Public Act 2 of 2011

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• Introduced by Rep. Fred Durhal, Jr. (D) on December 1, 2011, to establish that when a fiscally failing school district enters an agreement with the state for direct payment to bondholders of future school aid money pledged to cover debt service on money borrowed by the district to cover deficit spending, the priority of these bondholders will be honored by the state, except that repayment is subject to any subsequent reduction of school aid payments to the district. See also House Bill 5194.
  • Referred to the House Appropriations Committee on December 1, 2011.
    • Reported in the House on December 7, 2011, without amendment and with the recommendation that the bill pass.
  • Amendment offered by Rep. Chuck Moss (R) on December 8, 2011, to clarify the application of the proposed law to school districts that have already engaged in borrowing to cover deficit spending. The amendment passed by voice vote in the House on December 8, 2011.
• Passed 105 to 2 in the House on December 8, 2011.
  Who Voted "Yes" and Who Voted "No"
• Received in the Senate on December 13, 2011.
  • Referred to the Senate Appropriations Committee on December 13, 2011.
    • Reported in the Senate on December 15, 2011, with the recommendation that the substitute (S-1) be adopted and that the bill then pass.
  • Substitute offered in the Senate on December 15, 2011, to replace the previous version of the bill with one that revises details but does not change the substance as previously described. The substitute passed by voice vote in the Senate on December 15, 2011.
• Passed 38 to 0 in the Senate on December 15, 2011, to establish that when a fiscally failing school district enters an agreement with the state for direct payment to bondholders of future school aid money pledged to cover debt service on money borrowed by the district to cover deficit spending, the priority of these bondholders will be honored by the state, except that repayment is subject to any subsequent reduction of school aid payments to the district. See also House Bill 5194.
  Who Voted "Yes" and Who Voted "No"
• Received in the House on December 15, 2011.
• Passed 103 to 3 in the House on January 19, 2012.
  Who Voted "Yes" and Who Voted "No"
• Signed by Gov. Rick Snyder on February 7, 2012.