Residential Building Laws and Rules Flashcards
Name of board that regulates trade
Board of Residential Builders and
Maintenance and Alteration Contractors
Derpartment that regulates trade
LARA
All these names are the old names for the department of LARA
OTE: All references to activities of, or requirements by the
Department of Licensing and Regulation, the Department of
Commerce, the Office of Commercial Services and/or the
Department of Consumer & Industry Services, Bureau of
Commercial Services, Department of Energy, Labor & Economic
Growth , are now handled by the Department of Licensing and
Regulatory Affairs.
An act to revise, consolidate, and classify the laws of this state regarding
the regulation of certain occupations
to create a board for each of those
occupations;
Sec. 103. (1) “Board
means, in each article which deals with a
specific occupation, the agency created in that article composed
principally of members of the regulated occupation. In all other contexts,
board means each agency created under this act
“Censure”
means an expression of disapproval of a licensee’s or
registrant’s professional conduct, which conduct is not necessarily a
violation of this act or a rule promulgated or an order issued under this
act.
3) “Competence”
means a degree of expertise which enables a
person to engage in an occupation at a level which meets or exceeds
MINIMAL standards of acceptable practice for the occupation.
“Complaint
means an oral or written grievance
Sec. 104. (1) “Department”
means the department of commerce.
“Director
means the director of the department of commerce or
an authorized representative of the director of the department of
commerce
Formal complaint”
means a document that states the charges of
each alleged violation and is prepared by the department or the
department of attorney general after a complaint has been received by
the department
“General public”
means each individual residing in this state who
is 18 years of age or older
“Incompetence”
means a departure from, or a failure to conform
to, minimal standards of acceptable practice for the occupation
Sec. 105. (1) “License”
means the document issued to a person
under this act which will enable that person to use a designated title and
practice an occupation
Licensee
means a person who has been issued a license under
this act
3) “Limitation”
(a) A requirement that the licensee or registrant perform only
specified functions of the licensee’s or registrant’s occupation.
(b) A requirement that the licensee or registrant perform the
licensee’s or registrant’s occupation only for a specified period of time.
(c) A requirement that the licensee or registrant perform the
licensee’s or registrant’s occupation only within a specified geographical
area.
(d) A requirement that restitution be made or certain work be
performed before a license or registration is issued, renewed, or
reinstated.
(e) A requirement that a financial statement certified by a person
licensed as a certified public accountant be filed with the department at
regular intervals.
(f) A requirement which reasonably assures a licensee’s or
registrant’s competence to perform the licensee’s or registrant’s
occupation.
(g) A requirement that all contracts of a licensee or registrant be
reviewed by an attorney.
(h) A requirement that a licensee or registrant have on file with the
department a bond issued by a surety insurer approved by the
department or cash in an amount determined by the department.
(i) A requirement that a licensee or registrant deposit money
received in an escrow account which can be disbursed only under
certain conditions as determined by the licensee or registrant and
another party.
(j) A requirement that a licensee or registrant file reports with the
department at intervals determined by the department.
“Physical dominion”
means control and possession
“Rule
means a rule promulgated under this act and pursuant to
the administrative procedures act of 1969
A license or registration issued under this article may be issued
with a limitation. The department shall notify the appropriate board of the
department’s intent to impose a limitation on the issuance of a license or
registration of a person seeking a license or registration in the
occupation for which the board serves. The department may impose the
limitation only with the approval of the notified board. However, if the
notified board, within 60 days after receipt of the notification by the
department, neither approves nor disapproves the imposition of a
limitation, the department may impose the limitation. A person who
receives a license or registration with a limitation may receive a review of
the limitation as provided in section 519.
Sec. 201. The department shall consist of a director as its executive
head and other officers and employees appointed or employed by the
department. The director shall be appointed by the governor, subject to
the advice and consent of the senate, and shall hold office at the
pleasure of the governo
Sec. 204. (1) Unless otherwise provided in this act and subject to the
limitations set forth in this section, the department shall renew the license
or registration of a person who fulfills all of the following requirements:
(a) Has applied to the department on a form provided by the
department for renewal of a license or registration. The application for
renewal shall be received by the department on or before the date
prescribed by the department for the expiration of the current license or
registration.
(b) Has paid the appropriate fees prescribed in article 4.
(c) Has met the renewal requirements set forth in a specific article,
rule, or an order issued under this act
Sec. 208. The department shall have physical dominion over the files
of each board. The department shall ensure that applicable laws
concerning public access to the files are met.
Anything you do the public can see
Sec. 301. Each board shall consist of 9 voting members. Except as
otherwise provided in this act, 6 of the members of a board shall be
individuals who have a license or registration in the occupation which the
board monitors. Except as otherwise provided in this act, 3 of the
members of a board shall represent the general public
(note) You have 4 residential builderes, you have 2MandA contractors, 3 general public one of which is a building inspector
Sec. 302. The governor shall appoint an individual as a member of a
board with the advice and consent of the senate, including an individual
appointed to fill a vacancy on a board
Sec. 303. (1) The term of a member appointed to a board shall be 4
years
(2) Except as provided in subsection (1), an individual shall not be
appointed to or serve for more than 2 consecutive terms
What is maximun number of years a board member can serve?
8
Sec. 305. (1) A board shall meet as often as necessary to fulfill its
duties under this act, but shall meet not less than 2 TIMES A YEAR and at
other dates set by the director. A majority of the members appointed and
serving shall constitute a quorum
(2) The files of the board shall be available to the public under
section 208
Sec. 307. (1) Each board created by this act shall be created within
the department.
(2) A board’s duties shall include the interpretation of a licensure or
registration requirement of an article, and, if necessary, the furnishing of
aid in an investigation conducted under article 5. At the discretion of the
board, a member of that board may attend an informal conference
conducted under section 508. A board shall assist the department in the
implementation of this act.
time when investigator and you will have an informal conference.
Sec. 519. (1) A person who has had a limitation placed on a license,
a certificate of registration, or the renewal of a license or certificate of
registration under section 203 or 204, within 30 days after the limitation is
placed on the license, certificate of registration, or renewal of the license
or certificate of registration, may petition the department in writing for a
review of the decision to place the limitation
Appeals are always within 30 days
(3) The department and a board may remove the limitation, if, based
on a review of the petitioner’s qualifications, the department and the
appropriate board determine that the person who submitted a petition
under subsection (1) could perform with competence each function of the
occupation without the limitation
The department and the board may remove limitations
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
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
6) Notwithstanding subsections (4) and (5), a person not licensed
under article 24 as a residential builder or a residential maintenance and
alteration contractor who 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
(know these)
ec. 602. A person, school, or institution that violates this act or a
rule or order promulgated or issued under this act shall be assessed 1 or
more of the following penalties
a) Placement of a limitation on a license or certificate of registration
for an occupation regulated under articles 8 to 25.
(b) Suspension of a license or certificate of registration.
(c) Denial of a license, certificate of registration, or renewal of a
license or certificate of registration.
(d) Revocation of a license or certificate of registration.
(e) In the case of a person licensed or registered under this act and
except as otherwise provided for by this act, an administrative fine to be
paid to the department, not to exceed $10,000.00. (know this one)
(f) Censure.
(g) Probation.
(h) A requirement that restitution be made, based upon proofs
submitted to and findings made by the hearing examiner after a
contested case
Sec. 603. If restitution is required to be made under section 602, the
license or certificate of registration of the person required to make the
restitution may be suspended until the restitution is made
Sec. 604. A person who violates 1 or more of the provisions of an
article which regulates an occupation or who commits 1 or more of the
following shall be subject to the penalties prescribed in section 602
a Practices fraud or deceit in obtaining g a license or registration.
( ) b Practices fraud, deceit, yp or dishonesty in practicing an occupation.
( ) c Violates a rule of conduct of an occupation.
(d) Demonstrates a lack of good moral character
(e) Commits an act of gross negligence in practicing an occupation.
(f) Practices false advertising.
(g) Commits an act which demonstrates incompetence.
(h) Violates any other provision of this act or a rule promulgated
under this act for which a penalty is not otherwise prescribed.
(i) Fails to comply with a subpoena issued under this act.
(j) Fails to respond to a citation as required by section 555.
(k) Violates or fails to comply with a final order issued by a board,
including a stipulation, settlement agreement, or a citation.
(l) Aids or abets another person in the unlicensed practice of an
occupation (KNOW MOST IMPORTANT) never let someone else use your license
Sec. 605. (1) The department may bring any appropriate action,
including mediation or other alternative dispute resolution, in the name of
the people of this state to carry out this act and to enforce this act
(2) If the attorney general considers it necessary, the attorney
general shall intervene in and prosecute all cases arising under this act.
(3) This section does not prohibit the department from bringing any
civil, criminal, or administrative action for the enforcement of section 601
Sec. 606. The department, the attorney general, and a county
prosecutor may utilize the forfeiture provisions of chapter 47 of the
revised judicature act of 1961, 1961 PA 236, MCL 600.4701 to 600.4709,
for items seized and determined to be proceeds of a crime, substituted
proceeds of a crime, or the instrumentality of a crime as those terms are
defined under section 4701 of the revised judicature act of 1961, 1961
PA 236, MCL 600.4701
they can confinsact equipment of anything you own to pay off.
ARTICLE 24
RESIDENTIAL BUILDERS AND RESIDENTIAL MAINTENANCE
AND ALTERATION CONTRACTORS
is the following questions
Residential builder
means a person engaged in the construction
of a residential structure or a combination residential and commercial
structure who, 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 an addition to,
subtraction from, improvement, wrecking of, or demolition of, a
residential structure or combination residential and commercial structure;
a person who manufactures, assembles, constructs, deals in, or
distributes a residential or combination residential and commercial
structure which is prefabricated, preassembled, precut, packaged, or
shell housing; or a person who erects a residential structure or
combination residential and commercial structure except for the person’s
own use and occupancy on the person’s property
“Residential structure
means a premises used or intended to be
used for a residence purpose and related facilities appurtenant to the
premises, used or intended to be used, as an adjunct of residential
occupancy
“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 a
person working for a licensed residential builder or residential
maintenance and alteration contractor who makes sales which are
occasional and incidental to the person’s principal employment
Sec. 2402. (1) A residential builders’ and maintenance and alteration
contractors’ board is created. Of the 9-member board, 4 members shall
be licensed residential builders, and 2 members shall be licensed
maintenance and alteration contractors
2) Of the members representing the general public, at least 1
member shall be registered under the building officials and inspectors
registration act
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 having a license, 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.
() p d “Salesperson” means an employ g ee or agent, other than a
q yg , ualifying officer, of a licensed residential builder or residential
maintenance and alteration contractor, who for a salary g , wa e, fee,
p g, , ercentage, commission, or other consideration, sells or attempts to sell, p
negotiates or attemp g, ts to negotiate, solicits for or attempts to solicit for,
obtains or attempts to obtain a contract or commitment for, or furnishes
or attemp g ts or agrees to furnish, g theoods and services of a residential
builder or residential maintenance and alteration contractor, except a ,
p g erson working for a licensed residential builder or residential
maintenance and alteration contractor who makes sales which are
occasional and incidental to the person’s principal employment.
; ; q
Sec. 2402. ( ) 1 A residential builders’ and maintenance and alteration
contractors’ board is created. Of the 9-member board, 4 members shall
be licensed residential builders, and 2 members shall be licensed
maintenance and alteration contractors.
( ) 2 Of the members rep g resenting the g p eneral public, at least 1
member shall be registered under the building officials and inspectors
registration act,
p
Sec. 2403. Notwithstanding article 6, p y gg a person may engage in the
business of or act in the cap y acit of a residential builder or a residential
maintenance and alteration contractor or salesperson in this state p
without having a license, if the g , p g erson is 1 of the following:
(a) An authorized representative of ( ) p f the United States government, this g
state, or a county, township, city, village, or other political subdivision of
this state.
OCCUPATIONAL CODE, (ARTICLES 1-6, 24)
P.A. 299 OF 1980
-40-
(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. (landlord can so maintience, as long as you dont cut a structural member)
(d) An officer of a court acting within the terms of the officer’s office.
(e) A person other than the salesperson who engages solely in the
business of performing work and services under contract with a
residential builder or a residential maintenance and alteration contractor
licensed under this article. (this means the subcontractors)
(f) A person working on 1 undertaking or project by 1 or more
contracts, the aggregate contract price for which labor, material, and any
other item is less than $600.00. This exemption 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
Sec. 2404. (1) The department may require an applicant, licensee, or
each partner, trustee, director, officer, member, or shareholder to submit
evidence of good moral character, and financial stability. Before the
issuance of a license, an applicant shall submit a copy of an operator’s
license or state personal identification card, to be used by the
department only for proof of identity of the applicant
(2) The department shall require an applicant for a license to pass an
examination establishing 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
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 within this state, a branch office license
shall be issued to the builder or contractor for each place of business so
maintained.
(5) Beginning the license cycle after December 21, 2007, the
department shall issue the license of a residential builder and residential
maintenance and alteration contractor for a period of 3 years in duration.
Beginning December 21, 2007, an applicant for renewal of a residential
builder or maintenance and alteration contractor license shall state that
he or she has a current copy of the Michigan residential code and has
fulfilled the appropriate requirements regarding continuing competency.
(6) Beginning December 21, 2007, a licensee shall maintain
documentation, for at least 5 years, of activities meeting the continuing
competency requirements as prescribed under this article
Sec. 2404a. A licensee shall, as part of the contract, provide
information relating to his or her individual license and to any license
issued to that person as a qualifying officer of another entity
both license numbers have to be shown of contracts
Sec. 2404b. (1) Beginning the effective date of the amendatory act
that added this section, applicants for initial licensure either 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 a residential builder or
a residential maintenance and alteration contractor license on the
effective date of the amendatory act that added this section that are
renewing a license in the capacity of an individual or qualifying officer, or
both, are 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 successfully
complete 60 hours of approved prelicensure courses consisting of at
least 6 hours of courses in each of the following areas of competency
Business management, estimating, and job costing.
(b) Design and building science.
(c) Contracts, liability, and risk management.
(d) Marketing and sales.
(e) Project management and scheduling.
(f) The current Michigan residential code.
(g) Construction safety standards promulgated under the Michigan
occupational safety and health act, 1974 PA 154, MCL 408.1001 to
408.1094.
You need 21 hours first per 3 years for next two license after the first license.
A licensee who has held a
license for more than 6 years or who has not been determined by the
department in a final order to have violated this act or a rule adopted
under this act shall successfully complete at least 3 hours of activities
demonstrating continuing competency per license cycle to include
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 the
department in a final order to have violated this act or a rule adopted
under this act, he or she shall successfully complete, during the next
complete license cycle, up to 21 hours of activities that demonstrate the
development of continuing competency during that next license cycle as
determined appropriate by order of the department, at least 3 hours of
that continuing competency to include
1 hour of codes, 1 hour of safety,
and 1 hour of legal issues as described in subsection
Sec. 2405. (1) If a license is applied for by a corporation, partnership,
association, limited liability company, or other entity, the applicant shall
designate 1 of its officers, partners, members, or managing agent as a
qualifying officer who, upon taking and passing the examination, and
upon meeting all other requirements of this article, is entitled to a license
to act for the corporation, partnership, association, limited liability
company, or other entity. The qualifying officer shall also obtain and
maintain a license under this article as an individual
that person is responsible for supervision or control of the building construction’s operations and you control the money
4) If the qualifying officer of a licensee ceases to be its qualifying
officer, the license is suspended. However, upon request, the
department may permit the license to remain in force for a reasonable
time to permit the qualification of a new qualifying officer
Sec. 2406. A nonresident of this state may become a licensee under
this article by conforming with this article
A license shall not be issued to
a foreign corporation unless the corporation is authorized to do business
in this state by the corporation and securities commission. The
nonresident shall file (an irrevocable consent to service) of process. The
consent shall be signed by the applicant or by an authorized officer,
member, or partner of the applicant and shall be notarized. If the
applicant is a corporation, consent shall be accompanied by a certified
copy of the resolution of the corporation authorizing the consent
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 (the builder applies for license not salesperson)
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
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 or a combination of residential and commercial
structure as follows
complaint up to 18 months after occupancy
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.
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
10 days after notifying
(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 or combination of residential and commercial
structure, building of a garage, laying of concrete on residential property,
or manufacture, assembly, construction, sale, or distribution of a
residential or combination residential and commercial structure that is
prefabricated, preassembled, precut, packaged, or shell housing
(i) If a salesperson, failure to pay over IMMEDIATLEY 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
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
means inspector has the power to inspect workmanship.
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
the deparment doesnt get involved in contract, does it meet the code or not
4) Notwithstanding article 5, the following apply to administrative
proceedings regarding workmanship under subsection
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
(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.
know it shall be initiated by the licensee
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
resolution procedure that has not been utilized and competed.
(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
the city will get involved and validate the complaint or not
Sec. 2411a. (1) The department shall post on its website any final
order of the board and the date it was issued. The posting shall occur
within 30 DAYS after the final order is issued
2) The department shall annually post on its website the number of
final orders of the board
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
cant bring any legal action to obtain money if no license
(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
(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
ADMINISTRATIVE RULES
going forward
Board
means the state residential builders and maintenance
and alteration contractors board
Department”
means the department of labor and economic growth (also means LARA)
Rule 21. (1) An application for a license shall include the residence address of all individuals, partners, officers and/or members, as
requested by the department, and the address of the principal place of
business in Michigan. A nonresident applicant for licensure shall
maintain a place of business in Michigan, and the application shall
include the address of the Michigan place of business and the address of
the applicant’s principal place of business outside of Michigan. A
nonresident applicant shall file a consent to service with the application
6) At the request of the department or board, an applicant shall
submit within 60 days of a written request, either of the following
(a) A cash or surety bond acceptable to the department.
(b) A financial statement showing the current financial condition of
Rule 21a. As a condition for approval to take the residential builder
or maintenance and alteration contractor examination, applicants for
licensure shall meet all other licensing requirements, including
successful completion of the prelicensure education requirements
Rule 24. (1) The department shall issue a license including an
identification card after an applicant has successfully completed all
requirements
2 The physical office location shall be printed on the license.
( ) p 3 The department may y pp deny an application for a license FOR GOOD AND SUFFICIENT CAUSE. The notice of denial shall advise the applicant of
reasons for denial and of his or her right to submit a petition for review of
the denial
Rule 25. (1) A salesperson shall be licensed under a person holding
a license as a builder or contractor, but shall not be licensed under more
than 1 builder or contractor during the same period of time
(2) An application for a salesperson license shall be submitted by the
employing builder or contractor
(3) Upon approval, the department shall issue a license and an
identification card containing the name and business address of the
salesperson. The card shall be carried by the salesperson and shall be
shown as identification to every prospective customer. A salesperson
shall not commence work until the builder or contractor under whom the
salesperson is licensed receives the salesperson’s license and
identification card from the department.
(4) When a salesperson licensed under this act is discharged or
otherwise terminates employment with the builder or contractor under
whom he or she is licensed, the builder or contractor shall return the
salesperson’s license, and the salesperson shall return the identification
card to the department BOTH WITHIN 5 DAYS from the date of discharge or
termination.
(5) When a licensed salesperson transfers employment from the
builder or contractor under which he or she is presently licensed to a new
employer, the new employer shall submit to the department an
application for transfer of the salesperson’s license to the new employer
Rule 26. (1) If a bond is cancelled, a license predicated upon such a
bond shall be suspended effective upon the date of cancellation, if the
licensee has not replaced the surety or cash bond
2) Upon final order of license suspension or revocation, the licensee
shall surrender the license to the department WITHIN 10 DAYs of the date
of suspension or revocation. If the license of a builder or contractor is
suspended or revoked, the licenses of salespersons issued under the
license of that builder or contractor shall lapse, and licenses shall be
surrendered at the same time.
4) A qualifying officer of a company shall notify the department in
writing within 10 days of ceasing to be the qualifying officer, and shall
return the wall license and pocket card of the company
Rule 31. (1) A builder or contractor shall maintain a place of business
in this state, which is an actual, established physical location from which
the builder or contractor conducts business and where applicable books
and records are maintained
A post office box, secretarial service,
mailbox rental, receiving service, resident agent address, or telephone
answering service alone is not sufficient
2) A builder or contractor shall display the license and the licenses
of all salespersons in a conspicuous position in the builder’s or
contractor’s place of business.
Rule 32. (1) Advertising shall not misrepresent material facts.
(2) A licensee shall include the name, license number, and actual
business address, as shown on the license, in all advertising. The use of
a telephone or post office box number alone is prohibited.
license number needs to be shown on all advirtisements
3) A licensee shall not solicit any contract for home improvements
by a promise to the purchaser or the prospective purchaser of a bonus,
whether of merchandise or cash, which is contingent upon the
purchaser’s or prospective purchaser’s using or displaying a dwelling to a
third person or upon the licensee’s obtaining an order or orders for
merchandise or service from a third person
Rule 33. (1) All agreements and changes to the agreements between
a builder, or contractor, and the customer shall be in writing and signed
by the parties. Copies of all agreements and changes to agreements
shall be in writing, and provided to the customer
changes in writing and signed
(2) The builder or contractor shall make certain that the written
agreements clearly state the terms of the transaction, including
specifications, and when construction is involved, both plans and
specifications, including cost, the type and amount of work to be done,
and the type and quality of materials to be used
has to be written including specs, cost, the type and quality of materials to be used.
3) If a purchase or sales agreement is for a new structure which is
either substantially completed or in substantial conformance with a
model, plans and specifications need not be furnished if the structure is
specifically identified or related to the model and any changes, additions
to or subtractions from the model are specifically agreed to and noted in
writing
building has to be exactly like the model
Rule 34. A builder or contractor shall keep and maintain a complete,
accurate set of books and records which disclose the licensee’s current
financial condition. The books and records shall be open to inspection by
the department or any person duly authorized by it for good and
sufficient cause during regular business hours after reasonable notice
and for stated reasons
Rule 35. Upon notice by the department, a licensee shall submit
within 30 days sworn financial statement showing the licensee’s current
financial status
WITHIN 30 DAYS
Rule 51. (1) A complaint shall be submitted in a form specified by the
department
(2) Upon receipt of a valid and written complaint, the department
shall assign a complaint number, acknowledge the complaint and
forward a copy of the complaint to the licensee. The licensee shall reply
to the department WITHIN 15 DAYS from receipt of the complaint and shall
confirm or deny the justification of the complaint
(4) If a complaint is justified by the local building inspector or by a
person authorized by the department to make inspections, the builder or
contractor shall correct the complaint within a reasonable time.
Failure
or refusal by the licensee to correct a structural matter that is materially
deficient,g , dan erous, or hazardous to the owners shall be presumed to
be dishonest or unfair dealing
Rule 52. The department, after investigation, may request a licensee
to appear at such investigative conference as is necessary to determine
whether there is cause for complaint which would require a hearing on,
or dismissal of, the complaint
. Persons interested shall have the right to appear and be
represented by counsel
Rule 53 Resolution or
settlement of a complaint shall not be construed as a waiver by the
department of its statutory right to take disciplinary action.
Rule 706 (1) A licensee or registrant, or qualifying officer, or
manager of a licensee shall report to the department a change of name
or address within 30 days after the change occurs
30 DAYS
Rule 721. (1) The department may consolidate multiple complaints
against a single respondent in 1 formal complaint
(2) The department may withdraw a formal complaint at any time
Rule 726. (1) Parties may confer informally at any time to attempt to
settle a complaint
if parties are satisfied with verdict
Rule 731. (1) If a respondent selects a compliance conference, the
respondent may submit a written statement with a request that the
statement be considered in place of appearing for a compliance
conference
Rule 745. (1) The department may be represented by an assistant
attorney general or by a duly authorized agent. A respondent may be
represented by an attorney or may appear on his or her own behalf
before hearing takes place
Rule 747. (1) After a notice of hearing has been served and upon the
request of a party, or upon his or her own authority, a presiding officer
may order the parties to conduct a prehearing conference for the
purpose of facilitating the disposition of a contested case
Rule 763. The complaining party shall have the burden of proving, by
a preponderance of the evidence, the matters alleged in the formal
complaint
when there is more than enough evidence youre the guilty party
Rule 771. (1) Unless the parties have otherwise agreed to a
disposition of the matter or as otherwise provided in the licensing law,
the presiding officer, at the close of the record on the matter, shall make
findings of fact and conclusions of law. The presiding officer shall submit
the findings to the appropriate board for the assessment of penalties if a
violation of the code is found
STATE LICENSE FEE ACT (Excerpts) going forward
AN ACT to provide for the establishment and collection of fees for the
regulation of certain occupations and professions, and for certain
agencies and businesses; to create certain funds; and to prescribe
certain powers and duties of certain state agencies and departments
Sec. 6. The department shall charge a $20.00 late renewal fee if a
person fails to renew a license or registration on or before the expiration
date prescribed by the department by rule as authorized under the
occupational code
Sec. 8. (1) The department may charge a $5.00 fee for providing
written verification that a person is or is not licensed or registered at the
time of the request for verification
(2) If the person requesting written verification seeks specific detailed
information beyond the information described in subsection (1), the
charge for verification shall be $15.00
Sec. 7. The department may charge a fee for the issuance of a
duplicate license or registration. The duplicate shall not be issued unless
the person applying for the duplicate signs a statement that the original
document has been lost, stolen, or destroyed. The fee for the duplicate
shall be $10.00
duplicate must have the knew address
Sec. 10. The department may charge a $10.00 fee for correcting its
records and issuing a new document when a person notifies the
department of a change of name, address, or employer. If the change
does not require the issuance of a new document, no charge shall be
made for correcting the department’s records
OCCUPATIONAL LICENSE FOR FORMER OFFENDERS
AN ACT to encourage and contribute to the rehabilitation of former
offenders and to assist them in the assumption of the responsibilities of
citizenship
Sec. 1. (1) The phrase “good moral character”, or words of similar
import, when used as a requirement for an occupational or professional
license or when used as a requirement to establish or operate an
organization or facility regulated by this state in the Michigan Compiled
Laws or administrative rules promulgated under those laws shall be
construed to mean the propensity on the part of the person to serve
the
public in the licensed area in a fair, honest, and open manner
Sec. 4. This act shall not bar the use by a licensing board or agency in
its determination of a person’s fitness, of any other public record, not
related to arrest or prosecution, or of any other source of unbiased and
accurate information
Sec. 7. This act does not affect the power of a licensing agency to
discipline licensees under its jurisdiction for prohibited acts of
professional misconduct or dishonesty
former offenders have same right to aquire building rights when they get out
BUILDING CONTRACT FUND
AN ACT to protect the people of the state from imposition and fraud in
the building construction industry and to provide penalties for the
violation of this act
Sec. 1. In the building construction industry, the building contract
fund paid by any person to a contractor, or by such person or contractor
to a subcontractor, shall be considered by this act to be a trust fund, for
the benefit of the person making the payment, contractors, laborers,
subcontractors or materialmen, and the contractor or subcontractor shall
be considered the trustee of all funds so paid to him for building
construction purposes
contractor is the truste of the money for that job
Sec. 2. Any contractor or subcontractor engaged in the building
construction business, who, with intent to defraud, shall retain or use the
proceeds or any part therefor, of any payment made to him, for any other
purpose than to first pay laborers, subcontractors and materialmen,
engaged by him to perform labor or furnish material for the specific
improvement, shall be guilty of a felony in appropriating such funds to his
own use while any amount for which he may be liable or become liable
under the terms of his contract for such labor or material remains unpaid,
and may be prosecuted upon the complaint of any persons so
defrauded, and, upon conviction, shall be punished by a fine of not less
than 100 dollars or more than 5,000 dollars and/or not less than 6
months nor more than 3 years imprisonment in a state prison at the
discretion of the court.
Sec. 3. The appropriation by a contractor, or any subcontractor, of
any moneys paid to him for building operations before the payment by
him of all moneys due or so to become due laborers, subcontractors,
materialmen or others entitled to payment, shall be evidence of intent to
defraud
if youre a subcontractor and you didnt get paid, you prove that the contractor got paid then you can fight and will win
