Act No. 55
Public Acts of 2024
Approved by the Governor
June 6, 2024
Filed with the Secretary of State
June 6, 2024
EFFECTIVE DATE: Sine Die
(91st day after final adjournment of the 2024 Regular Session)
state of michigan
102nd Legislature
Regular session of 2024
Introduced by Reps. McKinney, Aiyash, Mentzer, Tyrone Carter, Tsernoglou, Dievendorf, Rheingans, Wilson, Wegela, Hope, Paiz, Morgan, VanderWall, Byrnes, Puri, Liberati and Weiss
ENROLLED HOUSE BILL No. 4186
AN ACT to allow local governments and certain authorities to withhold payment under certain conditions to contractors on an asbestos abatement project; to provide for mandatory contract conditions on certain asbestos abatement projects; to provide for certain disclosures; and to prescribe the powers and duties of certain local officials.
The People of the State of Michigan enact:
Sec. 1. As used in this act:
(a) “Asbestos” means a group of naturally occurring minerals that separate into fibers, including chrysotile, amosite, crocidolite, anthophyllite, tremolite, and actinolite.
(b) “Asbestos abatement contractor” means a business entity that is licensed under the asbestos abatement contractors licensing act, 1986 PA 135, MCL 338.3101 to 338.3319, and that carries on the business of asbestos abatement on the premises of another and not on the asbestos abatement contractor’s premises.
(c) “Asbestos abatement project” means any activity involving persons working directly with the demolition, renovation, or encapsulation of friable asbestos materials.
(d) “Local government” means a county, city, village, or township.
Sec. 3. Beginning on the effective date of this
act, if a local government or a land bank authority created under section 23 of
the land bank fast track act, 2003 PA 258, MCL 124.773, enters into a contract
with an asbestos abatement contractor or a demolition contractor that involves
an asbestos abatement project, the contract must include a provision that the
local government or land bank authority may withhold any payment to that
asbestos abatement contractor or demolition contractor if the asbestos
abatement contractor, demolition contractor, or any subcontractor of the
asbestos abatement contractor or demolition contractor on that asbestos
abatement project enters into, or begins negotiations to enter into, an administrative
consent order or consent judgment with the department of environment, Great
Lakes, and energy or another environmental regulatory agency within the time period the contract for that asbestos abatement
project began that involves violations of environmental regulations related to that project or other asbestos abatement
projects. Payment may be withheld by the local government or land bank
authority until the local government or land bank authority receives
verification from the asbestos abatement contractor, the demolition contractor,
the department of environment, Great Lakes, and energy, or another
environmental regulatory agency that the violations of environmental
regulations related to the administrative consent order or consent judgment, or
a proposed administrative consent order or consent judgment, have been
corrected.
Sec. 5. If involved in an asbestos abatement project with a local government or land bank authority, an asbestos abatement contractor, demolition contractor, or any subcontractor of the asbestos abatement contractor or demolition contractor must disclose to the local government or land bank authority if that asbestos abatement contractor, demolition contractor, or subcontractor is subject to an active administrative consent order or consent judgment, or has entered into, or is in negotiations to enter into, an administrative consent order or consent judgment, with the department of environment, Great Lakes, and energy or another environmental regulatory agency for any violations of environmental regulations.
Clerk of the House of Representatives
Secretary of the Senate
Approved___________________________________________
____________________________________________________
Governor