HOUSE BILL NO. 6339

A bill to amend 1986 PA 268, entitled

"Legislative council act,"

(MCL 4.1101 to 4.1901) by adding section 751.

the people of the state of michigan enact:

Sec. 751. (1) Before February 1 of each year, the majority party in the house of representatives, the majority party in the senate, the minority party in the house of representatives, and the minority party in the senate shall each appoint 1 individual to serve as a department head salary panelist for the immediately following fiscal year. An individual is ineligible to serve as a panelist if the individual, at any time after the individual's appointment and before the end of the fiscal year for which the individual serves, holds an elective office in this state or is a candidate for an elective office in this state. The majority and minority parties shall fill a vacancy in the same manner as the original appointment, and a panelist appointed to fill a vacancy shall serve for the remainder of the original appointment. A panelist shall serve without compensation. However, a panelist may be reimbursed for his or her actual and necessary expenses incurred in the performance of his or her official duties as a panelist.

(2) A panelist shall do all of the following:

(a) Rate the head of each of the principal departments in the executive branch in accordance with subsection (3). However, a panelist shall not rate a head of a principal department whose salary is determined under section 12 of article IV of the state constitution of 1963.

(b) Prepare a report that explains the panelist's ratings under subdivision (a).

(c) Before December 31 of the year in which the panelist is appointed, transmit the report prepared under subdivision (b) to the house fiscal agency.

(3) A panelist shall rate the head of each of the principal departments in the executive branch based on both of the following using a scale of 1 to 100, with 1 being the lowest possible rating, 100 being the highest possible rating, and a rating of 50 being equivalent to an average performance:

(a) Quality of work of the department.

(b) Cost effectiveness of the department.

(4) The house fiscal agency shall do both of the following:

(a) Calculate a recommended salary for the head of each of the principal departments using the following formula:

(i) Add the ratings of all the panelists under subsection (3)(a).

(ii) To the sum calculated under subparagraph (i), add the ratings of all the panelists under subsection (3)(b).

(iii) Divide the sum calculated under subparagraph (ii) by 100.

(iv) Multiply the quotient calculated under subparagraph (iii) by 0.2.

(v) Multiply the product calculated under subparagraph (iv) by 75% of the governor's salary then in effect.

(vi) To the product calculated under subparagraph (v), add 25% of the governor's salary then in effect.

(b) Transmit the salaries calculated under subdivision (a) to all of the following individuals:

(i) The speaker of the house.

(ii) The senate majority leader.

(iii) The governor.

(iv) The chair of the house of representatives standing committee on appropriations.

(v) The chair of the senate standing committee on appropriations.