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2009 House Bill 5626: Raise cap on Detroit deficit finance debt

Public Act 4 of 2010

  1. Introduced by Rep. George Cushingberry (D) on December 1, 2009, to eliminate a $125 million cap on how much Detroit can borrow to finance its ongoing gap between spending and revenue, and establish in statute that these lenders (bond holders) would have a priority claim on future state revenue sharing payments even if Detroit files bankruptcy.
    • Referred to the House Appropriations Committee on December 1, 2009.
      • Reported in the House on December 9, 2009, with the recommendation that the substitute (H-2) be adopted and that the bill then pass.
    • Substitute offered in the House on December 10, 2009, to adopt a version that raises rather than eliminates Detroit's deficit financing bond cap. The substitute passed by voice vote in the House on December 10, 2009.
    • Amendment offered by Rep. Fred Durhal, Jr. (D) on December 10, 2009, to revise details of the particular revenue sources pledged to repay the deficit spending bonds. The amendment passed by voice vote in the House on December 10, 2009.
    • Amendment offered by Rep. Fred Durhal, Jr. (D) on December 10, 2009, to clarify which deficit spending bonds will be covered by the revenue pledge guarantees in the bill. The amendment passed by voice vote in the House on December 10, 2009.
  2. Passed 75 to 33 in the House on December 10, 2009, to increase from $125 million to $250 million a cap on how much Detroit can borrow to finance its ongoing gap between spending and revenue, and establish in statute that these lenders (bond holders) would have a priority claim on future state revenue sharing payments even if Detroit files bankruptcy.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on December 17, 2009.
    • Referred to the Senate Local, Urban, & State Affairs Committee on December 17, 2009.
      • Reported in the Senate on February 2, 2010, with the recommendation that the substitute (S-1) be adopted and that the bill then pass.
    • Substitute offered in the Senate on February 4, 2010. The substitute passed by voice vote in the Senate on February 4, 2010.
  4. Passed 30 to 6 in the Senate on February 4, 2010, to increase from $125 million to $250 million a cap on how much Detroit can borrow to finance its ongoing gap between spending and revenue, and establish in statute that these lenders (bond holders) would have a priority claim on future state revenue sharing payments even if Detroit files bankruptcy.
    Who Voted "Yes" and Who Voted "No"

  5. Received in the House on February 4, 2010, to increase from $125 million to $250 million a cap on how much Detroit can borrow to finance its ongoing gap between spending and revenue, and establish in statute that these lenders (bond holders) would have a priority claim on future state revenue sharing payments even if Detroit files bankruptcy. Passed 75 to 30 in the House on February 4, 2010.
    Who Voted "Yes" and Who Voted "No"

  6. Signed by Gov. Jennifer Granholm on February 5, 2010.

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