HOUSE BILL No. 5196

 

September 21, 2005, Introduced by Reps. Hune and Gaffney and referred to the Committee on Government Operations.

 

     A bill to amend 1931 PA 259, entitled

 

"An act to protect the people of the state from imposition and

fraud in the building construction industry and to provide

penalties for the violation of this act,"

 

by amending the title and section 1 (MCL 570.151).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

TITLE

 

     An act to protect the people of the state from imposition and

 

fraud in the private and public building construction industry; to

 

provide for the creation of certain trust funds under certain

 

circumstances; to create certain remedies; and to provide penalties

 

for the violation of  this  the act.

 

     Sec. 1. In the private and public building construction

 

industry, the building contract fund paid by any person to a


 

contractor, or by  such  that person or contractor to a

 

subcontractor,  shall be  is considered  by this act to be  a trust

 

fund  ,  for the benefit of the person making the payment,

 

contractors, laborers, subcontractors, or materialmen.  , and the

 

The contractor or subcontractor  shall be  is considered the

 

trustee of all funds  so  paid to him or her for private and public

 

building construction purposes.