2012 House Bill 5302 / Public Act 506

Road funding package

Introduced in the House

Jan. 26, 2012

Introduced by Rep. Roy Schmidt (D-76)

To make state funding of local road agencies contingent on their adopting “best practices,” including requiring employees to contribute a certain amount to their health insurance fringe benefit; providing new employees with 401k-type “defined contribution” retirement benefits rather than the “defined benefit” pensions still typical in most government agencies; adopting road safety plans based on signals and crash analyses; and adopting specified transparency and accountability measures. This is part of Gov. Rick Snyder’s road and transit tax proposal.

Referred to the Committee on Transportation

May 30, 2012

Reported without amendment

With the recommendation that the substitute (H-4) be adopted and that the bill then pass.

June 6, 2012

Substitute offered

To adopt a version that does not require local road agencies to eliminate "defined benefit" pensions for new employees, and makes other changes.

The substitute passed by voice vote

June 7, 2012

Passed in the House 63 to 45 (details)

To make state funding of county road agencies contingent on their adopting “best practices,” including capping employer contributions to new employee retiring benefits; restricting "pension spiking" schemes that boost a retirees pension benefits beyond what normal pension calculation formulas would provide; limiting the "multipliers" used in those formulas; and requiring employees to pay at least 20 percent of their health benefits. The bill also requires agencies to maintain a searchable website that includes agency budgetary information, employee data, a financial performance "dashboard" and more.

Received in the Senate

June 12, 2012

Referred to the Committee on Transportation

Nov. 29, 2012

Reported without amendment

With the recommendation that the substitute (S-2) be adopted and that the bill then pass.

Dec. 5, 2012

Substitute offered

The substitute passed by voice vote

Dec. 12, 2012

Passed in the Senate 26 to 11 (details)

To make state funding of county road agencies contingent on their adopting “best practices,” including capping employer contributions to new employee retiring benefits; restricting "pension spiking" schemes that boost a retirees pension benefits beyond what normal pension calculation formulas would provide; limiting the "multipliers" used in those formulas; and requiring employees to pay at least 20 percent of their health benefits. The bill also requires agencies to maintain a searchable website that includes agency budgetary information, employee data, a financial performance "dashboard" and more.

Received in the House

Dec. 12, 2012

Dec. 13, 2012

Passed in the House 65 to 43 (details)

To concur with the Senate-passed version of the bill.

Signed by Gov. Rick Snyder

Dec. 27, 2012