to adopt the amendment to HB 4292.
Representative Bollin moved to adopt the amendment to HB 4292. The motion did not prevail 12-17-0: UNFAVORABLE ROLL CALL Yeas: Reps. Lightner, Bollin, Green, Slagh, Beson, Borton, Fink, Cavitt, DeBoer, Kuhn, Schuette, Steele. Nays: Reps. Witwer, O'Neal, Brixie, Hood, Brabec, Morse, Puri, Steckloff, Weiss, Martus, McKinney, Mentzer, Morgan, Price, Skaggs, Snyder, Wilson. Pass: None. Representative Bollin offered the following amendment to HB 4292: 1. Amend page 32, following line 14, by inserting: Local unit municipal pension principal payment grants 250,000,000 and adjusting the subtotals, totals, and section 201 accordingly. 2. Amend page 129, following line 22, by inserting: "Sec. 979c. (1) From the funds appropriated in part 1 for local unit municipal pension principal payment grants, the department of treasury shall establish and operate a grant program that would provide grant awards to qualified units for deposit into a qualified unit’s qualified retirement system or systems. The grant award payment into the qualified retirement system must be in addition to a qualified unit’s actuarially determined contribution as reported under section 5 of the protecting local government retirement and benefits act, 2017 PA 202, MCL 38.2805, as of December 31, 2021 and must not be used by the qualified unit to meet its actuarially determined contribution for a qualified retirement system or systems. (2) To qualify for a grant award under this section, a qualified unit must certify and attest via an affidavit that it shall implement all of the following practices upon the receipt of a grant award: (a) The qualified unit shall make, in full, all actuarially determined contributions. If a qualified unit’s actual contribution is less than the actuarially determined contribution, the qualified unit shall remit an amount equal to the difference to the qualified retirement system within 12 months. If the qualified unit fails to remit this payment within 12 months, the department of treasury may intercept the qualified unit’s revenue sharing payment. For a qualified unit that is a road commission, the department of transportation, in cooperation with the department of treasury, may intercept an available state revenue distribution. (b) The qualified unit shall not provide contractual benefit enhancements unless the contractual benefit enhancement is 100% prefunded. Failure to meet the conditions of this subdivision requires repayment of the grant award that was received by the qualified unit. The qualified governmental unit shall notify the department of treasury in a form and manner prescribed of any contractual benefit enhancement under this subsection within 30 days. (c) A qualified retirement system with a discount rate or assumed rate of return less than or equal to 7% must assume a discount rate or assumed rate of return of not more than the current rate. A qualified retirement system with a discount rate or assumed rate of return greater than 7% must lower its discount rate or assumed rate of a return to a rate at or below 7% within the immediately succeeding 5-year period. (d) The qualified retirement system shall adopt, on the recommendation of the actuary and in accordance with all applicable actuarial standards of practice, the most current mortality tables that are most appropriate for the characteristics of the population, which may subsequently be adjusted based on an experience study of the qualified retirement system. (e) A qualified unit, if that unit has, previous to the enactment of this bill, had an amortization schedule approved by an accredited actuary in accordance with all actuarial standards of practice, and if that amortization schedule has been reviewed and approved by the state treasurer, is not subject to the uniform actuarial assumptions of retirement systems’ assumption on amortization and may maintain its current amortization schedule. (f) Within 5 years, the qualified unit shall comply with the uniform actuarial assumptions of retirement systems, except for the discount rate and assumed rate of return assumptions, published as of December 31, 2021 by the state treasurer under the protecting local government retirement and benefits act, 2017 PA 202, MCL 38.2801 to 38.2812, for the qualified retirement system. (3) The department of treasury shall distribute the funds appropriated in part 1 for local unit municipal pension principal payment grants according to the following: (a) 60% to qualified units whose qualified retirement systems funded ratios are no less than 60% but less than 80%. (b) 40% to qualified units whose qualified retirement systems are funded at ratios of at least 80%. (c) For qualified units that are between 60% but less than 80% funded, grant awards under this section must not exceed $2,000,000.00 or an amount that would increase the qualified retirement system's funded ratio to 80%, whichever is less. (d) For qualified units whose funded ratio is 80% or greater, grant awards under this section must not exceed $2,000,000.00 or an amount that would increase the qualified retirement system's funded ratio to 100%, whichever is less. (e) A grant must not be awarded if it would increase a qualified unit's funded ratio to more than 100%. (f) Any funds not awarded by September 30, 2024 must be used for additional rounds of applications until all funds are dispersed. (g) The $2,000,000.00 grant cap applies to additional rounds of grant awards. (4) The department of treasury shall develop, and publish on the department website, program guidelines, an application process, and the associated application materials no later than April 15, 2024. The department of treasury must accept applications from qualified units beginning April 15, 2024 and ending on June 15, 2024. Grant awards to a qualified retirement system under this section must be disbursed no later than August 30, 2023. (5) From the funds appropriated in part 1 for local unit municipal pension principal payment grant, an amount not to exceed 500,000.00 may be used by the department of treasury for administrative costs related to this section, including, but not limited to, the use of a vendor to assist with processing applications. (6) If the amount appropriated is insufficient to meet all grant award requests, the department of treasury shall prorate payments under this section by reducing the amount of the allocation as otherwise calculated under this section by an equal percentage per qualified unit receiving funds under this section. (7) As used in this section: (a) “Contractual benefit enhancement” means any change to the current benefit policy for active members in a qualified retirement system that increases the actuarially determined contribution rate or decreases the funded ratio of the system. This does not include wage and salary increases. (b) “Qualified retirement system” means a retirement pension benefit within a retirement system, as defined in section 3 of the protecting local government retirement and benefits act, 2017 PA 202, MCL 38.2803, of a qualified unit, with a funded ratio of 60 or greater based on the last report filed as required by section 5 of the protecting local government retirement and benefits act, 2017 PA 202, MCL 38.2805, as of December 31, 2021. (c) “Qualified unit” means a city, county, township, village, or road commission that operates a qualified retirement system.".