MI HB5575

Creates the Michigan settlement administration authority as a public body corporate within the Department of Treasury to administer settlement funds related to Detroit's bankruptcy case.

Appropriates $194,800,000 from the settlement administration fund for fiscal year ending September 30, 2014, to be disbursed to Detroit's police and fire retirement system and general retirement system if bankruptcy court conditions are met.

Establishes a 3-member board of directors consisting of the state treasurer (chairperson), state budget director, and a governor-appointed bankruptcy law expert, subject to ethics laws.

Requires the authority to disburse funds only if the bankruptcy court approves Detroit's plan for adjustment and all contribution agreement terms are satisfied; otherwise funds revert to the countercyclical budget and economic stabilization fund.

Dissolves the authority on May 2, 2015, and provides liability protection to the state, officials, and authority members for obligations under the contribution agreement and bankruptcy plan.