{"id":6354,"date":"2018-12-06T12:06:46","date_gmt":"2018-12-06T16:06:46","guid":{"rendered":"http:\/\/blogs.mml.org\/wp\/inside208\/?p=6354"},"modified":"2018-12-06T12:06:46","modified_gmt":"2018-12-06T16:06:46","slug":"bills-correct-court-decision-concerns-under-pa-152","status":"publish","type":"post","link":"https:\/\/mml.org\/inside208\/2018\/12\/06\/bills-correct-court-decision-concerns-under-pa-152\/","title":{"rendered":"Bills Correct Court Decision Concerns Under PA 152"},"content":{"rendered":"

A recent court decision has disrupted how many communities have been operating under PA 152 of 2011<\/a>, the state’s hard cap\/80-20 law.\u00a0 Both the House and Senate are considering bills that would address two key components of the recent Command Officers Association v Shelby Township <\/a>case that the Michigan Supreme Court decided last year.\u00a0 House Bill 6531<\/a> and Senate Bill 1209<\/a>\u00a0propose to correct two key issues within that decision. The first proposed change addresses the court finding that the 20% employee cost share, for any community using the 80\/20 model, is a mandatory subject of bargaining.\u00a0 In real terms this means that the first unit\u00a0to the table could negotiate for a lesser cost share and the following bargaining units would be responsible for paying a higher proportion.\u00a0 The second part of the court decision was the\u00a0determination that\u00a0health insurance premiums\/rates could not be a blended rate between actives and retirees.\u00a0 While\u00a0there are\u00a0many communities that already split their rates between active employees and retirees, there are also communities that have historically blended their rates to keep overall costs down or are self-insured and only handle their rates on a blended basis within their pool.\u00a0 Being required to now split those rates could seriously increase the OPEB costs for those communities.\u00a0 The bill language simply states that the combination of rates is not prohibited, leaving any decision to split or combine rates the same local option that existed prior to the court decision.<\/p>\n

The League is supporting this legislation and testified in both the House and Senate committee about the need to preserve the same environment for communities that existed prior to the Shelby decision, maintaining how every community understood the rules under the law as originally passed.\u00a0 Substitute bill language was adopted in each committee to update the hard cap numbers in the bill to match Treasury’s recently released 2019 numbers.<\/p>\n

These bills have passed committee and are awaiting action in their respective chambers.<\/p>\n

Chris Hackbarth is the League\u2019s director of state & federal affairs. He can be reached at<\/em>\u00a0<\/em>517-908-0304\u00a0<\/em>and\u00a0chackbarth@mml.org<\/a><\/em>.<\/p>\n","protected":false},"excerpt":{"rendered":"

A recent court decision has disrupted how many communities have been operating under PA 152 of 2011, the state’s hard cap\/80-20 law.\u00a0 Both the House and Senate are considering bills that would address two key components of the recent Command Officers Association v Shelby Township case that the Michigan Supreme […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[17,22,27,34],"tags":[],"class_list":["post-6354","post","type-post","status-publish","format-standard","hentry","category-government-reform","category-legislative-link-articles","category-municipal-services","category-public-policy","mml-onemagnify-plugin"],"acf":[],"yoast_head":"\nBills Correct Court Decision Concerns Under PA 152 - 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