HB-4311, As Passed Senate, June 30, 2011
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 4311
A bill to amend 1967 (Ex Sess) PA 8, entitled
"An act to provide for intergovernmental transfers of functions and
by amending section 4 (MCL 124.534).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4. (1) A contract shall include:
(a) A description of the functions or responsibilities to be
(b) The effective date of the contract.
(c) The term of operation under the contract.
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
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 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
subdivision shall by reason of such 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 enjoyed as an employee of such
(d) The political subdivision that will function as the
employer of personnel and staff needed for the transfer of
functions or responsibilities.
(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
House Bill No. 4311 as amended June 30, 2011
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
(g) Other legal, financial, and administrative arrangements
necessary to effectuate the undertaking.
(2) The political subdivisions that are parties to a contract
entered into pursuant to this act have the responsibility,
authority, and right to manage and direct on behalf of the public
the functions or services performed or exercised in connection with
(3) The contents or language of a contract for a transfer of
functions or responsibilities under this act shall be a permissive
subject of collective bargaining between a political subdivision
and a bargaining representative of its employees. If a political
subdivision and a bargaining representative of its employees engage
in collective bargaining before the contract for a transfer of
functions or responsibilities is approved and that political
subdivision and that bargaining representative reach an agreement
on issues that would obligate the political subdivision that will
function as an employer in the joint system, then the contract for
that transfer of functions or responsibilities shall include those
(4) Nothing in this act creates an employment relationship
between the existing employees of a political subdivision and the
proposed joint system.
<<(5) All unexpired collective bargaining agreements with a political subdivision shall remain in effect until expired, modified, or replaced by a collective bargaining agreement with the joint system under this section in accordance with 1947 PA 336, MCL 423.201 to 423.217, and other applicable laws. If the employees of a joint system are in a bargaining unit represented by a labor organization, but are not subject to an unexpired collective bargaining agreement, the terms and conditions of employment shall remain in effect until modified in accordance with 1947 PA 336, MCL 423.201 to 423.217, and other applicable laws. Nothing in this section requires a political subdivision or a joint system to assume a collective bargaining agreement between another political subdivision and its employees.>>