July 17, 2007, Introduced by Senator CASSIS and referred to the Committee on Commerce and Tourism.
A bill to amend 1965 PA 166, entitled
"An act to require prevailing wages and fringe benefits on state
projects; to establish the requirements and responsibilities of
contracting agents and bidders; and to prescribe penalties,"
by amending sections 2 and 6 (MCL 408.552 and 408.556).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. (1) Every contract executed between a contracting
agent and a successful bidder as contractor and entered into
pursuant to advertisement and invitation to bid for a state project
which
that requires or involves the employment of construction
mechanics, other than those subject to the jurisdiction of the
state
civil service commission, and which that is sponsored or
financed in whole or in part by the state shall contain an express
term that the rates of wages and fringe benefits to be paid to each
class of mechanics by the bidder and all of his or her
subcontractors, shall be not less than the wage and fringe benefit
rates prevailing in the locality in which the work is to be
performed.
(2) A contract that is entered into or renewed after January
1, 2008 shall provide that a contractor and his or her
subcontractors are not required to pay the prevailing minimum wage
otherwise required under this section during periods in which the
unemployment rate of this state is above the national unemployment
rate as determined by the United States department of labor.
(3) Contracts on state projects which that contain
provisions
requiring the payment of prevailing wages as determined by the
United
States secretary of labor pursuant
to under the federal
Davis-Bacon act (United States code, title 40, section 276a et seq)
or
which that contain minimum wage schedules which that are
the
same as prevailing wages in the locality as determined by
collective bargaining agreements or understandings between bona
fide organizations of construction mechanics and their employers
are
exempt from the provisions of this act.
Sec.
6. The Subject to section
2(2), the contracting agent, by
written notice to the contractor and the sureties of the contractor
known to the contracting agent, may terminate the contractor's
right
to proceed with that part of the contract , for which less
than the prevailing rates of wages and fringe benefits have been or
will
be paid, and may proceed to complete the contract by separate
agreement with another contractor or otherwise, and the original
contractor and his or her sureties shall be liable to the
contracting
agent for any excess costs occasioned thereby by those
actions.