SB-0696, As Passed Senate, December 7, 2017

SENATE BILL No. 696

November 30, 2017, Introduced by Senators STAMAS and MARLEAU and referred to the Committee on Michigan Competitiveness.

A bill to amend 1846 RS 16, entitled

"Of the powers and duties of townships, the election and duties of

township officers, and the division of townships,"

by amending section 110b (MCL 41.110b), as amended by 1999 PA 209.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 110b. (1) A Subject to the protecting local government

retirement and benefits act, a township may do all of the

following:

(a) Establish a retirement system for its employees and

provide for financing, funding, and the payment of benefits in the

same manner and to the same extent as permitted counties under

section 12a of 1851 PA 156, ~~MCL 46.12A,~~ MCL 46.12a, or make

contracts of insurance with an insurance company authorized to

transact business within this state.

(b) Make arrangements with a prepayment plan authorized to

transact business within ~~the~~ this state, insuring and covering 1 or

more of the following under policies of group insurance or

prepayment plan contracts, or both, covering life, accident, dental

care, vision care, health, hospitalization, and medical and

surgical service and expense insurance:

(i) Elected or appointed township officers and employees, and

dependents of those officers or those employees.

(ii) Any classes of elected or appointed township officers and

employees, and dependents of those officers or those employees.

(iii) Any classes of retired township officers and employees,

and dependents of those officers or those employees.

the internal revenue code of 1986, 26 USC 125, for its elected or

appointed officers and employees, any classes of elected or

appointed officers and employees, and dependents of those officers

and those employees. As used in this subdivision, "cafeteria plan"

means that term as defined in section 125 of the internal revenue

code of 1986, 26 USC 125.

(d) Contract with a company that grants annuities or pensions

for the pensioning of the officers and employees and for these

purposes pay any part of the premiums or charges for insurance,

prepayment plan coverage, annuities, or pensions.

(e) Offer any other employment benefit authorized by state or

federal law.

(2) Notwithstanding any other provision of law, the proper

disbursing officer of the township may deduct from an officer's or

employee's pay, salary, or compensation that part of the premium or

charge that is payable by the officer or employee.

(3) A contract of insurance or arrangement for prepayment plan

coverage procured under this section may provide that each elected

or appointed officer or employee becoming eligible for insurance or

coverage becomes insured or covered automatically when he or she

becomes eligible, subject to any actively-at-work requirements or

effective retirement dates specified in the contract or

arrangement. If the insurance or coverage under the contract or

arrangement requires contributions from the individual, any

individual desiring not to be insured or covered under the contract

or arrangement shall give written notice to his or her employing

office that he or she desires not to be insured or covered, and if

the notice is received before the individual has become insured or

covered under the contract or arrangement, he or she shall not be

insured or covered. If the notice is received after the individual

has become insured or covered, his or her insurance or coverage

under the contract or arrangement shall cease as provided for in

the contract or arrangement.

(4) ~~This~~ Subject to the protecting local government retirement

and benefits act, this section does not affect the validity of a

retirement program or contract of group insurance or arrangement

for prepayment plan coverage entered into by the township before

June 20, 1989.

(5) The authority given under this section is in addition to

and not in derogation of any power existing in the township under

the laws of this state. A township may exercise the powers granted

under this section by ordinance without the necessity of amending