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Mackinac Center for Public Policy
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2009 House Bill 4075: Authorize “pension obligation bonds” for local government retiree health benefits
  1. Introduced by Rep. Marc Corriveau (D) on January 22, 2009, to allow local governments to borrow without a vote of the people in order to establish funds from which would be paid the post-retirement health care benefits the local government has said over the years it would pay to retired government workers. Although no vote of the people would be required (as is required for most other government bonding), the bill provides a process by which citizens could petition for a vote.
    • Referred to the House Judiciary Committee on January 22, 2009.
    • Reported in the House on February 25, 2009, with the recommendation that the substitute (H-5) be adopted and that the bill then pass.
    • Substitute offered in the House on March 4, 2009, to adopt a version that does create a contractual right of government employees to post-retirement health benefits that their employers have said they would pay (but which court rulings have said are not actual obligations). The substitute passed by voice vote in the House on March 4, 2009.
    • Amendment offered by Rep. Justin Amash (R) on March 4, 2009, to adopt a version that does not create a contractual right of state employees to post-retirement health benefits. The amendment failed 41 to 67 in the House on March 4, 2009.
      Who Voted "Yes" and Who Voted "No"

  2. Passed 67 to 41 in the House on March 4, 2009, to allow local governments to borrow without a vote of the people in order to establish funds from which would be paid the post-retirement health care benefits the local government has said over the years it would pay to retired government workers. Although no vote of the people would be required (as is required for most other government bonding), the bill provides a process by which citizens could petition for a vote. The bill would also make post-retirement health benefits local governments have said they would pay a contractual right of employees, thereby making these obligations binding on public employers (and taxpayers).
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on March 5, 2009.
    • Referred to the Senate Appropriations Committee on March 5, 2009.

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