SECONDREGULARSESSION HOUSEBILLNO.2050 101STGENERALASSEMBLY INTRODUCEDBYREPRESENTATIVESCHROER. 4496H.01I DANARADEMANMILLER,ChiefClerk ANACT Toamendchapter324,RSMo,byaddingtheretoelevennewsectionsrelatingtostatewide mechanicalcontractorlicenses,withpenaltyprovisions. BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows: SectionA.Chapter324,RSMo,isamendedbyaddingtheretoelevennewsections,to 2beknownassections324.950,324.953,324.956,324.959,324.962,324.965,324.968, 3324.971,324.977,324.980,and324.983,toreadasfollows: 324.950.1.Sections324.950to324.983shallbeknownandmaybecitedasthe 2"MissouriStatewideMechanicalContractorLicensingAct". 3 2.Asusedinsections324.950to324.983,unlessthecontextclearlyindicates 4otherwise,thefollowingtermsshallmean: 5 (1)"Division",thedivisionofprofessionalregistrationwithinthedepartmentof 6commerceandinsurance; 7 (2)"Fieldemployee",anypersonwhoisanemployeeofamechanicalcontractor 8andisengagedinmechanicalworkatajobsitewithinMissouri; 9 (3)"Licenseholder",anypersonwhoisgrantedastatewidemechanical 10contractorlicensebythedivision; 11 (4)"Locallicense",avalidbusinessoroccupationallicenseissuedbyaMissouri 12politicalsubdivision; 13 (5)"Mechanicalcontractor",acompanyengagedinmechanicalcontracting 14workpertheInternationalCodeCouncil(ICC)andNationalFireProtection 15Association(NFPA),includingthedesign,installation,maintenance,construction, 16alteration,repair,orinspectionofany: EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 17 (a)HVACsystem; 18 (b)HVACductsystem; 19 (c)Exhaustsystems; 20 (d)Combustionairormakeupair; 21 (e)Chimneysandvents; 22 (f)HydronicpipingsystemsthatarepartofanHVACsystem; 23 (g)Boilers,waterheaters,andpressurevessels; 24 (h)Processpipingsystems; 25 (i)Fuelgasdistributionpiping; 26 (j)Fuelgas-fired,fuel,andoil-firedappliances; 27 (k)Fueloilpipingandstoragevessels; 28 (l)Fuelgas-firedandfueloil-firedapplianceventingsystems; 29 (m)Equipmentandappliancesintendedtoutilizesolarenergyforspaceheating 30orcooling; 31 (n)Domestichotwaterheating,swimmingpoolheating,orprocessheating; 32 (o)Refrigerationsystems,includingallequipmentandcomponentsthereof; 33 (p)Backflowpreventers; 34 (q)Medicalgaspiping; 35 (r)Air,oxygen,andvacuumpiping; 36 (s)Firesuppressionsystems;and 37 (t)Chillersandcoolingtowers. 38 39Forpurposesofthissubdivision,theterm"mechanicalcontractingwork"shallnot 40includethedesign,service,maintenance,installation,orinspectionofsolid-fuelorgas- 41fueledhearthappliances,suchaswoodstovesandfireplaces,includingmanufacturer- 42specifiedventingsystems,fireplacechimneys,outdoorcookingapplianceswith 43manufacturer-specifiedventingsystems,outdoorfireplaces,andoutdoorfirepits. 44Additionalcertificationmayberequiredbythedivisionforaparticularscopeof 45mechanicalwork; 46 (6)"Office",theofficeofmechanicalcontractorswithinthedivisionof 47professionalregistration; 48 (7)"Person",anindividual,corporation,partnership,association,orotherlegal 49entity; 50 (8)"Statewidemechanicalcontractorlicense",avalidlicenseissuedbythe 51divisionthatallowsthemechanicalcontractorandanyofitsemployeesor 52manufacturers'representativesorsubcontractorstopracticeinanyjurisdictionin 53Missouriregardlessoflocallicensingrequirements. HB2050 2 324.953.1.Thedivisionshalladopt,implement,rescind,amend,andadminister 2suchrulesasmaybenecessarytocarryouttheprovisionsofsections324.950to324.983. 3Thedivisionmaypromulgatenecessaryrulesauthorizedorasrequiredtoexplainor 4clarifysections324.950to324.983including,butnotlimitedto,rulesrelatingto 5professionalconduct,continuingcompetencyrequirementsfortherenewaloflicenses, 6approvalofcontinuingcompetencyprograms,fees,andtheestablishmentofethical 7standardsofbusinesspracticeforpersonsholdingalicenseundersections324.950to 8324.983.Anyruleorportionofarule,asthattermisdefinedinsection536.010,thatis 9createdundertheauthoritydelegatedinthissectionshallbecomeeffectiveonlyifit 10complieswithandissubjecttoalloftheprovisionsofchapter536and,ifapplicable, 11section536.028.Thissectionandchapter536arenonseverable,andifanyofthepowers 12vestedwiththegeneralassemblypursuanttochapter536toreview,todelaythe 13effectivedate,ortodisapproveandannularulearesubsequentlyheldunconstitutional, 14thenthegrantofrulemakingauthorityandanyruleproposedoradoptedafterAugust 1528,2022,shallbeinvalidandvoid. 16 2.Forthepurposeofsections324.950to324.983,thedivisionshall: 17 (1)Establishallapplicablefees,setatanamountthatshallnotsubstantially 18exceedthecostofadministeringsections324.950to324.983;and 19 (2)Depositallfeescollectedundersections324.950to324.983bytransmitting 20suchfundstothedepartmentofrevenuefordeposittothestatetreasurytothecreditof 21theMissourimechanicalcontractorlicensingfund. 22 3.Nothinginsections324.950to324.983shallapplytoanycertificationrequired 23byregulationadoptedundersubdivision(3)ofsubsection13ofsection323.025. 324.956.Thereisherebycreatedthe"OfficeofMechanicalContractors"tobe 2housedwithinthedivisionofprofessionalregistration.Thedivisionshall: 3 (1)Employ,withinthelimitsofthefundsappropriated,personsasarenecessary 4tocarryouttheprovisionsofsections324.950to324.983,includingbothadministrative 5andprofessionalstaffandlegalcounsel,withthediscretiontohireexpertsinmechanical 6contractingtoadvisethedivisionontechnicalmattersrelatedtomechanical 7contracting; 8 (2)Exerciseallbudgeting,purchasing,reporting,andrelatedmanagement 9functions; 10 (3)Conductinvestigationstodeterminecompliancewithsections324.950to 11324.983;and 12 (4)Filesuitinitsownnameonbehalfoftheofficetoenforcetheprovisionsof 13sections324.950to324.983. HB2050 3 324.959.1.Theapplicantforastatewidemechanicalcontractorlicenseshall 2satisfythefollowingrequirements: 3 (1)Beatleasttwenty-oneyearsofage; 4 (2)Provideproofofliabilityinsuranceintheamountofonemilliondollarsand 5postbondwitheachpoliticalsubdivisioninwhichheorshewillperformworkas 6requiredbythatpoliticalsubdivision.Ifapoliticalsubdivisionrequiresanylicense 7holdertobenamedonadocumentincluding,butnotlimitedto,thebond,thelicense 8holderofthemechanicalcontractorshallbeallowedtoprovideservicesinthepolitical 9subdivision; 10 (3)Pass: 11 (a)Astandardizedmechanicalassessmenttestnationallyofferedby: 12 a.TheInternationalCodeCouncil; 13 b.Prometric;or 14 c.TheInternationalAssociationofPlumbingandMechanicalOfficials 15(IAPMO);or 16 (b)Atestsimilartoanytestdescribedinparagraph(a)ofthissubdivisionthatis 17administeredbyanindependentprofessionaltestingagencynotaffiliatedwithany 18politicalsubdivisionorthestateofMissouriandthatisapprovedbythedivision; 19 (4)Payforallcostsassociatedwiththetestsdescribedinsubdivision(3)ofthis 20subsection; 21 (5)Completetheapplicationformprovidedbythedivisionandpayany 22applicableapplicationfees;and 23 (6)Havecompletedseventhousandfivehundredhoursofverifiablefield 24experienceinmechanicalcontractingworkorabachelor'sorfurtheradvanceddegree 25inmechanicalorcivilengineeringfromanaccreditedcollegeoruniversitywitha 26minimumofthreeyearsofverifiableexperiencedirectingandsupervisingatleastone 27fieldemployee. 28 2.Anyapplicantforlicensurewhoholdsalocallicenseorotherlicense 29authorizinghimorhertoengageinmechanicalcontracting,whohasseventhousand 30fivehundredhoursofverifiablefieldexperienceinmechanicalcontractingwork,and 31whoisotherwiseeligibleforlicensureshallbeissuedastatewidemechanicalcontractor 32license.Theprovisionsofthissubsectionshallapplyonlytolicensesissuedbyapolitical 33subdivisionwiththelegalauthoritytoissuesuchlicenses. 34 3.Ifacorporation,firm,institution,organization,company,orrepresentative 35thereofdesirestoengageinmechanicalcontractingundersections324.950to324.983,it 36shallhaveinitsemployatleastonestatewidelicenseholderinaccordancewithsections 37324.950to324.983.Astatewidemechanicalcontractorlicenseholdershallrepresent HB2050 4 38onlyonecorporation,firm,institution,organization,orcompanyatonetime.A 39mechanicalcontractorshallhaveonelicenseholderresponsibleforofferingMissouri- 40basedfieldemployeeseightcontacthoursofindustrytrainingperyear,andsuch 41mechanicalcontractorshallberesponsibleforprovidingproofoftrainingtothedivision 42uponrequest.Intheeventofalossofalicenseholder,amechanicalcontractorshall 43remainingoodstandingwiththedivisionforsixmonthsafternotifyingthedivisionof 44thechangeinstatus.Withinthesix-monthperiod,anewlicenseholdershallbe 45registeredwiththedivision.Ifnolicenseholderisregisteredwithinsuchsix-month 46period,thedivisionshalldeclarethemechanicalcontractorinactive. 47 4.Thedivisionmayissueastatewidemechanicalcontractorlicensetoany 48personwhoholdsacurrentandactivelicensetoengageinthepracticeofamechanical 49contractororasamasterpipefitterormasterplumberissuedbyanyotherstate,the 50DistrictofColumbia,oranyterritoryoftheUnitedStatesthatrequiresstandardsfor 51licensure,registration,orcertificationconsideredtobeequivalentormorestringent 52thantherequirementsforlicensureundersections324.950to324.983. 53 5.Wherethecontactinformationofamechanicalcontractor'semployeesis 54requiredtofulfilltheobligationsofalicense,suchcontactinformationshallbe 55consideredatradesecretandthereforenotapublicrecordunderchapter610. 324.962.1.Politicalsubdivisionsshallnotbeprohibitedfromestablishingtheir 2ownlocalmechanicalcontractor'slicensebutshallrecognizeastatewidelicenseinlieu 3ofalocallicenseforthepurposesofperformingcontractingworkorobtainingpermits 4toperformworkwithinsuchpoliticalsubdivision.Nopoliticalsubdivisionshallrequire 5theemployeesofastatewidelicensedmechanicalcontractororitssubcontractors'or 6manufacturers'representativestoobtainjourneymanlicenses,apprenticelicenses,or 7occupationlicensesthatrequirepassinganyexaminationoranyspecialrequirementsto 8assessproficiencyormasteryofthemechanicaltrade.Theworkforceofastatewide 9licenseeshallbedeemedeligibletoperformmechanicalcontractingworkandtoobtain 10permitstoperformsuchworkfromanypoliticalsubdivisionwithinthestateof 11Missouri. 12 2.Ifapoliticalsubdivisiondoesnotrecognizeastatewidelicenseinlieuofalocal 13licenseforthepurposesofperformingcontractingworkorobtainingpermitsto 14performworkwithinthepoliticalsubdivision,astatewidemechanicalcontractor 15licenseemayfileacomplaintwiththedivision.Thedivisionshallperforman 16investigationintothecomplaint,andifthedivisionfindsthatthepoliticalsubdivision 17failedtorecognizeastatewidelicenseinaccordancewiththissection,thedivisionshall 18notifythepoliticalsubdivisionthatthepoliticalsubdivisionhasviolatedtheprovisions 19ofthissectionandhasthirtydaystocomplywiththissection.Ifafterthirtydaysthe HB2050 5 20politicalsubdivisionstilldoesnotrecognizeastatewidelicense,thedivisionshallnotify 21thedirectorofthedepartmentofrevenue,whoshallwithholdanymoneysthe 22noncompliantpoliticalsubdivisionwouldotherwisebeentitledtofromlocalsalestax,as 23definedinsection32.085,untilthedirectorhasreceivednoticefromthedivisionthatthe 24politicalsubdivisionisincompliancewiththissection.Uponthepoliticalsubdivision 25comingintocompliancewiththeprovisionsofthissection,thedivisionshallnotifythe 26directorofthedepartmentofrevenue,whoshalldisburseallfundsheldunderthis 27subsection.Moneysheldbythedirectorofthedepartmentofrevenueunderthis 28subsectionshallnotbedeemedtobestatefundsandshallnotbecommingledwithany 29fundsofthestate. 30 3.Theprovisionsofthissectionshallnotprohibitanypoliticalsubdivisionin 31thisstatefrom: 32 (1)Enforcinganytechnicalcodeorlawcontainedinthissection; 33 (2)Requiringabusinesslicensetoperformmechanicalcontractingwork; 34 (3)Issuingmechanicalcontractingpermits; 35 (4)Enforcingtechnicalcodesofthepoliticalsubdivision;or 36 (5)Inspectingtheworkofastatewidemechanicalcontractor. 37 4.Politicalsubdivisionsthatdonothavetheauthoritytoissueorrequire 38mechanicalcontractorlicensespriortoAugust28,2022,shallnotbegrantedsuch 39authorityundertheprovisionsofthissection. 324.965.Thereisherebycreatedinthestatetreasurythe"MissouriMechanical 2ContractorLicensingFund",whichshallconsistofmoneyscollectedundersections 3324.950to324.983.Thestatetreasurershallbecustodianofthefundandmayapprove 4disbursementsfromthefundinaccordancewithsections30.170and30.180.Upon 5appropriation,moneysinthefundshallbeusedsolelyfortheadministrationofsections 6324.950to324.983.Theprovisionsofsection33.080tothecontrarynotwithstanding, 7moneysinthisfundshallnotbetransferredandplacedtothecreditofgeneralrevenue 8untiltheamountinthefundattheendofthebienniumexceedsthreetimestheamount 9oftheappropriationfromthefundfortheprecedingfiscalyear.Theamount,ifany,in 10thefundthatshalllapseisthatamountinthefundthatexceedstheappropriatemultiple 11oftheappropriationsfromthefundfortheprecedingfiscalyear.Thestatetreasurer 12shallinvestmoneysinthefundinthesamemannerasotherfundsareinvested.Any 13interestandmoneysearnedonsuchinvestmentsshallbecreditedtothefund. 324.968.1.Licensesshallexpireonarenewaldateestablishedbythedivision. 2Thetermoflicensureshallbetwenty-fourmonths.Thedivisionshallmailarenewal 3noticetothelastknownaddressofeachpersonlicensedundersections324.950to 4324.983priortotherenewaldate.Failuretoprovidethedivisionwiththeinformation HB2050 6 5requiredforrenewalortopaytherequiredfeeaftersuchnoticeshallresultinthe 6licensebeingdeclaredinactive.Thelicenseeshallnotpracticeuntilheorsheappliesfor 7reinstatementandpaystherequiredfees.Thelicenseshallberestorediftheapplication 8forreinstatementisreceivedwithintwoyearsoftherenewaldate. 9 2.Inadditiontootherrequirementsprovidedbysections324.950to324.983and 10establishedbythedivision,inordertorenewsuchlicenseunderthissection,theperson 11shallhaveatleastsixteencontacthoursofindustry-relatedtraining. 324.971.Anypersonoperatingasamechanicalcontractorinapolitical 2subdivisionthatdoesnotrequirethemechanicalcontractortoholdalocallicense,or 3whooperatesasamechanicalcontractorinapoliticalsubdivisionthatrequiresalocal 4licensepossessedbythatperson,shallnotberequiredtopossessastatewidelicense 5undersections324.950to324.983tooperateasamechanicalcontractorinsuchpolitical 6subdivision. 324.977.Thestatewidemechanicalcontractorlicenseshallberegulatedbythe 2divisionofprofessionalregistrationandnotastate-appointedlicensingboard. 324.980.1.Thedivisionmayrefusetoissueastatewidemechanicalcontractor 2licenseforoneoranycombinationofcausesstatedinsubsection2ofthissection.The 3divisionshallnotifytheapplicantinwritingofthereasonsfortherefusalandshall 4advisetheapplicantofhisorherrighttofileacomplaintwiththeadministrative 5hearingcommissionasprovidedbychapter621. 6 2.Thedivisionmaycauseacomplainttobefiledwiththeadministrativehearing 7commissionasprovidedbychapter621againstanylicenseholderoranypersonwho 8hasfailedtoreneworhassurrenderedhisorherlicenseforanyoneoranycombination 9ofthefollowingcauses: 10 (1)Useofanycontrolledsubstance,asdefinedinchapter195,oralcoholic 11beveragetoanextentthatsuchuseimpairsaperson'sabilitytoperformtheworkof 12anyprofessionlicensedorregulatedbysections324.950to324.983; 13 (2)Thepersonhasbeenfinallyadjudicatedandfoundguilty,orenteredapleaof 14guiltyornolocontendere,inacriminalprosecutionunderthelawsofanystate,ofthe 15UnitedStates,orofanycountryforanyoffensedirectlyrelatedtothedutiesand 16responsibilitiesoftheoccupation,assetforthinsection324.012,regardlessofwhethera 17sentenceisimposed; 18 (3)Useoffraud,deception,misrepresentation,orbriberyinsecuringanylicense 19issuedundersections324.950to324.983orinobtainingpermissiontotakeany 20examinationgivenorrequiredundersections324.950to324.983; 21 (4)Obtainingorattemptingtoobtainanyfee,charge,tuition,orother 22compensationbyfraud,deception,ormisrepresentation; HB2050 7 23 (5)Incompetency,misconduct,grossnegligence,fraud,misrepresentation,or 24dishonestyintheperformanceofthefunctionsordutiesofanyprofessionlicensedor 25regulatedbysections324.950to324.983; 26 (6)Violationof,orassistingorenablinganypersontoviolate,anyprovisionof 27sections324.950to324.983,orofanylawfulruleorregulationadoptedthereunder; 28 (7)Impersonationofanypersonholdingastatewidemechanicalcontractor 29licenseorallowinganypersontousehisorherlicenseordiplomafromanyschool; 30 (8)Disciplinaryactionagainsttheholderofalicenseorotherrighttopractice 31anyprofessionregulatedbysections324.950to324.983grantedbyanotherpolitical 32subdivision,state,territory,federalagency,orcountryupongroundsforwhich 33revocationorsuspensionisauthorizedinthisstate; 34 (9)Apersonisfinallyadjudgedmentallyincompetentbyacourtofcompetent 35jurisdiction; 36 (10)Assistingorenablinganypersontopracticeoroffertopracticeany 37professionlicensedorregulatedbysections324.950to324.983whoisnotlicensedand 38currentlyeligibletopracticethereunderintheparticularjurisdiction; 39 (11)Issuanceofalicensebaseduponamaterialmistakeoffact; 40 (12)Failuretomaintainliabilitycoverageasrequiredforinitiallicensure; 41 (13)Violationofanyprofessionaltrustorconfidence; 42 (14)Useofanyadvertisementorsolicitationthatisfalse,misleading,or 43deceptivetothegeneralpublicorpersonstowhomtheadvertisementorsolicitationis 44primarilydirected;or 45 (15)Failuretopostbondasrequiredbyanylocaljurisdiction. 46 3.Afterthefilingofsuchcomplaint,theproceedingsshallbeconductedin 47accordancewiththeprovisionsofchapter621.Uponafindingbytheadministrative 48hearingcommissionthatthegroundsprovidedinsubsection2ofthissectionfor 49disciplinaryactionaremet,thedivisionmay,singlyorincombination,censureorplace 50thepersonnamedinthecomplaintonprobationonsuchtermsandconditionsasthe 51divisiondeemsappropriateforaperiodnottoexceedfiveyears,ormaysuspend,fora 52periodnottoexceedthreeyears,orrevokeanylicenseissuedundersections324.950to 53324.983. 54 4.Anindividualwhoselicensehasbeenrevokedshallwaitthreeyearsfromthe 55dateofrevocationtoapplyforanylicenseundersections324.950to324.983.Any 56licenseshallbeissuedatthediscretionofthedivisionaftercompliancewithallthe 57requirementsofsections324.950to324.983relativetothelicensingorregistrationofthe 58applicantforthefirsttime. HB2050 8 59 5.Thedivisionmayfilesuittoenforcecomplianceandshallhavetheauthority 60toseekinjunctionsandrestrainingorderstoenjoinanypersonfrom: 61 (1)Offeringtoengageorengagingintheperformanceofanyactsorpractices 62forwhichalicenseisrequireduponashowingthatsuchactsorpracticeswere 63performedorofferedtobeperformedwithoutalicense; 64 (2)Engaginginthepracticeofbusinessauthorizedbyalicenseissuedundera 65buildingtradescontractorlawuponashowingthatthelicenseholderpresentsa 66substantialprobabilityofseriousharmtothehealth,safety,orwelfareofanyresidentof 67thisstateorownerorlesseeofrealpropertywithinthisstate;or 68 (3)Refusingtorecognizeastatewidelicenseasavalidlicensewithinanypolitical 69subdivision,requiringjourneymenorapprenticestobeindividuallylicensed,or 70requiringsubcontractors'andmanufacturers'representativesorothermembersofthe 71contractor'sworkforcetobelicensed. 72 6.Thedivisionmayassessfinesforviolationsofanyoftheprovisionsofsections 73324.950to324.983inanamountnottoexceedfivethousanddollarsperoccurrence 74uponajudicialoradministrativefindingofviolationoflaw. 75 7.Thedivisionmaycompeltheproductionofdocuments,things,orpersonsby 76subpoena. 77 8.Thedivisionmayreferanyviolationsoftheprovisionsofanystatelaworlocal 78ordinancerelatingtotheworkperformedbyalicenseetotheappropriatestateorlocal 79official. 324.983.1.Anypersonwhoknowinglyviolatesanyprovisionofsections324.950 2to324.983isguiltyofaclassBmisdemeanor. 3 2.Anyofficeroragentofacorporationormemberoragentofapartnershipor 4associationwhoknowinglyandpersonallyparticipatesinorisanaccessorytoany 5violationofsections324.950to324.983isguiltyofaclassBmisdemeanor. 6 3.Thedivisionmayfilesuitforanyviolationofsections324.950to324.983in 7anycourtofcompetentjurisdictionandperformsuchotheractsasmaybenecessaryto 8enforcetheprovisionsofsections324.950to324.983. ✔ HB2050 9