A bill 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.
On March 21, 2023, the Michigan House passed SB 0006, a comprehensive bill mandating the payment of prevailing wages and fringe benefits for workers on state projects. This legislation outlines the responsibilities of contracting agents and bidders, establishes funding for its implementation, and sets penalties for non-compliance. It defines essential terms such as "construction mechanic," "contracting agent," and "state project," ensuring contracts for state projects include terms for wages and benefits at least equal to those prevailing in the project's locality. The Department of Labor and Economic Opportunity is tasked with determining these rates before bids are solicited, with provisions for public hearings to determine prevailing rates in areas lacking clear standards. The bill also includes protections for workers against retaliation for reporting violations and establishes a civil fine of up to $5,000 for violations. Additionally, it exempts projects with wage provisions set by federal law or collective bargaining agreements that meet local standards and does not apply to contracts entered into or bids made before its effective date. For the fiscal year ending September 30, 2023, $75,000 is appropriated for the implementation and communication of this act, with an estimated completion date of December 31, 2024.
Co-sponsored by Sens.
Referred to the Committee on Labor
Reported without amendment
Referred to the Committee of the Whole
Reported with substitute S-10
Substitute S-10 concurred in by voice vote
1. Amend page 3, line 23, after the first “the” by striking out “same or”.
2. Amend page 3, line 24, by striking out “nearest and most similar neighboring”.
3. Amend page 3, line 24, after “locality” by striking out “in” and inserting “for”.
The amendment failed 17 to 20 (details)
1. Amend page 4, following line 29, by inserting:
“Sec. 8a. A contracting agent may exempt itself from the requirements of this act by doing 1 of the following:
(a) If the contracting agent has a governing body, by a majority vote of its governing body.
(b) If the contracting agent does not have a governing body, by submitting a written statement to the commissioner.”.
The amendment failed 17 to 20 (details)
1. Amend page 5, following line 12, by inserting:
“Sec. 11. By 30 months after the effective date of this act, the commissioner shall submit a report to the legislature about the impact of this act.
Sec. 12. This act does not apply 3 years after the effective date of this act.”.
The amendment failed 17 to 20 (details)
1. Amend page 2, line 18, after “which” by striking out “is sponsored or financed in whole or in part by the” and inserting “receives $250,000.00 or more in funding from this”.
The amendment failed 17 to 20 (details)
Passed in the Senate 20 to 17 (details)
Referred to the Committee on Labor
Discharged from committee
1. Amend page 5, following line 12, by inserting:
“Sec. 11. 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
1. Amend page 2, line 26, after “3148” by inserting a comma and “which are sponsored of financed in whole or in part by the school loan revolving fund established under section 16c of the shared credit rating act, 1985 PA 227, MCL 141.1066cc,”.
The amendment failed by voice vote
1. Amend page 5, line 3, by striking out the balance of the bill.
The amendment failed by voice vote
1. Amend page 5, following line 12, by inserting:
“Sec. 11. 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
1. Amend page 5, following line 12, by inserting:
“Sec. 11. 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. 12. This act does not apply 3 years after the effective date of this act.”.
The amendment failed by voice vote
1. Amend page 2, line 12, 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
1. Amend page 2, line 12, 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
Substitute H-1 offered
by
The substitute failed by voice vote
Substitute H-2 offered
by
The substitute failed by voice vote
Passed in the House 56 to 52 (details)
Motion to give immediate effect
by
The motion prevailed by voice vote
Returned to the House
