HB-5302, As Passed House, June 7, 2012

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

must 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, where 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, where

postemployment health care is not provided, the maximum multiplier

shall be 3.0%.

(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.

(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) Comply 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. 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. 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) Fiscal year-to-date expenditures by category.

(b) Fiscal year-to-date expenditures by appropriation unit.

including the vendor name, payment date, payment amount, and

payment description.

(d) The number of active transportation employees of the local

road agency by job classification.

(e) Job specifications and wage rates.

(f) A financial performance dashboard.

(g) The names and contact information for the county road

commissioners.

(h) A recognition of unfunded liabilities.

(i) A copy of the certification required by subsection (1).

(4) 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). A local road agency may also post the

information required under subsection (3) on the website for the

county, city, or village within which the local road agency is

located.

(5) For purposes of this section only:

(a) "Local road agency" means that term as defined in section

9a. In addition, if a board of county road commissioners of a

county is dissolved as provided in section 6 of chapter IV of 1909

PA 283, MCL 224.6, county road commission includes the county board

of commissioners of that county.

(b) "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.