HOUSE BILL NO. 2659 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE COSTLOW.
6447H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To amend chapter 324, RSMo, by adding thereto eleven new sections relating to statewide mechanical contractor licenses, with penalty provisions.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 324, RSMo, is amended by adding thereto eleven new sections, to 2 be known as sections 324.950, 324.953, 324.956, 324.959, 324.962, 324.965, 324.968, 3 324.971, 324.977, 324.980, and 324.983, to read as follows: 324.950. 1. Sections 324.950 to 324.983 shall be known and may be cited as the 2 "Missouri Statewide Mechanical Contractor Licensing Act". 3 2. As used in sections 324.950 to 324.983, unless the context clearly indicates 4 otherwise, the following terms mean: 5 (1) "Division", the division of professional registration within the department of 6 commerce and insurance; 7 (2) "Field employee", any person who is an employee of a mechanical contractor 8 and is engaged in mechanical work at a job site within this state; 9 (3) "License holder", any person who is granted a statewide mechanical 10 contractor license by the division; 11 (4) "Local license", a valid business or occupational license issued by a political 12 subdivision of this state; 13 (5) "Mechanical contractor", a company engaged in mechanical contracting 14 work per the International Code Council (ICC) and National Fire Protection 15 Association (NFPA), including the design, installation, maintenance, construction, 16 alteration, repair, or inspection of any of the following:
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 2659 2
17 (a) HVAC system; 18 (b) HVAC duct system; 19 (c) Exhaust systems; 20 (d) Combustion air or make-up air; 21 (e) Chimneys and vents; 22 (f) Hydronic piping systems that are part of an HVAC system; 23 (g) Boilers, water heaters, and pressure vessels; 24 (h) Process piping systems; 25 (i) Fuel gas distribution piping; 26 (j) Fuel gas-fired, fuel, and oil-fired appliances; 27 (k) Fuel oil piping and storage vessels; 28 (l) Fuel gas-fired and fuel oil-fired appliance venting systems; 29 (m) Equipment and appliances intended to utilize solar energy for space heating 30 or cooling; 31 (n) Domestic hot water heating, swimming pool heating, or process heating; 32 (o) Refrigeration systems, including all equipment and components thereof; 33 (p) Backflow preventers; 34 (q) Medical gas piping; 35 (r) Air, oxygen, and vacuum piping; 36 (s) Fire suppression systems; and 37 (t) Chillers and cooling towers. 38 39 For purposes of this subdivision, the term "mechanical contracting work" shall not 40 include the design, service, maintenance, installation, or inspection of solid-fuel or gas- 41 fueled hearth appliances, such as wood stoves and fireplaces, including manufacturer- 42 specified venting systems, fireplace chimneys, outdoor cooking appliances with 43 manufacturer-specified venting systems, outdoor fireplaces, and outdoor firepits. 44 Additional certification may be required by the division for a particular scope of 45 mechanical work; 46 (6) "Office", the office of mechanical contractors within the division of 47 professional registration; 48 (7) "Person", an individual, corporation, partnership, association, or other legal 49 entity; 50 (8) "Statewide mechanical contractor license", a valid license issued by the 51 division that allows the mechanical contractor and any of its employees or 52 manufacturers' representatives or subcontractors to practice in any jurisdiction in 53 Missouri regardless of local licensing requirements. HB 2659 3
324.953. 1. The division shall adopt, implement, rescind, amend, and administer 2 such rules as may be necessary to carry out the provisions of sections 324.950 to 324.983. 3 The division may promulgate necessary rules authorized or as required to explain or 4 clarify sections 324.950 to 324.983 including, but not limited to, rules relating to 5 professional conduct, continuing competency requirements for the renewal of licenses, 6 approval of continuing competency programs, fees, and the establishment of ethical 7 standards of business practice for persons holding a license under sections 324.950 to 8 324.983. Any rule or portion of a rule, as that term is defined in section 536.010, that is 9 created under the authority delegated in this section shall become effective only if it 10 complies with and is subject to all of the provisions of chapter 536 and, if applicable, 11 section 536.028. This section and chapter 536 are nonseverable and if any of the powers 12 vested with the general assembly pursuant to chapter 536 to review, to delay the 13 effective date, or to disapprove and annul a rule are subsequently held unconstitutional, 14 then the grant of rulemaking authority and any rule proposed or adopted after August 15 28, 2026, shall be invalid and void. 16 2. For the purpose of sections 324.950 to 324.983, the division shall: 17 (1) Establish all applicable fees, set at an amount that shall not substantially 18 exceed the cost of administering sections 324.950 to 324.983; and 19 (2) Deposit all fees collected under sections 324.950 to 324.983 by transmitting 20 such funds to the department of revenue for deposit to the state treasury to the credit of 21 the Missouri mechanical contractor licensing fund. 22 3. Nothing in sections 324.950 to 324.983 shall apply to any certification required 23 by regulation adopted under subdivision (3) of subsection 13 of section 323.025. 324.956. There is hereby created the "Office of Mechanical Contractors", to be 2 housed within the division of professional registration. The division shall: 3 (1) Employ, within the limits of the funds appropriated, persons as are necessary 4 to carry out the provisions of sections 324.950 to 324.983, including both administrative 5 and professional staff and legal counsel, with the discretion to hire experts in mechanical 6 contracting to advise the division on technical matters related to mechanical 7 contracting; 8 (2) Exercise all budgeting, purchasing, reporting, and related management 9 functions; 10 (3) Conduct investigations to determine compliance with sections 324.950 to 11 324.983; and 12 (4) File suit in its own name on behalf of the office to enforce the provisions of 13 sections 324.950 to 324.983. HB 2659 4
324.959. 1. The applicant for a statewide mechanical contractor license shall 2 satisfy the following requirements: 3 (1) Be at least twenty-one years of age; 4 (2) Provide proof of liability insurance in the amount of one million dollars and 5 post bond with each political subdivision in which he or she will perform work as 6 required by that political subdivision. If a political subdivision requires any license 7 holder to be named on a document, including, but not limited to, the bond, the license 8 holder of the mechanical contractor shall be allowed to provide services in the political 9 subdivision; 10 (3) Pass: 11 (a) A standardized mechanical assessment test nationally offered by: 12 a. The International Code Council (ICC); 13 b. Prometric; or 14 c. The International Association of Plumbing and Mechanical Officials 15 (IAPMO); or 16 (b) A test similar to any test described in paragraph (a) of this subdivision that is 17 administered by an independent professional testing agency not affiliated with any 18 political subdivision or this state and that is approved by the division; 19 (4) Pay for all costs associated with the tests described in subdivision (3) of this 20 subsection; 21 (5) Complete the application form provided by the division and pay any 22 applicable application fees; and 23 (6) Have completed seven thousand five hundred hours of verifiable field 24 experience in mechanical contracting work or a bachelor's or further advanced degree 25 in mechanical or civil engineering from an accredited college or university with a 26 minimum of three years of verifiable experience directing and supervising at least one 27 field employee. 28 2. Any applicant for licensure who holds a local license or other license 29 authorizing him or her to engage in mechanical contracting, who has seven thousand 30 five hundred hours of verifiable field experience in mechanical contracting work, and 31 who is otherwise eligible for licensure shall be issued a statewide mechanical contractor 32 license. The provisions of this subsection shall apply only to licenses issued by a political 33 subdivision with the legal authority to issue such licenses. 34 3. If a corporation, firm, institution, organization, company, or representative 35 thereof desires to engage in mechanical contracting under sections 324.950 to 324.983, it 36 shall have in its employ at least one statewide license holder in accordance with sections 37 324.950 to 324.983. A statewide mechanical contractor license holder shall represent HB 2659 5
38 only one corporation, firm, institution, organization, or company at one time. A 39 mechanical contractor shall have one license holder responsible for offering to field 40 employees based in this state eight contact hours of industry training per year, and such 41 mechanical contractor shall be responsible for providing proof of training to the division 42 upon request. In the event of a loss of a license holder, a mechanical contractor shall 43 remain in good standing with the division for six months after notifying the division of 44 the change in status. Within the six-month period, a new license holder shall be 45 registered with the division. If no license holder is registered within such six-month 46 period, the division shall declare the mechanical contractor inactive. 47 4. The division may issue a statewide mechanical contractor license to any 48 person who holds a current and active license to engage in the practice of a mechanical 49 contractor or as a master pipefitter or master plumber issued by any other state, the 50 District of Columbia, or any territory of the United States that requires standards for 51 licensure, registration, or certification considered to be equivalent or more stringent 52 than the requirements for licensure under sections 324.950 to 324.983. 53 5. Where the contact information of a mechanical contractor's employees is 54 required to fulfill the obligations of a license, such contact information shall be 55 considered a trade secret and therefore not a public record under chapter 610. 324.962. 1. A political subdivision shall not be prohibited from establishing a 2 local mechanical contractor's license but shall recognize a statewide license in lieu of a 3 local license for the purpose of performing contracting work or obtaining permits to 4 perform work within such political subdivision. No political subdivision shall require 5 the employees of a statewide licensed mechanical contractor, or its subcontractors' or 6 manufacturers' representatives, to obtain journeyman licenses, apprentice licenses, or 7 occupation licenses that require passing any examination or any special requirements to 8 assess proficiency or mastery of the mechanical trade. The workforce of a statewide 9 licensee shall be deemed eligible to perform mechanical contracting work and to obtain 10 permits to perform such work from any political subdivision within this state. 11 2. If a political subdivision does not recognize a statewide license in lieu of a local 12 license for the purpose of performing contracting work or obtaining permits to perform 13 work within the political subdivision, a statewide mechanical contractor licensee may 14 file a complaint with the division. The division shall perform an investigation into the 15 complaint, and if the division finds that the political subdivision failed to recognize a 16 statewide license in accordance with this section, the division shall notify the political 17 subdivision that the political subdivision has violated the provisions of this section and 18 has thirty days to comply with this section. If after thirty days the political subdivision 19 still does not recognize a statewide license, the division shall notify the director of the HB 2659 6
20 department of revenue, who shall withhold any moneys the noncompliant political 21 subdivision would otherwise be entitled to from local sales tax, as defined in section 22 32.085, until the director has received notice from the division that the political 23 subdivision is in compliance with this section. Upon the political subdivision coming 24 into compliance with the provisions of this section, the division shall notify the director 25 of the department of revenue, who shall disburse all funds held under this subsection. 26 Moneys held by the director of the department of revenue under this subsection shall 27 not be deemed to be state funds and shall not be commingled with any funds of the state. 28 3. The provisions of this section shall not prohibit any political subdivision in 29 this state from: 30 (1) Enforcing any technical code or law contained in this section; 31 (2) Requiring a business license to perform mechanical contracting work; 32 (3) Issuing mechanical contracting permits; 33 (4) Enforcing technical codes of the political subdivision; or 34 (5) Inspecting the work of a statewide mechanical contractor. 35 4. Political subdivisions that do not have the authority to issue or require 36 mechanical contractor licenses prior to August 28, 2026, shall not be granted such 37 authority under the provisions of this section. 324.965. There is hereby created in the state treasury the "Missouri Mechanical 2 Contractor Licensing Fund", which shall consist of moneys collected under sections 3 324.950 to 324.983. The state treasurer shall be custodian of the fund and may approve 4 disbursements from the fund in accordance with sections 30.170 and 30.180. Upon 5 appropriation, moneys in the fund shall be used solely for the administration of sections 6 324.950 to 324.983. The provisions of section 33.080 to the contrary notwithstanding, 7 moneys in this fund shall not be transferred and placed to the credit of general revenue 8 until the amount in the fund at the end of the biennium exceeds three times the amount 9 of the appropriation from the fund for the preceding fiscal year. The amount, if any, in 10 the fund that shall lapse is that amount in the fund that exceeds the appropriate multiple 11 of the appropriations from the fund for the preceding fiscal year. The state treasurer 12 shall invest moneys in the fund in the same manner as other funds are invested. Any 13 interest and moneys earned on such investments shall be credited to the fund. 324.968. 1. Licenses shall expire on a renewal date established by the division. 2 The term of licensure shall be twenty-four months. The division shall mail a renewal 3 notice to the last known address of each person licensed under sections 324.950 to 4 324.983 prior to the renewal date. Failure to provide the division with the information 5 required for renewal or to pay the required fee after such notice shall result in the 6 license being declared inactive. The licensee shall not practice until he or she applies for HB 2659 7
7 reinstatement and pays the required fees. The license shall be restored if the application 8 for reinstatement is received within two years of the renewal date. 9 2. In addition to other requirements provided by sections 324.950 to 324.983 and 10 established by the division, in order to renew such license under this section, the person 11 shall have at least sixteen contact hours of industry-related training. 324.971. 1. Any person operating as a mechanical contractor in a political 2 subdivision that does not require the mechanical contractor to hold a local license, or 3 who operates as a mechanical contractor in a political subdivision that requires a local 4 license possessed by that person, shall not be required to possess a statewide license 5 under sections 324.950 to 324.983 to operate as a mechanical contractor in such political 6 subdivision. 7 2. Any person operating as a mechanical contractor in an industrial setting shall 8 not be required to possess a statewide license under sections 324.950 to 324.983. 324.977. The statewide mechanical contractor license shall be regulated by the 2 division of professional registration and not a state-appointed licensing board. 324.980. 1. The division may refuse to issue a statewide mechanical contractor 2 license for one or any combination of causes stated in subsection 2 of this section. The 3 division shall notify the applicant in writing of the reasons for the refusal and shall 4 advise the applicant of his or her right to file a complaint with the administrative 5 hearing commission as provided by chapter 621. 6 2. The division may cause a complaint to be filed with the administrative hearing 7 commission as provided by chapter 621 against any license holder or any person who 8 has failed to renew or has surrendered his or her license for any one or any combination 9 of the following causes: 10 (1) Use of any controlled substance, as defined in chapter 195, or alcoholic 11 beverage to an extent that such use impairs a person's ability to perform the work of 12 any profession licensed or regulated by sections 324.950 to 324.983; 13 (2) The person has been finally adjudicated and found guilty, or entered a plea of 14 guilty or nolo contendere, in a criminal prosecution under the laws of any state, of the 15 United States, or of any country for any offense directly related to the duties and 16 responsibilities of the occupation, as set forth in section 324.012, regardless of whether a 17 sentence is imposed; 18 (3) Use of fraud, deception, misrepresentation, or bribery in securing any license 19 issued under sections 324.950 to 324.983 or in obtaining permission to take any 20 examination given or required under sections 324.950 to 324.983; 21 (4) Obtaining or attempting to obtain any fee, charge, tuition