141.1541 Short title. Sec. 1. This act shall be known and may be cited as the “local financial stability and choice act”. History: 2012, Act 436, Eff. Mar. 28, 2013 Compiler’s Notes: Enacting section 2 of Act 436 of 2012 provides:”Enacting section 2. It is the intent of the legislature that this act function and […]
141.1542 Definitions. Sec. 2. As used in this act: (a) “Chapter 9” means chapter 9 of title 11 of the United States Code, 11 USC 901 to 946. (b) “Chief administrative officer” means any of the following: (i) The manager of a village or, if a village does not employ a manager, the president of […]
141.1543 Findings; declarations. Sec. 3. The legislature finds and declares all of the following: (a) That the health, safety, and welfare of the citizens of this state would be materially and adversely affected by the insolvency of local governments and that the fiscal accountability of local governments is vitally necessary to the interests of the […]
141.1544 Determination of probable financial stress; preliminary review; conditions; school district; notification to local government; interim report of findings; final report; finding of probable financial stress; appointment of review team for municipal government; appointment of review team for local school district; staff support; duration of appointment. Sec. 4. (1) Subject to subsection (2), the state […]
141.1545 Review team; powers; meeting with local government; report; posting on department of treasury’s website; contents; appointment of individual or firm to carry out review and submit report. Sec. 5. (1) In conducting its review, the review team may do either or both of the following: (a) Examine the books and records of the local […]
141.1546 Determination by governor; opportunity for local government to submit statement; determination of financial emergency; notification; hearing; findings of fact by governor; report; resolution by local government to appeal determination. Sec. 6. (1) Within 10 days after receipt of the report under section 5, the governor shall make 1 of the following determinations: (a) A […]
141.1547 Local government options; approval of resolution by mayor or school board; failure of local governing body to pass resolution; limitation. Sec. 7. (1) Notwithstanding section 6(3), upon the confirmation of a finding of a financial emergency under section 6, the governing body of the local government shall, by resolution within 7 days after the […]
141.1547a School district subject to enhanced deficit elimination plan; determination by state treasurer; declaration of financial emergency; appointment of emergency manager; recommendation. Sec. 7a. Notwithstanding section 7, if a school district is subject to an enhanced deficit elimination plan under section 1220 of the revised school code, 1976 PA 451, MCL 380.1220, and the state […]
141.1548 Consent agreement; negotiation and signature; provisions; continuing operations plan; form; amendment of budget adopted by municipal government or school district; recovery plan; terms and provisions; powers granted to chief administrative officer, chief financial officer, governing body, or other local officers; consultant; release from requirements. Sec. 8. (1) The chief administrative officer of a local […]
141.1549 Emergency manager; appointment by governor; powers; qualifications; compensation; private funds; additional staff and assistance; quarterly reports; service; removal of local government from receivership; delegation of duties from governor to state treasurer; applicable state laws; appointment under former act; removal. Sec. 9. (1) The governor may appoint an emergency manager to address a financial emergency […]
141.1550 Orders. Sec. 10. (1) An emergency manager shall issue to the appropriate local elected and appointed officials and employees, agents, and contractors of the local government the orders the emergency manager considers necessary to accomplish the purposes of this act, including, but not limited to, orders for the timely and satisfactory implementation of a […]
141.1551 Financial and operating plan for local government; development and amendment by emergency manager; objectives; submission; modification; form; conduct of public informational meeting; effect of plan adopted under former law. Sec. 11. (1) An emergency manager shall develop and may amend a written financial and operating plan for the local government. The plan shall have […]
141.1552 Additional actions by emergency manager; suspension of power of administrative officer and governing body; contracts subject to competitive bidding; sale or transfer of public utility; limitation. Sec. 12. (1) An emergency manager may take 1 or more of the following additional actions with respect to a local government that is in receivership, notwithstanding any […]
141.1553 Pendency of receivership; compensation of chief administrative officer and members of local governing body. Sec. 13. Upon appointment of an emergency manager and during the pendency of the receivership, the salary, wages, or other compensation, including the accrual of postemployment benefits, and other benefits of the chief administrative officer and members of the governing […]
141.1554 School district in receivership; additional actions. Sec. 14. In addition to the actions otherwise authorized in this act, an emergency manager for a school district may take 1 or more of the following additional actions with respect to a school district that is in receivership: (a) Negotiate, renegotiate, approve, and enter into contracts on […]
141.1555 Sale of asset worth more than $50,000.00; payment of benefit upon death of police officer or firefighter. Sec. 15. (1) Unless the potential sale and value of an asset is included in the emergency manager’s financial and operating plan, the emergency manager shall not sell an asset of the local government valued at more […]
141.1556 Criminal conduct contributing to receivership status. Sec. 16. An emergency manager shall, on his or her own or upon the advice of the local inspector if a local inspector has been retained, make a determination as to whether possible criminal conduct contributed to the financial situation resulting in the local government’s receivership status. If […]
141.1557 Report. Sec. 17. Beginning 6 months after an emergency manager’s appointment, and every 3 months thereafter, an emergency manager shall submit to the governor, the state treasurer, the senate majority leader, the speaker of the house of representatives, each state senator and state representative who represents the local government that is in receivership, and […]
141.1558 Recommendation to proceed under chapter 9. Sec. 18. (1) If, in the judgment of the emergency manager, no reasonable alternative to rectifying the financial emergency of the local government which is in receivership exists, then the emergency manager may recommend to the governor and the state treasurer that the local government be authorized to […]
141.1559 Proposed action; submission to local governing body; approval or disapproval; alternative proposal. Sec. 19. (1) Except as otherwise provided in this subsection, before an emergency manager executes an action under section 12(1)(k), (r), or (u) or section 14(d), he or she shall submit his or her proposed action to the governing body of the […]
