HB-4311, As Passed Senate, November 30, 2011

HOUSE SUBSTITUTE FOR 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

responsibilities,"

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

transferred.

     (b) The effective date of the contract.

     (c) The term of operation under the contract.

     (d) 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 thereof

shall 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 the

political 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 acquired system.

     (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 November 2 and 30, 2011          1 of 2

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

undertaking involved.

     (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 <<to the extent

provided in>>

the contract.

     (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, the contract for that

transfer of functions or responsibilities shall include those

obligations.

     (4) Nothing in this act creates an employment relationship

between the existing employees of a political subdivision and the

proposed joint system.

<<(5) A joint system is effective through its contract at least

180 days before the actual transfer of functions or responsibilities. Before the joint system's effective date, the political subdivisions

that are parties to a contract shall affirm in writing to the joint system those employees who will be transferred to the joint system.

     (6) If employees who are transferred to the joint system are represented by a labor organization, those employees are subject to

their previous terms and conditions of employment until those terms

and conditions of employment are modified in accordance with

1947 PA 336, MCL 423.201 to 423.217, or for 6 months after the

transfer to the joint system, whichever is earlier. Negotiations

on a collective bargaining agreement with a joint system shall

begin no later than 180 days before the date the employees transfer

to the joint system.

     (7) Subject to subsection (8), a representative of the

employees or group of employees in a political subdivision who

previously represented or was entitled to represent the employees or group of employees in a political subdivision under 1947 PA 336, MCL 423.201 to 423.217, shall continue to represent the employees or

group of employees after those employees or group of employees are transferred to the joint system.

     (8) This section does not limit the rights of employees, under applicable law, to assert that a bargaining representative protected

by subsection (7) is no longer their representative. The employees

of the joint system are eligible as of the day the joint system

becomes effective through its contract to choose their representative under 1947 PA 336, MCL 423.201 to 423.217. This subsection does not extend the time limits as provided in subsection (5).

     (9) If multiple labor organizations assert the right to

represent all or part of the joint system's workforce or where a substantial portion of the transferred employees were not previously represented, in the absence of a voluntary mutual agreement, at the request of any party or on the initiative of the Michigan employment relations commission, the Michigan employment relations commission

shall conduct a representation election.

     (10) In the absence of a voluntary mutual agreement, the joint system's workforce shall be merged by using a single seniority list

for each of the same or similar classifications. The single seniority list shall be composed of all employees from each political subdivision employed or having recall rights on the date of transfer and shall be used for purposes that include, but are not limited to, initial assignments, layoffs, recalls, and job bidding. Disputes concerning

the single seniority list or use of the single seniority list shall

be heard by a single arbitrator appointed by the Michigan employment relations commission.

     (11) 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.>>