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SB 571

Relating to road infrastructure; declaring an emergency.

2025 Regular Session Introduced by Dick Anderson and 1 co-sponsor

Expands prevailing wage to energy facility projects ≥2 MW and creates a state registration and payroll reporting system for contractors to enforce wage, fringe benefits, and compli

In committee upon adjournment.
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Bill Summary · SB 571

SB 571 — Summary (Prevailing Wage; renewable energy projects; contractor registration)

Note: This summary describes the version of SB 571 that amends 2023 PA 10 and was enacted as Public Act 110 of 2024. It focuses on the bill’s expansion of prevailing‑wage coverage to certain renewable energy projects and the new contractor registration / payroll reporting requirements administered by the Michigan Department of Labor and Economic Opportunity (LEO).

Main purpose

SB 571 expands Michigan’s prevailing‑wage law to cover specified renewable energy projects (solar, wind, energy storage) with a nameplate capacity of 2 megawatts or more, and creates a state registration and payroll‑reporting framework to enforce prevailing‑wage and fringe‑benefit obligations on those projects and other state projects.

Key provisions and changes

  • Expanded scope of “state project”

    • Adds “energy facility projects” (solar, wind, energy storage) with nameplate capacity ≥ 2 megawatts to the definition of projects subject to prevailing wage requirements.
    • An energy facility may span multiple parcels so long as it shares a single point of interconnection.

  • New State Project Registration (contractors & subcontractors)

    • Contractors and subcontractors must hold a “state project registration” to: (a) submit bids for state projects; (b) perform work on state projects; (c) be listed as a subcontractor on a bid; or (d) enter agreements to perform work on a state project.
    • Registration is valid for 1 year; LEO sets the annual renewal date.
    • Applications must include business ID info (name, address, tax ID, UI ID), legal form, names/addresses of owners/officers or beneficial owners, statement and documentation of compliance with applicable laws and licenses, and any other LEO‑required documentation.
    • LEO may set an application fee (may be prorated) “sufficient to implement” the law. LEO must grant or deny a complete application within 15 business days, with a written reason if denied.
    • If rules are adopted, LEO may suspend or revoke registrations for significant or repeated violations.

  • Certified payroll database & reporting

    • Contractors/subcontractors must maintain certified payroll records (retained at least 3 years).
    • For the first year after effective date: contractors submit certified payroll to the contracting agent within 10 days after each pay period; contracting agents must transmit to LEO within 10 days.
    • After the first year: LEO must create/maintain an electronic certified payroll database; contractors, subcontractors, or contracting agents upload records directly.
    • Required payroll fields include (but may not be limited to): worker classification, apprentice/journeyman skill level, gross wages, hours worked each day (with start/end times), pay period hours, fringe benefit details, and other specified payroll elements.

  • Prevailing Wage Fund and enforcement

    • Creates a Prevailing Wage Fund in the State Treasury to receive registration fees and fines collected for violations.
    • LEO is given authority to collect fines and to use fees to support program administration.

Who is affected

  • Contractors and subcontractors working on:
    • State‑sponsored or state‑financed public construction projects; and
    • Energy facility projects (solar, wind, energy storage ≥ 2 MW), including projects sponsored by private contracting agents.
  • Contracting agents (public and private) that procure or sponsor energy facility projects.
  • Construction mechanics (workers) on covered projects — prevailing‑wage protections and fringe‑benefit standards apply.
  • Department of Labor & Economic Opportunity — new administrative responsibilities (registration processing, database, enforcement).

Implementation, timeline & fiscal notes

  • Enactment: SB 571 was enacted as Public Act 110 of 2024. The act’s effective date is 91 days after the Legislature adjourns sine die (standard delayed effective date noted in analyses).
  • LEO must stand up the registration program and certified payroll database; initial fiscal analyses estimate one‑time and ongoing staffing and information‑technology costs to LEO. Fee revenue and fines are deposited to the Prevailing Wage Fund; Treasury administrative costs are expected to be minimal.

Potential impacts (practical)

  • Raises compliance and administrative requirements for businesses bidding on or performing covered energy projects (annual registration, payroll reporting).
  • May increase labor costs on covered energy facility projects because contractors must pay prevailing wages and required fringe benefits; proponents argue this improves worker pay and project quality, opponents note potential cost increases.
  • Strengthens LEO’s enforcement tools (registration as a gating requirement; fines; ability to suspend/revoke registration).

For full statutory text, definitions (e.g., detailed inclusions for solar/wind components), and rulemaking directions, consult the enacted Public Act 110 of 2024 and the Department of Labor and Economic Opportunity guidance once issued.

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

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