Bill Text: MI HB5302 | 2011-2012 | 96th Legislature | Engrossed
Bill Title: Transportation; funds; local road agencies; require adoption of best practices and asset management standards as a condition of receiving funds. Amends 1951 PA 51 (MCL 247.651 - 247.675) by adding sec. 18j.
Spectrum: Bipartisan Bill
Status: (Passed) 2012-12-31 - Assigned Pa 506'12 With Immediate Effect [HB5302 Detail]
Download: Michigan-2011-HB5302-Engrossed.html
HB-5302, As Passed Senate, December 12, 2012
SENATE 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
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 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 road agency complies 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. 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 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. 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 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) Current fiscal year budget.
(b) The number of active transportation employees of the local
road agency by job classification and wage rate.
(c) A financial performance dashboard that contains
information on revenues, expenditures, and unfunded liabilities.
The county road agency 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 road agency.
(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.
(c) A financial performance dashboard that contains
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 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). If a local road agency does not have a
website, the local road agency may post the information required
under subsection (3) on the website for the county, city, or
village within which the local road agency is located or on the
website of a statewide road association of which the local road
agency 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.
