SB-0882, As Passed Senate, October 2, 2014

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 882

A bill to amend 1951 PA 51, entitled

"An act to provide for the classification of all public roads,

streets, and highways in this state, and for the revision of that

classification and for additions to and deletions from each

classification; to set up and establish the Michigan transportation

fund; to provide for the deposits in the Michigan transportation

fund of specific taxes on motor vehicles and motor vehicle fuels;

to provide for the allocation of funds from the Michigan

transportation fund and the use and administration of the fund for

transportation purposes; to promote safe and efficient travel for

motor vehicle drivers, bicyclists, pedestrians, and other legal

users of roads, streets, and highways; to set up and establish the

truck safety fund; to provide for the allocation of funds from the

truck safety fund and administration of the fund for truck safety

purposes; to set up and establish the Michigan truck safety

commission; to establish certain standards for road contracts for

certain businesses; to provide for the continuing review of

transportation needs within the state; to authorize the state

transportation commission, counties, cities, and villages to borrow

money, issue bonds, and make pledges of funds for transportation

purposes; to authorize counties to advance funds for the payment of

deficiencies necessary for the payment of bonds issued under this

act; to provide for the limitations, payment, retirement, and

security of the bonds and pledges; to provide for appropriations

and tax levies by counties and townships for county roads; to

authorize contributions by townships for county roads; to provide

for the establishment and administration of the state trunk line

fund, local bridge fund, comprehensive transportation fund, and

certain other funds; to provide for the deposits in the state trunk

line fund, critical bridge fund, comprehensive transportation fund,

and certain other funds of money raised by specific taxes and fees;

to provide for definitions of public transportation functions and

criteria; to define the purposes for which Michigan transportation

funds may be allocated; to provide for Michigan transportation fund

grants; to provide for review and approval of transportation

programs; to provide for submission of annual legislative requests

and reports; to provide for the establishment and functions of

certain advisory entities; to provide for conditions for grants; to

provide for the issuance of bonds and notes for transportation

purposes; to provide for the powers and duties of certain state and

local agencies and officials; to provide for the making of loans

for transportation purposes by the state transportation department

and for the receipt and repayment by local units and agencies of

those loans from certain specified sources; and to repeal acts and

parts of acts,"

by amending section 18j (MCL 247.668j), as added by 2012 PA 506.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 18j. (1) Beginning September 30, ~~2014,~~ 2015, each local

road agency shall annually certify to the department that it

satisfies 1 of the following conditions with respect to

~~transportation~~ employees:

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

~~transportation~~ an employee compensation plan that the local 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 local road agency plans to

achieve shall be posted on a publicly accessible internet site and

shall be submitted to the department. At a minimum, the

~~transportation~~ employee compensation plan shall include all of the

following:

(i) New ~~transportation~~ employee hires who are eligible for

Senate Bill No. 882 (H-3) as amended September 24, 2014

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 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 3.0%.

This subparagraph does not apply to years of service accrued prior

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

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 not include more than

a total of 240 hours of paid leave. Overtime hours shall not be

used in computing the final average compensation for a

~~transportation~~ an employee. This subparagraph does not apply to

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

contracts entered into prior to September 30, 2013.

(iv) Health care premium costs for new [~~transportation~~ ]employee

hires shall include a minimum ~~transportation~~ employee share of 20%;

or, an employer's share of the local health care plan costs shall

Senate Bill No. 882 (H-3) as amended September 24, 2014

as amended October 1, 2014

be cost competitive with the new state preferred provider

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

employee basis.

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

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

[~~transportation~~ ]employees or elected public officials shall certify

to the department by September 30, ~~2014~~ 2015 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 local road agencies to follow. [A local road

agency shall indicate in a certification under this subparagraph whether it has exempted itself from the publicly funded health insurance contribution act, 2011 PA 152, MCL 15.561 to 15.569, as provided in section 8 of the publicly funded health insurance contribution act, 2011 PA 152, MCL 15.568.]

(ii) A local 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~~ 2015 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

local road agencies to follow.

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

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

part of the distributions to the local road agency from the

Michigan transportation fund under this act. A withholding under

this subsection shall continue for the period of noncompliance with

subsection (1) by the local road agency.

(3) A ~~local~~ county road ~~agency~~ commission 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 ~~local~~

county road ~~agency~~ commission by job classification and wage rate.

information on revenues, expenditures, and unfunded liabilities.

The county road ~~agency~~ commission 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 ~~local~~ county road ~~agency.~~commission.

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

(4) The department shall maintain a searchable website

accessible by the public at no cost. A website maintained by the

department under this subsection shall include, but is not limited

to, the following:

(a) Current fiscal year budget.

(b) The number of active ~~transportation~~ employees of the

department by job classification and wage rate.

information on revenues, expenditures, and unfunded liabilities.

The department 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 department.

(5) A ~~local~~ county road ~~agency~~ commission may develop and

operate its own website to provide the information required under

subsection (3), or the ~~local~~ county road ~~agency~~ commission may

reference this state's central transparency website as the source

for the information required under subsection (3). If a ~~local~~

county road ~~agency~~ commission does not have a website, the ~~local~~

county road ~~agency~~ commission may post the information required

under subsection (3) on the website for the county ~~, city, or~~

~~village~~ within which the ~~local~~ county road ~~agency~~ commission is

located or on the website of a statewide road association of which

the ~~local~~ county road ~~agency~~ commission is a member.

~~(6) As used in this section, "transportation employee" means~~

~~an employee paid in whole or in part through revenues distributed~~

~~under sections 12 to 13 or an employee who is engaged primarily in~~

~~work funded through revenues distributed under sections 12 to 13.~~