2011 Senate Bill 165 / Public Act 98

Ban project labor agreements

Introduced in the Senate

Feb. 17, 2011

Introduced by Sen. John Moolenaar (R-36)

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 Committee on Reforms, Restructuring, and Reinventing

March 15, 2011

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.

June 14, 2011

Substitute offered

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

June 16, 2011

Amendment offered by Sen. Mike Kowall (R-15)

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

Passed in the Senate 26 to 12 (details)

Received in the House

June 16, 2011

Referred to the Committee on Commerce

June 21, 2011

Reported without amendment

Without amendment and with the recommendation that the bill pass.

June 29, 2011

Passed in the House 62 to 47 (details)

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”.

Signed by Gov. Rick Snyder

July 19, 2011