HB-5568, As Passed House, June 3, 2014HB-5568, As Passed Senate, June 3, 2014

SUBSTITUTE FOR

HOUSE BILL NO. 5568

A bill to amend 1909 PA 279, entitled

"The home rule city act,"

by amending section 4i (MCL 117.4i), as amended by 2012 PA 7, and

by adding section 4p.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 4i. Each city may provide in its charter for 1 or more of

the following:

(a) Laying and collecting rents, tolls, and excises.

(b) Regulating and restricting the locations of oil and

gasoline stations.

use of land and structures, the height, area, size, and location of

buildings, the required open spaces for light and ventilation of

buildings, and the density of population may be regulated by

ordinance. The zoning ordinance provisions applicable to 1 or more

districts may differ from those applicable to other districts. If a

city is incorporated, or if territory is annexed to a city

incorporated under this act, the zoning ordinance provisions

applicable to the territory within the newly incorporated city or

the annexed territory shall remain in effect for 2 years after the

incorporation or annexation unless the legislative body of the city

lawfully adopts other zoning ordinance provisions.

(d) The regulation of trades, occupations, and amusements

within city boundaries, if the regulations are not inconsistent

with state or federal law, and the prohibition of trades,

occupations, and amusements that are detrimental to the health,

morals, or welfare of the inhabitants of that city.

(e) The regulation or prohibition of public nudity within city

boundaries. As used in this subdivision, "public nudity" means

knowingly or intentionally displaying in a public place, or for

payment or promise of payment by any person including, but not

limited to, payment or promise of payment of an admission fee, any

individual's genitals or anus with less than a fully opaque

covering or a female individual's breast with less than a fully

opaque covering of the nipple and areola. Public nudity does not

include any of the following:

(i) A woman's breastfeeding of a baby whether or not the nipple

or areola is exposed during or incidental to the feeding.

(ii) Material as defined in section 2 of 1984 PA 343, MCL

752.362.

(iii) Sexually explicit visual material as defined in section 3

of 1978 PA 33, MCL 722.673.

(f) Licensing, regulating, restricting, and limiting the

number and locations of billboards within the city.

(g) The initiative and referendum on all matters within the

scope of the powers of that city and the recall of city officials.

(h) A system of civil service for city employees, including

employees of that city's board of health, and employees of any jail

operated or maintained by the city. Charter provisions providing

for a system of civil service for employees of a local health board

are valid and effective.

(i) A Subject to section 4p, a system of compensation for city

employees and for the dependents of city employees in the case of

disability, injury, or death of city employees.

(j) The enforcement of police, sanitary, and other ordinances

that are not in conflict with the general laws.

(k) The punishment of persons who violate city ordinances

other than ordinances described in section 4l. The penalty for a

violation of such a city ordinance shall not exceed a fine of

$500.00 or imprisonment for 90 days, or both. However, unless

otherwise provided by law, the ordinance may provide that a

violation of the ordinance is punishable by imprisonment for not

more than 93 days or a fine of not more than $500.00, or both, if

the violation substantially corresponds to a violation of state law

that is a misdemeanor for which the maximum period of imprisonment

is 93 days. In addition, a city may adopt section 625(1)(c) of the

Michigan vehicle code, 1949 PA 300, MCL 257.625, by reference in an

adopting ordinance and shall provide that a violation of that

ordinance is punishable by 1 or more of the following:

(i) Community service for not more than 360 hours.

(ii) Imprisonment for not more than 180 days.

(iii) A fine of not less than $200.00 or more than $700.00.

Sec. 4p. (1) For a city with a population of more than 600,000

or that has discharged $1,000,000,000.00 of pension liabilities in

bankruptcy, or both, that provides a defined benefit plan as part

of a system of compensation under section 4i, all of the following

apply:

(a) Except as otherwise provided in a plan for adjustment, the

calculation of a pension benefit under the defined benefit plan

shall only include base pay. This subdivision does not apply to

years of service accrued before January 1, 2015.

(b) Except as otherwise provided in a plan for adjustment, the

annual pension benefit shall not include an additional payment

based solely on the rate of investment return earned on the

retirement system's assets. This subdivision does not prohibit the

fulfillment of rights and benefits earned under a retirement system

agreed to in a plan for adjustment. As used in this subdivision, a

"retirement system" means a public employee retirement system

established by a city described in this subsection.

(2) Except as otherwise provided in a plan for adjustment, for

a city with a population of more than 600,000 or that has

discharged $1,000,000,000.00 of pension liabilities in bankruptcy,

or both, that provides retirement benefits for employees first

hired after July 1, 2023 as part of a system of compensation under

section 4i, either of the following applies for the employees first

hired after July 1, 2023:

(a) The city may offer retirement plans so long as the city

does not contribute more than 7% of the employee's base pay to an

appropriate retirement account.

(b) The city may offer the same retirement plan as provided in

a plan for adjustment.

(3) For a city with a population of more than 600,000 or that

has discharged $1,000,000,000.00 of pension liabilities in

bankruptcy, or both, that provides retirement health care insurance

benefits for new employees after July 1, 2023 as part of a system

of compensation under section 4i, the city shall not contribute

more than 2% of the employee's base pay or the percentage a

qualified participant's employer contributes on behalf of a

qualified participant under section 68b(1) of the state employees'

retirement act, 1943 PA 240, MCL 38.68b, whichever percentage is

greater, to an appropriate tax-deferred account.

(4) Not later than January 1, 2024, and each January 1 after

2024, for a city with a population of more than 600,000 or that has

discharged $1,000,000,000.00 of pension liabilities in bankruptcy,

or both, that provides retirement benefits as part of a system of

compensation under section 4i, the city or a retirement system

established by the city, as applicable, shall submit a

certification of its compliance with this section to the financial

review commission created under the Michigan financial review

commission act.

(5) As used in this section:

(a) "Base pay" means the remuneration paid an employee on

account of the employee's services rendered to a city described in

this section. Base pay does not include any of the following:

(i) Payment for overtime services.

(ii) Remuneration paid in lieu of accumulated sick leave.

(iii) Remuneration received as a bonus.

(iv) Payment for accrued vacation pay.

(v) One-time lump-sum payments.

(vi) The cost of fringe benefits, including, but not limited

to, a medical benefit plan.

(b) "Medical benefit plan" means that term as defined in

section 2 of the publicly funded health insurance contribution act,

2011 PA 152, MCL 15.562.

established by a city described in subsection (1).

(d) "Plan for adjustment" means a plan for the adjustment of

debts entered and approved by a federal bankruptcy court.

(e) "Retirement health care insurance benefit" means

hospitalization and medical insurance, dental coverage, vision

coverage, and any other health care insurance provided for a

retirant or dependent of a retirant under a system of compensation

that includes retirement benefits established under section 4i.