HOUSE BILL No. 6416

September 10, 2008, Introduced by Rep. Farrah and referred to the Committee on Regulatory Reform.

 

     A bill to amend 1980 PA 299, entitled

 

"Occupational code,"

 

by amending section 2401 (MCL 339.2401), as amended by 1991 PA 166.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2401. As used in this article:

 

     (a) "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.

 

     (b) "Residential maintenance and alteration contractor" means

 

a person who, for a fixed sum, price, fee, percentage, valuable

 

consideration, or other compensation, other than wages for personal

 

labor only, undertakes with another for the repair, alteration, or

 

an addition to, subtraction from, improvement of, wrecking of, or

 

demolition of a residential structure or combination residential

 

and commercial structure, or building of a garage, or laying of

 

concrete on residential property, or who engages in the purchase,

 

substantial rehabilitation or improvement, and resale of a

 

residential structure, engaging in that activity on the same

 

structure more than twice in 1 calendar year, except in the

 

following instances:

 

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

 

     (ii) If the rehabilitation or improvement work of residential

 

type property or a structure is contracted for, with, or hired

 

entirely to be done and performed for the owner by a person

 

licensed under this article.

 

     (iii) If work is performed by a person employed by the owner to

 


perform work for which the person is licensed by the state.

 

     (c) "Residential structure" means 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.

 

     (d) "Salesperson" means an employee or agent, other than a

 

qualifying officer, of a licensed residential builder or

 

residential maintenance and alteration contractor, who for a

 

salary, wage, fee, percentage, commission, or other consideration,

 

sells or attempts to sell, negotiates or attempts to negotiate,

 

solicits for or attempts to solicit for, obtains or attempts to

 

obtain a contract or commitment for, or furnishes or attempts or

 

agrees to furnish, the goods and services of a residential builder

 

or residential maintenance and alteration contractor. , except a

 

Salesperson does not include either or both of the following:

 

     (i) 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.

 

     (ii) A person working for a retail building material supply

 

business who does any of the following:

 

     (A) Sells uninstalled building materials.

 

     (B) Sells building materials and extends service to the

 

customer, upon request, by providing a list, website listing, or

 

business cards of licensed residential builders or residential

 

maintenance and alteration contractors in the area who regularly

 

install building materials under circumstances where that person

 


does not receive a commission, fee, or other compensation from

 

those licensed residential builders and residential maintenance and

 

alteration contractors.

 

     (C) Sells building materials as part of a manufacturer's or

 

vendor's program necessitating installation to be performed by that

 

manufacturer or vendor for safety, technical, or specialization

 

purposes and includes the price of installation in the retail

 

product, resulting in a pass-through transaction where direct

 

compensation from the manufacturer or vendor to the seller does not

 

occur.

 

     (e) "Wages" means money paid or to be paid on an hourly or

 

daily basis by an owner, lessor, or occupant of a residential

 

structure or combination residential and commercial structure as

 

consideration for the performance of personal labor on the

 

structure by a person who does not perform or promise to perform

 

the labor for any other fixed sum, price, fee, percentage, valuable

 

consideration, or other compensation and who does not furnish or

 

agree to furnish the material or supplies required to be used in

 

the performance of the labor or an act defined in subdivision (a)

 

or (b).