Michigan Association of Airport Executives — House Bill 4618 (June 13, 2023)

Summary

Presentation slides dated June 13, 2023 for the Michigan House of Representatives Economic Development and Small Business Committee from the Michigan Association of Airport Executives, naming Kevin C. Klein, CEO of the Northwest Regional Airport Authority at Cherry Capital Airport. The slides address House Bill 4618, a bill to amend 2011 PA 152, the "Publicly funded health insurance contribution act". They state that an airport authority created under chapter VIIA of the aeronautics code is not defined as a local unit of government under the act, so it must keep health plans under the cap or cost share on premiums, which the slides say hurts hiring and retention. The bill would also define such authorities as local units of government.

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6/13/2023

MAAE

Michigan Association
of Airport Executives

Michigan House of Representatives Economic Development
and Small Business Committee

June 13, 2023

Kevin C. Klein, A.A.E.
CEO
Northwest Regional Airport Authority
Cherry Capital Airport -TVC

MAAE

Michigan Association
of Airport Executives

Who is MAAE?

The Michigan Association of Airport Executives (MAAE) is the professional
organization for airport executives throughout Michigan. The primary goal
for MAAE is to assist airport executives in fulfilling their responsibilities to
the airports and communities they serve. MAAE membership includes
executives from large and medium size airports, as well as managers from
smaller airports.
6/13/2023

Northwest Regional Airport Authority
TVC

Created in October of 2021

34 largest airport in the state defined by economic impact at over $1.0 Billion
4" largest airport in the state defined by passenger enplanements 2022

5 airlines - 17 destinations

26 employees

Issue with PA 152 - is the airport authority (under chapter VIIA) is not defined as a
local unit of government. The authority must select heath care plans that stay
under the cap or cost share on the premiums (80/20) with the employee. This
creates an issue with attracting and retaining employees. It does not allow a
plas for the airport to support a better plan for its employees. it must follow PA

» PA 152 allows for all other types of airport governance models to have an
exemption (city, county, and authorities created under chapter VIA).

MAAE

Michigan Association
of Airport Executives

House Bill 4618

Abill to amend 2011 PA 152, “Publicly funded health insurance contribution act”

The current bill was created before Chapter VIIA (Act 95} of the Michigan Aeronautics Code was developed in
2015.

The current bill only allows for an authority created under chapter VIA of the aeronautics code of the state of
Michigan, 1945 PA 327, MCL 259.108 to 259.125c, to be defined as a local unit of government.

The amended bitt would also allow an authority created under chapter VtlA of the aeronautics code of the state
Michigan, 1945 PA 327, MCL 259.137 to 259.149. to also be defined as a local unit of government

Under Sec 8 By a 2/3 vote of its governing body each year, a local unit of government may exempt itself frog
requirements of this act for the next succeeding year.

Cherry Capital Airport T¥C and the Gerald R. Ford International Airport GRR ~ Authorities were create
new chapter VIIA of the aeronautics code. All current authorities will remain defined as a local uni
government. Remainder of airports are governed by local units (i.e. City or County) and are defir
of government.


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