SENATE BILL No. 692

 

 

November 30, 2017, Introduced by Senators PAVLOV, STAMAS and MARLEAU and referred to the Committee on Michigan Competitiveness.

 

 

     A bill to amend 1973 PA 139, entitled

 

"An act to provide forms of county government; to provide for

county managers and county executives and to prescribe their powers

and duties; to abolish certain departments, boards, commissions,

and authorities; to provide for transfer of certain powers and

functions; to prescribe powers of a board of county commissioners

and elected officials; to provide organization of administrative

functions; to transfer property; to retain ordinances and laws not

inconsistent with this act; to provide methods for abolition of a

unified form of county government; and to prescribe penalties and

provide remedies,"

 

by amending sections 4a, 17, and 22 (MCL 45.554a, 45.567, and

 

45.572), section 4a as added by 2012 PA 507, and by adding section

 

22a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 4a. (1) Beginning September 30, 2014, each county road

 

agency shall annually certify to the department that it satisfies 1

 

of the following conditions with respect to transportation

 


employees:

 

     (a) The county road agency has developed and publicized a

 

transportation employee compensation plan that the county road

 

agency intends to implement with any new, modified, or extended

 

contract or employment agreements for transportation employees not

 

covered under contract or employment agreement. The transportation

 

employee compensation plan that each county road agency plans to

 

achieve shall must be posted on a publicly accessible internet site

 

and shall must be submitted to the department. At Subject to

 

section 22a, at a minimum, the transportation employee compensation

 

plan shall must include all of the following:

 

     (i) New transportation employee hires who are eligible for

 

retirement plans are placed on retirement plans that cap annual

 

employer contributions at 10% of base salary for transportation

 

employees who are eligible for social security benefits. For

 

transportation employees who are not eligible for social security

 

benefits, the annual employer contribution is capped at 16.2% of

 

base salary.

 

     (ii) For defined benefit pension plans, a maximum multiplier

 

of 1.5% for all transportation employees who are eligible for

 

social security benefits, except, if postemployment health care is

 

not provided, the maximum multiplier shall be is 2.25%. For all

 

transportation employees who are not eligible for social security

 

benefits, a maximum multiplier of 2.25%, except, if postemployment

 

health care is not provided, the maximum multiplier shall be is

 

3.0%. This subparagraph does not apply to years of service accrued

 

prior to before September 30, 2013, or to contracts entered into


prior to before September 30, 2013.

 

     (iii) For defined benefit pension plans, final average

 

compensation for all transportation employees is calculated using a

 

minimum of 3 years of compensation and shall must not include more

 

than a total of 240 hours of paid leave. Overtime hours shall must

 

not be used in computing the final average compensation for a

 

transportation employee. This subparagraph does not apply to years

 

of service accrued prior to before September 30, 2013, or to

 

contracts entered into prior to before September 30, 2013.

 

     (iv) Health care premium costs for new transportation employee

 

hires shall must include a minimum transportation employee share of

 

20%; or, an employer's share of the local health care plan costs

 

shall must be cost competitive with the new state preferred

 

provider organization health plan, on a per-transportation-employee

 

basis.

 

     (b) The county road agency complies with 1 of the following:

 

     (i) A county road agency that offers medical benefits to its

 

transportation employees or elected public officials shall certify

 

to the department by September 30, 2014 that it is in compliance

 

with the publicly funded health insurance contribution act, 2011 PA

 

152, MCL 15.561 to 15.569. For purposes of this subparagraph,

 

dental and vision coverages are not considered medical benefits.

 

The department shall develop a certification process and method for

 

county road agencies to follow.

 

     (ii) A county road agency that does not offer medical benefits

 

to its transportation employees or elected public officials shall

 

certify to the department by September 30, 2014 that it does not


offer medical benefits to its transportation employees or elected

 

public officials. For purposes of this subparagraph, dental and

 

vision coverages are not considered medical benefits. The

 

department shall develop a certification process and method for

 

county road agencies to follow.

 

     (2) If a county road agency does not make the certification

 

required under subsection (1), the department may withhold all or a

 

part of the distributions to the county road agency from the

 

Michigan transportation fund under 1951 PA 51, MCL 247.651 to

 

247.675. A withholding under this subsection shall must continue

 

for the period of noncompliance with subsection (1) by the county

 

road agency.

 

     (3) A county road agency shall maintain a searchable website

 

accessible by the public at no cost that includes, but is not

 

limited to, all of the following:

 

     (a) Current fiscal year budget.

 

     (b) The number of active transportation employees of the

 

county road agency by job classification and wage rate.

 

     (c) A financial performance dashboard that contains

 

information on revenues, expenditures, and unfunded liabilities.

 

The county road agency may link to financial information provided

 

by the Michigan transportation asset management council.

 

     (d) The names and contact information for the governing body

 

of the county road agency.

 

     (e) A copy of the certification required by subsection (1).

 

     (4) A county road agency may develop and operate its own

 

website to provide the information required under subsection (3),


or the county road agency may reference this state's central

 

transparency website as the source for the information required

 

under subsection (3). If a county road agency does not have a

 

website, the county road agency may post the information required

 

under subsection (3) on the website for the county within which the

 

county road agency is located or on the website of a statewide road

 

association of which the county road agency is a member.

 

     (5) As used in this section:

 

     (a) "County road agency" means a county road commission in a

 

county that adopts an optional unified form of county government

 

under this act. In addition, if a board of county road

 

commissioners of a county is dissolved as provided in section 6 of

 

chapter IV of 1909 PA 283, MCL 224.6, county road commission

 

includes the county board of commissioners of that county.

 

     (b) "Department" means the state transportation department.

 

     (c) "Transportation employee" means an employee paid in whole

 

or in part through revenues distributed under sections 12 to 13 of

 

1951 PA 51, MCL 247.662 to 247.663, or an employee who is engaged

 

primarily in work funded through revenues distributed under

 

sections 12 to 13 of 1951 PA 51, MCL 247.662 to 247.663.

 

     Sec. 17. The Subject to the protecting local government

 

retirement and benefits act, the board of county commissioners

 

shall continue, without diminution of function or authority, any

 

board previously established to administer employee retirement and

 

pension programs or may create a retirement board if none exists. A

 

retirement board may invest or reinvest the moneys thereof.money of

 

the employee retirement and pension programs.


     Sec. 22. Under Subject to the protecting local government

 

retirement and benefits act, under an optional unified form of

 

county government all retirement and pension rights of employees

 

provided by existing law remain in full force and effect.

 

     Sec. 22a. For a county that has adopted an optional unified

 

form of county government and that provides a retirement system for

 

the county's employees, the retirement system is subject to the

 

protecting local government retirement and benefits act. As used in

 

this section, "retirement system" means that term as defined in

 

section 3 of the protecting local government retirement and

 

benefits act.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No. 686                                      

 

            of the 99th Legislature is enacted into law.