SB-0882, As Passed Senate, June 4, 2014

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

Senate Bill No. 882 as amended June 4, 2014

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, <<2015>>, each ~~local~~ county

road ~~agency~~ commission shall annually certify to the department

that it satisfies 1 of the following conditions with respect to

transportation employees:

(a) The ~~local~~ county road ~~agency~~ commission has developed and

publicized a transportation employee compensation plan that the

~~local~~ county road ~~agency~~ commission 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~~ county road ~~agency~~ commission 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 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 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~~ county road ~~agency~~ commission complies with 1 of

the following:

(i) A ~~local~~ county road ~~agency~~ commission 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~~ county road ~~agencies~~

commissions to follow.

(ii) A ~~local~~ county road ~~agency~~ commission 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~~ county road ~~agencies~~ commissions to

follow.

(2) If a ~~local~~ county road ~~agency~~ commission does not make the

certification required under subsection (1), the department may

withhold all or part of the distributions to the ~~local~~ county road

~~agency~~ commission 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~~ county

road ~~agency.~~commission.

(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.