HB-4246, As Passed House, May 25, 2007

SUBSTITUTE FOR

HOUSE BILL NO. 4246

     A bill to amend 1967 (Ex Sess) PA 8, entitled

"An act to provide for intergovernmental transfers of functions and

responsibilities,"

by amending section 4 (MCL 124.534).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 4. A contract shall include:

     (a) A description of the functions or responsibilities to be

transferred.

     (b) The effective date of the contract.

     (c) The term of operation under the contract.

     (d) The manner in which the affected employees, if any, of the

participating political subdivisions shall be transferred,

reassigned, or otherwise treated subject to the following:

     (i) Such employees as are necessary for the operation thereof

shall be transferred to and appointed as employees subject to all

rights and benefits. These employees shall be given seniority

credits and sick leave, vacation, insurance, and pension credits in

accordance with the records or labor agreements from the acquired

system. Members and beneficiaries of any pension or retirement

system or other benefits established by the acquired system shall

continue to have rights, privileges, benefits, obligations, and

status with respect to such the established system. The political

subdivision to which the functions or responsibilities have been

transferred shall assume the obligations of any system acquired by

it with regard to wages, salaries, hours, working conditions, sick

leave, health and welfare, and pension or retirement provisions for

employees. If the employees of an acquired system were not

guaranteed sick leave, health and welfare, and pension or

retirement pay based on seniority, the political subdivision shall

not be required to provide these benefits retroactively.

     (ii) No employee who is transferred to a position with the

political subdivision shall by reason of such that transfer be

placed in any worse position with respect to workmen's

compensation, pension, seniority, wages, sick leave, vacation,

health and welfare insurance, or any other benefits that he or she

enjoyed as an employee of such the acquired system.

     (iii) Nothing in this act requires that the employer pay to

employees the highest wages and benefits previously paid to any of

the employees or their preexisting bargaining units.

     (e) The manner in which any real property, facilities,

equipment, or other personal property required in the execution of

the contract shall be transferred, sold, or otherwise disposed of

between the contracting parties.

     (f) The method of financing to be used and the amount to be

paid by each of the participating units in relation to the

undertaking involved.

     (g) Other legal, financial, and administrative arrangements

necessary to effectuate the undertaking.

     Enacting section 1. This amendatory act does not take effect

unless House Bill No. 4266 of the 94th Legislature is enacted into

law.