The bill amends the Revised Municipal Finance Act by updating Section 105 to clarify what constitutes a municipal security. It specifies that municipal securities do not include various types of contracts, such as those for the purchase or lease of real or personal property, and includes additional exclusions for emergency loans, mortgages, and contracts between municipalities that secure payment for proposed municipal securities.

Notably, the bill introduces a new exclusion for loans from the safeguarding tomorrow revolving loan fund, as described in the emergency management act. This addition aims to provide clarity on the types of financial instruments that are not classified as municipal securities, thereby streamlining municipal finance operations. The enactment of this bill is contingent upon the passage of related legislation in the 103rd Legislature.

Statutes affected:
House Introduced Bill: 141.2105