HOUSE BILL No. 5532


     March 21, 2000, Introduced by Reps. Bob Brown, Schermesser, Bovin, Woodward, Switalski, Spade, Jamnick, Thomas, Scott
and Hale and referred to the Committee on Local Government and Urban Policy.


        A bill to amend 1968 PA 2, entitled

   "Uniform budgeting and accounting act,"

   by amending section 4 (MCL 141.424), as amended by 1996 PA 439.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 4.  (1) The fiscal officer of each local unit shall

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      make an annual financial report (local unit fiscal report), which

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      shall be uniform for all local units of the same class.

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           (2) The annual financial report shall contain  for each

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      fiscal year,  all of the following FOR EACH FISCAL YEAR:

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           (a) An accurate statement in summarized form  ,  showing

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       the  ALL OF THE FOLLOWING:

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           (i) THE amount of all revenues from all sources.  , the 

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           (ii) THE amount of expenditures for each purpose.  , the 

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           (iii) THE amount of indebtedness.  , the 




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           (iv) THE fund balances at the close of each fiscal year.  ,

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      and any 

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           (v) ANY other information  as may be  required by law.

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           (b) A statement indicating whether there are derivative

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      instruments or products in the local unit's nonpension investment

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      portfolio at fiscal year end.

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           (c) If the statement under subdivision (b) is affirmative,

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      an accurate schedule reporting the cost and fiscal year end

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      market value of derivative instruments or products in the local

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      unit's nonpension investment portfolio at fiscal year end.  The

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      LOCAL UNIT SHALL REPORT THE information required under this sub-

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      division  shall be reported  both on an aggregate basis and item-

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      ized by issuer and type of derivative instrument or product.

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           (d) A statement indicating whether there are derivative

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      instruments or products in the local unit's pension investment

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      portfolio at fiscal year end.  Investments  THE LOCAL UNIT SHALL

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      EXCLUDE INVESTMENTS of defined contribution plans and deferred

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      compensation plans that are chosen by the employee participating

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      in the plan  shall be excluded  from the information reported

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      under this subdivision.

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           (e) If the statement under subdivision (d) is affirmative,

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      an accurate schedule reporting the cost and fiscal year end

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      market value of derivative instruments or products in the local

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      unit's pension investment portfolio at fiscal year end.  The

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      LOCAL UNIT SHALL REPORT THE information required under this sub-

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      division  shall be reported  both on an aggregate basis and

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      itemized by issuer and type of derivative instrument or product.



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       Investments  THE LOCAL UNIT SHALL EXCLUDE INVESTMENTS of defined

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      contribution plans and deferred compensation plans that are

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      chosen by the employee participating in the plan  shall be

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      excluded  from the information reported under this subdivision.

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           (3) The annual report filed under this section shall be in

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      lieu of the reporting requirements imposed by section 5(2) of

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      chapter III of the municipal finance act,  Act No. 202 of the

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      Public Acts of 1943, being section 133.5 of the Michigan Compiled

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      Laws  1943 PA 202, MCL 133.5.

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           (4)  One  THE LOCAL UNIT SHALL FILE 1 copy of the annual

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      financial report required by subsection (1)  shall be filed  with

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      the state treasurer within 120 days after the end of the LOCAL

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      UNIT'S fiscal year.  of the local unit.  The state treasurer

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      shall prescribe the forms  to be used by  THAT local units  for

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      preparation of  SHALL USE TO PREPARE the financial reports.   The

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      governing body of a local unit may request an extension of the

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      filing date from the state treasurer, and the state treasurer may

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      grant the request for reasonable cause.  The state treasurer

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      shall grant a 60-day extension if the local unit presents evi-

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      dence to the state treasurer that the audit is in progress  , 

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      and will be completed within 180 days after the end of the LOCAL

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      UNIT'S fiscal year.

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           (5) This section does not authorize a local unit to make

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      investments not otherwise authorized by law.









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