SB 575 Michigan Senate · 2025-2026 Regular Session

Local government: financing; certain filing fees; modify. Amends secs. 303 & 319 of 2001 PA 34 (MCL 141.2303 & 141.2319).

SB 575 amends Michigan's Revised Municipal Finance Act to simplify how cities, towns, and counties issue municipal bonds without needing department approval. It modifies Section 303 to require municipalities to file an annual audit report and a qualifying statement confirming they meet specific financial health standards - such as no recent debt defaults, timely tax payments, compliance with debt limits, and proper audit filings - before self-issuing securities. If the department doesn't reject the qualifying statement within 30 business days, the municipality may proceed with bond issuance without further review. This change directly affects local governments seeking to finance projects like infrastructure or services, reducing administrative hurdles for financially stable communities.

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Sep 2025

Committee Review

Sep 2025

Senate Passage

Sep 2025

House Passage

Governor

Introduced Sep 18, 2025 Last action Sep 26, 2025

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What changed between versions

Senate Introduced Bill → As Passed by the Senate · 7 edits · Sep 25, 2025

MODERATE

This bill amends the Revised Municipal Finance Act to establish a new 'qualified status' for municipalities, allowing them to issue debt without prior department approval if they meet strict financial and compliance criteria. It introduces a streamlined process for municipalities in good standing while requiring detailed applications and fees for those who do not qualify. The changes also update filing deadlines, fee structures, and documentation requirements for all municipal securities.

Scope change

The bill expands the department's oversight by creating a two-tier system: a streamlined path for compliant municipalities and a rigorous approval process for non-compliant ones, replacing the previous uniform requirement for prior approval.

ELIGIBILITY

Created a new 'qualified status' allowing municipalities to issue securities without prior department approval if they meet 14 specific financial and compliance requirements.

REQUIREMENT

Added a new qualifying statement requirement that must be filed with the audit report and certified by the chief administrative officer.

Expanded the list of compliance requirements to include debt limits, covenant violations, tax delinquencies, and fund deficits.

Added new documentation requirements for post-issuance filings, including proof of publication and legal opinions.

ENFORCEMENT

Established a formal reconsideration process for municipalities that fail to meet qualification criteria, with specific timelines for departmental review.

FISCAL

Increased filing fees for qualified status applications and late fees for late qualifying statements, with provisions for annual inflation adjustments.

TIMELINE

Extended the deadline for filing audit reports from 6 months to 6 months (clarified) and set a new start date of January 1, 2026, for fee adjustments.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Sep 26, 2025

Committee

referred to Committee on Appropriations

lower

Sep 25, 2025

Introduced

received on 09/25/2025

lower

Sep 25, 2025

Upper · Passed

PASSED ROLL CALL # 245 YEAS 19 NAYS 17 EXCUSED 1 NOT VOTING 0

upper

Sep 25, 2025

Upper · Passed

REPORTED BY COMMITTEE OF THE WHOLE FAVORABLY WITHOUT AMENDMENT(S)

upper

Sep 25, 2025

Upper · Passed

DISCHARGE COMMITTEE APPROVED

upper

Sep 18, 2025

Committee

REFERRED TO COMMITTEE ON APPROPRIATIONS

upper

Sep 18, 2025

Introduced

INTRODUCED BY SENATOR SAM SINGH

upper

1 primary · 0 co-sponsors