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Mackinac Center for Public Policy
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2012 House Bill 5302: Road funding package

Public Act 506 of 2012

  1. Introduced by Rep. Roy Schmidt (D) on January 26, 2012, 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 House Transportation Committee on January 26, 2012.
      • Reported in the House on May 30, 2012, with the recommendation that the substitute (H-4) be adopted and that the bill then pass.
    • Substitute offered in the House on June 6, 2012, 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 in the House on June 6, 2012.
  2. Passed 63 to 45 in the House on June 7, 2012, 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.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on June 12, 2012.
    • Referred to the Senate Transportation Committee on June 12, 2012.
      • Reported in the Senate on November 29, 2012, with the recommendation that the substitute (S-2) be adopted and that the bill then pass.
    • Substitute offered in the Senate on December 5, 2012. The substitute passed by voice vote in the Senate on December 5, 2012.
  4. Passed 26 to 11 in the Senate on December 12, 2012, 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.
    Who Voted "Yes" and Who Voted "No"

  5. Received in the House on December 12, 2012.
  6. Passed 65 to 43 in the House on December 13, 2012, to concur with the Senate-passed version of the bill.
    Who Voted "Yes" and Who Voted "No"

  7. Signed by Gov. Rick Snyder on December 27, 2012.

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