Laws and Rules
What warrants the penalties set forth in article 6 in regards to complaints?
(a) Abandonment without legal excuse of a contract, construction project, or operation engaged in or undertaken by a license. (b) Diversion of funds or property received for prosecution or completion of a specific construction project or operation, or for any other construction project (c) Failure to account for or remit money coming into the persons possession that belongs to others (d) Willful departure from or disregard of plans or specification without consent of the owner. (e) Willful violation of the building laws of this state or political subdivision of this state (f) In a residential m&a contract, failure to furnish to a lender the purchaser's signed completion cert. executed upon completion of the work. (g) Failure to notify the department within 10 days of a major change in the company. (Name, partners, etc.) (h) Failure to deliver to the purchaser any documents they've signed. (i) A salesperson's failure to pay over immediately upon receipt money received. (j) Aiding or abetting an unlicensed person to evade the Occupational Code (k) A salesperson's acceptance of pay for the sale of goods or services from a person other than the residential builder (l) Becoming insolvent, filing bankruptcy action, becoming subject to a receivership, assigning for the benefit of creditors, etc. (m) Workmanship not meeting the standards of the residential code
What are the penalties for violating the Occupational Code
(a) Placement of a limitation on a license (b) Suspension of a license (c) Denial of a license (d) Revocation of a license (e) Only for licensee: Fine of not more than $10,000 (f) Censure (g) Probation (h) Requirement that restitution be made
Under what criteria can a person engage in the business or aft in the capacity of a residential builder/residential m&a contractor/salesperson.
(a) an authorized rep. of the US government, this state, or a county, township, city, or other political subdivision of this state (b) An owner of a property, working on a structure on the property for his/her own use and occupancy. (c) an owner of rental property (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 residential m&a contractor (f) A person working on 1 undertaking or project by 1 or more contracts for which the contract price for labor, material, and any other item is LESS THAN $600. This doesn't apply if the work of a construction is only part of a larger major operation.
Occupational Code penalties can be implemented for other violations. What are these violations?
(a) practicing fraud or deceit in obtaining a license or registration (b) practicing fraud, deceit, or dishonesty in practicing an occupation (c) violation of a rule of conduct of an occupation (d) Demonstrating a lack of good moral character (e) committing an. act of gross negligence in an occupation (f) False advertising (g) Committing an act which demonstrates incompetence (h) violating any other provision of the occupational code that doesn't have a penalty prescribed (i) Failing to comply with a subpoena (j) failing to respond to a citation (k) violating or failing to comply with a final order issued bu a board (l) Aiding or abetting another person in the unlicensed practice of an occupation.
What are the requirements for a builder or contractors place of business?
-Must be in this state -Must display the license and the license of all salespersons in a conspicuous position in the builder's or contractor's place of business
What is a licensee required to include in advertisements?
-Name -License number -Business Address
In regards to findings of fact and conclusions of law at a hearing, who makes the recommendations and who issues the fines?
-The presiding officer makes recommendations. -The board issues fines.
How many residential builders can a salesperson be licensed under?
1
Who attends an informal conference?
1 member of the board
How long is a passing score on the exam valid for?
1 year from the date the exam or portion of the exam was passed
How long does the department have to respond to the complainant's complaint?
15 days - written acknowledgment
If the department requests a sworn financial statement showing the your current financial status, how long do you have to submit it?
30 days
How long after receiving a cease and desist order is a written request for a hearing filed?
30 days after the effective date of the cease and desist order
How long is the term of a BOARD member?
4 years and not more than 2 consecutive terms
How long do you have to maintain documentation of activities meeting the continuing competency requirements?
5 Years
How long do you have to renew your license after the expiration date? what are the stipulations?
60 Days. Must pay license fee and late renewal fee.
If the notified board recieves a notification from the deparment for a limitation placed on a licensee, how long does the department have to approve/disapprove before the department can legally impose the limitation?
60 days (the licensee can appeal the limitation)
How many members make up the board?
9 Members- 6individuals who have a license or registration in the occupation which the board monitors and 3 general public. (4 Licensed Residential Builders, 2 Licensed Maintenance and Alteration Contractors, and 3 General Public. One of the GP is a Registered Building Official)
As a residential builder, what do you need to have at each place of business in this state?
A branch office license issued to the builder for each place of business maintained
What is the Bureau of Construction Codes?
A bureau under LARA responsible for construction code enforcement
Define "limitation"
A condition, stricture, constraint, restriction, or probation attached to a license
What is the rule on soliciting contracts by promising the purchaser money?
A licensee shall not solicit any contract for home improvements by a promise to the purchaser or the prospective purchaser of a bonus.
What happens if a licensee knowingly violates the asbestos abatement contractors licensing act?
A review is conducted upon notice that the licensee is in violation.
What is a prehearing conference?
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. They'll try to resolve it in the conference before the hearing
Define "Censure"
An expression of disapproval of someone's professional conduct
How often does the board have to meet?
As often as necessary, but not less than 2 times a year.
After 6 years of being licensed, what activities do you have to complete?
At least 3 hours of continuing competency: 1 hour of codes, 1 hour of safety, and 1 hour of legal issues.
What keyword is used to refer to LARA/department of commerce?
Department
What does LARA stand for? What are they responsible for?
Department of Licensing and Regulatory Affairs. They are responsible for licensing
How often does a license expire and on what date?
Every 3 years on May 31st.
T or F: The board 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/
False: The department handles licensing issues
T or F: A complaint shall be submitted in a form created by the licensee's lawyer
False: a complaint shall be submitted in a form specified by the department
When is a qualifying officer required?
If a license is applied for by a corporation, partnership, LLC, or other entity. QO must also obtain and maintain a license. QO should be in charge of money.
What is required of a nonresident applicant for licensure?
Maintenance of a place of business in Michigan
What does an alternative dispute resolution clause do?
Prevents the department from initiating a proceeding (circuit court) against a licensee. Both parties must undergo alternative dispute resolution before going to court. Clause must be in contract
What does a board implement?
RULES, to set the minimal standards of acceptable practice for an occupation for which the board is created.
What prevents a person/qualifying officer from imposing or taking any legal action to impose a lien on a real property?
That person was not licensed under the Occupational Code during the performance of the act or contract. (Can't lien a property if your not required to have a license)
What member of the board does not make fact findings at the hearing?
The 1 member of the board that attended an informal conference/participated in an investigation
At the conclusion of the hearing, who submits a determination of findings of fact and conclusions of law to the department?
The administrative law hearing examiner
What happens when a salesperson is discharged or terminated?
The builder or contractor returns the salesperson's license. The salesperson returns the identification card to the department within 5 days from the date of discharge or termination
Who issues a subpoena?
The circuit court
Who gets a copy of the hearing report?
The complainant and the respondent
What happens after a complaint is acknowledged?
The department conducts an investigation. After the investigation, the department can request that the attorney general petitions the circuit court to issue a subpoena.
What is an investigative conference?
The department, after investigation, may request a licensee to appear at such investigative conference in order to determine whether there is a cause for complaint which would require a hearing on, or dismissal of the complain.
Who submits the application for a salesperson license?
The employing builder or contractor
Who is the director of the DEPARTMENT appointed by?
The governor, with advice and consent of the senate
How does a nonresident of this state become a licensee under the Occupational Code?
The nonresident must 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.
What must happen for salesperson to change employment from 1 residential builder to another?
The their license must be forwarded to the department and application made for the transfer and issuance of a new license under the salesperson's new employer
What can the department, attorney general, and county prosecutor do with items seized and determined to be proceeds of a crime/ the instrumentality of a crime?
They can confiscate it based on the forfeiture provisions of chapter 47
What happens if a person fails to renew a license on or before the registration date?
They shall not practice the occupation, operate, or use the title after the expiration date printed on the license. A license or registration lapses on the day after the expiration date
T or F: A builder or contractor MUST keep and maintain a complete, accurate set of books and records which disclose the licensee's current financial conditions.
True
How long does a qualifying officer of a company have to notify the department in the event that they cease to be the qualifying officer?
Within 10 days of ceasing to be the qualifying officer.
If your license is suspended or revoked, how long do you have to surrender the license to the department?
Within 10 days of the date of suspension or revokation
How long after the receipt of a formal complaint does the respondent have to make their choice?
Within 15 days after the receipt of notice
How long must a complaint be made after the violation
Within 18 months
How long do. you have to report a change of name or address to the department? (referring to your individual builders license. Your actual name/address)
Within 30 days after the change occurs
How long does the investigation unit have to give a status report to the director of the department?
Within 30 days after the department receives the complaint
How long do you have to petition the department in writing for a review of a limitation placed on your license?
Within 30 days after the limitation is placed on the license
After receiving the hearing report, how long does the board have to meet and make a determination of the penalties?
Within 60 days of receiving the hearing report
What happens if you don't renew your license 3 years after the expiration date?
You must pass all or part of a required examination, complete continuing education requirements, or meet current education or training requirements.
Define "verified complaint"
a complaint in which all or a portion of the allegations have been confirmed by an affidavit of the state or local building official
After the applicant for licensure completes all requirements, what do they receive?
a license and identification card
Define "residential builder"
a person engaged in the construction of a residential structure or combination residential/commercial who, for compensation, undertakes with another for the erection, construction, replacement, repair, alteration, or addition to, subtraction from, improvement, wrecking of, or demolition of a structure other than for the person's own use and occupancy on the person's property.
Define "residential structure"
a premises used or intended to be used for a residence purpose and related facilities
Define "rule"
a rule promulgated under the Occupational Code. Rules are not laws
Define "salesperson"
an employee or agent, other than a qualifying officer, of a licensed residential builder or residential maintenance and alteration contractor, who for a pay, sells or attempts to sell, negotiates or attempts to negotiate, solicits for or attempts to obtain a contract or commitment for, or furnishes, 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 personal employment.
Define "physical dominion"
control and posession
Define "general public"
each individual residing in this state who is 18 years of age or older
Define "good moral character"
the propensity on the part of the person to serve the public in a licensed area in a fair, honest, and open manner.
Define "board"
the state residential builders and maintenance and alteration contractors board
Upon receipt of a valid and written complaint, how long does the licensee have to reply to the department, confirming or denying the justification of the complaint?
within 15 days from the receipt of the complaint
Define "complainant" and "respondent"
· A complainant is a person who has filed a complaint with the department alleging that a person has violated something under the occupational code. · A respondent is a person against whom a complaint has been filed
What actions does the department/ dept. of the attorney general prepare against the respondent if found guilty?
· A formal complaint · A cease and desist order · A notice of summary suspension · A citation · An informal conference
What kind of license restrictions are typically put on builders?
· A requirement that restitution be made or certain work be performed before a license or registration is issued, renewed, or reinstated · A requirement that a financial statement certified by a public accountant be filed with the department regularly · A requirement which assures a licensee's competence to perform his/her occupation. · A requirement that all contracts of a licensee be reviewed by an attorney · A requirement that a licensee has 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 · A requirement that a licensee deposit money received in an escrow account which can be disbursed only under certain conditions as determined by the licensee and another party · A requirement that a licensee file reports with the department at intervals determined by the department
What is an informal conference?
· After the issuance of a formal complaint, the department brings together the complainant and the respondent. At the informal conference, the department attempts to resolve the issue and may attempt to aid the parties in reaching a formal settlement or stipulation.
What choices are afforded to the respondent after being served a formal complaint?
· An opportunity to meet with the department to negotiate a settlement of the matter · If the respondent is a licensee, an opportunity to demonstrate compliance prior to holding a hearing. · An opportunity to proceed to a contested case hearing
What are the punishments for engaging in the practice of an occupation without a license issued by the department?
· First offense: a misdemeanor punishable by a fine between $5,000 - $25,000 or imprisonment for up to 1 year, or both. · Second offense: a misdemeanor punishable by a fine between $5,000 - $25,000, or imprisonment for up to 2 years, or both. · Offense that causes death or serious injury: a felony punishable by a fine between $5,000 - $25,000, or up to 4 years in prison, or both.
What are the duties of a BOARD
· The interpretation of a licensure or registration requirement of an article · The furnishing of aid in an investigation. · At the discretion of a board, a member of that board may attend an informal conference · A board shall assist the department in the implementation of the Occupational Code.
What conditions need to be met in the event that you fail to renew your license within the 60-day time period?
· You apply within 3 years after the expiration date of the last license · You pay an application processing fee, a late renewal fee, and a per year license fee for the upcoming licensure period. · Penalties and conditions imposed by disciplinary action in this state or any other jurisdiction have been satisfied.
