MI SB0700

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 or unfunded accrued health care liability costs through ordinance or resolution of the governing body.

Requires comprehensive financial plans before issuance that include analysis of current and future obligations, evidence of sufficiency of funds, debt service schedules, certification of accuracy, and health care cost mitigation plans.

Mandates that municipalities obtain department approval, publish notice of intent with referendum rights, maintain a credit rating of AA or higher from at least one nationally recognized rating agency, and covenant not to rescind pension plan changes while securities are outstanding.

Specifies that proceeds from health care liability bonds must be deposited in tax-exempt trust funds following generally accepted accounting principles, and allows municipalities to issue refunding securities after the December 31, 2017 deadline under specified conditions.