MI SB1129

Allows counties, cities, villages, and townships to issue municipal securities without voter approval through December 31, 2014 to fund unfunded pension liabilities and unfunded accrued health care liabilities related to defined benefit plan restructuring.

Requires municipalities issuing such securities to prepare and publicly release a comprehensive financial plan demonstrating the security proceeds will eliminate the liability, establish a debt service schedule, and obtain Department of Treasury approval.

Restricts security issuance to municipalities with a credit rating of AA or higher from at least one nationally recognized rating agency and prohibits changes to defined benefit plan structures after issuance.

Exempts proceeds from such securities from state and local taxation and requires health care liability proceeds be deposited in a health care trust fund or restricted trust account.

Allows securities to be sold at discounts exceeding 10% of principal amount and removes standard maturity and mandatory redemption requirements for securities issued under the new authority.