ABC-SEMI Issue 3 2018

10 Associated Builders and Contractors, Inc. F or the first time in over 50 years, free and fair competition will be the law of the land for state-funded construction projects. With a historic vote, the Michigan House and Senate approved ABC sponsored Citizen-Initiated legislation that repealed the state prevailing wage law. “This legislation was about leveling the playing field,” said ABC SEMI Board Chairman Robert Clancy. “The free market system has always served the private sector well—the job costs what the market will bear. I applaud the legislature for applying those same fair market principals to the public sector.” So, what is prevailing wage anyway? The construction industry was the only industry in the state of Michigan that required state tax-payers to pay more for publicly funded projects due to an arbitrary pay scale. This special-interest carve-out known as prevailing wage, artificially inflated the price of labor to abided by collective bargaining wages. The advocacy efforts led by ABC of Michigan and state affiliate chapters sought to educate community leaders on the burdensome nature of this state law. After continuous attempts to repeal this law through the standard legislative process, Citizen-Initiated legislation was crafted by the organization Protecting Michigan State Taxpayers, and petitions were circulated throughout the entire state. POL ITICS THE ABCs OF POLITICS BREAKING NEWS: PREVAILING WAGE IS REPEALED Prevailing Wage Repeal Timeline May 2017 Nov 2017 Jan 2018 Apr 2018 May 2018 June 2018 Protecting Michigan Taxpayers petition language approved to form. Submitted petition signatures to the Secretary of State (SOS). Petition sample was sufficient, but SOS asked for a larger sample. Michigan House and Senate passed the repeal initiative. Michigan is free from prevailing wage! The larger sample received 100% confidence in signatures from SOS. The partisan Board of Canvassers voted on the validity of the signatures. The vote ended in a party line tie with the two Republicans approved and the two Democrats rejected. Protecting Michigan Taxpayers filed a Mandamus complaint with Court of Appeals. Court of Appeals ordered the Board of Canvassers to follow the law and certify the petition. In an act of desperation, the Unions requested a stay with the Michigan Supreme Court. The High Court denied appeal from the Unions and the petition was approved by the Board of Canvassers.