This bill amends the existing law regarding credit card transactions involving local units of government in Michigan, specifically updating definitions and clarifying the roles of various entities. Key changes include the definition of "budget," which now explicitly excludes certain funds such as those for which the local unit acts as a trustee or agent, intragovernmental service funds, enterprise funds, public improvement funds, and special assessment funds. Additionally, the definition of "credit card" has been expanded to include cards issued by various licensed entities, including those under the consumer financial services act and depository financial institutions, with specific provisions for the transitional period following the enactment of the residential mortgage licensing and supervision act.

The bill also clarifies the term "local unit," which encompasses a range of governmental entities, including villages, cities, townships, counties, local school districts, and community mental health authorities. Furthermore, it establishes that the amendatory act will not take effect unless House Bill No. 6177 is also enacted into law. These updates aim to enhance the regulatory framework governing credit card transactions within local government operations, ensuring clarity and compliance with current financial practices.

Statutes affected:
House Introduced Bill: 129.241