Public Act 210 of 2003

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• Introduced by Rep. Bill McConico (D) on October 14, 2003, to allow financially challenged and distressed municipalities which are under emergency financial management to take on more bonded indebtedness under certain circumstances. A vote of the people would not be required for the new bonds. The bill was introduced because the City of Highland Park, which is essentially bankrupt, may not be able to meet a February 2004 pension payment.
  • Referred to the House Local Government and Urban Policy Committee on October 14, 2003.
    • Reported in the House on October 16, 2003, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
  • Substitute offered in the House on October 21, 2003, to replace the previous version of the bill with one which caps the amount of total debt a city could assume at 20 percent of the assessed value of all property in the city. Under current law, the maximum is 10 percent. The substitute passed in the House by voice vote on October 21, 2003.
  • Amendment offered by Rep. Bill McConico (D) on October 21, 2003, to clarify that the 20 percent debt cap does not apply to other cities. The amendment passed in the House by voice vote on October 21, 2003.
• Passed in the House (82 to 26) on October 21, 2003, to allow financially challenged and distressed municipalities which are under emergency financial management to take on more bonded indebtedness under certain circumstances. The debt could be increased to as much as 20 percent of the assessed value of all property in the city (the maximum under current law is 10 percent). A vote of the people would not be required for the new bonds. The bill was introduced because the City of Highland Park, which is essentially bankrupt, may not be able to meet a February 2004 pension payment. [Vote Details and Comments]
• Received in the Senate on October 22, 2003.
  • Referred to the Senate Local, Urban, & State Affairs Committee on October 22, 2003.
    • Reported in the Senate on November 4, 2003, with the recommendation that the substitute (S-1) be adopted and that the bill then pass.
  • Substitute offered in the Senate on November 5, 2003, to replace the previous version of the bill with one which incorporates technical changes that do not affect the substance of the bill as previously described. The substitute passed in the Senate by voice vote on November 5, 2003.
• Passed in the Senate (36 to 1) on November 6, 2003, to allow financially challenged and distressed municipalities which are under emergency financial management to take on more bonded indebtedness under certain circumstances. The debt could be increased to as much as 20 percent of the assessed value of all property in the city (the maximum under current law is 10 percent). A vote of the people would not be required for the new bonds. The bill was introduced because the City of Highland Park, which is essentially bankrupt, may not be able to meet a February 2004 pension payment. [Vote Details and Comments]
• Received in the House on November 6, 2003.
• Passed in the House (86 to 21) on November 12, 2003, to concur with the Senate-passed version of the bill. [Vote Details and Comments]
• Signed by Gov. Jennifer Granholm on November 25, 2003.