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Schuette, Moolenaar Announce Appeal to Defend Fair and Open Competition in Governmental ConstructionContact:
John Sellek or Joy Yearout 517-373-8060Agency:
March 6, 2012
General Bill Schuette and Senator John Moolenaar (R-Midland) today announced the
State of Michigan will appeal a ruling by a federal court that overturned the
Michigan Fair and Open Competition and in Governmental Construction Act. The
law increases competition and lowers costs to taxpayers by allowing all
contractors, regardless of union or non-union affiliation, to have equal access
to competitively bid for public construction project contracts.
contract bidding process should be open and fair," said Schuette. "Encouraging
robust competition and free enterprise will save taxpayer dollars."
Public Act 98 to help ensure a level playing field in the competition for
taxpayer-funded construction projects," said Moolenaar, sponsor of the law.
"Equal opportunity is a foundation of our economic system, and I thank Attorney
General Schuette for standing up for Michigan taxpayers and workers by defending
this common-sense law."
Schuette filed a notice of appeal on behalf of Governor Rick Snyder to appeal
the February 29, 2012 ruling by U.S. District Court Judge Victoria Roberts
striking down the law. Schuette will defend the law before the U.S. Court of
Appeals for the 6th Circuit and argue that it is not pre-empted by federal labor
laws. Schuette will also file a motion seeking a stay of the order striking
down the law while the appeal moves forward.
Fair and Open Competition in Governmental Construction Act protects taxpayers by
allowing all qualified contractors to bid on public contracts and not be
otherwise prohibited from doing so under special bidding provisions requiring or
prohibiting pre-hiring or project labor
agreements (PLAs). Public contracts would include state, local government,
school, college and university construction projects using state tax dollars.
Ten other states have similar public contracting laws or executive orders in
place. Most recently, in September 2011, Iowa's executive order banning project
labor agreements in state-funded construction projects was upheld in federal
court on the grounds that it did not violate the National Labor Relations Act.