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

Public Act 329 of 2012

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.   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
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.
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
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.
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
Passed 80 to 28 in the House on September 27, 2012 (same description)
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 Senate on September 27, 2012
Passed 26 to 9 in the Senate on September 27, 2012 To concur with the House-passed version of the bill.
Signed by Gov. Rick Snyder on October 9, 2012

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