HOUSE BILL No. 4582

 

April 17, 2013, Introduced by Rep. Foster and referred to the Committee on Regulatory Reform.

 

     A bill to amend 1980 PA 299, entitled

 

"Occupational code,"

 

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

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

act that added this section, applicants for initial licensure

 

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

 

individual applying for an initial individual license as a

 

residential builder or as a residential maintenance and alteration

 

contractor shall successfully complete a prelicensure course of

 

study as prescribed by this subsection. Licensees holding unless he

 

or she has successfully completed the prelicensure course of study

 

requirements of this subsection or is exempt from those

 

requirements under this subsection. All of the following apply for

 

purposes of this subsection:

 


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

 

alteration contractor who held an individual license, or an

 

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

 

residential builder or residential maintenance and alteration

 

contractor, on the effective date of the amendatory act that added

 

this section that are June 1, 2008 is renewing a that license, in

 

the capacity of an individual or qualifying officer, or both, are

 

he or she is exempt from the requirement of successfully completing

 

prelicensure courses described in this subsection. The department

 

shall require an applicant not exempted under this subsection to

 

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

 

as a residential builder or residential maintenance and alteration

 

contractor, and 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, that individual is exempt from the requirement of

 

successfully completing prelicensure courses described in this

 

subsection.

 

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

 

an applicant shall not receive an initial license under this act

 

unless he or she successfully complete completes 60 hours of

 

approved prelicensure courses consisting of that include at least 6

 

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

 

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

 

     (ii) (b) Design and building science.

 


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

 

     (iv) (d) Marketing and sales.

 

     (v) (e) Project management and scheduling.

 

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

 

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

 

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

 

408.1001 to 408.1094.

 

     (2) Beginning the calendar year after the effective date of

 

the amendatory act that added this section, a person obtaining

 

initial licensure under this article in the 2009 calendar year, the

 

following apply to an individual licensee under this article, as

 

applicable:

 

     (a) If the individual licensee obtained his or her initial

 

license as a residential builder or a residential maintenance and

 

alteration contractor shall on or after January 1, 2009, he or she

 

must successfully complete not less than at least 21 hours of

 

activities that demonstrate continuing competence in each 3-year

 

license cycle, including both of the following:

 

     (i) At least 3 hours of activities demonstrating that

 

demonstrate continuing competency per in each calendar year ,

 

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

 

3-year time period since the issuance of his or her license.

 

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

 

designed to develop a an individual licensee's understanding and

 

ability to apply state building codes and laws relating to the

 

licensed occupation, safety, and changes in construction and

 

business management laws. A licensee who

 


     (b) If the individual 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 6 years or less, and the department has not determined

 

in a final order that he or she has violated 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.

 

     (c) If the individual licensee has held a license for more

 

than 6 years or who has not been determined by and the department

 

has not determined in a final order to have that he or she has

 

violated this act or a rule adopted promulgated under this act,

 

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

 

activities demonstrating continuing competency per in each license

 

cycle to include that includes at least 1 hour of codes, 1 hour of

 

safety, and 1 hour of legal issues as described in this subsection.

 

     (3) In the case of a licensee who has been determined by In

 

addition to the requirements of subsection (2), if the department

 

determines in a final order to have that an individual licensee has

 

violated this act or a rule adopted promulgated under this act, he

 

or she shall must successfully complete, during the next complete

 

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

 

activities that demonstrate the development of continuing

 


competency during that next license cycle, as determined

 

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

 

that continuing competency to must include 1 hour of codes, 1 hour

 

of safety, and 1 hour of legal issues as described in subsection

 

(2).

 

     (4) As activities that demonstrate the development of

 

continuing competency, the education courses described in section

 

3, pages 3-6 through 3-58 of the January 2005 edition of the

 

publication "NAHB University of Housing, Blueprint for Success",

 

published by the national association of home builders, and taught

 

by instructors meeting the requirements of section 4, pages 4-5

 

through 4-9 of the January 2005 edition of "NAHB University of

 

Housing, Blueprint for Success", are considered approved, are

 

considered appropriate for fulfilling the prelicensure and

 

continuing competency requirements of subsections (1), (2), and

 

(3), and are incorporated by reference. A licensee may take any

 

courses equivalent to those courses incorporated by reference by

 

this subsection. Updates to the courses described in this

 

subsection or equivalent courses are acceptable unless the

 

department determines that the courses do not provide a means of

 

developing and maintaining continuing competency for those

 

applicants or licensees who successfully fulfill the course

 

requirements. Any construction code update courses approved by the

 

bureau of construction codes, as well as and any fire safety or

 

workplace safety courses approved or sponsored by the department,

 

are also considered appropriate for fulfilling the continuing

 

competency requirements of this subsection. The department may, by

 


rule, amend, supplement, update, substitute, or determine

 

equivalency regarding any courses or alternate activities for

 

developing continuing competency described in this subsection.

 

     (5) The department may waive the requirement of membership in

 

a local, state, or national trade association contained in the

 

instructor standards of section 4, pages 4-5 through 4-9 of the

 

January 2005 edition of the publication "NAHB University of

 

Housing, Blueprint for Success", published by the national

 

association of home builders, and incorporated by reference. By

 

rule, the department may amend, supplement, update, substitute, or

 

determine equivalency regarding the standards in this subsection

 

and shall establish instructor qualifications for courses not

 

incorporated by reference in subsection (4).

 

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

 

competency activities required under this section may be offered by

 

a high school, an intermediate school district, a community

 

college, a university, the bureau of construction codes, the

 

Michigan occupational safety and health administration, a trade

 

association, or a proprietary school licensed by the department, as

 

meeting the subject matter qualifications described in subsection

 

(4) and the instructional qualifications described in subsection

 

(5).as determined by the department.

 

     (6) (7) The department shall promulgate rules to provide for

 

the following:

 

     (a) Requirements other than those listed in subsection (4) for

 

determining that a course meets the minimum criteria for developing

 

and maintaining continuing competency.

 


     (b) Requirements for acceptable courses offered at seminars

 

and conventions by trade associations, research institutes, risk

 

management entities, manufacturers, suppliers, governmental

 

agencies other than those named in subsection (4), consulting

 

agencies, or other entities.

 

     (c) Acceptable distance learning.

 

     (d) Alternate forms of continuing competency, including

 

comprehensive testing, participation in mentoring programs,

 

research, participation in code hearings conducted by the

 

international code council, and publication of articles in a trade

 

journal or regional magazine as an expert in the field. The

 

alternate forms shall be designed to maintain and improve the an

 

individual licensee's ability to perform the occupation with

 

competence and shall prescribe proofs that are necessary to

 

demonstrate that the licensee he or she has fulfilled the

 

requirements of continuing competency.

 

     (7) (8) Each An individual licensee may select approved

 

courses in his or her subject matter area or specialty. Service An

 

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

 

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

 

continuing competency requirements of obligations under this

 

section. Alternate An individual may earn and document any

 

alternative forms of continuing competency may be earned and

 

documented as promulgated in rules by the department.

 

     (8) (9) The department may audit a predetermined percentage of

 

licensees who renew in a year for compliance with the requirements

 

of this section. Failure to comply with the audit or the

 


requirements shall result in the investigation of a complaint

 

initiated by the department, and the licensee is subject to the

 

penalties prescribed in this act.

 

     (9) (10) A licensee Before the effective date of the

 

amendatory act that added subsection (10), an individual who is

 

licensed as a residential builder or residential alteration and

 

maintenance contractor may apply for inactive status by completing

 

an application, made available by the department, in which he or

 

she declares that he or she is no longer actively engaged in the

 

practice authorized by his or her license and temporarily intends

 

to suspend activity authorized by his or her license. Upon

 

submission of a When he or she submits the completed application,

 

the department shall designate the licensee as inactive and note

 

that status on records available to the public. A licensee

 

designated as inactive must have a current copy of the Michigan

 

residential code and is exempt from the continuing competency

 

requirements imposed under this section, but must still pay the

 

per-year license fee. An inactive licensee may activate his or her

 

license by submitting an application to the department requesting

 

activation of the license. Upon activation of a 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.

 

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

 

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

 

subsection may remain in inactive status after that effective date

 

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

 


who remains in inactive status after the effective date of this

 

subsection is exempt from the continuing competency requirements of

 

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

 

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

 

department requesting activation of the license. If his or her

 

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

 

hour of activities that demonstrate continuing competency for that

 

calendar year.