December 21, 2007

LANSING - Governor Jennifer M. Granholm has signed into law new legislation that will regulate the homebuilding industry, providing more consumer protection from unlicensed building activity and unscrupulous contractors.

"When you're building or remodeling a home, you shouldn't have to deal with crooks and con artists," Granholm said.  "This legislation will protect citizens and their pocketbooks."

The legislation signed by Granholm on Thursday substantially increases penalties for violations of the law and serves as a significant deterrent to unlicensed activity.  Specifically, the new laws increase the competence standards of residential builders and create an enforcement fund to address problems created by unscrupulous contractors who prey on the public.  Under the laws, penalties for unlicensed activity are substantially increased.  All violations will now be at least reportable misdemeanors, and violations that result in death or serious injury are felonies.  Potential jail time increases, and fines are set at a minimum of $5,000 and a maximum of $25,000.  Restitution is required for any violation of the laws.  The laws also put into place more stringent licensing and continuing education requirements for residential builders. 

Current Michigan law requires residential builders to be licensed by the Department of Labor & Economic Growth (DLEG).  The department also regularly advises consumers to exercise caution and know the risks in selecting a builder, according to DLEG Director Keith W. Cooley.

"Residents should always get estimates and ask a prospective builder for a copy of his or her license and references before entering into a contract," said Cooley.  "These new laws will protect Michigan citizens from bad builders and unfair business practices."

The new laws are PA 155/SB 450, PA 156/SB 451, PA 157/SB 452, and PA 158/SB 453.

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