Bill Text: MI HB5189 | 2011-2012 | 96th Legislature | Engrossed


Bill Title: Appropriations; supplemental; funding for state emergency relief services; provide for. Creates new act.

Spectrum: Partisan Bill (Republican 4-0)

Status: (Passed) 2012-05-01 - Assigned Pa 107'12 With Immediate Effect [HB5189 Detail]

Download: Michigan-2011-HB5189-Engrossed.html

HB-5189, As Passed Senate, April 26, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE SUBSTITUTE FOR

 

HOUSE BILL NO. 5189

 

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to make, supplement, and adjust appropriations for

 

various state departments and agencies for the fiscal year ending

 

September 30, 2012; to provide for the expenditure of the

 

appropriations; and to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

PART 1

 

LINE-ITEM APPROPRIATIONS

 

     Sec. 101. There is appropriated for the various state

 

departments and agencies to supplement appropriations for the

 

fiscal year ending September 30, 2012, from the following funds:

 

APPROPRIATION SUMMARY

 

GROSS APPROPRIATION.................................... $              0


 

   Interdepartmental grant revenues:

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................                 0

 

ADJUSTED GROSS APPROPRIATION........................... $              0

 

   Federal revenues:

 

Total federal revenues.................................                 0

 

   Special revenue funds:

 

Total local revenues...................................                 0

 

Total private revenues.................................                 0

 

Total other state restricted revenues..................                 0

 

State general fund/general purpose..................... $              0

 

 

 

   Sec. 102.  DEPARTMENT OF TREASURY

 

   (1)  APPROPRIATION SUMMARY

 

GROSS APPROPRIATION.................................... $              0

 

   Interdepartmental grant revenues:

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................                 0

 

ADJUSTED GROSS APPROPRIATION........................... $              0

 

   Federal revenues:

 

Total federal revenues.................................                 0

 

   Special revenue funds:

 

Total local revenues...................................                 0

 

Total private revenues.................................                 0

 

Total other state restricted revenues..................                 0

 

State general fund/general purpose..................... $              0

 

   (2) REVENUE SHARING


 

Economic vitality incentive program.................... $   (200,000,000)

 

Economic vitality incentive program....................       200,000,000

 

Economic vitality incentive program, 1-time basis only.       (15,000,000)

 

Economic vitality incentive program, 1-time basis only.        15,000,000

 

GROSS APPROPRIATION.................................... $              0

 

    Appropriated from:

 

   Special revenue funds:

 

Sales tax revenue......................................                 0

 

State general fund/general purpose..................... $              0

 

 

 

 

 

PART 2

 

PROVISIONS CONCERNING APPROPRIATIONS

 

GENERAL SECTIONS

 

     Sec. 201. In accordance with the provisions of section 30 of

 

article IX of the state constitution of 1963, total state spending

 

from state resources in this appropriation act for the fiscal year

 

ending September 30, 2012 is $0.00 and state appropriations paid to

 

local units of government are $0.00.

 

     Sec. 202. The appropriations made and expenditures authorized

 

under this act and the departments, commissions, boards, offices,

 

and programs for which appropriations are made under this act are

 

subject to the management and budget act, 1984 PA 431, MCL 18.1101

 

to 18.1594.

 

 

 

DEPARTMENT OF HUMAN SERVICES

 

     Sec. 301. The department shall administer licensing and


 

regulation of licensees with the highest priority given to

 

licensing activities that present the highest risk to vulnerable

 

children or adults receiving services of licensees.

 

 

 

DEPARTMENT OF TREASURY

 

     Sec. 402. (1) From the funds appropriated in fiscal year 2011-

 

2012 to the economic vitality incentive program, $5,000,000.00 is

 

to be used for assistance grants to cities, villages, townships,

 

and counties to offset the costs associated with mergers,

 

interlocal agreements, and cooperative efforts for those cities,

 

villages, townships, and counties that elect to combine government

 

operations. Grant funding shall be available for mergers,

 

interlocal agreements, and cooperative efforts that occur on or

 

after October 1, 2011. The department of treasury shall develop an

 

application process and method of grant distribution.

 

     (2) From the funds appropriated in fiscal year 2011-2012 to

 

the economic vitality incentive program, $210,000,000.00 is to be

 

used for grants to cities, villages, and townships such that,

 

subject to fulfilling the requirements under subsection (3)(a),

 

(b), or (c), each city, village, or township that received a

 

payment under section 950(2) of 2009 PA 128, greater than $4,500.00

 

will be eligible to receive a maximum of 67.837363% of its total

 

payment received under section 950(2) of 2009 PA 128, rounded to

 

the nearest dollar. For the purposes of this subsection, any city

 

or village that according to the 2010 federal decennial census is

 

determined to have population in more than 1 county will be treated

 

as a single entity when determining the payment received under


 

section 950(2) of 2009 PA 128.

 

     (3) Cities, villages, and townships eligible to receive a

 

potential payment from the allocation under subsection (2) may

 

qualify to receive economic vitality incentive program payments

 

under 1 or more of the following 3 categories:

 

     (a) Category 1, accountability and transparency, requires each

 

eligible city, village, or township to certify that by December 1,

 

2011, it has produced, and has made readily available to the

 

public, a citizen's guide and a performance dashboard of its local

 

finances, including a recognition of its unfunded liabilities. Each

 

city, village, and township applying for a payment under this

 

category shall submit a copy of the citizen's guide and a copy of

 

the performance dashboard to the department of treasury by December

 

1, 2011.

 

     (b) Category 2, consolidation of services, requires each

 

eligible city, village, or township to certify that by March 1,

 

2012, it has a plan with 1 or more proposals to increase its

 

existing level of cooperation, collaboration, and consolidation,

 

either within the jurisdiction or with other jurisdictions. A plan

 

shall include a listing of any previous services consolidated with

 

the cost savings realized from each consolidation and an estimate

 

of the potential savings for any new service consolidations being

 

planned. A plan shall be made readily available to the public. Each

 

city, village, and township applying for a payment under this

 

subdivision shall submit a copy of the cooperation, collaboration,

 

and consolidation plan to the department of treasury.

 

     (c) Category 3, employee compensation, requires each eligible


 

city, village, or township to meet 1 of the following requirements:

 

     (i) Certify that by June 1, 2012, it has developed and

 

publicized an employee compensation plan that the city, village, or

 

township intends to implement with any new, modified, or extended

 

contract or employment agreements for employees not covered under

 

contract or employment agreement. The employee compensation plan

 

that each city, village, or township plans to achieve shall be made

 

available for public viewing in the city, village, or township

 

clerk's office or posted on a publicly accessible Internet site and

 

must be submitted to the department of treasury. At a minimum, the

 

employee compensation plan shall include all of the following:

 

     (A) New hires that are eligible for retirement plans are

 

placed on retirement plans that cap annual employer contributions

 

at 10% of base salary for employees that are eligible for social

 

security benefits. For employees that are not eligible for social

 

security benefits, the annual employer contribution is capped at

 

16.2% of base salary.

 

     (B) For defined benefit pension plans, a maximum multiplier of

 

1.5% for all employees that are eligible for social security

 

benefits, except, where postemployment health care is not provided,

 

the maximum multiplier shall be 2.25%. For all employees that are

 

not eligible for social security benefits, a maximum multiplier of

 

2.25%, except, where postemployment health care is not provided,

 

the maximum multiplier shall be 3.0%.

 

     (C) For defined benefit pension plans, final average

 

compensation for all employees is calculated using a minimum of 3

 

years of compensation and shall not include more than a total of


House Bill No. 5189 as amended April 26, 2012

 

240 hours of paid leave. Overtime hours shall not be used in

 

computing the final average compensation for an employee.

 

     (D) Health care premium costs for new hires shall include a

 

minimum 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-employee

 

basis.

 

     (ii) Comply with 1 of the following:

 

     (A) Any eligible city, village, or township that offers

 

medical benefits to its employees or elected public officials shall

 

certify to the department of treasury by June 1, 2012<<

 

>> that it is in compliance <<

 

>> with the publicly funded health insurance contribution act,

 

2011 PA 152, MCL 15.561 to 15.569. Dental and vision coverages are

 

not considered <<medical>> benefits. The department shall develop a

 

certification process and method for cities, villages, and

 

townships to follow.

 

     (B) Any city, village, or township that does not offer medical

 

benefits to its employees or elected public officials shall certify

 

to the department of treasury by June 1, 2012<<

 

>> that it does not offer <<medical>> benefits to its

 

employees or elected public officials. Dental and vision coverages

 

are not considered <<medical>> benefits. The department shall

 

develop a certification process and method for cities, villages,

 

and townships to follow.

 

     (4) Economic vitality incentive program payments are subject

 

to the following conditions:


 

     (a) Except as provided in subsection (d), in order for a city,

 

village, or township to qualify for a category under subsection

 

(3)(a), (b), or (c), the city, village, or township shall meet

 

every criteria for that category including a certification to the

 

department that it has met the required criteria for that category

 

and submission of the required citizen's guide and performance

 

dashboard; cooperation, collaboration, and consolidation plan; or

 

employee compensation plan or certification of compliance with the

 

publicly funded health insurance contribution act, 2011 PA 152, MCL

 

15.561 to 15.569, as required by subsection (3)(a), (b), or (c),

 

respectively. A department of treasury review of the citizen's

 

guide, dashboard, or plan is not required in order for a city,

 

village, or township to receive a payment under subsection (2). The

 

department shall develop a certification process and method for

 

cities, villages, and townships to follow.

 

     (b) For each category that a city, village, or township

 

qualifies for in subsection (3), the city, village, or township

 

shall receive 1/3 of its potential economic vitality incentive

 

program payment amount calculated in subsection (2).

 

     (c) Payments under this section shall be issued to cities,

 

villages, and townships for each category in subsection (3) until

 

the specified due date for the category. After the specified due

 

date for the category, payments shall be made to a city, village,

 

or township only if that city, village, or township has complied

 

with subdivision (a).

 

     (d) If a city, village, or township does not provide the

 

required certification or fails to submit the required citizen's


 

guide and performance dashboard; cooperation, collaboration, and

 

consolidation plan; or employee compensation plan or certification

 

of compliance with the publicly funded health insurance

 

contribution act, 2011 PA 152, MCL 15.561 to 15.569, by the first

 

day of a payment month, the city, village, or township shall

 

forfeit the payment in that payment month for the uncertified

 

category in subsection (3), except that a city, village, or

 

township that certifies and submits the required documents under

 

subsection (3)(a) by December 1, 2011 shall not forfeit any

 

payments.

 

     (e) Any local unit that falsifies certification documents

 

shall forfeit any future economic vitality incentive program

 

payments and shall repay this state all economic vitality incentive

 

program payments it has received.

 

     (f) Payments under this section shall be distributed on the

 

last business day of October, December, February, April, June, and

 

August.

 

     (g) Payments distributed under this section may be withheld

 

pursuant to sections 17a and 21 of the Glenn Steil state revenue

 

sharing act of 1971, 1971 PA 140, MCL 141.917a and 141.921.

 

     (5) The unexpended funds appropriated in this section for the

 

economic vitality incentive program are designated as work project

 

appropriations and any unencumbered or unallotted funds shall not

 

lapse at the end of the fiscal year and shall continue to be

 

available for expenditure for projects under subsection (1) until

 

the projects have been completed. The following is in compliance

 

with section 451a of the management and budget act, 1984 PA 431,


 

MCL 18.1451a:

 

     (a) The purpose of the projects is to provide incentive-based

 

grants to recipients under subsection (1).

 

     (b) The projects will be accomplished by grants to qualified

 

governmental units.

 

     (c) The total estimated cost of all projects is

 

$215,000,000.00.

 

     (d) The tentative completion date is September 30, 2016.

 

REPEALERS

 

     Enacting section 1. (1) Section 402 of 2011 PA 278 is

 

repealed.

 

     (2) Section 311 of article X of 2011 PA 63 is repealed.

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