HB-4312, As Passed Senate, November 30, 2011
HOUSE SUBSTITUTE FOR SENATE SUBSTITUTE FOR
HOUSE BILL NO. 4312
A bill to amend 1967 (Ex Sess) PA 7, entitled
"Urban cooperation act of 1967,"
by amending section 5 (MCL 124.505), as amended by 1985 PA 10.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5. (1) A joint exercise of power pursuant to this act
shall be made by contract or contracts in the form of an interlocal
agreement which may provide for:
(a) The purpose of the interlocal agreement or the power to be
exercised and the method by which the purpose will be accomplished
or the manner in which the power will be exercised.
(b) The duration of the interlocal agreement and the method by
which it may be rescinded or terminated by any participating public
agency prior to the stated date of termination.
(c) The precise organization, composition, and nature of any
separate legal or administrative entity created in the interlocal
agreement with the powers designated to that entity.
(d) The manner in which the parties to the interlocal
agreement will provide for financial support from the treasuries
that may be made for the purpose set forth in the interlocal
agreement, payments of public funds that may be made to defray the
cost of such purpose, advances of public funds that may be made for
the purposes set forth in the interlocal agreements and repayment
of the public funds, and the personnel, equipment, or property of 1
or more of the parties to the agreement that may be used in lieu of
other contributions or advances.
(e) The manner in which funds may be paid to and disbursed by
any separate legal or administrative entity created pursuant to the
interlocal agreement.
(f) A method or formula for equitably providing for and
allocating revenues, including, in the case of an authorized
undertaking that is publicly owned at the time the interlocal
agreement is entered into or becomes publicly owned during the time
the interlocal agreement is in effect, revenues derived by or
payable to any participating party or any other public agency which
revenues directly or indirectly result from that undertaking,
whether the revenues are in the form of ad valorem taxes on real or
personal property, taxes on income, specific taxes or funds made
available by the state in lieu of ad valorem property taxes or
local income taxes, any other form of taxation, assessment, levy,
or impost, or any money paid under or which revert from a tax
increment financing plan. The interlocal agreement may also provide
a method or formula equitably providing for and allocating revenues
derived from a federal or state grant or loan, or from a gift,
bequest, grant, or loan from a private source. The interlocal
agreement may also provide for a method or formula for equitably
allocating and financing the capital and operating costs, including
payments to reserve funds authorized by law and payments of
principal and interest on obligations. Each method or formula shall
be established by the participating parties to the interlocal
agreement on a ratio of full valuation of real property, on the
basis of the amount of services rendered or to be rendered, on the
basis of benefits received or conferred or to be received or
conferred, or on any other equitable basis, including the levying
of taxes or assessments on the entire area serviced by the parties
to the interlocal agreement, subject to such limitations as may be
contained in the constitution and statutes of this state, to pay
those capital and operating costs.
(g)
The manner of employing, engaging, compensating,
transferring,
or discharging necessary personnel, subject both to
the
provisions of applicable civil service and merit systems, and
the
following restrictions:
(i) The employees who are necessary for the operation
of an
undertaking
created by an interlocal agreement, 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 subdivisions to which the
functions
or responsibilities have been transferred shall assume
the
obligation of any transportation 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) An employee who is transferred to a position with
the
political
subdivision shall not, by reason of the transfer, be
placed
in any worse position with respect to worker's compensation,
pension,
seniority, wages, sick leave, vacation, health and welfare
insurance,
or any other benefits that the employee enjoyed as an
employee
of the acquired system.
(g) The public agency that will function as the employer of
personnel and staff needed for the joint exercise of power.
(h) The fixing and collecting of charges, rates, rents, fees,
loan repayments, loan interest rates, or other charges on loans,
where appropriate, and the making and promulgation of necessary
rules and regulations and their enforcement by or with the
assistance of the participating parties to the interlocal
agreement.
(i) The manner in which purchases shall be made and contracts
entered into.
(j) The acquisition, ownership, custody, operation,
maintenance, lease, or sale of real or personal property.
(k) The disposition, division, or distribution of any property
acquired through the execution of such interlocal agreement.
(l) The manner in which, after the completion of the purpose of
the interlocal agreement, any surplus money shall be returned.
(m) The acceptance of gifts, grants, assistance funds, or
bequests and the manner in which those gifts, grants, assistance
funds, or bequests may be used for the purpose set forth in the
interlocal agreement.
(n) The making of claims for federal or state aid payable to
the individual or several participants on account of the execution
of the interlocal agreement.
(o) The manner of responding for any liabilities that might be
incurred through performance of the interlocal agreement and
insuring against any such liability.
(p) The adjudication of disputes or disagreements, the effects
of failure of participating parties to pay their shares of the
costs and expenses, and the rights of the other participants in
such cases.
(q) The manner in which strict accountability of all funds
shall be provided for and the manner in which reports, including an
annual independent audit, of all receipts and disbursements shall
be prepared and presented to each participating party to the
interlocal agreement.
(r) The manner of investing surplus funds or proceeds of
grants, gifts, or bequests to the parties to the interlocal
House Bill No. 4312 as amended November 2 and 30, 2011 (1 of 2)
agreement under the control of a legal or administrative entity
created under section 7.
(s) Any other necessary and proper matters agreed upon by the
participating public agencies.
(2) The public agencies 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 joint
exercise of power under this act shall be a permissive subject of
collective bargaining between a public agency and a bargaining
representative of its employees. If a public agency and a
bargaining representative of its employees engage in collective
bargaining before the contract for a joint exercise of power is
approved and that public agency and that bargaining representative
reach an agreement on issues that would obligate the public agency
that will function as an employer in the joint exercise of power,
the contract for that joint exercise of power shall include those
obligations.
(4) Nothing in this act creates an employment relationship
between the existing employees of a public agency and the proposed
joint exercise of power.
<<(5) A joint exercise of power is effective through its
contract at least 180 days before the actual transfer of functions
or services. Before the effective date of the joint exercise of power, the public agencies that are parties to the contract shall affirm in writing to the joint exercise of power those employees who will be transferred to the joint exercise of power.
(6) If employees who are transferred to the joint exercise of
power 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 exercise of power, whichever is earlier. Negotiations on a collective bargaining agreement with a joint
exercise of power shall begin no later than 180 days before the date
the employees transfer to the joint exercise of power.
(7) Subject to subsection (8), a representative of the employees or group of employees in a public agency who previously represented or was entitled to represent the employees or group of employees in a public agency 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 exercise of power.
(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 exercise of power are eligible as of the day the joint exercise of power 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 workforce of the joint exercise of power 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 workforce of the joint exercise of power 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 public agency 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 public agency or a joint exercise of power to assume a collective bargaining agreement between another public agency and its employees.>>