Which Michigan agency regulates contractor licensing and enforcement?
Correct Answer
B) LARA (Licensing and Regulatory Affairs)
LARA (Licensing and Regulatory Affairs) is the Michigan agency responsible for contractor licensing, regulation, and enforcement under Act 299.
Why This Is the Correct Answer
LARA — the Department of Licensing and Regulatory Affairs — is the Michigan state agency that administers and enforces contractor licensing under Act 299. LARA issues licenses, investigates complaints, imposes disciplinary actions, and oversees continuing education compliance for contractors.
Why the Other Options Are Wrong
Option A: Michigan Building Commission
The Michigan Building Commission is a distractor. While Michigan has building-related boards, 'Michigan Building Commission' as a standalone agency is not the primary contractor licensing authority. Licensing falls under LARA's Bureau of Construction Codes.
Option C: Michigan Department of Labor
The 'Michigan Department of Labor' is a generic-sounding name that no longer exists as a separate department. Labor functions were merged into other agencies. Contractor licensing specifically is handled by LARA, not a labor department.
Option D: Michigan Department of Commerce
The Michigan Department of Commerce was reorganized years ago. Its successor functions were distributed among newer departments. Contractor licensing authority resides with LARA, not a 'Department of Commerce.'
Memory Technique
LARA Licenses All Regulated Activities — the acronym itself tells you what LARA does. If a question asks who issues and enforces contractor licenses in Michigan, the answer is always LARA.
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A Michigan contractor's general liability policy has a $2 million aggregate limit and $1 million per occurrence limit. They have two claims: $800,000 and $1.2 million. How much will the insurance company pay total?
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ABC Construction LLC was formed in Michigan on March 15, 2024. When is their first Annual Statement due to LARA?