Signed by Governor Rick Snyder

Vote Smart's Synopsis:

Vote to pass a bill that authorizes a broader power for local emergency managers.

Highlights:

• Specifies that in order to issue municipal securities without approval, the municipality shall be in compliance with, but not limited to, the following (Sec. 1):
• The municipality did not issue securities in the immediately preceding 5 fiscal years or current fiscal year other than a security issued for a loan authorized the emergency municipal loan act; 
• The municipality was not required by the terms of a court order or judgment to levy a tax in the preceding fiscal year; 
• The most recent audit report, as required by the uniform budgeting and accounting act was filed with the department with 6 months from the end of the fiscal year of the municipality; 
• The debt retirement fund balance for any municipal security that is funded from an unlimited tax levy does not exceed 150 percent of the amount required for principal and interest payments due for that municipal security in the next fiscal year; and 
• The municipality did not end the immediately preceding fiscal year with a deficit in any und unless the municipality has filed a financial plan to correct that deficit condition that is acceptable to the department.

• Prohibits a municipality from issuing securities without proper approval of the department if the municipality is notified within 30 days after filing a request for reconsideration that it does not comply with the requirements (Sec. 1).

• Authorizes the department to determine if the municipality has met all the following (Sec. 1):
• Indicated the authority to issue the municipal security requested; 
• Is projected to be able to repay the municipal security when due; 
• Has filed information with the department indicating compliance with the requirements from the department; and 
• If required, obtained an investment grade rating for the municipal security or has purchased insurance for payment of the principal and interest on the municipal security to the holders of the municipal security, or has otherwise enhanced the creditworthiness of the municipal security.

• Authorizes the department to issue a notice of deficiency to the municipality that prevents the issuance of the proposed municipal security (Sec. 1).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that authorizes a broader power for local emergency managers.

Highlights:

• Specifies that in order to issue municipal securities without approval, the municipality shall be in compliance with, but not limited to, the following (Sec. 1):
• The municipality did not issue securities in the immediately preceding 5 fiscal years or current fiscal year other than a security issued for a loan authorized the emergency municipal loan act; 
• The municipality was not required by the terms of a court order or judgment to levy a tax in the preceding fiscal year; 
• The most recent audit report, as required by the uniform budgeting and accounting act was filed with the department with 6 months from the end of the fiscal year of the municipality; 
• The debt retirement fund balance for any municipal security that is funded from an unlimited tax levy does not exceed 150 percent of the amount required for principal and interest payments due for that municipal security in the next fiscal year; and 
• The municipality did not end the immediately preceding fiscal year with a deficit in any und unless the municipality has filed a financial plan to correct that deficit condition that is acceptable to the department.

• Prohibits a municipality from issuing securities without proper approval of the department if the municipality is notified within 30 days after filing a request for reconsideration that it does not comply with the requirements (Sec. 1).

• Authorizes the department to determine if the municipality has met all the following (Sec. 1):
• Indicated the authority to issue the municipal security requested; 
• Is projected to be able to repay the municipal security when due; 
• Has filed information with the department indicating compliance with the requirements from the department; and 
• If required, obtained an investment grade rating for the municipal security or has purchased insurance for payment of the principal and interest on the municipal security to the holders of the municipal security, or has otherwise enhanced the creditworthiness of the municipal security.

• Authorizes the department to issue a notice of deficiency to the municipality that prevents the issuance of the proposed municipal security (Sec. 1).

Full Bill Text