Bill > HB4757

This bill modifies Michigan's law regarding how local governments can invest their surplus funds, expanding and clarifying the types of investments public corporations can make. The bill broadens the list of permissible investments to include more detailed categories of U.S. government-sponsored enterprise bonds, corporate bonds with specific credit ratings, and additional types of financial instruments. Key changes include allowing investments in bonds from specific agencies like Fannie Mae and Freddie Mac, permitting corporate bond investments with certain credit rating requirements, and establishing new conditions for these investments. The bill also requires public corporations to adopt a formal investment policy within 180 days of their fiscal year-end, which must outline investment objectives, delegation of authority, and authorized investment instruments. Additionally, public corporations must now file their investment policies annually with the state treasury and are given more flexibility to invest long-term or special revenue funds using standards similar to public employee retirement system investment guidelines. The legislation aims to provide local governments with more investment options while maintaining prudent financial management standards, and introduces more transparency by requiring detailed annual reporting of investment activities.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4757