Bill > SB0575

This bill modifies the Revised Municipal Finance Act by updating the procedures and requirements for local governments when issuing municipal securities. The bill makes several key changes, including increasing filing fees for municipal securities from 0.03% to 0.04% (with the minimum fee rising from $800 to $1,600 and the maximum from $2,000 to $4,000), and from 0.02% to 0.03% for post-issuance filings. It also increases late fees from $100 to $200 for delayed fiscal year reporting. Starting in January 2026, these fees will be adjusted annually based on the inflation rate. The bill clarifies and standardizes language around filing deadlines, using "not later than" instead of "within" for various timeframes. It updates references to financial oversight laws, specifically changing a reference from the local government and school district fiscal accountability act to the local financial stability and choice act. The bill maintains the existing framework for municipalities to qualify for issuing municipal securities without further department approval, which requires meeting numerous financial and reporting standards, such as not being in deficit, not being delinquent on tax transfers, and maintaining good standing with various financial regulations. The changes aim to provide more clarity and potentially generate additional revenue through adjusted filing fees while maintaining rigorous oversight of municipal financial activities.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0575