2023 House Bill 4007 / Public Act 10

Labor: hours and wages; prevailing wage; reenact.

An act to require prevailing wages and fringe benefits on state projects; to establish the requirements and responsibilities of contracting agents and bidders; to make appropriations for the implementation of this act; and to prescribe penalties.

AI Analysis – Experimental

HB 4007 mandates prevailing wages and fringe benefits for construction mechanics on state projects. It outlines the responsibilities of contracting agents and bidders to ensure wages and benefits at least match local prevailing rates, with certain exemptions. The act requires the determination of prevailing wage and fringe benefit rates before bidding, incorporation of these rates into bid specifications, and establishes procedures for rate redetermination. It also mandates the posting of wage rates at construction sites, protects construction mechanics from retaliation for reporting violations, and prescribes penalties for non-compliance, including civil fines up to $5,000 plus an additional 10% penalty as determined by the commissioner. The act specifies joint and several liabilities for contractors and subcontractors violating its provisions, includes exceptions for certain contracts and projects, and grants the commissioner enforcement authority, emphasizing fair labor practices in state construction projects. Additionally, it allows aggrieved construction mechanics to seek damages, injunctive relief, and attorney fees for violations, and outlines the commissioner's authority to enforce the act, including investigating wage compliance and ensuring adherence through various means, including civil actions for unpaid penalties. The act further empowers the commissioner to administer oaths, subpoena witnesses, and require document production for investigations, allows employees to file complaints regarding violations with confidentiality, and sets a 3-year limit for complaint acceptance post-violation. It also provides for private interviews during investigations, establishes a rebuttable presumption of retaliation against employees, and outlines procedures for review and appeal of the department's determinations, including the appointment of hearings officers and the application of administrative procedures act processes for hearings. Additionally, it mandates the maintenance of certified payroll records for three years, allows for judicial review of hearings officers' determinations, and includes provisions for rule promulgation and a $75,000 appropriation for the act's implementation and communication. The act ensures that failure to exhaust administrative remedies is not a defense in civil actions by construction mechanics and maintains the validity of its provisions even if parts are declared invalid or unenforceable.

Introduced in the House

Jan. 12, 2023

Introduced by Rep. Brenda Carter (D-53) and 51 co-sponsors

Co-sponsored by Reps. Denise Mentzer (D-61), Kelly Breen (D-21), Will Snyder (D-87), Jason Morgan (D-23), Carrie Rheingans (D-47), Reggie Miller (D-31), Jim Haadsma (D-44), Alabas Farhat (D-3), Tyrone Carter (D-1), Julie Rogers (D-41), Sharon MacDonell (D-56), Joey Andrews (D-38), Veronica Paiz (D-11), Matt Koleszar (D-22), Dylan Wegela (D-26), Penelope Tsernoglou (D-75), Felicia Brabec (D-33), Tullio Liberati (D-2), Amos O’Neal (D-94), Erin Byrnes (D-15), Carol Glanville (D-84), Jimmie Wilson (D-32), Jason Hoskins (D-18), Donavan McKinney (D-14), Nate Shannon (D-58), Helena Scott (D-7), Jasper Martus (D-69), Jennifer Conlin (D-48), Phil Skaggs (D-80), Natalie Price (D-5), Christine Morse (D-40), Kristian Grant (D-82), Emily Dievendorf (D-77), Regina Weiss (D-6), Rachel Hood (D-81), Jaime Churches (D-27), Joe Tate (D-10), Laurie Pohutsky (D-17), Kara Hope (D-74), Stephanie Young (D-16), Mike McFall (D-8), Karen Whitsett (D-4), Jenn Hill (D-109), Kimberly Edwards (D-12), John Fitzgerald (D-83), Samantha Steckloff (D-19), Ranjeev Puri (D-24), Lori Stone (D-13), Abraham Aiyash (D-9), Cynthia Neeley (D-70) and Betsy Coffia (D-103)

Referred to the Committee on Labor

March 8, 2023

Reported without amendment

Amendment offered by Rep. Cameron Cavitt (R-106)

1. Amend page 2, line 14, after “agent” by inserting “if the cost of the project is equal to or greater than $150,000.00”.

The amendment failed by voice vote

Amendment offered by Rep. Pat Outman (R-91)

1. Amend page 2, line 14, after “agent” by inserting “if the cost of the project is greater than or equal to the following:

(i) For a project that consists solely of new construction, $250,000.00.

(ii) For a project that does not consist solely of new construction, $75,000.00”.

The amendment failed by voice vote

Amendment offered by Rep. Greg Markkanen (R-110)

1. Amend page 4, following line 26, by inserting:

“Sec. 9. By 30 months after the effective date of this act, the commission shall submit a report to the legislature about the impact of this act.

Sec. 10. This act does not apply 3 years after the effective date of this act.”.

The amendment failed by voice vote

Amendment offered by Rep. Brian BeGole (R-71)

1. Amend page 4, following line 26, by inserting:

“Sec. 9. A contracting agent that is a local unit of government, public school, community college, or university may exempt itself from the requirements of this act by a majority vote of its governing body.”.

The amendment failed by voice vote

Amendment offered by Rep. Phil Green (R-67)

1. Amend page 4, following line 26, by inserting:

“Sec. 9. The commissioner shall prepare a report that compares contracts for state projects that were entered into after January 1, 2019 but before December 31, 2021 to similar contracts for state projects that are entered into after the effective date of this act but before 3 years after the effective date of this act. The report must include comparisons of all of the following for each contract:

(a) The total number of construction mechanics employed.

(b) The total amount of wages paid to construction mechanics.

(c) The total cost of materials.

(d) The total number of safety incidents.

(e) The length of time to complete the state project.

(f) Whether the requirements of this act increased costs and, if so, by how much.”.

The amendment failed by voice vote

Substitute H-1 offered by Rep. Tom Kunse (R-100)

The substitute failed by voice vote

Substitute H-2 offered by Rep. Jaime Greene (R-65)

The substitute failed by voice vote

Passed in the House 56 to 53 (details)

Motion to give immediate effect by Rep. Abraham Aiyash (D-9)

The motion prevailed by voice vote

Received in the Senate

March 9, 2023

Referred to the Committee on Labor

March 15, 2023

Reported without amendment

Referred to the Committee of the Whole

March 21, 2023

Reported with substitute S-6

Substitute S-6 concurred in by voice vote

Amendment offered by Sen. Lana Theis (R-22)

1. Amend page 11, following line 6, by inserting:

“Sec. 9. The governor shall issue an updated budget recommendation that accurately reflects the negative fiscal impact of this act.”.

The amendment failed by voice vote

Passed in the Senate 20 to 16 (details)

Received in the House

March 21, 2023

Amendment offered by Rep. Luke Meerman (R-89)

1. Amend page 2, following line 21, by inserting “Sec. 7 Any person, firm, or corporation or combination thereof, including the officers of any contracting agent, violating the provisions of this act is guilty of a misdemeanor.”.

2. Amend page 2, following line 21, by inserting “Sec. 8 The provisions of this act shall not apply to contracts entered into or the bids made before the effective date of this act.”.

3. Amend page 4, line 21, after “thereby.” by striking out the remainder of the bill.

The amendment failed by voice vote

Amendment offered by Rep. Andrew Fink (R-35)

1. Amend page 8, line 17, after “parties” by inserting “, unless the interviewee requests legal representation,”.

The amendment failed by voice vote

Amendment offered by Rep. Brad Paquette (R-37)

1. Amend page 11, following line 6, by inserting: “Enacting section 2: This amendatory act does not take effect unless HB 4037 of the 102nd Legislature is enacted into law.”.

The amendment failed by voice vote

Amendment offered by Rep. Greg VanWoerkom (R-88)

1. Amend page 6, following line 19, after “this” by striking out “act” and inserting “act.” Then strike the balance of the remaining sentence.

The amendment failed by voice vote

Amendment offered by Rep. Bryan Posthumus (R-90)

1. Strike out section 7 and section 8.

2. Strike out section 10 through section 26.

The amendment failed by voice vote

Amendment offered by Rep. Donni Steele (R-54)

1. Amend page 10, line 24 through page 11, line 3 by striking out section 25.

The amendment failed by voice vote

Amendment offered by Rep. Angela Rigas (R-79)

1. Amend page 5, line 14 through 19, by striking section 10.

The amendment failed by voice vote

Amendment offered by Rep. Gregory Alexander (R-98)

1. Amend page 6, line 17, through page 7, line 10, by striking out section 13.

The amendment failed by voice vote

Amendment offered by Rep. Matt Bierlein (R-97)

1. Amend page 7, lines 11 through 23 by striking out section 14.

The amendment failed by voice vote

Amendment offered by Rep. Andrew Beeler (R-64)

1. Amend page 7, lines 24 through 29, by striking out section 15.

The amendment failed by voice vote

Amendment offered by Rep. Mike Hoadley (R-99)

1. Amend page 8, lines 1 through 10, by striking out section 16.

The amendment failed by voice vote

Amendment offered by Rep. Gregory Alexander (R-98)

1. Amend page 8, lines 11 through 14, by striking out section 17.

The amendment failed by voice vote

Amendment offered by Rep. Luke Meerman (R-89)

1. Amend page 8, lines 15 through 19, by striking out section 18.

The amendment failed by voice vote

Amendment offered by Rep. Matt Bierlein (R-97)

1. Amend page 8, line 20, through page 9, line 4, by striking out section 19.

The amendment failed by voice vote

Amendment offered by Rep. Andrew Beeler (R-64)

1. Amend page 9, lines 5 through 7, by striking out section 20.

The amendment failed by voice vote

Amendment offered by Rep. Angela Rigas (R-79)

1. Amend page 9, line 8 through page 10, line 11 by striking out section 21.

The amendment failed by voice vote

Amendment offered by Rep. Mike Hoadley (R-99)

1. Amend page 10, lines 12 through 16, by striking out section 22.

The amendment failed by voice vote

Amendment offered by Rep. Mike Hoadley (R-99)

1. Amend page 11, lines 4 through 6, by striking out section 26.

The amendment failed by voice vote

Amendment offered by Rep. Andrew Beeler (R-64)

1. Amend page 10, lines 17 through 19, by striking out section 23.

The amendment failed by voice vote

Amendment offered by Rep. Gregory Alexander (R-98)

1. Amend page 10, lines 17 through 19, by striking out section 23.

The amendment failed by voice vote

Substitute S-6 concurred in 56 to 52 (details)

Signed by Gov. Gretchen Whitmer

March 24, 2023