MI HB5279

Allows counties, cities, villages, and townships through December 31, 2014 to issue municipal securities without voter approval to pay unfunded pension liabilities or unfunded accrued health care liabilities, provided tax requirements do not exceed legal limits.

Requires municipalities to publish a notice of intent and prepare a comprehensive financial plan including analysis of retirement obligations, evidence that proceeds will eliminate unfunded liabilities, debt service schedules, and health care cost mitigation plans.

Restricts municipal security issuance to entities with either an AA credit rating or higher from a nationally recognized rating agency, or an A rating or higher if the security is insured at issuance.

Requires proceeds for health care liability bonds to be deposited in a health care trust fund or restricted trust fund and mandates the trust report according to generally accepted accounting principles and maintain tax-exempt status.

Prohibits municipalities that issue pension bonds from rescinding the partial or complete cessation of defined benefit plan accruals while the security remains outstanding, though they may reduce benefits for future years of service accrual.