1.1 Michigan Skilled Trades Regulation Act (PA 407 of 2016 Article 8) & BCC Organization

Michigan Skilled Trades Regulation Act (PA 407 of 2016 Article 8) & BCC Organization

Roughly one in eight questions on any Michigan mechanical examination comes from law rather than from a code book. The PSI Mechanical Contractor Candidate Information Bulletin states the rule plainly: "All examinations include questions based on the law covering knowledge of the Skilled Trades Regulation Act, 2016 PA 407 and the Stille-DeRossett-Hall Single State Construction Code Act, 1972 PA 230." Both acts are open-book references you are allowed to bring, and both are free downloads from the Bureau of Construction Codes. Candidates who print and tab them pick up easy points; candidates who rely on memory lose them.

Before 2017, mechanical contracting in Michigan was governed by the Forbes Mechanical Contractors Act (1984 PA 192). The Legislature consolidated that act and several other standalone trade statutes into the Skilled Trades Regulation Act (Public Act 407 of 2016, MCL 339.5101 to 339.6133), effective April 4, 2017. PA 192 is now a former act; MCL 339.5805(1) refers to it that way when it carries the Board of Mechanical Rules forward into the new statute.

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How PA 407 Is Organized

PA 407 is a single act split into articles. General machinery sits in the early articles and each trade gets its own late article, so a question that mentions "the act" may be pointing at a general article rather than at Article 8.

Article 8 itself is short — ten sections — and it is worth knowing each one by subject:

• 339.5801 / 339.5803 — definitions.
• 339.5805 — board of mechanical rules.
• 339.5807 — work classification examination eligibility and the list of classifications.
• 339.5809 — who may perform the work; designation of a contractor of record.
• 339.5811 — local licensing requirements are preempted.
• 339.5813 — examination fee, license fee, expiration, and reinstatement.
• 339.5815 — replacing a contractor of record who leaves.
• 339.5817 — registering your license with a municipality.
• 339.5819 — the homeowner installation exception.

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LARA and the Bureau of Construction Codes

The Department of Licensing and Regulatory Affairs (LARA) is the executive agency; within LARA, the Bureau of Construction Codes (BCC) does the day-to-day work:

1. Licensing. Reviewing applications, verifying documented experience, approving candidates to test, and issuing and renewing licenses. Applications are reviewed in order of receipt and are good for one year from the date of first review; if you do not pass every required examination in that year, you reapply.
2. Code adoption. Administering the Stille-DeRossett-Hale Single State Construction Code Act (1972 PA 230, MCL 125.1501 et seq.) and promulgating the rules that adopt each model code with Michigan amendments. The 2021 Michigan Mechanical Code (Part 9a rules, adopting the 2021 IMC with amendments) took effect March 12, 2024; the 2015 Michigan Residential Code has been in effect since February 8, 2016; the 2021 Michigan Building Code took effect April 9, 2025; and the 2023 NEC took effect March 12, 2024.
3. Permits and inspections. Acting as the enforcing agency in governmental subdivisions that have not assumed local code administration.
4. Investigation and enforcement. Handling complaints and administrative discipline under Article 5.

Board of Mechanical Rules (MCL 339.5805, as modified by E.R.O. 2024-2)

The board is not an exam scorer; it is a rules body. Under MCL 339.5805(5) it may recommend to the state construction code commission the rules it considers necessary for the safe design, construction, installation, alteration, servicing, and inspection of systems regulated by the Michigan Mechanical Code.

The statute as written seats the state fire marshal (or designee) as a permanent member plus appointed residents of the state. Executive Reorganization Order No. 2024-2 (compiled at MCL 16.735) rightsized the board effective July 30, 2024: it reduced the appointed membership to eleven appointed members, revised the seat designations, and abolished the eight-member quorum requirement that had been in MCL 339.5805(4). Any study material that still describes a fifteen-member board with one seat per work classification is describing the pre-2024 structure.

The eleven appointed seats are now:

Appointed members must be at least 18 years old, and except for the public member must be qualified in their field. Note that the appointed members are also required by MCL 339.5805(3) to elect a vice-chairperson and secretary each year, while the governor designates the chairperson.

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Examinations: PSI, Format, and the 75% Rule

BCC contracts with PSI Services LLC to schedule and proctor the examinations, but PSI does not write them. LARA states that "while PSI schedules and proctors the exams, the exams are created by the professional staff of the Bureau of Construction Codes and are based on the appropriate code, law, and rules governing the trade." You cannot register with PSI until BCC approves your application and sends you a notification with scheduling instructions.

Passing standard

Mich. Admin. Code R 339.5114 is one sentence: "A score of 75% is required to pass the written examination." Applied to the two exam lengths:

The four service classifications — limited heating service, unlimited heating service, limited refrigeration and air conditioning service, and unlimited refrigeration and air conditioning service — are closed-book examinations. Every other classification, including HVAC Equipment, is open book, and all reference material brought into the room must be bound; material printed from the BCC website must be bound with three staples along the left edge and must be free of highlights and handwritten notes.

Fees and retakes

Examination fees are paid to PSI at scheduling, not to the State of Michigan:

• HVAC Equipment: $100. Every other classification: $50.
• MCL 339.5813(1) sets the statutory ceiling: "Each work classification examination fee for a mechanical contractor's license is $100.00 or less, as determined by the department."
• Fees are not refundable or transferable and are valid for one year from the date of payment.
• You must pass within one year of the eligibility date, but within that year you may retest an unlimited number of times.
• Extra time (time and one-half) is available as an alternative test delivery arrangement for an additional $50 per examination.

Testing is delivered at five PSI centers: Dearborn, Holt-Lansing, Grand Rapids, Gaylord, and Marquette. Cancel at least 2 days before the appointment or the fee is forfeited; a voice mail or email is not an acceptable cancellation.

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License Term, Fees, and Reinstatement (MCL 339.5813)

MCL 339.5813(2) is the section to tab. Its rules are precise and are a favorite exam target:

• A mechanical contractor license expires on August 31 every third year.
• It is renewable by filing an application and paying the license fee on or before October 31.
• The license fee is $100 initial and per year, so a full three-year cycle is $300. LARA's application also charges $300 to add a classification in the first year of a cycle, $200 in the second year, and $100 in the third.
• An initial license or a relicensure issued at any other time is prorated on a yearly basis from the year of application to the last year of the cycle. A renewal license is never prorated.
• A license that is not renewed is void for the purpose of obtaining a permit, and the contractor must apply for reinstatement and pay the license fee.
• An individual who renews within 3 years after the license is voided is not subject to reexamination.

Article 4 adds the general machinery: MCL 339.5411 permits renewal within 60 days after the expiration date by paying the license fee plus a late renewal fee, and MCL 339.5417 waives the initial license fee for qualifying veterans and their dependents. Article 8 contains no continuing education section, so verify current renewal instructions with BCC rather than assuming a CE requirement carried over from the residential builder program.

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Enforcement: Article 6 Penalties and Article 5 Sanctions

Michigan splits enforcement into a criminal track handled by prosecutors and an administrative track handled by the department. Candidates routinely mix up the two.

Criminal — MCL 339.5601 (Article 6)

Section 601(1) prohibits engaging in or attempting to engage in a regulated occupation without a license. A person whose license is suspended, revoked, or lapsed is considered unlicensed under subsection (2). The penalties escalate sharply:

The statute says "not more than," so these are ceilings, not minimums. Section 601 also authorizes restitution, allows an affected person to seek injunctive relief (with actual costs and attorney fees if successful), and sets out the stop construction order procedure: the enforcing agency gives written notice, the permit holder has one full working day to show cause, and if the order is not obeyed the agency may seek a circuit court injunction. Convictions must be reported to the department by the court.

Administrative — MCL 339.5603 and 339.5511 (Articles 6 and 5)

If a person violates the act, a rule, or an order, MCL 339.5603 directs the department to assess one or more of: limitation of a license, suspension, denial of a license or renewal, revocation, an administrative fine of not more than $10,000.00 payable to the department (for a person licensed under the act), censure, probation, or restitution proven at a contested case hearing.

MCL 339.5511 lets the director, after an investigation, order a person to cease and desist. The person is entitled to a hearing if a written request is filed within 30 days after the order's effective date, and the attorney general may go to circuit court to enjoin a violation of the order.

Keep the two numbers separate: $25,000 is the third-offense criminal felony ceiling in Section 601; $10,000 is the administrative fine ceiling in Section 603.

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Three Jurisdiction Rules Worth Memorizing

1. Local licensing is preempted (MCL 339.5811). A municipality "shall not establish or maintain local licensing requirements" for the Article 8 work classifications, and a governmental subdivision may not bar a licensed mechanical contractor from doing the work the license covers.
2. Local registration is still required (MCL 339.5817). A licensed mechanical contractor who performs work in a municipality must register the license with the enforcing agency that issues permits there. The registration lasts until the license expires, and the municipality's fee may not exceed $15.00.
3. Homeowners have a narrow exception (MCL 339.5819). The owner of a single-family dwelling that is or will become his or her residence may personally install a heating or refrigerating system in that dwelling, provided the permit application affirms owner-occupancy, the required permits are secured from the municipal enforcing agency, and the required inspection is obtained after the equipment is placed in operation. There is no equivalent exception for rental property, multi-family buildings, or commercial work.