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2014 House Bill 5573: Detroit bankruptcy settlement and grant package - funding details

Public Act 186 of 2014

Introduced by Rep. Alberta Tinsley Talabi D-Detroit on May 8, 2014
To revise the law that authorized borrowing $400 million against future tobacco lawsuit settlement revenue for the “21st Century Jobs Fund” business subsidy program, and borrowing another $415 million against this revenue to cover deficit spending in the 2007 state budget, to borrow $350 million over 20 years for a proposed state grant (“bailout”) to Detroit. Alternatively, under House Bill 5572 the state would be authorized to give Detroit $195 million up front. This is part of a legislative package consisting of House Bills 5566 to 5575 that are related to the Detroit bankruptcy and the proposed state grant.   Official Text and Analysis.
Referred to the House Detroit's Recovery and Michigan's Future Committee on May 8, 2014
Reported in the House on May 21, 2014
Without amendment and with the recommendation that the bill pass.
To earmark $17.5 million of future tobacco lawsuit settlement revenue annually for 20 years to the state rainy day fund, which is essentially an accounting measure related to a $195 million state gift to Detroit, which goes toward the city's bankruptcy settlement. The state is essentially loaning money to itself.
Received in the Senate on May 27, 2014
Referred to the Senate Government Operations Committee on May 27, 2014
Reported in the Senate on June 3, 2014
With the recommendation that the bill pass.
Signed by Gov. Rick Snyder on June 19, 2014