Introduced by Sen. Patrick Colbeck R-Canton 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. Official Text and Analysis.
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
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.
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-Westland 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
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.
Received in the House on September 27, 2012
Moved to reconsider by Rep. Kate Segal D-Battle Creek on September 27, 2012
The motion passed by voice vote in the House on September 27, 2012