SENATE SUBSTITUTE AMENDMENT 1,
TO 2007 SENATE BILL 194
August 22, 2007 - Offered by Senator Coggs.
SB194-SSA1,1,8 1An Act to amend 20.143 (3) (j), 101.02 (20) (a) and 101.02 (21) (a); and to create
215.157 (15) and 101.136 of the statutes; relating to: the licensing and
3regulation of thermal system insulation and fire-stop product mechanics and
4contractors; creating a thermal system insulation and fire-stop council;
5requiring the employment of a state inspector; establishing standards for
6installing and maintaining thermal system insulation and fire-stop products;
7providing an exemption from rule-making procedures; requiring the exercise
8of rule-making authority; and providing a penalty.
Analysis by the Legislative Reference Bureau
The Department of Commerce (Commerce) administers various laws, including
building codes, that promote safety in public and private buildings and in the
subsystems of those buildings. To that end, Commerce issues various licenses,
permits, registrations, and other credentials (licenses) to persons engaged in the
construction trades, such as electricians and plumbers. Commerce also administers
and issues licenses in connection with the administration of other laws relating to
public safety, such as those regulating fireworks and the storage of flammable
liquids.

This substitute amendment requires Commerce to regulate the business of
installing and maintaining thermal system insulation and fire-stop products
(insulation products) in commercial and industrial buildings and in residential
buildings that contain four or more residential units. The substitute amendment
defines thermal system insulation as a product used in a heating, ventilating,
cooling, plumbing, or refrigeration system (heating or cooling system) to insulate any
hot or cold surface on or in a building. The substitute amendment defines a fire-stop
product as a product used in a heating or cooling system to prevent the spread of fire
or smoke and that is installed on or around a pipe, duct, wire, or other penetration
through a floor, ceiling, or wall of a building. The substitute amendment requires
Commerce to license persons who install and maintain insulation products in
heating and cooling systems (mechanics) and persons who are in the business of
contracting to provide services for installing and maintaining insulation products in
heating and cooling systems (contractors). The substitute amendment also requires
Commerce to employ a state thermal system insulation and fire-stop inspector (state
inspector). The substitute amendment establishes a thermal system insulation and
fire-stop council (council). The council is responsible for recommending rules to
Commerce that establish standards for the installation and maintenance of
insulation products. The council must also provide other advice to Commerce
including recommending training and continuing education requirements for
persons who install or maintain thermal insulation or fire-stop products.
Under the substitute amendment, the state inspector must have at least ten
years of experience as a mechanic and must have successfully completed a four-year
apprenticeship in the trade of heat and frost insulation. The state inspector must
inspect buildings to determine whether the buildings comply with standards
established by Commerce for the installation and maintenance of insulation
products (state standards). The state inspector must also keep complete and
accurate records of all inspected buildings and give notice of noncompliance to the
owner of every building who fails to comply with state standards. The substitute
amendment authorizes the state inspector to enter and inspect buildings and to issue
orders requiring the owner of a building to make repairs or alterations that are
necessary for the building to comply with state standards.
The substitute amendment establishes minimum licensing requirements for
insulation product mechanics and contractors. Under the substitute amendment, a
person may not obtain a mechanic's license unless he or she has met requirements
established by Commerce by rule and has either completed 160 hours of training and
passed a written examination approved by Commerce or has successfully completed
an approved apprenticeship program. The substitute amendment also provides that
a person may install or maintain fire-stop products, but not thermal system
insulation, without obtaining a license from Commerce if the person has successfully
completed at least 40 hours of training or has successfully completed an approved
apprenticeship program.
The substitute amendment specifies that, in order to be licensed as a contractor,
a person must meet requirements established by Commerce by rule, must be
registered with the Department of Workforce Development as a contractor that

employs and trains apprentices, and be skilled in the installation of insulation
products. The substitute amendment allows Commerce to waive any licensing
requirement for contractors or mechanics for a person who is licensed in another
state in which the standards for licensure are at least as strict as the requirements
under the substitute amendment. It also allows Commerce to waive any licensing
requirement for experienced mechanics who submit evidence satisfactory to
Commerce that the mechanic is qualified for licensure. The substitute amendment
also provides that Commerce may not renew a license issued to a mechanic unless
the mechanic completes a continuing education course during the previous license
period that is approved by Commerce.
The substitute amendment authorizes Commerce to directly assess a forfeiture
by issuing an order against any person who installs, or contracts to install, insulation
products without a license or who fails to comply with an order issued by the state
inspector.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB194-SSA1, s. 1 1Section 1. 15.157 (15) of the statutes is created to read:
SB194-SSA1,3,62 15.157 (15) Thermal system insulation and fire-stop council. There is
3created in the department of commerce a thermal system insulation and fire-stop
4council consisting of the state thermal system insulation and fire-stop inspector who
5shall serve as a nonvoting secretary of the council, the secretary of commerce or his
6or her designee, and the following members appointed for 3-year terms:
SB194-SSA1,3,77 (a) Two members who represent major insulation companies.
SB194-SSA1,3,98 (b) One member who is an architect licensed to do business in this state with
9work experience in the area of indoor air quality.
SB194-SSA1,3,1110 (c) Two members who are mechanics with at least 10 years of experience in the
11area of heat and frost insulation.
SB194-SSA1,3,1212 (d) One member who is a general contractor in this state.
SB194-SSA1, s. 2 13Section 2. 20.143 (3) (j) of the statutes is amended to read:
SB194-SSA1,4,7
120.143 (3) (j) Safety and building operations. The amounts in the schedule for
2the purposes of chs. 101, 145, and 168 and ss. 236.12 (2) (a), 236.13 (1) (d) and (2m),
3and 236.335. All moneys received under ch. 145, ss. 101.136 (4) (b), 101.177 (4) (a)
44., 101.178, 101.19, 101.63 (9), 101.654 (3), 101.73 (12), 101.82 (4), 101.955 (2),
5101.973 (7), and 236.12 (7), except moneys received under s. 101.9208 (2m), and all
6moneys transferred under 2005 Wisconsin Act 45, section 76 (6), shall be credited to
7this appropriation.
SB194-SSA1, s. 3 8Section 3. 101.02 (20) (a) of the statutes, as affected by 2005 Wisconsin Act
9456
, is amended to read:
SB194-SSA1,4,1510 101.02 (20) (a) For purposes of this subsection, "license" means a license,
11permit or certificate of certification or registration issued by the department under
12ss. 101.09 (3) (c), 101.122 (2) (c), 101.136, 101.143 (2) (g), 101.15 (2) (e), 101.17,
13101.177 (4) (a), 101.178 (2) or (3) (a), 101.63 (2) or (2m), 101.653, 101.73 (5) or (6),
14101.82 (2), 101.87, 101.935, 101.95, 101.951, 101.952, 101.985 (1) to (3), 145.02 (4),
15145.035, 145.045, 145.15, 145.16, 145.165, 145.17, 145.175, 145.18 or 167.10 (6m).
SB194-SSA1, s. 4 16Section 4. 101.02 (21) (a) of the statutes, as affected by 2005 Wisconsin Act
17456
, is amended to read:
SB194-SSA1,4,2318 101.02 (21) (a) In this subsection, "license" means a license, permit or
19certificate of certification or registration issued by the department under s. 101.09
20(3) (c), 101.122 (2) (c), 101.136, 101.143 (2) (g), 101.15 (2) (e), 101.17, 101.177 (4) (a),
21101.178 (2) or (3) (a), 101.63 (2), 101.653, 101.73 (5) or (6), 101.82 (2), 101.87, 101.935,
22101.95, 101.951, 101.952, 101.985 (1) to (3), 145.02 (4), 145.035, 145.045, 145.15,
23145.16, 145.165, 145.17, 145.175, 145.18 or 167.10 (6m).
SB194-SSA1, s. 5 24Section 5. 101.136 of the statutes is created to read:
SB194-SSA1,5,2
1101.136 Regulation of thermal system installation. (1) Definitions. In
2this section:
SB194-SSA1,5,53 (a) "Building" means a commercial, industrial, or residential building,
4structure, or facility, as defined by the department by rule, but does not include a
5residential building, structure, or facility that contains 3 or fewer residential units.
SB194-SSA1,5,106 (b) "Contractor" means a person who is engaged in the business of contracting
7to provide services for installing or maintaining thermal system insulation and
8fire-stop products in heating, ventilating, cooling, plumbing, and refrigeration
9systems and whose business derives its principal source of income from providing
10those services.
SB194-SSA1,5,1111 (c) "Council" means the thermal system insulation and fire-stop council.
SB194-SSA1,5,1512 (d) "Fire-stop product" means a product that is used in a heating, ventilating,
13cooling, plumbing, or refrigeration system to prevent the spread of fire or smoke and
14that is installed on or around a pipe, duct, wire, or any other penetration through a
15floor, ceiling, or wall of a building.
SB194-SSA1,5,1816 (e) "Mechanic" means a person who installs or maintains thermal system
17insulation and fire-stop products in heating, ventilating, cooling, plumbing, and
18refrigeration systems.
SB194-SSA1,5,2019 (f) "State inspector" means the state thermal system insulation and fire-stop
20inspector.
SB194-SSA1,5,2421 (g) "Thermal system insulation" means a product that is used in a heating,
22ventilating, cooling, plumbing, or refrigeration system to insulate any hot or cold
23surface including a pipe, duct, valve, boiler, flue, or tank, or equipment on or in a
24building.
SB194-SSA1,6,2
1(2) Duties of the thermal system insulation and fire-stop council. (a) The
2council shall do all of the following:
SB194-SSA1,6,53 1. Recommend to the department rules establishing standards for the
4installation and maintenance of thermal system insulation and fire-stop products
5in buildings.
SB194-SSA1,6,96 2. Recommend to the department requirements for the licensure of mechanics
7and contractors and circumstances under which the department may take
8disciplinary action against a mechanic or contractor including suspension and
9revocation of a license.
SB194-SSA1,6,1010 3. Recommend to the department qualifications for the state inspector.
SB194-SSA1,6,1311 4. Recommend to the department training and continuing education
12requirements for persons who are authorized by the department to install or
13maintain thermal system insulation or fire-stop products.
SB194-SSA1,6,1714 (b) The council may consult with engineering authorities and other
15organizations concerned with safety and health issues related to thermal system
16insulation and fire-stop products and mold in performing its duties under this
17subsection.
SB194-SSA1,6,23 18(3) State thermal system insulation and fire-stop inspector. (a) The
19department shall employ a person who has at least 10 years of experience as a
20mechanic, and who has successfully completed a 4-year apprenticeship in the trade
21of heat and frost insulation, as the state thermal system insulation and fire-stop
22inspector. The state inspector shall work under the direct supervision of the
23secretary or his or her designee.
SB194-SSA1,6,2424 (b) The state inspector shall do all of the following:
SB194-SSA1,7,7
11. Inspect buildings constructed, or in which the mechanical systems have been
2altered, on or after the effective date of this subdivision .... [revisor inserts date], to
3determine whether the installation or maintenance of thermal system insulation
4and fire-stop products in those buildings and structures complies with the standards
5established by the department under sub. (4) (d). The state inspector shall conduct
6the inspections on a random basis and whenever requested to do so by a local building
7inspector.
SB194-SSA1,7,128 2. Keep complete and accurate records of all inspected buildings including a list
9identifying all buildings that are in compliance with the standards established by the
10department under sub. (4) (d), a list of all buildings that are not in compliance with
11the standards established by the department under sub. (4) (d), and a list of all orders
12that the state inspector issues under par. (c) 2.
SB194-SSA1,7,1513 3. Give written notice of noncompliance to the owner of every building that the
14inspector determines does not comply with the standards established by the
15department under sub. (4) (d).
SB194-SSA1,7,1616 (c) The inspector may do any of the following:
SB194-SSA1,7,1917 1. Enter any newly constructed or newly remodeled building in which a
18mechanical system was altered at a reasonable hour for the purpose of inspecting,
19or gathering information about, any thermal system insulation or fire-stop product.
SB194-SSA1,7,2320 2. Issue an order requiring the owner of a building to make repairs or
21alterations that the inspector determines are necessary in order for the building to
22comply with the standards established by the department under sub. (4) (d). The
23inspector shall issue such an order in writing.
SB194-SSA1,7,25 24(4) Rules. The department shall promulgate rules establishing all of the
25following:
SB194-SSA1,8,3
1(a) Requirements for the licensing of mechanics and contractors. The rules
2shall provide that a license issued to a mechanic or a contractor under this section
3is valid for 2 years and is renewable.
SB194-SSA1,8,64 (b) License fees for mechanics and contractors. The rules shall establish fees
5for the licensing of mechanics and contractors that are not less than $250 nor more
6than $1,000 for each license period.
SB194-SSA1,8,77 (c) Training and continuing education requirements for mechanics.
SB194-SSA1,8,118 (d) Standards for the installation and maintenance of thermal system
9insulation and fire-stop products in buildings. The department shall base the
10standards, to the extent possible, on national industry standards for installing and
11maintaining thermal system insulation and fire-stop products.
SB194-SSA1,8,1612 (e) Procedures governing the assessment of forfeitures under sub. (14)
13including the procedure for issuing an order for an alleged violation of this section,
14the procedure for contesting an order issued for an alleged violation of this section,
15and the procedure for contesting the assessment of a forfeiture for an alleged
16violation of this section.
SB194-SSA1,8,21 17(5) Compliance with installation standards. Beginning on the first day of the
1818th month beginning after the effective date of this subsection, every contractor
19who contracts to install or maintain thermal system insulation or fire-stop products
20shall ensure that such installation and maintenance complies with the standards
21established by the department under sub. (4) (d).
SB194-SSA1,9,3 22(6) Licensing of mechanics and contractors. (a) 1. Except as provided in sub.
23(9) (b), beginning on the first day of the 18th month beginning after the effective date
24of this subdivision, no person may install or maintain thermal system insulation or
25fire-stop products in any building unless that person is a mechanic licensed by the

1department under this section, is working under the direct supervision of a licensed
2mechanic, or is serving an apprenticeship with a licensed contractor who meets the
3requirements specified under ch. 106.
SB194-SSA1,9,64 2. A person wishing to obtain a mechanic's license shall apply for a license by
5submitting an application on a form provided by the department together with the
6applicable fee.
SB194-SSA1,9,117 (b) 1. Except as provided in sub. (9) (b), beginning on the first day of the 18th
8month beginning after the effective date of this subdivision .... [revisor inserts date],
9no person may contract to install or maintain thermal system insulation or fire-stop
10products in any building unless that person is a contractor licensed by the
11department under this subsection.
SB194-SSA1,9,1412 2. A person wishing to obtain a contractor's license shall apply for a license from
13the department by submitting an application on a form provided by the department
14together with the applicable fee.
SB194-SSA1,9,19 15(7) Requirements for licensure of mechanics. (a) Except as provided in par.
16(b), the department may not issue a license to a mechanic unless the mechanic
17demonstrates, in a manner satisfactory to the department, that he or she has met the
18requirements established by the department by rule and either of the following
19requirements:
SB194-SSA1,9,2220 1. He or she has successfully completed at least 160 hours of relevant training
21approved by the department, upon consultation with the council, and has passed a
22written examination approved by the department.
SB194-SSA1,9,2523 2. He or she has successfully completed an apprenticeship that meets the
24requirements specified under ch. 106 and that includes relevant training in
25installing and maintaining thermal system insulation and fire-stop products.
SB194-SSA1,10,4
1(b) The department may waive any requirement, or any portion of a
2requirement under par. (a) for any person with experience in installing or
3maintaining thermal system insulation and fire-stop products upon submission of
4evidence satisfactory to the department that the person is qualified for licensure.
SB194-SSA1,10,95 (c) The department may not renew a license issued to a mechanic under this
6section unless the mechanic submits a certificate to the department that
7demonstrates that the mechanic has attended and successfully completed during the
8previous license period a continuing education course approved by the department,
9upon consultation with the council.
SB194-SSA1,10,12 10(8) Requirements for licensure of contractors. The department may not
11issue a license to a contractor unless the contractor meets all of the following
12requirements:
SB194-SSA1,10,1513 (a) The contractor is registered with the department of workforce development
14as a contractor that employs and trains apprentices in the trade of heat and frost
15insulation.
SB194-SSA1,10,1716 (b) The contractor is skilled in the planning, superintending, and practical
17installation of thermal system insulation and fire-stop products.
SB194-SSA1,10,1918 (c) The contractor demonstrates, in a manner satisfactory to the department,
19that the contractor has met the requirements established by the department by rule.
SB194-SSA1,10,23 20(9) Licensing exceptions. (a) The department may waive a licensing
21requirement under sub. (7) or (8) for any person who is licensed as a mechanic or
22contractor in another state in which the standards for licensure are at least as strict
23as the requirements under subs. (7) or (8).
SB194-SSA1,10,2524 (b) A person may install or maintain fire-stop products without a license issued
25under this section if either of the following applies:
SB194-SSA1,11,3
11. The person has successfully completed at least 40 hours of training, approved
2by the department, in consultation with the council, in installing and maintaining
3fire-stop products.
SB194-SSA1,11,64 2. The person has successfully completed an apprenticeship that meets the
5requirements specified under ch. 106 and that includes relevant training in
6installing and maintaining fire-stop products.
SB194-SSA1,11,11 7(10) Temporary and emergency licenses. The department may promulgate
8rules establishing standards and procedures for the issuance of temporary and
9emergency licenses for mechanics and contractors. The rule shall provide that a
10temporary or emergency license issued under this subsection is valid for a period of
1130 days.
SB194-SSA1,11,12 12(11) Prohibitions. No person may do any of the following:
SB194-SSA1,11,1413 (a) Make a false statement of material fact in an application for the issuance
14or renewal of a license under this section.
SB194-SSA1,11,1615 (b) Engage in fraud, misrepresentation, or bribery in order to obtain a license
16under this section.
SB194-SSA1,11,1917 (c) Fail to notify the department or the owner or lessee of any building that the
18building fails to meet the standards established by the department by rule under
19sub. (4) (d).
SB194-SSA1,11,22 20(12) Penalties. A person who violates this section or who fails to comply with
21an order issued by the state inspector under this section is subject to a forfeiture of
22not less than $2,000 nor more than $5,000 for each violation.
SB194-SSA1,12,2 23(13) Assessment of forfeitures by the department. (a) The department may
24directly assess a forfeiture by issuing an order against any person who violates this

1section or who fails to comply with an order issued by the state inspector under this
2section.
SB194-SSA1,12,43 (b) The department shall remit all forfeitures paid to the department under this
4subsection to the secretary of administration for deposit in the school fund.
SB194-SSA1,12,65 (c) All forfeitures that are not paid to the department as required under this
6subsection shall accrue interest at the rate of 12 percent per year.
SB194-SSA1,12,107 (d) The attorney general may bring an action in the name of the state to collect
8any forfeiture imposed by the department, or interest accrued, if the forfeiture or
9interest has not been paid after the exhaustion of all administrative and judicial
10reviews.
SB194-SSA1, s. 6 11Section 6 . Nonstatutory provisions.
SB194-SSA1,12,1512 (1) Council. Notwithstanding the length of terms of the members of the
13thermal system insulation and fire-stop council specified in section 15.157 (15) (a)
14to (d) of the statutes, as created by this act, the initial members shall be appointed
15for the following terms:
SB194-SSA1,12,1616 (a) Two members for a term that expires on July 1, 2010.
SB194-SSA1,12,1717 (b) Two members for a term that expires on July 1, 2011.
SB194-SSA1,12,1818 (c) Two members for a term that expires on July 1, 2012.
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