Bill Text: MI SB0697 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Retirement; municipal employees; retirement benefits under a retirement system established by a city; make subject to protecting local government retirement and benefits act. Amends secs. 4i & 4p of 1909 PA 279 (MCL 117.4i & 117.4p) & adds sec. 4u. TIE BAR WITH: SB 0686'17
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2017-12-12 - Referred To Committee On Michigan Competitiveness [SB0697 Detail]
Download: Michigan-2017-SB0697-Engrossed.html
SB-0697, As Passed Senate, December 7, 2017
SENATE BILL No. 697
November 30, 2017, Introduced by Senators SHIRKEY and MARLEAU and referred to the Committee on Michigan Competitiveness.
A bill to amend 1909 PA 279, entitled
"The home rule city act,"
by amending sections 4i and 4p (MCL 117.4i and 117.4p), section 4i
as amended and section 4p as added by 2014 PA 183, and by adding
section 4u.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4i. Each city may provide in its charter for 1 or more of
the following:
(a) Laying and collecting rents, tolls, and excises.
(b) Regulating and restricting the locations of oil and
gasoline stations.
(c) The establishment of districts or zones within which the
use of land and structures, the height, area, size, and location of
buildings, the required open spaces for light and ventilation of
buildings, and the density of population may be regulated by
ordinance. The zoning ordinance provisions applicable to 1 or more
districts may differ from those applicable to other districts. If a
city is incorporated, or if territory is annexed to a city
incorporated under this act, the zoning ordinance provisions
applicable to the territory within the newly incorporated city or
the
annexed territory shall must
remain in effect for 2 years after
the incorporation or annexation unless the legislative body of the
city lawfully adopts other zoning ordinance provisions.
(d) The regulation of trades, occupations, and amusements
within city boundaries, if the regulations are not inconsistent
with state or federal law, and the prohibition of trades,
occupations, and amusements that are detrimental to the health,
morals, or welfare of the inhabitants of that city.
(e) The regulation or prohibition of public nudity within city
boundaries. As used in this subdivision, "public nudity" means
knowingly or intentionally displaying in a public place, or for
payment or promise of payment by any person including, but not
limited to, payment or promise of payment of an admission fee, any
individual's genitals or anus with less than a fully opaque
covering or a female individual's breast with less than a fully
opaque covering of the nipple and areola. Public nudity does not
include any of the following:
(i) A woman's breastfeeding of a baby whether or not the
nipple or areola is exposed during or incidental to the feeding.
(ii) Material as that term is defined in section 2 of 1984 PA
343, MCL 752.362.
(iii) Sexually explicit visual material as that term is
defined in section 3 of 1978 PA 33, MCL 722.673.
(f) Licensing, regulating, restricting, and limiting the
number and locations of billboards within the city.
(g) The initiative and referendum on all matters within the
scope of the powers of that city and the recall of city officials.
(h) A system of civil service for city employees, including
employees of that city's board of health, and employees of any jail
operated or maintained by the city. Charter provisions providing
for a system of civil service for employees of a local health board
are valid and effective.
(i)
Subject to section sections
4p and 4u, a system of
compensation for city employees and for the dependents of city
employees in the case of disability, injury, or death of city
employees.
(j) The enforcement of police, sanitary, and other ordinances
that are not in conflict with the general laws.
(k) The punishment of persons who violate city ordinances
other than ordinances described in section 4l. The penalty for a
violation
of such a city ordinance shall must
not exceed a fine of
$500.00 or imprisonment for 90 days, or both. However, unless
otherwise provided by law, the ordinance may provide that a
violation of the ordinance is punishable by imprisonment for not
more than 93 days or a fine of not more than $500.00, or both, if
the violation substantially corresponds to a violation of state law
that is a misdemeanor for which the maximum period of imprisonment
is 93 days. In addition, a city may adopt section 625(1)(c) of the
Michigan vehicle code, 1949 PA 300, MCL 257.625, by reference in an
adopting ordinance and shall provide that a violation of that
ordinance is punishable by 1 or more of the following:
(i) Community service for not more than 360 hours.
(ii) Imprisonment for not more than 180 days.
(iii) A fine of not less than $200.00 or more than $700.00.
Sec.
4p. (1) For Subject to
section 4u, for a city with a
population of more than 600,000 or that has discharged
$1,000,000,000.00 of pension liabilities in bankruptcy, or both,
that provides a defined benefit plan as part of a system of
compensation under section 4i, all of the following apply:
(a) Except as otherwise provided in a plan for adjustment, the
calculation of a pension benefit under the defined benefit plan
shall
must only include base pay. This subdivision does not
apply
to years of service accrued before January 1, 2015.
(b) Except as otherwise provided in a plan for adjustment, the
annual
pension benefit shall must
not include an additional payment
based solely on the rate of investment return earned on the
retirement system's assets. This subdivision does not prohibit the
fulfillment of rights and benefits earned under a retirement system
agreed to in a plan for adjustment. As used in this subdivision, a
"retirement system" means a public employee retirement system
established by a city described in this subsection.
(2)
Except Subject to section
4u and except as otherwise
provided in a plan for adjustment, for a city with a population of
more than 600,000 or that has discharged $1,000,000,000.00 of
pension liabilities in bankruptcy, or both, that provides
retirement benefits for employees first hired after July 1, 2023 as
part of a system of compensation under section 4i, either of the
following applies for the employees first hired after July 1, 2023:
(a) The city may offer retirement plans so long as the city
does not contribute more than 7% of the employee's base pay to an
appropriate retirement account.
(b) The city may offer the same retirement plan as provided in
a plan for adjustment.
(3)
For Subject to section 4u,
for a city with a population of
more than 600,000 or that has discharged $1,000,000,000.00 of
pension liabilities in bankruptcy, or both, that provides
retirement health care insurance benefits for new employees after
July 1, 2023 as part of a system of compensation under section 4i,
the city shall not contribute more than 2% of the employee's base
pay or the percentage a qualified participant's employer
contributes on behalf of a qualified participant under section
68b(1) of the state employees' retirement act, 1943 PA 240, MCL
38.68b, whichever percentage is greater, to an appropriate tax-
deferred account.
(4) Not later than January 1, 2024, and each January 1 after
2024, for a city with a population of more than 600,000 or that has
discharged $1,000,000,000.00 of pension liabilities in bankruptcy,
or both, that provides retirement benefits as part of a system of
compensation under section 4i, the city or a retirement system
established by the city, as applicable, shall submit a
certification of its compliance with this section to the financial
review commission created under the Michigan financial review
commission act, 2014 PA 181, 141.1631 to 141.1643.
(5) As used in this section:
(a) "Base pay" means the remuneration paid an employee on
account of the employee's services rendered to a city described in
this section. Base pay does not include any of the following:
(i) Payment for overtime services.
(ii) Remuneration paid in lieu of accumulated sick leave.
(iii) Remuneration received as a bonus.
(iv) Payment for accrued vacation pay.
(v) One-time lump-sum payments.
(vi) The cost of fringe benefits, including, but not limited
to, a medical benefit plan.
(b) "Medical benefit plan" means that term as defined in
section 2 of the publicly funded health insurance contribution act,
2011 PA 152, MCL 15.562.
(c) "Member" means a member of a defined benefit plan
established by a city described in subsection (1).
(d) "Plan for adjustment" means a plan for the adjustment of
debts entered and approved by a federal bankruptcy court.
(e) "Retirement health care insurance benefit" means
hospitalization and medical insurance, dental coverage, vision
coverage, and any other health care insurance provided for a
retirant or dependent of a retirant under a system of compensation
that includes retirement benefits established under section 4i.
Sec. 4u. If a city provides retirement benefits as part of a
system of compensation under section 4i, the retirement benefits
are subject to the protecting local government retirement and
benefits act. As used in this section, "retirement benefit" means
that term as defined in section 3 of 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.
