HOUSE BILL No. 4287

 

February 17, 2011, Introduced by Reps. Haveman, Kowall, Shirkey, Genetski, Cotter, Potvin, Rogers, Pscholka, Goike, Bumstead, MacGregor, Lyons, Hooker, Shaughnessy, O'Brien, Lund, Walsh, Franz, Nesbitt, Rendon, Olson, Daley, Knollenberg, Wayne Schmidt, Horn, Opsommer, Muxlow, Tyler, McMillin, Callton, Denby, Kurtz, Price, Agema, MacMaster, Jenkins, Yonker, Scott, Lori, Crawford, Poleski, Moss, Jacobsen, Gilbert and Haines and referred to the Committee on Oversight, Reform, and Ethics.

 

     A bill to provide for fair and open competition in

 

governmental construction contracts, grants, tax abatements, and

 

tax credits; to prohibit requirements for certain terms in

 

government contracts and contracts supported through government

 

grants and tax subsidies and abatements; to prohibit expenditure of

 

public funds under certain conditions; to prohibit certain terms in

 

procurement documents for certain expenditures involving public

 

facilities; and to provide for powers and duties of certain public

 

officers, employees, and contractors.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. This act shall be known and may be cited as the "fair

 

and open competition in governmental construction act".

 


     Sec. 3. As used in this act:

 

     (a) "Facility" means any actual physical improvement to real

 

property owned, or leased, directly or through a building

 

authority, by a governmental unit, including, but not limited to,

 

roads; bridges; runways; rails; or a building or structure along

 

with the building's or structure's grounds, approaches, services,

 

and appurtenances.

 

     (b) "Governmental unit" means this state, a county, city,

 

township, village, school district, intermediate school district,

 

community college, or public university that receives

 

appropriations from this state, or any agency, board, commission,

 

authority, or instrumentality of the foregoing.

 

     Sec. 5. A governmental unit shall not enter into or expend

 

funds under a contract for the construction, repair, remodeling, or

 

demolition of a facility if the contract or a subcontract under the

 

contract contains any of the following:

 

     (a) A term that requires, prohibits, encourages, or

 

discourages bidders, contractors, or subcontractors from entering

 

into or adhering to agreements with a collective bargaining

 

organization relating to the construction project or other related

 

construction projects.

 

     (b) A term that discriminates against bidders, contractors, or

 

subcontractors based on the status as a party or nonparty to, or

 

the willingness or refusal to enter into, an agreement with a

 

collective bargaining organization relating to the construction

 

project or other related construction projects.

 

     Sec. 7. A governmental unit shall not award a grant, tax

 


abatement, or tax credit that is conditioned upon a requirement

 

that the awardee include a term described in section 5(a) or (b) in

 

a contract document for any construction, improvement, maintenance,

 

or renovation to real property or fixtures that are the subject of

 

the grant, tax abatement, or tax credit.

 

     Sec. 9. A governmental unit or a construction manager or other

 

contracting entity acting on behalf of a governmental unit shall

 

not place any of the terms described in section 5 in bid

 

specifications, project agreements, or other controlling documents

 

relating to the construction, repair, remodeling, or demolition of

 

a facility. Any such included term is void and of no effect.

 

     Sec. 11. The requirements of this act do not apply to

 

construction contracts executed before the effective date of this

 

act.