Michigan Senate Bill SB0054

Michigan 2025-2026 Regular Session

• Introduced: 2/4/25
• Refer: 2/4/25
• Report Pass: 6/18/25
• Refer: 6/18/25
• Report Pass: 6/25/25
• Engrossed: 6/26/25
• Refer: 6/26/25

Caption

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

Summary

SB 54 amends Michigan’s 2023 prevailing wage law for state projects by adding a specific exemption. Under the bill, the prevailing wage and fringe benefit requirements in 2023 PA 10 would not apply to contracts entered into or bids made before the act’s effective date, February 13, 2024. It also excludes state projects that are funded, in whole or in part, by revenue from a millage, bond, or bond proposal authorized under the Revised School Code before that effective date. In practical terms, the bill narrows the reach of the prevailing wage act by carving out certain preexisting school-related bond and millage-funded projects. Those projects would not be subject to the wage and benefit mandates even if they are state projects otherwise covered by the law. The measure therefore affects state contracting rules, bidders, contractors, and public entities involved in school construction or renovation projects financed through earlier voter-approved funding mechanisms.

Impact

The bill would amend section 9 of 2023 PA 10, codified at MCL 408.1109, to create a new statutory exemption from Michigan’s prevailing wage requirements. It would preserve the act’s general application to state projects while removing coverage for pre-effective-date contracts and for state projects financed by certain school-code-authorized millages or bonds approved before February 13, 2024. This would reduce the number of projects subject to prevailing wage and fringe benefit obligations and alter compliance expectations for contracting agents, bidders, and contractors on affected projects.

Sentiment

The available voting history suggests the bill was generally supported in the Senate, where it was reported favorably out of committee 4-0 and then passed on third reading by a 32-5 vote. That pattern indicates broad, though not unanimous, approval. No committee transcripts were provided, so the record here reflects legislative action more than detailed debate, but the votes suggest the bill was viewed positively by a majority of lawmakers.

Contention

The main point of contention is the scope of the prevailing wage exemption. Supporters appear to favor protecting projects already funded or authorized before the law’s effective date, especially school-related bond and millage projects, from new wage requirements. Opponents likely object to narrowing the prevailing wage law and creating a special carve-out for certain state projects, which could reduce wage protections and create unequal treatment among projects. The split Senate vote indicates some disagreement over whether these exemptions are appropriate.