2005 Senate Bill 826 / 2006 Public Act 640

Increase unlicensed contractor penalties

Introduced in the Senate

Oct. 19, 2005

Introduced by Sen. Ray Basham (D-8)

To authorize criminal penalties of up to one year in jail and a $25,000 fine on a residential builder or alterations contractor who works without first obtaining a license from the state. The bill also authorizes the forfeiture and seizure of property from an unlicensed contractor, increases civil fines to up to $50,000, makes it easier for an affected person to sue for restitution, revises the duration of a residential contractors license to three years; and more.

Referred to the Committee on Economic Development, Small Business, and Regulatory Reform

May 23, 2006

Reported without amendment

With the recommendation that the substitute (S-2) be adopted and that the bill then pass.

June 7, 2006

Substitute offered

To replace the previous version of the bill with one that lowers the proposed civil fine from $50,000 to $25,000 for unlicensed contractors, does not include the three-year license provision, and revises various other details.

The substitute passed by voice vote

June 8, 2006

Passed in the Senate 36 to 0 (details)

To authorize criminal penalties of up to one year in jail and a $25,000 fine on a residential builder or alterations contractor who works without first obtaining a license from the state. The bill also authorizes the forfeiture and seizure of property from an unlicensed contractor, increases civil fines to up to $25,000, makes it easier for an affected person to sue for restitution, and more.

Received in the House

June 8, 2006

Referred to the Committee on Regulatory Reform

Dec. 14, 2006

Passed in the House 85 to 16 (details)

Signed by Gov. Jennifer Granholm

Dec. 30, 2006