HB-5302, As Passed Senate, December 12, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE SUBSTITUTE FOR

 

HOUSE BILL NO. 5302

 

 

 

 

 

 

 

 

 

 

 

 

     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,"

 

(MCL 247.651 to 247.675) by adding section 18j.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 18j. (1) Beginning September 30, 2014, 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 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

 

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 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 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

 

be cost competitive with the new state preferred provider

 

organization health plan, on a per-transportation-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 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.

 

     (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 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 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 local

 

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 local road agency.

 

     (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.

 

     (c) A financial performance dashboard that contains

 

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 road agency may develop and operate its own

 

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

 


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

 

transparency website as the source for the information required

 

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

 

website, the local road agency may post the information required

 

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

 

village within which the local road agency is located or on the

 

website of a statewide road association of which the local road

 

agency 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.