HOUSE BILL NO. 6138
November 14, 2024, Introduced by Reps. Rheingans and Tsernoglou and referred to the
Committee on Labor.
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
OOI H02062'23 b
 2
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; to investigate and
study the tolling of roads, streets, highways, or bridges; and to
repeal acts and parts of acts,"
by amending section 18j (MCL 247.668j), as amended by 2014 PA 301.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 18j. (1) Beginning September 30, 2015, each local road
2 agency shall annually certify to the department that it satisfies 1
3 of the following conditions with respect to employees:
4 (a) The local road agency has developed and publicized an
5 employee compensation plan that the local road agency intends to
OOI H02062'23 b
 3
1 implement with any new, modified, or extended contract or
2 employment agreements for employees not covered under contract or
3 employment agreement. The employee compensation plan that each
4 local road agency plans to achieve shall must be posted on a
5 publicly accessible internet site and shall be submitted to the
6 department. At a minimum, the employee compensation plan shall must
7 include all of the following:
8 (a) (i) New employee hires who are eligible for retirement
9 plans are placed on retirement plans that cap annual employer
10 contributions at 10% of base salary for employees who are eligible
11 for social security Social Security benefits. For employees who are
12 not eligible for social security Social Security benefits, the
13 annual employer contribution is capped at 16.2% of base salary.
14 (b) (ii) For defined benefit pension plans, a maximum
15 multiplier of 1.5% for all employees who are eligible for social
16 security Social Security benefits, except, if postemployment health
17 care is not provided, the maximum multiplier shall must be 2.25%.
18 For all employees who are not eligible for social security Social
19 Security benefits, a maximum multiplier of 2.25%, except, if
20 postemployment health care is not provided, the maximum multiplier
21 shall must be 3.0%. This subparagraph subdivision does not apply to
22 years of service accrued prior to September 30, 2013, or to
23 contracts entered into prior to September 30, 2013.
24 (c) (iii) For defined benefit pension plans, final average
25 compensation for all employees is calculated using a minimum of 3
26 years of compensation and shall must not include more than a total
27 of 240 hours of paid leave. Overtime hours shall must not be used
28 in computing the final average compensation for an employee. This
29 subparagraph subdivision does not apply to years of service accrued
OOI H02062'23 b
 4
1 prior to September 30, 2013, or to contracts entered into prior to
2 September 30, 2013.
3 (d) (iv) Health care premium costs for new employee hires.
4 shall include a minimum employee share of 20%; or, an employer's
5 share of the local health care plan costs shall be cost competitive
6 with the new state preferred provider organization health plan, on
7 a per-employee basis.
8 (b) The local road agency complies with 1 of the following:
9 (i) A local road agency that offers medical benefits to its
10 employees or elected public officials shall certify to the
11 department by September 30, 2015 that it is in compliance with the
12 publicly funded health insurance contribution act, 2011 PA 152, MCL
13 15.561 to 15.569. For purposes of this subparagraph, dental and
14 vision coverages are not considered medical benefits. The
15 department shall develop a certification process and method for
16 local road agencies to follow. A local road agency shall indicate
17 in a certification under this subparagraph whether it has exempted
18 itself from the publicly funded health insurance contribution act,
19 2011 PA 152, MCL 15.561 to 15.569, as provided in section 8 of the
20 publicly funded health insurance contribution act, 2011 PA 152, MCL
21 15.568.
22 (ii) A local road agency that does not offer medical benefits
23 to its employees or elected public officials shall certify to the
24 department by September 30, 2015 that it does not offer medical
25 benefits to its employees or elected public officials. For purposes
26 of this subparagraph, dental and vision coverages are not
27 considered medical benefits. The department shall develop a
28 certification process and method for local road agencies to follow.
29 (2) If a local road agency does not make the certification
OOI H02062'23 b
 5
1 required under subsection (1), the department may withhold all or
2 part of the distributions to the local road agency from the
3 Michigan transportation fund under this act. A withholding under
4 this subsection shall continue continues for the period of
5 noncompliance with subsection (1) by the local road agency.
6 (3) A county road commission shall maintain a searchable
7 website accessible by the public at no cost that includes, but is
8 not limited to, all of the following:
9 (a) Current fiscal year budget.
10 (b) The number of active employees of the county road
11 commission by job classification and wage rate.
12 (c) A financial performance dashboard that contains
13 information on revenues, expenditures, and unfunded liabilities.
14 The county road commission may link to financial information
15 provided by the Michigan transportation asset management council.
16 (d) The names and contact information for the governing body
17 of the county road commission.
18 (e) A copy of the certification required by subsection (1).
19 (4) The department shall maintain a searchable website
20 accessible by the public at no cost. A website maintained by the
21 department under this subsection shall must include, but is not
22 limited to, the following:
23 (a) Current fiscal year budget.
24 (b) The number of active employees of the department by job
25 classification and wage rate.
26 (c) A financial performance dashboard that contains
27 information on revenues, expenditures, and unfunded liabilities.
28 The department may link to financial information provided by the
29 Michigan transportation asset management council.
OOI H02062'23 b
 6
1 (d) The names and contact information for the governing body
2 of the department.
3 (5) A county road commission may develop and operate its own
4 website to provide the information required under subsection (3),
5 or the county road commission may reference this state's central
6 transparency website as the source for the information required
7 under subsection (3). If a county road commission does not have a
8 website, the county road commission may post the information
9 required under subsection (3) on the website for the county within
10 which the county road commission is located or on the website of a
11 statewide road association of which the county road commission is a
12 member.
13 Enacting section 1. This amendatory act does not take effect
14 unless Senate Bill No.____ or House Bill No. 6136(request no.
15 02062'23) of the 102nd Legislature is enacted into law.
OOI Final Page H02062'23 b


Statutes affected:
House Introduced Bill: 247.668