Legislative Analysis
Phone: (517) 373-8080
REGIONAL AIRPORT AUTHORITIES http://www.house.mi.gov/hfa
House Bill 4618 as reported from committee Analysis available at
Sponsor: Rep. Betsy Coffia http://www.legislature.mi.gov
Committee: Economic Development and Small Business
Complete to 9-17-23
SUMMARY:
House Bill 4618 would amend the Publicly Funded Health Insurance Contribution Act to
include regional airport authorities as local units of government under the act.
The act generally limits the amount that public employers, including local governments,
can pay toward employees’ medical benefit plans; employers can choose between an
inflation-adjusted capped contribution or a maximum 80% contribution. 1 However, a local
unit of government (as defined in the act) can generally elect to opt out of these
requirements with a two-thirds vote of its governing body, which must be extended each
year. 2
As a public employer, a regional airport authority created under Chapter VIIA of the
Aeronautics Code is currently subject to the contribution limits of the act. Under the bill,
such an authority would also be considered a local unit of government and thus be able to
exempt itself from those limits.3
MCL 15.562
BACKGROUND:
The Regional Airport Authority Act, added to the Aeronautics Code as Chapter VIIA in
2015, provides for the organization of a regional airport authority under certain terms and
conditions. The Gerald R. Ford International Airport in Grand Rapids and the Cherry
Capital Airport in Traverse City are currently organized under the Regional Airport
Authority Act.
The Publicly Funded Health Insurance Contribution Act, enacted in 2011, does not
currently provide for regional airport authorities to be included as local governments.
Public airport authorities and municipalities that operate an airport, however, do qualify.
1
A full analysis of the law as originally enacted can be found here: http://www.legislature.mi.gov/documents/2011-
2012/billanalysis/House/pdf/2011-HLA-0007-88186028.pdf.
2
A mayor or a county executive that is the chief executive and chief administrator of a city or county, respectively,
must approve the exemption. Cities with a population over 600,000, effectively specific to Detroit, cannot be
exempted.
3
A public airport authority created under Chapter VIA of the Aeronautics Code, effectively specific to the Wayne
County Airport Authority, is already included under the definition of a local unit of government.
House Fiscal Agency Page 1 of 2
FISCAL IMPACT:
The bill would have no fiscal impact on the state. The bill would expand the act’s definition
of local unit of government to include regional airport authorities. The bill could potentially
increase costs to regional airport authorities if an authority successfully votes to opt out of
the limits placed on public employers’ contributions to employee health benefits. Any
increase in costs to the authority would depend on specific changes to health benefit
changes and the increase in employer contribution. The bill would have no fiscal impact
on any other local units of government.
POSITIONS:
Representatives of the following entities testified in support of the bill (6-13-23):
• Michigan Association of Airport Executives
• Northwest Regional Airport Authority/Cherry Capital Airport
The Michigan Department of Treasury indicated support for the bill. (6-13-23)
Legislative Analyst: Holly Kuhn
Fiscal Analyst: Michael Cnossen
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency HB 4618 as reported Page 2 of 2


Statutes affected:
House Introduced Bill: 15.562
As Passed by the House: 15.562