MI HB5596

Allows local governments and land bank authorities to withhold payment from asbestos abatement contractors or demolition contractors working on asbestos abatement projects if the contractor or any subcontractor has entered into an administrative consent order or consent judgment with the Department of Environmental Quality or other environmental agency within the preceding 12 months involving environmental violations.

Requires all contracts between local governments or land bank authorities and asbestos abatement contractors or demolition contractors involving asbestos abatement projects to include a mandatory provision allowing payment withholding under the specified conditions.

Defines key terms including "asbestos," "asbestos abatement contractor," "asbestos abatement project," and "local government" (counties, cities, villages, and townships).

Payment may be withheld until the local government or land bank authority receives verification that the environmental violations have been corrected or that proposed administrative consent orders or consent judgments have been completed.

Applies to contracts entered into on or after the effective date of the act.