or inspection of boilers.

(b) The appointed members of the board shall include all of the following:

(i) One member who represents the general public.

(ii) Two members who represent owners and users of boilers in this state.

(iii) One member who represents owners and users of power boilers that operate at 1,000 p.s.i.g. or more.

(iv) Two members who represent organized labor in this state that engage in the erection, fabrication, installation, operation, or repair of boilers.

(v) One representative who represents water tube boiler manufacturers that do business in this state.

(vi) One member who represents fire tube boiler manufacturers that do business in this state.

(vii) One member who represents a boiler insurance company that is licensed to do business in this state.

(viii) One member who represents the mechanical contractors in this state that have experience in the installation, piping, or operation of boilers.

(ix) One member who represents boiler repair contractors in this state that are engaged in the business of repairing boilers by welding and riveting.

(x) One member who represents consulting engineers in this state who have boiler experience.

(xi) One member who represents antique steam boiler owners and operators.

(3) Seven members of the board constitute a quorum for the transaction of business. An approval, decision, or ruling of the board is not effective unless supported by a majority of the members present.

History: 2016, Act 407, Eff. Apr. 4, 2017 Compiler's Notes: For transfer of authority, powers, duties, functions, and responsibilities of board of boiler rules to department of licensing and regulatory affairs, see E.R.O. No. 2017-1, compiled at MCL 339.3102.For transfer of the board of boiler rules to the department of licensing and regulatory affairs by type III transfer, and the abolishment of the board, see E.R.O. No. 2024-2, compiled at MCL 16.735.

MCL 339.5947

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.5947 Applicability of article; failure to comply; revocation; audit.

Sec. 947.

(1) This article does not apply to or in any city that has a population of 600,000 or more according to the most recent decennial census.

(2) Subject to subsection (3), the requirement to obtain a license or permit under this article to repair a boiler or replace a boiler with a similar unit does not apply to a public utility or industrial plant that repairs and maintains its own boilers in accordance with all of the following:

(a) The boiler, the boiler's external piping, and any nonboiler external piping is owned and operated by the utility or plant.

(b) The utility or plant has in effect a quality program that includes and is governed by a quality manual.

(c) The quality program described in subdivision (b), at a minimum, addresses the necessary subjects relative to the scope of work to be performed, including, but not limited to, repair or replacement of boilers, boiler external piping, and nonboiler external piping.

(d) The content of the quality manual required under subdivision (b) includes all of the following:

(i) A title page that lists the name and complete address of the utility or plant.

(ii) A table of contents page listing the contents of the manual by subject.

(iii) A scope of work statement that clearly indicates the scope of work governed by the quality program.

(iv) A statement of authority reflecting a corporate resolution or policy that recognizes the obligation of the utility or plant to comply with this act at all times and includes the name of the individual who is responsible for and has authority over the scope of work governed by the quality program.

(v) Provisions for making, and issuing revisions to, the quality manual to ensure that the quality program is current with accepted practices and procedures as they are practiced within the utility or plant.

(vi) The method used by the utility or plant to ensure that only acceptable materials, including, but not limited to, acceptable welding materials, are ordered, verified, and identified in storage.

(vii) The method used by the utility or plant for documenting repairs in sufficient detail, including, but not limited to, documentation of both of the following:

(A) The prior acceptance by an inspector who is licensed to inspect boilers in this state of the method to be used for a repair of a boiler or a boiler's external piping.

(B) The individual responsible for notifying the inspector described in this subparagraph of the repair work to be performed on a boiler or a boiler's external piping and for keeping the inspector apprised of the progress of that work.

(viii) A description of the controls used by the utility or plant to ensure that only qualified welding procedures, and only welders qualified to use those procedures, are used for repairs.

(ix) A description of the controls used by the utility or plant for nondestructive examination and heat treatment procedures.

(x) Identification of the methods of examination and testing required by the utility or plant upon the completion of a repair.

(xi) The name of the individual responsible for acceptance of a completed repair.

(xii) Provisions allowing for inspector access to areas where repair work is being performed.

(xiii) The name of the individual responsible for preparing, signing, and presenting forms commonly known as record of welded forms to inspectors and sending those forms to the boiler division of the department.

(xiv) A system for the correction of nonconformities.

(xv) A sample form for each form referenced in the quality manual.

(e) The utility or plant keeps a maintenance record, subject to audit by state inspectors, for each boiler. The maintenance record must contain an adequate description of each abnormal event concerning the boiler, and any modification, repair, hydro test, internal or external inspection, or off-normal operation of the boiler.

(f) The utility or plant contracts with an approved third-party inspection and insurance company for repair work performed on a boiler or a boiler's external piping.

(g) All welders working on boilers or piping under the quality program are employees of the utility or plant.

(h) All welding, heat treatment, nondestructive examination, and testing procedures are qualified in accordance with the applicable code of the American Society of Mechanical Engineers, as determined by the department.

(i) The utility or plant consistently maintains documentation between audits of nonboiler external piping repairs or replacements.

(j) Third-party employees or contractors do not work under the quality program established by the utility or plant as it relates to the installation or repair of boilers.

(k) The utility or plant notifies the boiler division of the department before the utility or plant replaces a boiler.

(l) The utility or plant prepares and files with the boiler division of the department an appropriate record of a welded repair form, signed by an inspector who is licensed to inspect boilers in this state, not more than 180 days after the completion of a welded repair.

(3) A public utility or industrial plant is not exempt under subsection (2) unless the board approves that exemption. Upon board approval of the exemption, the department shall grant the utility or plant an exemption from the licensing and permit requirements of this article for repairs to boilers and boiler piping or the installation of a boiler replacement.

(4) Failure of a public utility or industrial plant to comply with any of the provisions of this section as applicable to that utility or plant is just cause for revocation of the exemption status granted under subsection (3).

(5) To ensure continued compliance with this article and the board's requirements, the chief of the boiler division of the department shall cause an audit of the exemption status granted under subsection (3) to be conducted not less than once every 3 years.

History: 2016, Act 407, Eff. Apr. 4, 2017 ;-- Am. 2020, Act 89, Eff. Sept. 14, 2020

MCL 339.6005

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.6005 State construction code commission; designation as board; building officials advisory board; purpose; appointment, qualifications, and terms of members.

Sec. 1005.

(1) The state construction code commission created in section 3a of the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1503a, is designated as the board for purposes of this article.

(2) The building officials advisory board created in section 3 of former 1986 PA 54 shall continue in existence and shall continue to assist the commission in establishing standards and criteria for the training and qualifications of building officials. The building officials advisory board shall consist of 9 members, appointed by the commission as follows:

(a) Subject to subsection (3), a building official who enforces the building officials and code administrators basic building code.

(b) Subject to subsection (3), a building official who enforces the uniform building code.

(c) Subject to subsection (3), a building official who enforces the Michigan building code.

(d) Two members of the general public, 1 of whom is an individual with 1 or more disabilities.

(e) A registered architect or engineer.

(f) A building contractor.

(g) A building trades journey worker from a recognized apprentice course.

(h) A representative of small business.

(3) Of the 3 building officials appointed under subsection (2)(a), (b), and (c), 1 shall represent a county, 1 shall represent a city, and 1 shall represent a township or village.

(4) A member of the building officials advisory board shall serve a term of 3 years. A member serving on the building officials advisory board on the day immediately preceding the effective date of this act under former 1986 PA 54 shall continue to serve until the expiration of his or her term under former 1986 PA 54.

History: 2016, Act 407, Eff. Apr. 4, 2017 Compiler's Notes: For transfer of authority, powers, duties, functions, and responsibilities of building officials advisory board to department of licensing and regulatory affairs, see E.R.O. No. 2017-1, compiled at MCL 339.3102.

MCL 339.601

OCCUPATIONAL CODE (EXCERPT)

Act 299 of 1980

339.601 Practicing regulated occupation or using designated title; license or registration required; operation of barber college, school of cosmetology, or real estate school; license or approval required; effect of suspended, revoked, or lapsed license or registration; violation as misdemeanor; penalties; person not licensed as residential builder or residential maintenance and alteration contractor; person not licensed as architect, professional engineer, or professional land surveyor; violation; penalties; restitution; injunctive relief; exceptions; "affected person" defined; investigation; forfeiture; remedies; performance of services by interior designer; notice of conviction to department.

Sec. 601.

(1) A person shall not engage in or attempt to engage in the practice of an occupation regulated under this act or use a title designated in this act unless the person possesses a license or registration issued by the department for the occupation.

(2) A school, institution, or person shall not operate or attempt to operate a barber college, school of cosmetology, or real estate school unless the school, institution, or person is licensed or approved by the department.

(3) Subject to section 411, a person whose license or registration is suspended, revoked, or lapsed, as determined by the records of the department, is considered unlicensed or unregistered.

(4) Except as otherwise provided for in section 735, a person, school, or institution that violates subsection (1) or (2) is guilty of a misdemeanor, punishable by a fine of not more than $500.00, or imprisonment for not more than 90 days, or both.

(5) Except as otherwise provided for in section 735, a person, school, or institution that violates subsection (1) or (2) a second or any subsequent time is guilty of a misdemeanor, punishable by a fine of not more than $1,000.00, or imprisonment for not more than 1 year, or both.

(6) Notwithstanding subsections (4) and (5), a person that is not licensed under article 24 as a residential builder or a residential maintenance and alteration contractor and that violates subsection (1) or (2) is guilty as follows:

(a) In the case of a first offense, a misdemeanor punishable by a fine of not less than $5,000.00 or more than $25,000.00, or imprisonment for not more than 1 year, or both.

(b) In the case of a second or subsequent offense, a misdemeanor punishable by a fine of not less than $5,000.00 or more than $25,000.00, or imprisonment for not more than 2 years, or both.

(c) In the case of an offense that causes death or serious injury, a felony punishable by a fine of not less than $5,000.00 or more than $25,000.00, or imprisonment for not more than 4 years, or both.

(7) Notwithstanding subsections (4) and (5), a person that is not licensed under article 20 as an architect, professional engineer, or professional land surveyor and that violates subsection (1) or (2) is guilty as follows:

(a) In the case of a first offense, a misdemeanor punishable by a fine of not less than $5,000.00 or more than $25,000.00 or imprisonment for not more than 93 days, or both.

(b) In the case of a second or subsequent offense, a misdemeanor punishable by a fine of not less than $5,000.00 or more than $25,000.00 or imprisonment for not more than 1 year, or both.

(c) In the case of an offense that causes death or serious injury, a felony punishable by a fine of not less than $5,000.00 or more than $25,000.00 or imprisonment for not more than 4 years, or both.

(8) If a trier of fact finds that a person has violated this act, the trier of fact shall require that person to make restitution, based on proofs submitted to and findings made by the trier of fact as provided by law.

(9) Notwithstanding the existence and pursuit of any other remedy, an affected person may maintain injunctive action to restrain or prevent a person from violating subsection (1) or (2). If successful in obtaining injunctive relief, the affected person is entitled to actual costs and attorney fees.

(10) This act does not apply to a person that is engaging in or practicing any of the following:

(a) Interior design.

(b) Residential building design. As used in this subdivision, "residential building design" means the rendering of residential design services for a detached 1- and 2-family residence building by a person that is exempt from the requirements of section 2012.

(c) Any activity for which the person is licensed under article 11 of the skilled trades regulation act, MCL 339.6101 to 339.6133.

(d) Any activity for which the person is licensed under article 8 of the skilled trades regulation act, MCL 339.5801 to 339.5819.

(e) Any activity for which the person is licensed under article 7 of the skilled trades regulation act, MCL 339.5701 to 339.5739.

(11) As used in subsection (9), "affected person" means a person that is directly affected by the actions of a person suspected of violating subsection (1) or (2) and includes, but is not limited to, a licensee or registrant, a board established under this act, the department, a person that utilizes the services of the person that is engaging in or attempting to engage in an occupation that is regulated under this act or using a title that is designated by this act without being licensed or registered by the department, or a private association that is composed primarily of members of the occupation in which the person is engaging in or attempting to engage in or in which the person is using a title designated under this act without being registered or licensed by the department.

(12) An investigation may be conducted under article 5 to enforce this section. A person that violates this section is subject to this section and sections 506, 602, and 606.

(13) The department, the attorney general, or a county prosecutor may utilize forfeiture as a remedy in the manner provided for in section 606.

(14) The remedies under this section are independent and cumulative. The use of 1 remedy by a person does not bar the use of other lawful remedies by that person or the use of a lawful remedy by another person.

(15) An interior designer may perform services in connection with the design of interior spaces including preparation of documents relative to finishes, systems furniture, furnishings, fixtures, equipment, and interior partitions that do not affect the building mechanical, structural, electrical, or fire safety systems.

(16) At the time a court enters a conviction under subsection (4), (5), or (6), the court shall notify, by mail, facsimile transmission, or electronic mail, the department of the conviction.

History: 1980, Act 299, Imd. Eff. Oct. 21, 1980 ;-- Am. 1994, Act 400, Imd. Eff. Dec. 29, 1994 ;-- Am. 1998, Act 250, Eff. Oct. 1, 1998 ;-- Am. 2005, Act 278, Imd. Eff. Dec. 19, 2005 ;-- Am. 2007, Act 155, Imd. Eff. Dec. 21, 2007 ;-- Am. 2007, Act 157, Imd. Eff. Dec. 21, 2007 ;-- Am. 2008, Act 319, Eff. Mar. 31, 2009 ;-- Am. 2016, Act 412, Eff. Apr. 4, 2017 Compiler's Notes: For transfer of powers and duties of certain occupational functions, boards, and commissions from the Department of Licensing and Regulation to the Department of Commerce, see E.R.O. No. 1991-9, compiled at MCL 338.3501 of the Michigan Compiled Laws. Popular Name: Act 299

MCL 339.6101

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.6101 Definitions; A to J.

Sec. 1101.

As used in this article:

(a) "Apprentice plumber" means an individual who is registered under this article as an apprentice.

(b) "Board" means the state plumbing board described in section 1105.

(c) "Building sewer" means that part of the drainage system that extends from the end of the building drain and conveys its discharge to a public sewer, private sewer, individual sewage disposal system, or other point of disposal.

(d) "Domestic water treatment and filtering equipment" means residential water treatment and filtering equipment used in 1-family and 2-family dwellings.

(e) "Journey plumber" means an individual, other than a plumbing contractor or master plumber, who is qualified to engage in the practical installation of plumbing and who is licensed as a journey plumber.

History: 2016, Act 407, Eff. Apr. 4, 2017

MCL 339.6103

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.6103 Definitions; M to W.

Sec. 1103.

As used in this article:

(a) "Master plumber" means an individual who possesses the necessary skills and qualifications to plan and supervise the installation of plumbing and who is licensed as a master plumber.

(b) "Minor repair" means a repair that involves only the clearance of stoppages, repair, or replacement of a faucet or valve or reinstallation of that same plumbing fixture and does not involve making any modifications to the plumbing system, or residential domestic water treatment and filtering equipment. Minor repair does not include any of the following:

(i) The repair or replacement of a backflow preventer and air admittance valves.

(ii) A repair or replacement that is only a part of a larger or major renovation or repair.

(c) "Plumbing" means the practice, materials, and fixtures, in or adjacent to a building, structure, or premises, used in the installation, maintenance, extension, or alteration of all piping, fixtures, plumbing appliances, or plumbing appurtenances, as defined in the state construction code, in connection with the sanitary drainage or storm drainage facilities, plumbing venting systems, medical gas systems, backflow preventers, and public or private water supply systems.

(d) "Plumbing contractor" means a licensed master plumber or a person who employs a licensed master plumber full-time to directly supervise the installation of plumbing as his or her representative engaged in the business of plumbing for a fixed sum, price, fee percentage, valuable consideration, or other compensation and who is licensed as a plumbing contractor.

(e) "Restitution" means the requirement that a person that is found to be in violation of this article, a rule promulgated under this article, or an order issued under this article has caused monetary damage to another and that the violator is required to compensate the injured party in an amount equal to the amount of the monetary damage caused.

(f) "Water service pipe" means the pipe from the water main or other source of potable water supply to the water distributing system of the building served.

History: 2016, Act 407, Eff. Apr. 4, 2017

MCL 339.6105

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.6105 State plumbing board; membership; qualifications; recommendations to commission.

Sec. 1105.

(1) The state plumbing board created in section 13 of former 2002 PA 733 shall continue in existence and is designated as the board for purposes of this article.

(2) The board is composed of the following members:

(a) The director or his or her authorized representative, the director of the department of environmental quality or his or her authorized representative, and a member or employee of the drinking water and radiologic protection division of the department of environmental quality, selected by the director of the department of environmental quality. Board members described in this subdivision shall serve as voting ex officio members.

(b) Five members who are appointed by the governor for 3-year terms and who are United States citizens and residents of the state, as follows:

(i) Two members who are licensed plumbing contractors who hold a master's license and have 10 years of experience as plumbing contractors.

(ii) One member who is a licensed master plumber who secures permits and has 10 years of experience as a master plumber.

(iii) One member who is a licensed journey plumber and has 10 years of experience as a journey plumber.

(iv) One member who represents the general public.

(3) The board shall recommend to the state construction code commission the promulgation of rules the board considers necessary for the safe design, construction, installation, alteration, and inspection of plumbing. The board may also recommend to the state construction code commission, after testing and evaluation, that the commission issue a certificate of acceptability under the state construction code for a material, product, method of manufacturing, or method of construction or installation of plumbing equipment.

History: 2016, Act 407, Eff. Apr. 4, 2017 Compiler's Notes: For transfer of authority, powers, duties, functions, and responsibilities of state plumbing board to department of licensing and regulatory affairs, see E.R.O. No. 2017-1, compiled at MCL 339.3102.For the transfer of a position on the state plumbing board designated by the department of environmental quality to a member appointed by the director of the department of environment, Great Lakes, and energy, see E.R.O. 2019-1, compiled at MCL 324.99923.For the abolishment of the 10 years of experience membership requirement and designation of the ex officio members under subsection (2)(a) as non-voting members, see E.R.O. No. 2024-2, compiled at MCL 16.735.

MCL 339.6107

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.6107 Plumbing contractor, master plumber, journey plumber, or apprentice plumber; license or registration required; work not requiring license; performing activities within scope of licensure or registration.

Sec. 1107.

(1) A person shall not engage in or work at the business of a plumbing contractor, master plumber, journey plumber, or apprentice plumber unless that person is licensed or registered under this article. Except as provided in subsections (2) and (3), only a licensed master or journey plumber shall perform plumbing. A licensed master plumber shall be in charge and responsible for proper installation and conformance with the state construction code. Plumbing shall not be performed unless the plumbing contractor who is responsible has obtained a permit from the state or a governmental subdivision authorized to issue permits.

(2) A license under this article is not required to perform any of the following work:

(a) Minor repair work.

(b) The installation of a building sewer or water service pipe, if a permit is secured from the responsible enforcing agency and inspections are performed. The installations shall comply with the applicable parts of the state construction code.

(c) The installation of domestic water treatment and filtering equipment that requires modification to an existing cold water distribution supply and associated waste piping in buildings if a permit is secured, required inspections performed, and the installation complies with the applicable parts of the state construction code. If the enforcing agency determines a violation exists, the responsible installer must correct it.

(d) The installation by a homeowner of his or her own plumbing, building sewer, or private sewer in his or her single-family dwelling if a permit is secured.

(e) The installation of medical gas piping, if the installation is performed under the supervision of a licensed plumbing contractor.

(3) This article does not prevent a person from performing any activities within the scope of licensure or registration under any other licensure or registration act or applicable codes for that licensed or registered professional adopted pursuant to law.

History: 2016, Act 407, Eff. Apr. 4, 2017

MCL 339.6109

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.6109 Plumbing contractor, master, or journey license; examination.

Sec. 1109.

An individual who is applying for a plumbing contractor, master, or journey license is eligible for examination if he or she complies with article 4 and establishes to the satisfaction of the board that he or she meets any applicable experience requirement or an equivalent of that experience requirement for the particular class of licensure, by use of a notarized statement from current and past employers and master plumbers.

History: 2016, Act 407, Eff. Apr. 4, 2017

MCL 339.6111

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.6111 Plumbing contractor license; issuance; conditions; operation of branch offices; supervision or control of plumbing operations; display of business sign.

Sec. 1111.

(1) To qualify for a plumbing contractor license, the applicant must either hold a master plumber license or employ the holder of a master plumber license as his or her representative.

(2) Only an individual who is a sole proprietor, a partner in a partnership, an officer of a corporation, or a member of a limited liability company may apply for licensure as a plumbing contractor.

(3) The department shall issue a plumbing contractor's license to an individual who does all of the following:

(a) Files a completed application on a form provided by the department that includes the following information:

(i) A statement listing the complete address of each place where the applicant has resided and has been engaged in business during the last 5 years including the length of time at each residence and types of businesses engaged in or employments.

(ii) The name of the individual who is applying for the license, the name of the business, and the location of the place for which the license is desired.

(iii) The name of the business owner, president of the corporation, or a member or manager of the limited liability company and the name of the individual who is applying, if different from the name of the business owner, president, or member or manager and his or her title.

(iv) The name, residence address, and license number of the licensed master plumber who represents the person.

(b) Pays the applicable examination fee established under section 207 and passes an examination provided for by the board and the department.

(c) Pays the license fee described in article 4.

(4) A licensed plumbing contractor may operate 1 or more branch offices in this state under the same business if a licensed master plumber is in charge and has the responsibility of supervision at each branch.

(5) If a license is issued to a plumbing contractor represented by a master plumber, the plumbing contractor and the master plumber are jointly and severally responsible for exercising the supervision or control of the plumbing operations necessary to secure full compliance with this article, the rules promulgated under this article, and all other laws and rules related to the installation of plumbing.

(6) Both a person, unless the person is a plumbing contractor, and the master plumber are jointly and severally responsible for exercising the supervision or control of the plumbing operations necessary to secure full compliance with this article, the rules promulgated under this article, and all other laws and rules related to the installation of plumbing.

(7) If a plumbing contractor is represented by a licensed master plumber who ceases to represent the plumbing contractor, the plumbing contractor has 30 days after the date the master plumber no longer represents the plumbing contractor in which to designate another licensed master plumber as the representative of the plumbing contractor. The plumbing contractor shall notify the department in writing of the change.

(8) A licensed plumbing contractor shall display in a conspicuous place at the entrance of the place of business a sign that states the name of the business and the name of the licensed master plumber and license number in letters that are at least 3 inches high.

History: 2016, Act 407, Eff. Apr. 4, 2017

MCL 339.6113

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.6113 Master plumber's license; issuance; requirements; condition of renewal; responsibility for payment of fee; notice that master plumber ceasing representation of contractor.

Sec. 1113.

(1) The department shall issue a master plumber's license to an individual who is at least 18 years old and who does all of the following:

(a) Files a completed application on a form provided by the department.

(b) Pays the applicable examination fee established under section 207 and passes an examination provided for by the board and the department.

(c) Pays the initial or renewal license fee required under section 1121.

(d) Holds a journey plumber license issued under this article or former 2002 PA 733 and has gained 4,000 hours of experience in work as a journey plumber over a period of not less than 2 years immediately preceding the date of his or her application.

(2) As a condition of renewal of a master plumber's license, the master plumber must demonstrate the successful completion of a course, approved by the board, concerning any update or change in the state construction code within 12 months after the update or change in that code. This requirement applies only during or after those years that the state construction code is updated or changed.

(3) A licensed master plumber shall represent only 1 plumbing contractor at any given time.

(4) A master plumber who is also a plumbing contractor is only responsible for payment of the plumbing contractor initial or renewal license fee and is not responsible for also paying the master plumber initial or renewal license fee under section 1121(7).

(5) If a master plumber who represents a plumbing contractor ceases to represent the plumbing contractor, the master plumber shall notify the department in writing within 30 days after the date his or her representation of the contractor ceases.

History: 2016, Act 407, Eff. Apr. 4, 2017

MCL 339.6117A

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.6117a Ratio requirements for apprentices on jobsite; violations; penalties.

Sec. 1117a.

(1) The ratio of journey plumbers or master plumbers who provide direct, on-site, in-person supervision as required under section 1117 to an apprentice is on the basis of 1 journey plumber or master plumber to not more than 2 apprentices. The department or an enforcing agency shall enforce the ratio on a jobsite basis.

(2) If a plumbing contractor violates this section, the plumbing contractor is subject to the following punishments:

(a) For a first violation, a $5,000.00 administrative fine.

(b) For a second violation, a $10,000.00 administrative fine.

(c) For a third violation, a suspension, for not less than 90 days, of the plumbing contractor's plumbing contractor license. After 90 days, the plumbing contractor may have the license reinstated if the plumbing contractor passes the plumbing contractor examination described in section 1111.

(3) The department shall pay any money collected under this section for an administrative fine to the enforcing agency that discovered the violation that resulted in the administrative fine.

(4) If the department issues an order for a violation of this section, the department is entitled to actual costs and attorney fees related to the investigation and adjudication of the violation.

History: Add. 2024, Act 172, Eff. Apr. 2, 2025

MCL 339.6121

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.6121 Fees.

Sec. 1121.

(1) A license or apprentice registration issued under this article must be renewed not more than 60 days after the renewal date. It is the responsibility of a licensee or registrant to renew a license or registration. The department shall send a renewal application to the last known address of a licensee or registrant on file with the department. Every holder of a license or registration issued under this article shall promptly notify the department of a change in his or her business or residence address. The failure of a licensee or registrant to notify the department of a change of address does not extend the expiration date of a license or registration. The department may issue licenses for up to 3 years in duration.

(2) The annual fees for initial licensure, apprentice plumber registration, or renewal of a license and registration issued under this article are as follows:

(a) Journey plumber $ 40.00. (b) Apprentice plumber $ 15.00. (3) The holder of a license or apprentice registration that is not renewed within 60 days of expiration may be relicensed only by applying to the board for relicensure and paying the annual renewal fee and the following relicensure fee: (a) Journey plumber $ 50.00. (b) Apprentice plumber $ 20.00. (4) An individual who is requesting renewal of a license under subsection (3) within 3 years after the license is expired is not subject to reexamination for the license but is required to pay the relicensure fee and the annual renewal fee for each year the license was not renewed. An individual who fails to renew a license for more than 3 consecutive years is required to meet the experience and other requirements and take an examination for the class of license requested.

(5) Examination fees under this article are as follows:

(a) Plumbing contractor $ 100.00. (b) Master plumber $ 100.00. (c) Journey plumber $ 100.00. (6) The department shall issue an initial master plumber or plumbing contractor license for a period of up to 3 years. A master plumber or plumbing contractor license is renewable for periods of 3 years. If an individual is applying for an initial license or relicensure at a time other than between April 30 and June 30 of the year in which the department issues renewal licenses, the department shall compute and charge the license fee on a yearly prorated basis beginning the year of application until the last year of the 3-year license period.

(7) Subject to section 1113(4), the initial and renewal fees for a master plumber or plumbing contractor license issued under this article are as follows:

(a) Plumbing contractor $ 300.00. (b) Master plumber $ 300.00. (8) The holder of a plumbing contractor or master plumber license that is not renewed within 60 days of expiration may be relicensed only by applying to the board and paying the renewal fee and a $100.00 relicensure fee.

History: 2016, Act 407, Eff. Apr. 4, 2017

MCL 339.6125

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.6125 Issuance of plumbing permit by governmental subdivision.

Sec. 1125.

(1) A governmental subdivision may not exempt itself from the licensing requirements of this article and may not engage in or require local licensing.

(2) Except as otherwise provided in subsections (3) and (6) and section 1107, the state or a governmental subdivision shall issue a plumbing permit only to a licensed plumbing contractor. The state or a governmental subdivision shall require the plumbing contractor to record his or her current plumbing contractor license number on the permit application. A licensed plumbing contractor shall designate 1 or more licensed master plumbers who are employed full-time who directly supervise the installation of plumbing to obtain permits using the license number of the plumbing contractor. The master plumber's license number must also be recorded on the permit application.

(3) In those instances where business or industrial procedure requires the regular employment of a full-time licensed master plumber, a licensed master plumber is authorized to secure permits for installations of plumbing on the premises owned or occupied and used by the business provided the licensed master plumber physically supervises the plumbing work and represents only the business or industrial employer. The employer and the licensed master plumber shall sign an annual affidavit, furnished by the department, and the affidavit shall be provided to and kept on file by the department. The department shall determine the filing fee for an affidavit. A new affidavit must be filed before permits will be issued if the licensed master plumber's employment is terminated. The affidavit shall contain the following:

(a) The name and business address of the person employing the licensed master plumber.

(b) The name, address, and license number of the licensed master plumber.

(c) A statement to the effect that the employer and licensed master plumber will comply with the provisions of the act regulating installation of plumbing in this state.

(4) A plumbing contractor who is licensed under this article who performs work in a governmental subdivision shall register his or her license with the enforcing agency that issues permits and provides inspection services if required by the enforcing agency. The registration is valid until the expiration date of the plumbing contractor license. Each governmental subdivision in this state must grant registration to a plumbing contractor who is licensed under this article if a fee, in an amount determined by the governmental subdivision and that does not exceed $15.00, is paid to the governmental subdivision.

(5) Master plumbers, journey plumbers, and apprentice plumbers shall carry their licenses and a form of identification that includes his or her photograph. If requested by an enforcing agency, a licensee or apprentice registrant shall present his or her license or registration and a form of identification that includes his or her photograph.

(6) If the plumbing, reconstruction, alteration, or repair of pipes, tanks, or fixtures is performed without compensation by an individual who is licensed under this article for or on behalf of a charitable organization, the owner of the property on which the work is performed may obtain the permit required under subsection (2). This subsection applies only to the reconstruction, renovation, or remodeling of a 1-family to 4-family dwelling.

History: 2016, Act 407, Eff. Apr. 4, 2017

MCL 339.6127

SKILLED TRADES REGULATION ACT (EXCERPT)

Act 407 of 2016

339.6127 Violation of asbestos abatement contractors licensing act; review; suspension or revocation of license.

Sec. 1127.

The board shall review the license of an individual if it receives notice from the department that the individual has violated the asbestos abatement contractors licensing act, 1986 PA 135, MCL 338.3101 to 338.3319, and may suspend or revoke that license for a knowing violation of that act.

History: 2016, Act 407, Eff. Apr. 4, 2017

The law belongs to the people. Georgia v. Public.Resource.Org, 590 U.S. (2020)