Senate Introduced Bill B01302

SENATE BILL No. 1302

May 7, 2002, Introduced by Senator EMMONS and referred to the Committee on Finance.

A bill to amend 2001 PA 34, entitled

"Revised municipal finance act,"

by amending sections 105, 303, 319, 517, 701, and 809

(MCL 141.2105, 141.2303, 141.2319, 141.2517, 141.2701, and

141.2809) and by adding sections 304 and 802; and to repeal acts

and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 105. A municipal security does not include any of the

2 following:

3 (a) A contract for the purchase of real or personal

4 property.

5 (b) A contract for the lease of real or personal property

6 with or without an option to purchase.

7 (c) A contract, lease, note, or other security given in

8 connection with a contract described in subdivision (a) or (b).

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1 (d) A security that is evidence of an emergency loan under

2 section 1 of 1855 PA 105, MCL 21.141, in conjunction with the

3 emergency municipal loan act, 1980 PA 243, MCL 141.931 to

4 141.942, or qualified agricultural loans under section 2a of 1855

5 PA 105, MCL 21.142a.

6 (e) A mortgage secured by real property and its correspond-

7 ing security to the extent secured by the mortgage.

8 (F) A CONTRACT BETWEEN 1 OR MORE MUNICIPALITIES UNDER WHOSE

9 TERMS 1 OR MORE MUNICIPALITIES PLEDGE THEIR REVENUES OR FULL

10 FAITH AND CREDIT TO SECURE PAYMENT OF A PROPOSED MUNICIPAL SECUR-

11 ITY ISSUED BY 1 OF THE MUNICIPALITIES.

12 Sec. 303. (1) Each municipality shall file an audit report

13 annually with the department within 6 months from the end of its

14 fiscal year or as otherwise provided in the uniform budgeting and

15 accounting act, 1968 PA 2, MCL 141.421 to 141.440a.

16 (2) Accompanying the audit report described in subsection

17 (1), a municipality shall file a qualifying statement, on a form

18 and in the manner provided by the department, which shall be cer-

19 tified by the chief administrative officer. Within 30 business

20 days of the receipt of the qualifying statement, the department

21 shall determine if the municipality complies with the require-

22 ments of subsection (3). If the department determines that the

23 municipality complies with the provisions of subsection (3) or if

24 the department fails to notify the municipality of its determina-

25 tion under this subsection within 30 business days of receipt of

26 the qualifying statement, the municipality may proceed to issue

27 municipal securities under this act without further approval from

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1 the department until 30 business days after the next qualifying

2 statement is due or a new determination is made by the depart-

3 ment, whichever occurs first.

4 (3) To qualify to issue municipal securities without further

5 approval from the department, the municipality shall be in mate-

6 rial compliance with all of the following requirements, as deter-

7 mined by the department:

8 (a) The municipality is not operating under the provisions

9 of the local government fiscal responsibility act, 1990 PA 72,

10 MCL 141.1201 to 141.1291.

11 (b) The municipality did not issue securities in the immedi-

12 ately preceding 5 fiscal years or current fiscal year that were

13 authorized by either the emergency municipal loan act, 1980

14 PA 243, MCL 141.931 to 141.942, other than a security issued for

15 a loan authorized under section 3(2)(a) of the emergency munici-

16 pal loan act, 1980 PA 243, MCL 141.933, or the fiscal stabiliza-

17 tion act, 1981 PA 80, MCL 141.1001 to 141.1011.

18 (c) The municipality was not required by the terms of a

19 court order or judgment to levy a tax in the preceding fiscal

20 year. For purposes of this subdivision, the department may

21 determine that a court order or judgment to levy a tax is not

22 material if it did not have an adverse financial impact on the

23 municipality.

24 (d) The most recent audit report, as required by the uniform

25 ~~budget~~ BUDGETING and accounting act, 1968 PA 2, MCL 141.421 to

26 141.440a, was filed with the department within 6 months from the

27 end of the fiscal year of the municipality.

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1 (e) The debt retirement fund balance for any municipal

2 security that is funded from an unlimited tax levy does not

3 exceed 150% of the amount required for principal and interest

4 payments due for that municipal security in the next fiscal

5 year.

6 (f) The municipality is not currently exceeding its statu-

7 tory or constitutional debt limits.

8 (g) The municipality has no outstanding securities that were

9 not authorized by statute.

10 (h) The municipality is not currently and during the preced-

11 ing fiscal year was not in violation of any provisions in the

12 covenants for an outstanding security.

13 (i) The municipality was not delinquent more than 1 time in

14 the preceding fiscal year in transferring employee taxes withheld

15 to the appropriate agency, transferring taxes collected as agent

16 for another taxing entity to that taxing unit, or making all

17 required pension, retirement, or benefit plan contributions.

18 (j) The most recent delinquent property taxes of the munici-

19 pality, without regard to payments received from the county under

20 the general property tax act, 1893 PA 206, MCL 211.1 to 211.157,

21 did not exceed 18% of the amount levied.

22 (k) The municipality did not submit a qualifying statement

23 or an application for any other municipal security in the preced-

24 ing 12 months that was materially false or incorrect.

25 (l) The municipality is not in default on the payment of any

26 debt, excluding industrial development revenue bonds issued under

27 the industrial development revenue bond act of 1963, 1963 PA 62,

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1 MCL 125.1251 to 125.1267, economic development corporation bonds

2 issued under the economic development corporations act, 1974

3 PA 338, MCL 125.1601 to 125.1636, bonds issued by a local hospi-

4 tal finance authority for a private hospital under the hospital

5 finance authority act, 1969 PA 38, MCL 331.31 to 331.84, or any

6 other debt for which the municipality is not financially liable.

7 (m) The municipality did not end the immediately preceding

8 fiscal year with a deficit in any fund, unless the municipality

9 has filed a financial plan to correct that deficit condition

10 ~~under section 21 of the Glenn Steil state revenue sharing act of~~

11 ~~1971, 1971 PA 140, MCL 141.921,~~ that is acceptable to the

12 department.

13 (n) The municipality has not been found by a court of compe-

14 tent jurisdiction to be in violation of any finance or

15 tax-related state or federal statutes during the preceding fiscal

16 year.

17 (o) The municipality has not been determined by the depart-

18 ment to be in violation of this act during the preceding fiscal

19 year.

20 (p) The municipality did not issue a refunding security in

21 the preceding fiscal year to avoid a potential default on an out-

22 standing security.

23 (4) If a municipality is notified within 30 business days of

24 the filing of the qualifying statement that it does not comply

25 with 1 or more of the requirements of subsection (3), the munici-

26 pality may correct the noncompliant requirements and request a

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1 reconsideration of the determination from the department as

2 provided in subsection (5).

3 (5) A municipality may request a reconsideration of the

4 determination from the department. That request shall indicate

5 the requirements that the department determined the municipality

6 to be not in compliance with and the action taken by the munici-

7 pality to correct the noncompliance. Within 30 business days of

8 the receipt of the request for reconsideration, the department

9 shall determine if the municipality complies with the require-

10 ments of subsection (3) or, if the department fails to notify the

11 municipality of its determination under this subsection within 30

12 business days of receipt of the request for reconsideration, the

13 municipality will be granted qualified status.

14 (6) If a municipality is notified within 30 business days

15 after filing a request for reconsideration that it does not

16 comply with the requirements of subsection (3), the municipality

17 shall not issue municipal securities under this act without the

18 prior written approval of the department to issue a municipal

19 security as provided in subsections (7) and (8).

20 (7) If a municipality has not been granted qualified status,

21 the municipality must obtain, for each municipal security, the

22 prior written approval of the department to issue a municipal

23 security. To request prior written approval to issue a municipal

24 security, the municipality shall submit an application and sup-

25 porting documentation to the department on a form and in a manner

26 prescribed by the department, which shall be certified by the

27 chief administrative officer. A filing fee equal to 0.03% of the

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1 principal amount of the municipal security to be issued, but not

2 less than $800.00 and not greater than $2,000.00 as determined by

3 the department, shall accompany each application. If the quali-

4 fying statement required by ~~section 303(2)~~ SUBSECTION (2) was

5 received by the department more than 6 months after the end of

6 the municipality's fiscal year, a late fee of $100.00 shall

7 accompany the first application filed after that date. Within 30

8 business days of receiving an application, the fee, and support-

9 ing documentation from a municipality, the department shall make

10 a determination whether the municipality has met all of the fol-

11 lowing requirements:

12 (a) Has indicated the authority to issue the municipal

13 security requested.

14 (b) Is projected to be able to repay the municipal security

15 when due.

16 (c) Has filed information with the department indicating

17 compliance with the requirements of subsection (3) or adequately

18 addressed any noncompliance with subsection (3) as determined by

19 the department.

20 (d) If required by the department, has obtained an invest-

21 ment grade rating for the municipal security or has purchased

22 insurance for payment of the principal and interest on the munic-

23 ipal security to the holders of the municipal security, or has

24 otherwise enhanced the creditworthiness of the municipal

25 security.

26 (8) If the department determines that the requirements in

27 subsection (7) have been met, the department shall approve the

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1 issuance of the proposed municipal security. If the department

2 determines that the requirements in subsection (7) have not been

3 met, the department shall issue a notice of deficiency to the

4 municipality that prevents the issuance of the proposed municipal

5 security. The notice of deficiency shall state the specific

6 deficiencies and problems with the proposed issuance. After the

7 deficiencies and problems have been addressed as determined by

8 the department, the department shall approve the issuance of the

9 proposed municipal security.

10 ~~(9) This state or any state authority, agency, fund, com-~~

11 ~~mission, board, or department of this state is not required to~~

12 ~~obtain approval under this section before issuing securities or~~

13 ~~required to file any qualifying or audit reports under this~~

14 ~~section.~~

15 ~~(10) A state authority, agency, fund, commission, board, or~~

16 ~~department of this state that is required to obtain approval or~~

17 ~~an exception from prior approval from the department under the~~

18 ~~municipal finance act, 1943 PA 202, MCL 131.1 to 139.3, shall~~

19 ~~instead file a statement with the department of intent to issue a~~

20 ~~security on a form prescribed by the department. Within 10 days~~

21 ~~of receipt of that statement, the department shall issue that~~

22 ~~authority, agency, fund, commission, board, or department an~~

23 ~~order granting exception from prior approval. If the department~~

24 ~~fails to comply with the requirements of this subsection, the~~

25 ~~state authority, agency, fund, commission, board, or department~~

26 ~~of this state shall be considered to have obtained any required~~

27 ~~approval or exception from prior approval.~~

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1 (9) ~~(11)~~ A determination by the department that a

2 municipality has been granted qualified status constitutes an

3 order granting exception from prior approval under ~~the municipal~~

4 ~~finance act, 1943 PA 202, MCL 131.1 to 139.3~~ FORMER 1943 PA 202,

5 of that municipality's securities.

6 SEC. 304. IF A MUNICIPALITY ISSUES A MUNICIPAL SECURITY

7 SUBJECT TO THIS ACT AND THE PRINCIPAL AND INTEREST FOR THAT

8 MUNICIPAL SECURITY WILL BE PAID BY 1 OR MORE MUNICIPALITIES NOT

9 ISSUING THE MUNICIPAL SECURITY UNDER A CONTRACT, AND 1 OR MORE OF

10 THE MUNICIPALITIES HAVE NOT BEEN GRANTED QUALIFIED STATUS, THEN

11 THE MUNICIPAL SECURITY IS SUBJECT TO SECTION 303(7).

12 Sec. 319. (1) Within 15 business days of completing the

13 issuance of any municipal security qualified under section

14 303(3), the municipality ~~, other than a state authority or~~

15 ~~agency,~~ shall file a copy of all of the following with the

16 department in a form and manner prescribed by the department:

17 (a) A copy of the municipal security.

18 (b) A proof of publication of the notice of sale, if

19 applicable.

20 (c) A copy of the award resolution or certificate of award

21 including a detail of the annual interest rate and call features

22 on the municipal security.

23 (d) A copy of the legal opinion regarding the legality and

24 tax status of the municipal security.

25 (e) A copy of the notice of rating of the municipal security

26 received from a recognized rating agency, if any.

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1 (f) A copy of the resolution or ordinance authorizing the

2 issuance of the municipal security.

3 (g) A copy of the official statement, if any.

4 (h) For a refunding security, documentation indicating com-

5 pliance with section 611.

6 (i) A filing fee equaling 0.02% of the principal amount of

7 the municipal security issued, but in an amount not less than

8 $100.00 and not greater than $1,000.00, as determined by the

9 department.

10 (j) If the qualifying statement required by section 303(2)

11 was received by the department more than 6 months after the end

12 of the municipality's fiscal year, a late fee of $100.00 with the

13 first filing thereafter.

14 (k) For a municipal security issued under section 305(2),

15 documentation indicating compliance with section 305(2).

16 (2) Within 15 business days of completing the issuance of

17 any municipal security approved under section 303(7), the munici-

18 pality shall file all of the following with the department in a

19 form and manner prescribed by the department:

20 (a) A copy of the municipal security.

21 (b) A proof of publication of the notice of sale, if

22 applicable.

23 (c) A copy of the award resolution including a detail of the

24 annual interest rate and call features on the municipal

25 security.

26 (d) A copy of the legal opinion regarding the legality and

27 tax status of the municipal security.

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1 (e) A copy of the notice of rating of the municipal security

2 received from a recognized rating agency, if any.

3 (f) A copy of the resolution or ordinance authorizing the

4 issuance of the municipal security.

5 (g) A copy of the official statement, if any.

6 (h) For a refunding security, documentation indicating com-

7 pliance with section 611.

8 (i) For a municipal security issued under section 305(2),

9 documentation indicating compliance with section 305(2).

10 ~~(3) Within 15 business days of completing the issuance of~~

11 ~~any security approved under section 303(10), this state or any~~

12 ~~authority, agency, fund, commission, board, or department of this~~

13 ~~state shall file all of the following with the department in a~~

14 ~~form and manner prescribed by the department:~~

15 ~~(a) A copy of the security.~~

16 ~~(b) A proof of publication of the notice of sale, if~~

17 ~~applicable.~~

18 ~~(c) A copy of the award resolution including a detail of the~~

19 ~~annual interest rate and call features on the security.~~

20 ~~(d) A copy of the legal opinion regarding the legality and~~

21 ~~tax status of the security.~~

22 ~~(e) A copy of the notice of rating of the security received~~

23 ~~from a recognized rating agency, if any.~~

24 ~~(f) A copy of the resolution or ordinance authorizing the~~

25 ~~issuance of the security.~~

26 ~~(g) A copy of the official statement, if any.~~

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1 ~~(h) For a refunding security, documentation indicating~~

2 ~~compliance with section 611.~~

3 (3) ~~(4)~~ The failure to comply with subsection (1) , OR

4 (2) ~~, or (3)~~ does not invalidate any of the securities issued

5 or reported under this act.

6 Sec. 517. (1) A county, city, village, or township may by

7 resolution of its governing body, and without a vote of its elec-

8 tors, issue a municipal security UNDER THIS SECTION to pay the

9 cost of any capital improvement items, provided that the amount

10 of taxes necessary to pay the principal and interest on that

11 municipal security, together with the taxes levied for the same

12 year, shall not exceed the limit authorized by law.

13 (2) If a county, city, village, or township issues a munici-

14 pal security under this section, before issuance, the county,

15 city, village, or township shall publish a notice of intent to

16 issue the municipal security. The notice of intent shall be

17 directed to the electors of the county, city, village, or town-

18 ship, shall be published in a newspaper that has general circula-

19 tion in the county, city, village, or township, and shall state

20 the maximum amount of municipal securities to be issued, the pur-

21 pose of the municipal securities, the source of payment, the

22 right of referendum on the issuance of the municipal securities,

23 and any other information the county, city, village, or township

24 determines necessary to adequately inform the electors of the

25 nature of the issue. The notice of intent shall not be less than

26 1/4 page in size in the newspaper. If, within 45 days after the

27 publication of the notice of intent, a petition, signed by not

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1 less than 10% or 15,000 of the registered electors, whichever is

2 less, residing within the county, city, village, or township, is

3 filed with the governing body of the county, city, village, or

4 township, requesting a referendum upon the question of the issu-

5 ance of the municipal securities, then the municipality shall not

6 issue the municipal securities until authorized by the vote of a

7 majority of the electors of the county, city, village, or town-

8 ship qualified to vote and voting on the question at a general or

9 special election. A special election called for this purpose

10 shall not be included in a statutory or charter limitation as to

11 the number of special elections to be called within a period of

12 time. Signatures on the petition shall be verified by a person

13 under oath as the actual signatures of the persons whose names

14 are signed to the petition, and the governing body of the county,

15 city, village, or township shall have the same power to reject

16 signatures and petitions as city clerks under section 25 of the

17 home rule city act, 1909 PA 279, MCL 117.25. The number of reg-

18 istered electors in the county, city, village, or township shall

19 be determined by the governing body of the county, city, village,

20 or township.

21 (3) Municipal securities issued under subsection (1) by a

22 county, city, village, or township shall not exceed 5% of the

23 state equalized valuation of the property assessed in that

24 county, city, village, or township.

25 Sec. 701. (1) Subject to subsection (3), if a municipality

26 has municipal securities outstanding, or with the approval of its

27 electors has authorized the issuance of municipal securities to

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1 be paid from collections of its next tax levy, an officer or

2 official body charged with a duty in connection with the determi-

3 nation of the amount of the next taxes to be raised or with the

4 levying of the next taxes, shall include all of the following in

5 the amount of taxes levied each year:

6 (a) An amount such that the estimated collections will be

7 sufficient to promptly pay, when due, the interest on all munici-

8 pal securities and the portion of the principal falling due

9 whether by maturity or by mandatory redemption before the time of

10 the following year's tax collection.

11 (b) An amount, if there are outstanding mandatory redemption

12 refunding securities, sufficient to provide the sum required to

13 be deposited, by the ordinance or resolution authorizing the

14 issue, into the sinking fund for that purpose before the time of

15 the following year's tax collection.

16 (c) An amount, if there are outstanding mandatory redemption

17 municipal securities other than refunding securities not required

18 to be redeemed in annual amounts before the maturity of the out-

19 standing mandatory redemption municipal securities, that if

20 deposited annually into a sinking fund will, with the existing

21 sinking fund pertaining to the municipal securities and the

22 increment of the municipal securities, be sufficient to pay the

23 municipal securities at maturity.

24 (2) Subsection (1) does not limit the amount required to be

25 levied in a year for the purposes prescribed in that subsection,

26 by the terms of an ordinance or resolution authorizing the

27 issuance of the municipal securities.

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1 (3) If the municipal securities were authorized or issued

2 before December 23, 1978, or were approved by the electors of a

3 municipality, the municipality shall levy the full amount of

4 taxes required by this section for the payment of the municipal

5 securities without limitation as to rate or amount and in addi-

6 tion to other taxes that the municipality may be authorized to

7 levy. If the municipal securities were authorized or issued by a

8 municipality after December 22, 1978, and were not approved by

9 the electors of the municipality, the municipality shall set

10 aside each year from the levy and collection of ad valorem taxes

11 as required by this section as a first budget obligation for the

12 payment of the municipal securities. However, the ad valorem

13 taxes shall be subject to applicable charter, statutory, or con-

14 stitutional rate limitations.

15 (4) If there is surplus money on hand for the payment of

16 principal or interest at the time of making an annual tax levy,

17 and provision has not been made in the authorizing resolution for

18 the disposition of that money, the annual levy for principal or

19 interest shall be adjusted to reflect available funds.

20 (5) Money remaining in a debt retirement fund from the levy

21 of a tax or an account within a debt retirement fund from the

22 levy of a tax after the retirement of all municipal securities

23 payable from that fund shall be used in the following order of

24 priority:

25 (a) To pay other outstanding unlimited tax full faith and

26 credit municipal securities.

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1 (b) To pay other outstanding limited tax full faith and

2 credit municipal securities.

3 (c) To be deposited in the general fund of the

4 municipality.

5 (6) As taxes are collected, there shall be set aside that

6 portion of the collections that is allocable to the payment of

7 the principal and interest on the municipal securities. The por-

8 tion set aside shall be divided pro rata among the various sink-

9 ing funds and debt retirement funds in accordance with the amount

10 levied for that purpose. Tax collections paid into a debt

11 retirement fund, if the fund is for the payment of more than 1

12 issue of municipal securities, shall be allocated on the books

13 and records of the municipality between the various issues in

14 accordance with the amounts levied for that purpose.

15 (7) An officer who willfully fails to perform duties

16 required by this section is personally liable to the municipality

17 or to a holder of a municipal security for loss or damage arising

18 from his or her failure.

19 (8) AS USED IN THIS SECTION, "TAX LEVY" INCLUDES SPECIAL

20 ASSESSMENTS.

21 SEC. 802. (1) IF A MUNICIPALITY FAILS TO PAY ANY INSTALL-

22 MENT OF PRINCIPAL OR INTEREST ON AN OUTSTANDING MUNICIPAL SECUR-

23 ITY ON OR BEFORE ITS DUE DATE, THE STATE TREASURER, FOR A MUNICI-

24 PALITY OTHER THAN A SCHOOL DISTRICT, OR THE SUPERINTENDENT OF

25 PUBLIC INSTRUCTION, FOR A SCHOOL DISTRICT, MAY TAKE THAT ACTION

26 IT CONSIDERS ADVISABLE TO INVESTIGATE THE MUNICIPALITY'S FISCAL

27 AFFAIRS, MAY CONSULT WITH THE GOVERNING BODY OF THE MUNICIPALITY,

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1 AND MAY NEGOTIATE WITH THE MUNICIPALITY'S CREDITORS IN ORDER TO

2 ASSIST THE MUNICIPALITY IN DEVELOPING A PLAN FOR FINANCING,

3 ADJUSTING, OR COMPROMISING THE OUTSTANDING MUNICIPAL SECURITY FOR

4 WHICH A PAYMENT OF AN INSTALLMENT OF PRINCIPAL OR INTEREST HAD

5 NOT BEEN PAID. AS A COMPONENT OF A PLAN FOR FINANCING THE OUT-

6 STANDING MUNICIPAL SECURITY THAT HAS BEEN DEFAULTED UPON, THE

7 DEPARTMENT MAY AGREE AND SHALL HAVE THE POWER TO WITHHOLD ALL OR

8 PART OF STATE PAYMENTS UNDER AN APPROPRIATION MADE TO THE MUNICI-

9 PALITY, THE GLENN STEIL STATE REVENUE SHARING ACT OF 1971, 1971

10 PA 140, MCL 141.901 TO 141.921, OR THE STATE SCHOOL AID ACT OF

11 1979, 1979 PA 94, MCL 388.1601 TO 388.1772, THAT THE MUNICIPALITY

12 IS ENTITLED TO RECEIVE AND TO USE THESE WITHHELD AMOUNTS TO PAY

13 UNPAID AMOUNTS OR SUBSEQUENTLY DUE AMOUNTS, OR BOTH, OF PRINCIPAL

14 AND INTEREST ON THE OUTSTANDING MUNICIPAL SECURITY.

15 (2) WHEN A PLAN IS DEVELOPED THAT THE DEPARTMENT FINDS TO BE

16 FAIR AND EQUITABLE AND REASONABLY WITHIN THE ABILITY OF THE

17 MUNICIPALITY TO MEET, THE DEPARTMENT SHALL ENTER AN ORDER FINDING

18 THAT IT IS FAIR, EQUITABLE, AND WITHIN THE ABILITY OF THE MUNICI-

19 PALITY TO MEET. THE DEPARTMENT SHALL THEN ADVISE THE GOVERNING

20 BODY TO TAKE THE NECESSARY STEPS TO IMPLEMENT THE PLAN. IF THE

21 GOVERNING BODY DECLINES OR REFUSES TO DO SO WITHIN 90 DAYS AFTER

22 RECEIVING THE DEPARTMENT'S ADVICE, THE DEPARTMENT SHALL BE VESTED

23 WITH ALL POWERS OF THE MUNICIPALITY, ITS GOVERNING BODY, AND ITS

24 OFFICERS THAT ARE NECESSARY TO IMPLEMENT THE PLAN. WHEN THE

25 DEPARTMENT IS VESTED WITH THE AUTHORITY TO IMPLEMENT THE PLAN,

26 THE MEMBERS OF THE GOVERNING BODY AND ALL OFFICERS AND EMPLOYEES

27 OF THE MUNICIPALITY SHALL BE UNDER AN AFFIRMATIVE DUTY TO DO ALL

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1 THINGS THE DEPARTMENT DETERMINES TO BE NECESSARY TO IMPLEMENT THE

2 PLAN. THE DEPARTMENT MAY INSTITUTE APPROPRIATE PROCEEDINGS IN

3 THE COURTS OF THIS STATE, INCLUDING THOSE FOR WRITS OF MANDAMUS

4 AND INJUNCTIONS, TO ENFORCE THE DEPARTMENT'S IMPLEMENTATION OF

5 THE PLAN AND COMPLIANCE WITH THE PLAN BY THE GOVERNING BODY AND

6 OTHER OFFICERS AND EMPLOYEES OF THE MUNICIPALITY.

7 Sec. 809. All orders approving the issuance of securities

8 issued by the department shall continue in force and effect until

9 October 31, 2002. The terms of ~~the municipal finance act,~~

10 FORMER 1943 PA 202 ~~, MCL 131.1 to 139.3,~~ AND THE ADMINISTRATIVE

11 RULES OF THE MUNICIPAL FINANCE DIVISION shall apply with respect

12 to any security issued pursuant to an order of the department

13 that was issued before May 1, 2002.

14 Enacting section 1. Section 815 of the revised municipal

15 finance act, 2001 PA 34, MCL 141.2815, is repealed.

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