MI HB4216

Municipalities must file annual audit reports within 6 months of fiscal year end and submit a qualifying statement to determine if they can issue securities without prior departmental approval.

Municipalities qualify to issue securities without approval if they meet 16 specified requirements, including not operating under fiscal accountability provisions, maintaining audit compliance, and not exceeding debt limits.

Municipalities that fail to meet qualification requirements must obtain prior written approval from the department for each security issuance, with filing fees of 0.03% of principal amount (minimum $800, maximum $2,000) plus a $100 late fee if applicable.

The department has 30 business days to determine compliance with qualification requirements, and municipalities automatically receive qualified status if the department fails to respond within the deadline.

This act is contingent on the enactment of House Bill No. 4214 and takes effect immediately upon approval (March 16, 2011).