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2011 Senate Bill 165: Ban project labor agreements

Public Act 98 of 2011

  1. Introduced by Sen. John Moolenaar (R) on February 17, 2011, to prohibit project labor agreements in state, school and local public construction, road projects, etc., or as a condition of selective tax breaks granted for private projects. Project labor agreements require a contractor to mandate that each employee must join a union as a condition of working on a project. Note: Projects using any state money would still be subject to the “prevailing wage” law, which prohibits awarding government contracts to the lowest bidder unless the contractor pays so-called "prevailing wages" based on union pay scales, which are generally above actual market rates. Senate Bill 95 and House Bill 4224 would repeal “prevailing wage”.
    • Referred to the Senate Reforms, Restructuring and Reinventing Committee on February 17, 2011.
      • Reported in the Senate on March 15, 2011, with the recommendation that the substitute (S-1) be adopted and that the bill then pass.
    • Substitute offered in the Senate on June 14, 2011, to replace the previous version of the bill with one that revises details but does not change the substance as previously described. The substitute passed by voice vote in the Senate on June 14, 2011.
    • Amendment offered by Sen. Mike Kowall (R) on June 16, 2011, to clarify that the a local government would still be allowed to grant a selective tax break or subsidy to particular unionized firm or developer, as long as the special treatment is not granted because of the beneficiary's unionization. The amendment passed by voice vote in the Senate on June 16, 2011.
  2. Passed 26 to 12 in the Senate on June 16, 2011.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the House on June 16, 2011.
    • Referred to the House Commerce Committee on June 16, 2011.
      • Reported in the House on June 21, 2011, without amendment and with the recommendation that the bill pass.
  4. Passed 62 to 47 in the House on June 29, 2011, to prohibit project labor agreements in state, school and local public construction, road projects, etc., or as a condition of selective tax breaks granted for private projects. Project labor agreements require a contractor to mandate that each employee must join a union as a condition of working on a project. Note: Projects using any state money would still be subject to the “prevailing wage” law, which prohibits awarding government contracts to the lowest bidder unless the contractor pays so-called "prevailing wages" based on union pay scales, which are generally above actual market rates. Senate Bill 95 and House Bill 4224 would repeal “prevailing wage”.
    Who Voted "Yes" and Who Voted "No"

  5. Signed by Gov. Rick Snyder on July 19, 2011.

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