Bill Text: MI SB0689 | 2017-2018 | 99th Legislature | Engrossed

---

Bill Title: Retirement; county employees; retirement health benefits for charter county employees subject to the protecting local government retirement and benefits act; provide for. Amends secs. 14, 14a & 15 of 1966 PA 293 (MCL 45.514 et seq.) & adds sec. 15c. TIE BAR WITH: SB 0686'17

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2017-12-12 - Referred To Committee On Michigan Competitiveness [SB0689 Detail]

Download: Michigan-2017-SB0689-Engrossed.html

---

SB-0689, As Passed Senate, December 7, 2017

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 689

 

 

November 30, 2017, Introduced by Senators SHIRKEY, STAMAS and MARLEAU and referred to the Committee on Michigan Competitiveness.

 

 

     A bill to amend 1966 PA 293, entitled

 

"An act to provide for the establishment of charter counties; to

provide for the election of charter commissioners; to prescribe

their powers and duties; to prohibit certain acts of a county board

of commissioners after the approval of the election of a charter

commission; to prescribe the mandatory and permissive provisions of

a charter; to provide for the exercise by a charter county of

certain powers whether or not authorized by its charter; and to

prescribe penalties and provide remedies,"

 

by amending sections 14, 14a, and 15 (MCL 45.514, 45.514a, and

 

45.515), section 14 as amended by 2005 PA 208, section 14a as added

 

by 2012 PA 466, and section 15 as amended by 1980 PA 7, and by

 

adding section 15c.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 14. (1) A county charter adopted under this act shall

 

must provide for all of the following:

 

     (a) In a county having that has a population of less than

 

1,500,000, for a salaried county executive, who shall be elected at

 

large on a partisan basis, and for the county executive's

authority, duties, and responsibilities. In a county having that

 

has a population of 1,500,000 , or more, a county charter adopted

 

under this act shall must provide for a form of executive

 

government described and adopted under section 11a.

 

     (b) The election of a legislative body to be known as the

 

county board of commissioners, whose term of office shall must be

 

concurrent with that of state representatives, and for their

 

authority, duties, responsibilities, and number, which shall must

 

be not less than 5 nor or more than 21. in counties of less than

 

600,000 , and not less than 5 nor more than 27 in counties of

 

600,000 or more. The county board of commissioners shall provide by

 

ordinance for their compensation and may increase or decrease their

 

compensation. A change in compensation shall is not be effective

 

during the term of office for which the legislative body making the

 

change was elected. The charter shall must also provide for the

 

partisan election of members of the legislative body from single

 

member single-member districts to be established by the county

 

apportionment commission as created in section 5 and pursuant to

 

under the standards and guidelines established in section 5 for

 

reapportionment based upon on the last official federal decennial

 

census, effective at the first regular general election of the

 

members of the legislative body occurring not less than 12 months

 

after the completion and certification of the federal census. Each

 

city and township shall must be apportioned so that it has the

 

largest possible number of complete districts within its boundaries

 

before any part of the city or township is joined to territory

 

outside the boundaries of the city or township to form a district.

     (c) The partisan election of a sheriff, a prosecuting

 

attorney, a county clerk, a county treasurer, and a register of

 

deeds, and for the authority of the county board of commissioners

 

to combine the county clerk and register of deeds into 1 office as

 

authorized by law.

 

     (d) Except as provided in subdivision (c), the continuation of

 

all existing county offices, boards, commissions, and departments

 

whether established by law or by action of the county board of

 

commissioners; the performance of their respective duties by other

 

county offices, boards, commissions, and departments; or for the

 

discontinuance of these county offices, boards, commissions, and

 

departments. Notwithstanding this subdivision in relation to

 

existing county offices, boards, commissions, and departments, a

 

county charter shall must insure the following:

 

     (i) Except as otherwise provided under subsection (2), in a

 

county having that has a population of less than 1,500,000, the

 

charter shall must not be in derogation of the powers and duties of

 

the county road commission in the exercise of their its statutory

 

duties concerning the preservation of a county road system. The

 

charter for these counties shall must provide for the creation of a

 

commission consisting that consists of not fewer than 3 or more

 

than 5 members. Not less than 1 member of the commission shall must

 

be a resident of a township within the county.

 

     (ii) Except as otherwise provided in subsection (2), in a

 

county having that has a population of 1,500,000 or more, the

 

charter shall must provide for the continuation of a county road

 

system within the county. Notwithstanding any other provisions of

this act, the charter described in this subparagraph shall must

 

provide that responsibility for the determination of the

 

expenditure of all funds for road construction and road maintenance

 

, and for carrying out the powers and duties pertaining to a county

 

road system as provided in sections 9 to 32 of chapter 4 IV of 1909

 

PA 283, MCL 224.9 to 224.32, shall be is vested in a commission

 

consisting that consists of not fewer than 3 or more than 5

 

members. The charter shall must provide that 1 member of the

 

commission shall be is a resident of the most populous city in the

 

county, 1 member shall be is a resident of a city other than the

 

most populous city within the county, and that 1 member shall be is

 

a resident of a township within the county. The charter shall must

 

provide that the commission shall be is appointed by either the

 

elected county executive or the chief administrative officer.

 

Appointment to the commission shall must require advice and consent

 

by a majority of the county board of commissioners elected and

 

serving not more than 60 days after the appointment. If the county

 

board of commissioners does not vote on the appointment within 60

 

days, the appointment shall become is final. The charter may

 

provide for the number of members and a fixed term of years for the

 

members of the commission, but the charter shall must provide that

 

the members of the commission may be removed at the pleasure of the

 

elected county executive or the chief administrative officer. The

 

charter shall must specify duties and procedures to assure that

 

administrative decisions made for road construction shall be are

 

coordinated with administrative decisions made for other programs

 

which relate to roads. As used in this subparagraph, "road

construction" means all of the following:

 

     (A) The building of a new road or street and the improving of

 

an existing road or street by correction grades, drainage

 

structures, width, alignment, or surface.

 

     (B) The building of bridges or grade separations and the

 

repair of these structures by strengthening, widening, and the

 

replacement of piers and abutments.

 

     (C) The initial signing of newly constructed roads or streets,

 

major resigning of projects, and the installation, replacement, or

 

improvement of traffic signals.

 

     (e) The Subject to section 15c, the continuation and

 

implementation of a system of pensions and retirement for county

 

officers and employees in those counties having that have a system

 

in effect at the time of the adoption of the charter. The system

 

provided under the charter shall must recognize the accrued rights

 

and benefits of the officers and employees under the system then in

 

effect. The charter shall must not infringe upon on nor be in

 

derogation of those accrued rights and benefits. The Subject to

 

section 15c, the charter shall must not preclude future

 

modification of the system.

 

     (f) The continuation and implementation of a system of civil

 

service in those counties having a system at the time of the

 

adoption of the charter. The system of civil service provided under

 

the charter shall must recognize the rights and status of persons

 

under the civil service system then in effect. The charter shall

 

must not infringe upon on nor be in derogation of those rights and

 

that status. The charter shall must not preclude future

modification of the system. Except as provided in subdivision (d),

 

the charter shall must provide that the system of civil service be

 

coordinated among the county offices, boards, commissions, and

 

departments.

 

     (g) That the general statutes and local acts of this state

 

regarding counties and county officers shall will continue in

 

effect except to the extent that this act permits the charter to

 

provide otherwise, if the charter does in fact provide otherwise.

 

     (h) That all ordinances of the county shall will remain in

 

effect unless changed by the charter or an ordinance adopted under

 

the charter.

 

     (i) The power and authority to adopt, amend, and repeal any

 

ordinance authorized by law , or necessary to carry out any power,

 

function, or service authorized by this act and by the charter.

 

     (j) The power and authority to enter into any

 

intergovernmental contract which is not specifically prohibited by

 

law.

 

     (k) The power and authority to join, establish, or form with

 

any other governmental unit an intergovernmental district or

 

authority for the purpose of performing a public function or

 

service, which each is authorized to perform separately, the

 

performance of which is not prohibited by law.

 

     (l) A debt limit of not to exceed 10% of the state equalized

 

value of the taxable property within the county.

 

     (m) The levy and collection of taxes, the fixing of an ad

 

valorem property tax limitation of not to exceed 1% of the state

 

equalized value of the taxable property within the county, and that

the levy of taxes from within this ad valorem property tax

 

limitation shall must not exceed, unless otherwise approved by the

 

electors, the tax rate in mills, equal to the number of mills

 

allocated to the county either by a county tax allocation board or

 

by a separate tax limitation under the property tax limitation act,

 

1933 PA 62, MCL 211.201 to 211.217a, in the year immediately

 

preceding the year in which the county adopts a charter.

 

     (n) Initiative and referendum on all matters within the scope

 

of the county's power and authority; and for the recall of all

 

county officials.

 

     (o) Amendment or revision of the charter initiated either by

 

action of the legislative body of the county or by initiatory

 

process. An amendment or revision shall must not become effective

 

unless the amendment or revision is submitted to the electorate of

 

the county and approved by a majority of those voting.

 

     (p) That the acquisition, operation, and sale of public

 

utility facilities for furnishing light, heat, or power shall must

 

be subject to the same restrictions as imposed on cities and

 

villages by the state constitution of 1963 and applicable law.

 

     (q) Annual preparation, review, approval, and adherence to a

 

balanced budget in a manner which assures coordination among the

 

county offices, boards, commissions, and departments, except as

 

provided in subdivision (d).

 

     (r) An annual audit by an independent certified public

 

accountant of all county funds.

 

     (s) That a county that incurs a budget deficit in any fiscal

 

year shall prepare and submit a detailed and specific 5-year plan

for short term short-term financial recovery and long range long-

 

range financial stability to the governor and the legislature,

 

before adoption of the next annual county budget, for review. The

 

5-year plan shall must include, but not be limited to, a projection

 

of annual revenues and expenditures, an employee classification and

 

pay plan, a capital improvements budget, and equipment replacement

 

schedules.

 

     (2) Subsection (1)(d) shall does not apply to a county in

 

which the charter is amended to provide for an alternative method

 

of carrying out the powers and duties which are otherwise provided

 

by law for a board of county road commissioners.

 

     (3) The county board of commissioners may by resolution

 

provide for staggered terms of office for the road commissioners

 

under subsection (1)(d) so that not more than 2 road commissioners'

 

terms of office expire in the same year.

 

     Sec. 14a. (1) Beginning September 30, 2014, each county road

 

agency shall annually certify to the department that it satisfies 1

 

of the following conditions with respect to transportation

 

employees:

 

     (a) The county road agency has developed and publicized a

 

transportation employee compensation plan that the county 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 county road agency plans to

 

achieve shall must be posted on a publicly accessible internet site

 

and shall must be submitted to the department. At Subject to

section 15c, at a minimum, the transportation employee compensation

 

plan shall must 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 must be

 

3.0%. This subparagraph does not apply to years of service accrued

 

prior to before September 30, 2013, or to contracts entered into

 

prior to before 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 must not include more

 

than a total of 240 hours of paid leave. Overtime hours shall must

 

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 before September 30, 2013, or to

 

contracts entered into prior to before September 30, 2013.

     (iv) Health care premium costs for new transportation employee

 

hires shall must include a minimum transportation employee share of

 

20%; or, an employer's share of the local health care plan costs

 

shall must be cost competitive with the new state preferred

 

provider organization health plan, on a per-transportation-employee

 

basis.

 

     (b) The county road agency complies with 1 of the following:

 

     (i) A county 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

 

county road agencies to follow.

 

     (ii) A county 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

 

county road agencies to follow.

 

     (2) If a county road agency does not make the certification

 

required under subsection (1), the department may withhold all or

 

part of the distributions to the county road agency from the

 

Michigan transportation fund under 1951 PA 51, MCL 247.651 to

247.675. A withholding under this subsection shall must continue

 

for the period of noncompliance with subsection (1) by the county

 

road agency.

 

     (3) A county 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

 

county 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 county road agency.

 

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

 

     (4) A county road agency may develop and operate its own

 

website to provide the information required under subsection (3),

 

or the county road agency may reference this state's central

 

transparency website as the source for the information required

 

under subsection (3). If a county road agency does not have a

 

website, the county road agency may post the information required

 

under subsection (3) on the website for the county within which the

 

county road agency is located or on the website of a statewide road

 

association of which the county road agency is a member.

 

     (5) As used in this section:

 

     (a) "County road agency" means a county road commission or a

body that has the powers of a county road commission in a county

 

that adopts a charter under this act. 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) "Department" means the state transportation department.

 

     (c) "Transportation employee" means an employee paid in whole

 

or in part through revenues distributed under sections 12 to 13 of

 

1951 PA 51, MCL 247.662 to 247.663, or an employee who is engaged

 

primarily in work funded through revenues distributed under

 

sections 12 to 13 of 1951 PA 51, MCL 247.662 to 247.663.

 

     Sec. 15. A county charter adopted under the provisions of this

 

act may provide for 1 or more of the following:

 

     (a) The office of corporation counsel, public defender,

 

auditor general, and all other offices, boards, commissions, or

 

departments necessary for the efficient operation of county

 

government. The charter may also provide for the power and

 

authority to establish, by ordinance, other offices, boards,

 

commissions, and departments as may become necessary.

 

     (b) That the legislative body of any unit of government which

 

that is wholly or partially within the county may transfer, subject

 

to the approval of the legislative body of the county and upon on

 

mutually agreed conditions, any a municipal function or service to

 

the county if the performance of that the function or service , by

 

the county is not specifically prohibited by law, and if the

 

function or service is offered on a county-wide countywide basis.

     (c) The authority to perform at the county level any function

 

or service not prohibited by law, which shall include, by way of

 

enumeration and not limitation: Police including, but not limited

 

to, police protection, fire protection, planning, zoning,

 

education, health, welfare, recreation, water, sewer, waste

 

disposal, transportation, abatement of air and water pollution,

 

civil defense, and any other function or service necessary or

 

beneficial to the public health, safety, and general welfare of the

 

county. Powers granted solely by charter may not be exercised by

 

the charter county in a local unit of government which that is

 

exercising a similar power without the consent of the local

 

legislative body. The cost of any a service authorized by charter

 

to be performed by the county, may be determined by negotiation

 

between the local unit of government and the charter county and

 

this the cost shall must be charged to the local unit of government

 

or area benefited by the service, unless it is rendered on a

 

county-wide countywide basis in which event the cost may be paid

 

from the general fund of the county. If a function exercised by a

 

local unit of government is transferred to the county and becomes a

 

county function financed through the general fund of the county,

 

the county shall reimburse a local unit of government a negotiated

 

sum representing the value of the transferred capital assets of the

 

function owned by and paid for by the local unit of government,

 

including outstanding bonded indebtedness of the local unit of

 

government.

 

     (d) The establishment and maintenance, either within or

 

outside of the county corporate limits, of roads, parks,

cemeteries, hospitals, medical facilities, airports, ports, jails,

 

water supply and transmission facilities, sewage transmission and

 

disposal systems, all public works, or other types of facility

 

facilities necessary to preserve and provide effectively for the

 

public health, safety, and general welfare of the county.

 

     (e) The power and authority to levy and collect any taxes,

 

fees, rents, tolls, or excises, the levy and collection of which is

 

authorized by law. A The county may not levy a tax on income may

 

not be levied by the county unless authorized by law.

 

     (f) A Subject to section 15c, a system of retirement for

 

county officers and employees.

 

     (g) A classified civil service or merit system for county

 

officers and employees, except those officers and employees who are

 

expressly exempted from civil service by either the state

 

constitution of 1963 or statute.law.

 

     (h) The election or appointment of a drain commissioner.

 

     Sec. 15c. If a county provides a system of retirement for its

 

officers and employees under this act, the system of retirement is

 

subject to the protecting local government retirement and benefits

 

act.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No. 686                                     

 

            of the 99th Legislature is enacted into law.