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Updates on P3 Bills in Michigan

Wednesday, December 13, 2017  
Updates on P3 Bills in Michigan 

Michigan is winding down it 2017 legislative session and SB 97, the P3 legislation, may not pass this year. SFAA and AIA are seeking a bonding requirement in the legislation, which would authorize P3s for transportation projects, health care facilities and laboratories. This is a key initiative of the Governor, who has opposed our bonding amendments. There is division among the Republicans in the House on the concept of P3s however, as some believe the bill authorizes government agencies to award contracts, which the taxpayers fund, to private entities for profit and with little accountability.

Michigan SB 711 also recently was introduced. The bill amends the existing law on port authorities to allow the use of P3s for their projects, which include construction, reconstruction, rehabilitation, remodeling, enlargement, and repair of port facilities, among other projects. There are no specific bonding requirements in the existing port authority law. The Michigan Little Miller Act, however, applies to “public authorities,” among many other governmental entities.

Members should visit Government Relations / General Info (Members) for more information.

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