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2012 Senate Bill 1129: Authorize local “pension obligation bonds”

Public Act 329 of 2012

  1. Introduced by Sen. Patrick Colbeck (R) on May 15, 2012, to allow local governments to borrow money to cover unfunded employee pension liabilities, if the local has closed its traditional “defined benefit” pension system to new employees. Unlike other local government borrowing (usually called “bonding” or “selling bonds”), no vote of the people would be required, unless lenders (bond buyers) are given a “full faith and credit” repayment promise.
    • Referred to the Senate Appropriations Committee on May 15, 2012.
      • Reported in the Senate on June 14, 2012, with the recommendation that the substitute (S-2) be adopted and that the bill then pass.
    • Substitute offered in the Senate on June 14, 2012. The substitute passed by voice vote in the Senate on June 14, 2012.
  2. Passed 25 to 11 in the Senate on June 14, 2012, to allow local governments to borrow money to cover unfunded employee pension liabilities, if the local has closed its traditional “defined benefit” pension system to new employees. Unlike other local government borrowing (usually called “bonding” or “selling bonds”), no vote of the people would be required.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the House on June 14, 2012.
    • Referred to the House Appropriations Committee on June 14, 2012.
      • Reported in the House on September 27, 2012, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
    • Substitute offered in the House on September 27, 2012. The substitute passed by voice vote in the House on September 27, 2012.
    • Amendment offered by Rep. Richard LeBlanc (D) on September 27, 2012, to allow local governments with lower credit ratings than the "AA" rating required by the bill to also incur "pension obligation" debt. The amendment failed by voice vote in the House on September 27, 2012.
  4. Passed 77 to 30 in the House on September 27, 2012, to allow local governments to borrow money to cover unfunded employee pension liabilities, if the local has closed its traditional “defined benefit” pension system to new employees. Unlike other local government borrowing (usually called “bonding” or “selling bonds”), no vote of the people would be required. The bill would also allow new debt to cover future retiree health care benefits, while nevertheless stating that these are not an enforceable obligation.
    Who Voted "Yes" and Who Voted "No"

  5. Received in the House on September 27, 2012.
    • Moved to reconsider by Rep. Kate Segal (D) on September 27, 2012. The motion passed by voice vote in the House on September 27, 2012.
  6. Passed 80 to 28 in the House on September 27, 2012, to allow local governments to borrow money to cover unfunded employee pension liabilities, if the local has closed its traditional “defined benefit” pension system to new employees. Unlike other local government borrowing (usually called “bonding” or “selling bonds”), no vote of the people would be required.
    Who Voted "Yes" and Who Voted "No"

  7. Received in the Senate on September 27, 2012.
  8. Passed 26 to 9 in the Senate on September 27, 2012, to concur with the House-passed version of the bill.
    Who Voted "Yes" and Who Voted "No"

  9. Signed by Gov. Rick Snyder on October 9, 2012.

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