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SB 1186

Labor: hours and wages; state projects paid for by bond proposals; exempt from prevailing wage act. Amend sec. 9 of 2023 PA 10 (MCL 408.1109).

2023-2024 Regular Session Introduced by John Cherry

Exempts State projects funded by bonds approved under the Revised School Code before Feb 13, 2024 from prevailing wage requirements, potentially lowering construction costs.

read a first time
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Bill Summary · SB 1186

SB 1186 — Summary (Labor: prevailing wage; bond-funded school projects exemption)

Sponsor: Sen. John Cherry
Subject: Labor — hours and wages / prevailing wage on State projects
Statute amended: MCL 408.1109 (section 9 of 2023 PA 10)
Introduced: Feb 7, 2025 — Status reported: read a first time

Purpose / intent

SB 1186 would narrow the scope of Michigan’s 2023 prevailing wage law (Public Act 10 of 2023) by expanding an existing exemption to cover State projects paid for, in whole or in part, with revenue from bonds or bond proposals that were authorized under the Revised School Code before February 13, 2024. The declared intent is to align the statute with common school financing practices (schools often issue bonds and repay them with millage revenue).

Key provisions

  • Amends section 9 of 2023 PA 10 (MCL 408.1109).
  • Adds bonds and bond proposals to an existing exemption that already excludes State projects funded by millages authorized under the Revised School Code before February 13, 2024.
  • Under the bill, prevailing wage and fringe benefit requirements in PA 10 would not apply to any State project paid for (in whole or in part) with bond or bond-proposal revenue so long as the bond or bond proposal was authorized under the Revised School Code before February 13, 2024.
  • Does not change the prevailing wage requirements for projects funded by other revenue sources or for bonds authorized on or after February 13, 2024.

(Background: PA 10 generally requires contractors on State projects to pay prevailing wages and fringe benefits, defined in the Act as the average hourly wages and benefits paid to the majority of workers in the locality.)

Who would be affected

  • School districts and other local units that authorized bonds or bond proposals before Feb 13, 2024 and whose projects receive State-level project status or State funding.
  • State contracting agencies that manage or fund State construction projects using such bond revenue.
  • Construction workers on affected projects (may see different wage/fringe provisions depending on whether prevailing wage applies).
  • Local governments that issued bonds to match State funds for projects.

Fiscal impact / practical effects

  • Legislative analysts note the bill could reduce overall project labor costs on affected projects because prevailing wage requirements would no longer apply, potentially freeing bond or State funds for other uses.
  • Total bond revenue is unchanged; the change affects how that revenue is spent (potentially lower construction labor costs).
  • Both State and local government budgets could be affected to the extent contracting costs change.

Procedural / timeline notes

  • The bill targets bonds/bond proposals authorized under the Revised School Code before the effective date of PA 10 (February 13, 2024).
  • Current status provided: read a first time (introduced Feb 7, 2025). Further committee and floor action would be required to enact the amendment.

Statutory reference

  • Amends: MCL 408.1109 (sec. 9 of 2023 PA 10).

Compiled from official sources — confirm details with the bill’s official record.

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