Under Michigan Act 299, which situation would require a contractor to notify LARA within 30 days?
Correct Answer
C) Change of business address
Contractors must notify LARA within 30 days of any change in business address to maintain license compliance under Act 299.
Why This Is the Correct Answer
Michigan Act 299 requires contractors to notify LARA within 30 days of any change in business address. LARA must be able to contact licensees for regulatory purposes — notices, complaints, renewal reminders. An outdated address in LARA's system creates a breakdown in regulatory oversight.
Why the Other Options Are Wrong
Option A: Hiring a new employee
Hiring a new employee does not trigger the 30-day LARA notification requirement under Act 299. Employment decisions are internal business matters. While hiring affects other obligations (workers' comp, payroll taxes), it is not a reportable event under the contractor licensing statute.
Option B: Completing a project over $50,000
Completing a project over $50,000 does not require notification to LARA. There is no project-value reporting threshold under Act 299. This option is a distractor that tests whether candidates conflate contract value thresholds (common in other construction law contexts) with licensing notification rules.
Option D: Purchasing new equipment
Purchasing new equipment is not a reportable event under Act 299. Equipment acquisitions are operational business decisions that have no bearing on the contractor's license status or LARA's oversight responsibilities.
Memory Technique
LARA needs to reach you — so notify them when THEY can't find you. A change of address is exactly the kind of administrative change that directly affects LARA's ability to contact you. Think: 'If you move, LARA needs to know within 30 days.'
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