HB 5311 Summary

• Changes the deadline for municipal securities issuance from December 31, 2018 to December 31, 2017 for counties, cities, villages, and townships to address unfunded pension and health care liabilities.

• Allows local governments to issue municipal securities without voter approval to pay unfunded pension liabilities when ceasing accruals to defined benefit plans or closing plans to new/existing employees.

• Permits issuance of municipal securities to fund unfunded accrued health care liabilities and requires proceeds be deposited in a health care trust fund or restricted fund.

• Requires local governments to prepare a comprehensive financial plan including analysis of obligations, debt service schedules, and cost mitigation strategies before issuing securities, subject to departmental approval.

• Restricts municipalities to AA or higher credit ratings for issuance and prohibits rescinding defined benefit plan closures while municipal securities remain outstanding; allows refunding securities after the deadline if final maturity does not exceed original security.