2009 House Bill 4075

Authorize “pension obligation bonds” for local government retiree health benefits

Introduced in the House

Jan. 22, 2009

Introduced by Rep. Marc Corriveau (D-20)

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 Committee on Judiciary

Feb. 25, 2009

Reported without amendment

With the recommendation that the substitute (H-5) be adopted and that the bill then pass.

March 4, 2009

Substitute offered

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

Amendment offered by Rep. Justin Amash (R-72)

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 (details)

Passed in the House 67 to 41 (details)

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).

Received in the Senate

March 5, 2009

Referred to the Committee on Appropriations