SENATE BILL No. 213

February 11, 2009, Introduced by Senators RICHARDVILLE and GLEASON and referred to the Committee on Commerce and Tourism.

A bill to regulate persons engaged in commercial carpentry; to

create a board of carpentry; to provide for powers and duties of

certain state agencies and departments; to establish standards; to

provide for the licensing of carpenter contractors and journey

carpenters; to register apprentices; to prescribe fees; to provide

for the promulgation of rules; and to prescribe remedies and

penalties.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1. This act shall be known and may be cited as the

"commercial carpentry licensure act".

Sec. 3. (1) As used in this act:

(a) "Apprentice" means an individual registered under this act

to act as an apprentice carpenter.

(b) "Board" means the board of commercial carpentry.

or a person who employs a licensed journey carpenter full-time to

directly supervise the installation of carpentry on a commercial

structure as his or her representative, that is engaged in the

business of carpentry for a fixed sum, price, fee, percentage or

other valuable consideration, or other compensation. Carpenter

contractor does not include a governmental agency.

(d) "Carpentry" means activity on a commercial structure

involving the erecting, installing, framing, altering, or repairing

of structures and their structural parts including decks, walls,

doors, windows, ceilings, roofs, drywall, countertops, cabinets,

flooring, trim, and any components that make the framing of a

structure complete, including the prefabrications of any structure.

For purposes of this subdivision, "wood construction" and "wooden

structure" include construction methods utilizing substitute

materials, including, but not limited to, metal stud and composite

framing and finish materials that replace or are used in

conjunction with traditional wood construction and the preparation

and installation of concrete foundation forms or wood foundations

that do not include trench footers. Carpentry does not include

minor repair or the construction, maintenance, or repair of farm

structures and their appurtenances, greenhouses, fences, or

structures used for the production or care of farm plants and

animals.

(e) "Commercial structure" means any structure not involving

either a residential structure or a farm structure.

(f) "Department" means the department of labor and economic

growth.

(g) "Enforcing agency" means an enforcing agency as defined in

section 2a of the Stille-DeRossett-Hale single state construction

code act, 1972 PA 230, MCL 125.1502a.

(h) "Farm structure" means a farm building and its

appurtenances, a greenhouse, a fence, or a structure used for the

production or care of farm plants and animals.

(i) "Governmental subdivision" means a governmental

subdivision as defined in section 2a of the Stille-DeRossett-Hale

single state construction code act, 1972 PA 230, MCL 125.1502a.

(j) "Journey carpenter" means an individual other than a

carpenter contractor who, as his or her principal occupation, is

engaged in practical installation carpentry. A carpenter contractor

may also act as a journey carpenter.

(k) "Michigan construction code" means the rules promulgated

under the authority of the Stille-DeRossett-Hale single state

construction code act, 1972 PA 230, MCL 125.1501 to 125.1531, and

known as the Michigan building code.

(l) "Minor repair" means a repair which involves the

replacement of existing materials to maintain an existing facility

not exceeding $600.00 in aggregate cost, when the work is not a

part of a larger project and is not subject to the requirement of

obtaining a permit under the Michigan construction code, including,

but not limited to, window sash and glazing replacements; door

slabs, frames, and hardware replacements; roofing and exterior wall

repairs to maintain the enclosure of the building from the

elements; interior wall and floor ceiling repairs not involving

structural elements, fire resistance rated assemblies and means of

egress, or the removal or alteration of a means of egress; or the

removal or alteration of a means of egress.

(m) "Person" means an individual, association, firm,

partnership, corporation, limited liability company, and other

legal entity but not including a governmental subdivision, college,

or university.

(n) "Residential structure" means 1- and 2-family residential

dwellings, including detached 1- and 2-family dwellings and

multiple single-family dwellings not more than 3 stories in height

with a separate means of egress, and their accessory structures as

further described in R 408.30401 of the Michigan administrative

code.

Sec. 5. (1) There is created within the department a board of

commercial carpentry consisting of 9 residents of the state to be

appointed by the governor with the advice and consent of the

senate. Appointed members shall be not less than 18 years of age

and qualified in their respective fields. Of the members first

appointed, 3 members shall have a term of 2 years, 3 members shall

have a term of 3 years, and 3 members shall have a term of 4 years.

Appointed members of the board shall include all of the following:

(a) One member of organized labor representing carpentry

trades, who is licensed under this act.

(b) Two members of regional carpenter contractor associations

that are from diverse geographical locations and who are licensed

under this act.

(d) Two building inspectors affiliated with a governmental

subdivision.

(e) Two members licensed under this act.

(2) Except for the initial members, a member of the board

shall be appointed for a term of 4 years. A vacancy shall be filled

for the unexpired portion of the term. A member of the board may be

removed from office by the governor in accordance with section 10

of article V of the state constitution of 1963. A member of the

board who has a pecuniary interest in a matter shall disclose that

interest before the board takes action in the matter, which

disclosure shall be made a matter of record in the board's official

proceedings. Each member of the board shall receive travel and

actual expenses incurred by the member in the performance of his or

her duties as a member of the board.

(3) Travel or other expenses incurred by a member of a board

in the performance of an official function shall be payable by the

department pursuant to the standardized travel regulations of the

department of management and budget. A member of the board shall

not serve more than 2 consecutive terms.

(4) The board shall hold an organizational meeting within 60

days after the effective date of this act. At the first meeting of

each year, the board shall elect from its membership a chairperson,

vice-chairperson, and secretary. The chairperson, vice-chairperson,

and secretary shall be elected from those members appointed to the

board by the governor.

Sec. 7. (1) The board shall hold regular quarterly meetings.

Special meetings may be held at the call of the chairperson or 3

members of the board. Written notice of a special meeting shall be

mailed to each member not less than 12 days before the date of the

meeting.

(2) Five members of the board shall constitute a quorum for

the transaction of business. An approval, decision, or ruling of

the board shall not become effective unless approved by 2/3 of the

board members attending a meeting.

(3) The board may request a person to appear before the board

to advise the board regarding the implementation of this act.

(4) The business which the board performs shall be conducted

at a public meeting of the board held in compliance with the open

meetings act, 1976 PA 267, MCL 15.261 to 15.275, and public notice

of the time, date, and place of the meeting shall be given in the

manner required by that act.

(5) A writing prepared, owned, used, in the possession of, or

retained by the board in the performance of an official function

shall be made available to the public in compliance with the

freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.

Sec. 9. (1) Within 1 year after the effective date of this

act, the department, in consultation with the board, shall

promulgate rules pursuant to the administrative procedures act of

1969, 1969 PA 306, MCL 24.201 to 24.328, for the administration of

this act and to provide for 1 or more examinations and for

establishing a procedure for the registration of apprentices.

(2) Before an examination or other test required under this

act is administered, the department and the board, acting jointly,

shall review and approve the form and content of the examination or

other test.

(3) The board may approve an applicant in the appropriate

classification who demonstrates equivalent experience to that

prescribed under this act.

Sec. 11. (1) Upon the filing of an application on a form

prescribed by the department and payment of the examination fee

prescribed in section 23, the department shall conduct examinations

to establish the qualifications and competency of applicants

seeking licensure for the classification for which the application

is submitted and, except as otherwise provided, shall issue

licenses to those who pass the examinations or are otherwise

qualified and who pay the initial issuance fee.

(2) An applicant is not considered eligible for examination

unless the applicant is of good moral character, as defined and

determined under 1974 PA 381, MCL 338.41 to 338.47, and has

established, in a manner acceptable to the board, the experience

requirements, or equivalent, for the particular classification of

license.

Sec. 13. (1) A carpenter contractor license is classified and

limited to 1 or more of the following classifications:

(a) Exterior systems, which include the placement and

installation of roof covering membranes, except hot tar

applications; siding and gutters; exterior trim materials; and

window, screens, and sash installation.

(b) Finish and trim carpentry, which includes the installation

of molding and trim, such as door and window casings, mantles,

baseboard, and other types of ornamental work, and cabinet

installation and countertop installation.

of formwork used in concrete construction and foundation systems.

(d) Interior systems, which include the placement and

installation of office partition systems and related furniture;

drywall and other interior finish systems attached to wood or metal

framing systems; acoustical ceiling system; and insulation in

interior or exterior cavity systems for sound or thermal

protection.

(e) Rough carpentry, which includes framing with wood or light

gauge metal framing members to form walls, floor systems, or roof

framing systems that comprise the skeletal structure or framework

of buildings; formwork; roof construction concentrating on rafters,

beams, and trusses roofing; and other structural or other large-

scale work that need not be finely joined or polished in

appearance.

(2) The department shall not require a separate carpenter

contractor license for each classification for which the applicant

applies and shall not impose an additional and separate license fee

for each classification for which the license is issued.

(3) A carpenter contractor shall have at least 2 years'

experience as a licensed journey carpenter or have at least 1

journey carpenter who possesses not less than 2 years' experience

as a licensed journey carpenter residing in this state and who is

in his or her full-time employ. That journey carpenter shall be

actively in charge of, and responsible for, Michigan construction

code compliance of all installation performed by the carpenter

contractor.

Sec. 15. (1) The department shall issue a journey carpenter

license to a person not less than 19 years of age who does all of

the following:

(a) Files a completed application form provided by the

department.

(b) Pays the examination fee prescribed in section 23 and

passes the examination provided by the board and the department.

(d) Has not less than 6,000 hours of experience obtained over

a period of not less than 4 years related to carpentry under the

direct supervision of a licensed carpenter contractor.

(2) Upon failure to pass the journey examination 2 times

within a 2-year period, an applicant is ineligible to sit for

another examination until a period of not less than 1 year from the

date of failure of the second examination, at which time he or she

shall present to the board proof of the successful completion of a

course on the Michigan construction code, carpentry fundamentals,

or carpentry theory, as approved by the board, in order to be

eligible to again sit for an examination.

Sec. 17. (1) An individual employed as an apprentice carpenter

shall register with the department on a form provided by the

department within 30 days after the date of employment.

(2) An apprentice registration is invalid after 5 years from

the date of initial registration unless the registered apprentice

applies for and takes the examination for journey carpenter

license. The registration remains valid until either a license is

issued or the apprentice fails to take the journey carpenter exam.

(3) Upon request by the apprentice to the board, the board may

grant an extension of an apprentice registration for a period of

time as determined appropriate by the board.

(4) An apprentice carpenter shall, as his or her principal

occupation, be engaged in learning and assisting in the

installation of carpentry under the direct on-site jobsite

supervision of a journey carpenter with at least 2 years of

experience as a licensed journey carpenter.

Sec. 19. (1) Except as otherwise provided in this act or in

subsection (3), a person shall not engage in the business of being

a carpentry contractor unless the person has received from the

department a carpenter contractor license.

(2) Except as otherwise provided in this act or in subsection

(3), a person other than a person duly licensed under this act and

employed by and working under the direction of a holder of a

carpenter contractor license shall not in any manner engage in

carpentry. This subsection does not prevent an individual,

practicing within the scope of practice of his or her license or

registration, from performing incidental carpentry activities that

are within his or her scope of licensed or registered practice.

(3) This act does not require a carpentry license in a

facility that regularly employs a qualified maintenance crew to

perform within the facility carpentry work regulated by this act.

Sec. 21. (1) A person who, on the effective date of this act,

has been actively engaged in, or worked at, a business as a journey

carpenter or carpenter contractor in 1 or more of the

classifications and is required to be licensed under this act shall

be issued a license in a classification for which he or she is

qualified without taking an examination upon furnishing the

department with satisfactory evidence of having been engaged in a

business as a journey carpenter or carpenter contractor in 1 or

more of the classifications for a minimum of 3 out of the 5 years

immediately preceding the effective date of this act. The

application, accompanied by the appropriate license fee, shall be

submitted within 1 year after the effective date of this act.

(2) A person who on the effective date of this act is actively

engaged in carpentry and is licensed by a municipal licensing board

as a journey carpenter or carpenter contractor in 1 or more of the

classifications may furnish the department with satisfactory

evidence of the municipal license. The department shall issue to a

person complying with this subsection the license for which the

person seeks licensure and for which the person is qualified

without examination if the person applies within 1 year after the

effective date of this act and pays the initial license fee

prescribed in section 23.

(3) A person who on the effective date of this act is employed

as a code inspector for a governmental subdivision and has engaged

in, or worked at, a business as a journey carpenter or carpenter

contractor in 1 or more of the classifications for 3 out of the 5

years immediately preceding the date of the person's employment as

a code inspector may furnish the department with satisfactory

evidence of the employment and experience. The department shall

issue to a person complying with this subsection the license for

which the person seeks licensure and for which the person is

qualified without examination if the person applies within 1 year

after the effective date of this act and pays the initial license

fee prescribed in section 23.

(4) A person who on the effective date of this act is actively

engaged in carpentry and is licensed as a residential builder, or a

residential maintenance and alteration contractor in the trade of

carpentry or a related subject matter area, under section 2404 of

the occupational code, 1980 PA 299, MCL 339.2404, may furnish the

department with satisfactory evidence of the license and

documentation demonstrating experience in being actively engaged in

the construction business and carpentry under that license. The

department shall issue to a person complying with this subsection a

license as a journey carpenter or carpenter contractor without

examination if the person applies within 1 year after the effective

date of this act and pays the initial license fee prescribed in

section 23.

(5) The department shall license, without examination and upon

the payment of the initial license fee prescribed in section 23, an

applicant who is a legally authorized journey carpenter or

carpenter contractor in another state or country if the licensing

requirements of the state or country are considered by the board

and the department to be substantially equivalent to the licensing

requirements of this state and the state or country observes

reciprocity in regard to journey carpenters and carpenter

contractors licensed under this act.

(6) The holder of a license issued under this section may

renew the license pursuant to section 23.

(7) Beginning on the effective date of this act, a

governmental subdivision shall not establish or maintain local

licensing requirements for work classifications under this act. A

governmental subdivision shall not prohibit a carpenter contractor

licensed under this act from engaging in the work classifications

for which the carpenter contractor has a license, unless the

carpenter contractor is in violation of the Michigan construction

code.

Sec. 23. (1) The examination fee for a journey carpenter's or

carpenter contractor's license is $100.00. Except as otherwise

provided in subsection (2), the initial and per-year fee for the

issuance of a carpenter contractor license is $100.00, and $50.00

for a journey carpenter license. The initial and per-year

registration fee for an apprentice is $15.00. The department may

issue licenses for up to 3 years in duration.

(2) The fees in this subsection may be adjusted as follows:

(a) At the beginning of each state fiscal year, the

department, by order, may increase the fees collected in this

section by a percentage amount equal to not more than the average

percentage wage and salary increase granted for that fiscal year to

classified civil service employees employed by the department.

(b) If the department increases fees under subsection (1), the

increase shall be effective for that fiscal year. The increased

fees shall be used by the department as the basis for calculating

fee increases in subsequent fiscal years.

the director of the department of management and budget and the

chairpersons of the appropriations committees of the senate and

house of representatives a complete schedule of fees to be

collected under this section for the following fiscal year.

(3) An initial or renewal carpenter contractor's license

issued under this act expires on April 30 every third year after

April 30 of the year after the effective date of this act and is

renewable not later than June 30 upon application and payment of

the license fees prescribed in this section. For a person applying

for an initial or reinstatement carpenter contractor's license 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 pro rata basis

beginning in the year of the application until the last year of the

3-year license cycle. All licenses not renewed are void and may be

reinstated only upon application for reinstatement and the payment

of the license fee. A person who renews his or her license within 3

years after the license is voided pursuant to this section is not

subject to reexamination for the license.

(4) The department shall issue an initial or renewal license

not later than 90 days after the applicant files a completed

application. Receipt of the application is considered the date the

application is received by any agency or department of the state of

Michigan. If the application is considered incomplete by the

department, the department shall notify the applicant in writing,

or make the 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 upon notification by the department 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 and does not confer eligibility of an applicant

determined otherwise ineligible for issuance of a license.

(5) All fees and money received by the department for the

licensing of persons under this act, and any other income received

under this act, shall be paid into the state construction code fund

created by section 22 of the Stille-DeRossett-Hale single state

construction code act, 1972 PA 230, MCL 125.1522.

(6) If a license or registration is lost or destroyed, a new

license or registration shall be issued without examination, upon

payment of a $20.00 fee and a written statement made by the

licensee or registrant that the license or registration has been

lost or destroyed.

(7) A licensee or registrant shall report a change of address

within 60 days after the change. The failure of a licensee to

notify the department of a change of address does not extend the

expiration date of a license or registration.

(8) As used in this section, "completed application" means an

application complete on its face and submitted with any applicable

licensing fees as well as 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 the state of Michigan.

Sec. 25. (1) The department may investigate the activities of

a licensee related to the licensee's activities as a journey

carpenter or carpenter contractor based upon information and belief

that the licensee has violated this act or a rule promulgated under

this act. The department may hold administrative hearings,

administer oaths, and order relevant testimony to be taken and

shall report its findings to the board. The board shall proceed

under section 33 if the board finds that any of the following

grounds exist:

(a) The practice of fraud or deceit in obtaining a license

under this act.

(b) The practice of fraud or deceit in the performance of work

for which a license is required under this act.

(d) The practice of false advertising.

(e) An act which demonstrates incompetence.

(f) A violation of the Michigan construction code.

(g) A violation of this act or rule promulgated under this

act.

(2) 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, and may suspend or

revoke that person's license for a knowing violation of that act.

(3) A revocation, suspension, or other sanction set forth in

subsection (2) or section 35 shall be imposed only after an

opportunity for an administrative hearing pursuant to the

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

24.328.

(4) The installation, alteration, or servicing of carpentry

systems shall not be performed under a license that has been

suspended or revoked or has expired. A license, other than a

license issued under this act, shall not be presented for the

securing of permits to install, alter, or service carpentry

systems.

Sec. 27. (1) If a carpenter contractor is represented by a

licensed journey carpenter who ceases to represent the carpenter

contractor, the carpenter contractor has 30 days thereafter in

which to designate another licensed journey carpenter as the

representative of the carpenter contractor. The carpenter

contractor shall notify the department in writing of the change.

(2) If a carpenter contractor who is represented by a licensed

journey carpenter ceases to do business as a carpenter 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 journey carpenter license as the licensee of record for the

licensed carpenter contractor purchasing the business.

Sec. 29. A carpenter contractor licensed under this act who

performs work in a governmental subdivision shall register his or

her license with the enforcing agency that issues permits and

provides inspection services of the carpenter contractor's work.

The registration is valid until the expiration date of the

carpenter contractor's license. Registration shall be granted by

all governmental subdivisions in this state to a carpenter

contractor licensed under this act upon payment of a fee not to

exceed $15.00.

Sec. 31. A person licensed or registered under this act who

commits a violation of this act, or a person not licensed or

registered under this act who is performing any activity regulated

by this act and is not exempt from licensure or registration under

this act, is guilty of a misdemeanor punishable by a fine of not

less than $1,000.00 per day for each day the violation occurs

except that a fine shall not exceed $5,000.00 in total per

violation or punishable by imprisonment for not more than 93 days,

or both. A second or subsequent violation is punishable by a fine

of not less than $2,000.00 per day for each day the violation

occurs except that a fine shall not exceed $10,000.00 in total per

violation.

Sec. 33. After finding the existence of 1 or more of the

grounds for board action described in section 25(1) and after

having provided an opportunity for a hearing, the board, except as

provided in section 25(2), shall impose 1 or more of the following

sanctions on the license issued under this act for each violation:

(a) Suspension.

(b) Denial.

(d) Limitation.

(e) A requirement that restitution be made.

(f) An administrative fine of not more than $1,000.00 for a

first offense and $2,000.00 for a second or subsequent offense.

Sec. 35. If restitution is required to be made under section