MI SB1086

Amends the Urban Cooperation Act of 1967 to expand the permitted contents of interlocal agreements between public agencies regarding joint exercise of powers.

Adds new provisions allowing interlocal agreements to include methods for allocating revenues from publicly-owned undertakings, including taxes, state funds, federal/state grants, and tax increment financing plan revenues.

Establishes employee transfer protections requiring transferred workers to maintain seniority credits, sick leave, vacation, insurance, and pension benefits from their original system, with all existing labor contracts assumed by the receiving political subdivision until a new agreement is negotiated.

Prohibits political subdivisions from requiring employees to accept wages and benefits lower than previously paid until a new labor agreement is in place, though allows flexibility after new contracts are negotiated.

Clarifies that interlocal agreements may address allocation of capital and operating costs, charges and fees, property acquisition and disposition, financial accountability through independent audits, and dispute resolution among participating parties.