Bill Text: MI HB4752 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Local government; financing; financial management teams; provide for. Amends 2012 PA 436 (MCL 141.1541 - 141.1575) by adding sec. 9a.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2019-06-26 - Bill Electronically Reproduced 06/26/2019 [HB4752 Detail]
Download: Michigan-2019-HB4752-Introduced.html
HOUSE BILL No. 4752
June 20, 2019, Introduced by Rep. Yaroch and referred to the Committee on Government Operations.
A bill to amend 2012 PA 436, entitled
"Local financial stability and choice act,"
(MCL 141.1541 to 141.1575) by adding section 9a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 9a. (1) Beginning on the effective date of the amendatory
act that added this section, the governor may appoint a financial
management team to address a financial emergency within that local
government as provided for in this act.
(2) Upon appointment, a financial management team acts for and
in the place and stead of the governing body and the office of
chief administrative officer of the local government. The financial
management team has broad powers in receivership to rectify the
financial emergency and to assure the fiscal accountability of the
local government and the local government's capacity to provide or
cause to be provided necessary governmental services essential to
the public health, safety, and welfare. Following appointment of a
financial management team and during the pendency of receivership,
the governing body and the chief administrative officer of the
local government shall not exercise any of the powers of those
offices except as may be specifically authorized in writing by the
financial management team or as otherwise provided by this act and
are subject to the conditions required by the financial management
team.
(3) The governor shall appoint, with the advice and consent of
the senate, the following 3 members to a financial management team:
(a) An individual who has a minimum of 5 years' experience and
demonstrable expertise in financial matters.
(b) An individual who has a minimum of 3 years' experience
working in local government.
(c) An individual appointed from a list of not fewer than 3
names recommended by the governing body of the local government to
act as local ombudsman. The individual appointed under this
subdivision must be a resident of the local government.
(4) Notwithstanding section 3(1) of 1968 PA 317, MCL 15.323,
each member of a financial management team is subject to all of the
following:
(a) 1968 PA 317, MCL 15.321 to 15.330, as a public servant.
(b) 1973 PA 196, MCL 15.341 to 15.348, as a public officer.
(c) 1968 PA 318, MCL 15.301 to 15.310, as if he or she were a
state officer.
(5) The governor may remove a member of a financial management
team for incompetence, dereliction of duty, malfeasance,
misfeasance, or nonfeasance in office, or any other good cause. If
a member of a financial management team is removed, the governor
shall within 14 days after the removal appoint a new member to the
financial management team.
(6) Each member of a financial management team is subject to
impeachment and conviction by the legislature as if he or she were
a civil officer under section 7 of article XI of the state
constitution of 1963.
(7) If a vacancy occurs on a financial management team, the
governor shall within 14 days after the vacancy make an appointment
in the same manner as the original appointment.
(8) The first meeting of a financial management team must be
called by the governor and must occur no later than 14 days after
the last member of the financial management team is appointed by
the governor. At the first meeting of a financial management team,
the members shall elect a chairperson from among its members. After
the first meeting, the financial management team shall meet
quarterly, or more frequently at the call of the chairperson or if
requested by 2 members of the financial management team.
(9) Decisions by a financial management team for the local
government must be made by a majority of the members of the
financial management team.
(10) The business that a financial management team may perform
must be conducted at a public meeting of the financial management
team held in compliance with the open meetings act, 1976 PA 267,
MCL 15.261 to 15.275.
(11) A writing prepared, owned, used, in the possession of, or
retained by a financial management team in the performance of an
official function is subject to the freedom of information act,
1976 PA 442, MCL 15.231 to 15.246.
(12) Each member of a financial management team must be paid
by this state and the compensation must be set forth in a contract
approved by the state treasurer. Each contract must be posted on
the department of treasury's website within 7 days after the
contract is approved by the state treasurer.
(13) In addition to staff otherwise authorized by law, a
financial management team shall appoint additional staff and secure
professional assistance as the financial management team considers
necessary to fulfill its appointment.
(14) A financial management team shall submit quarterly
reports to the state treasurer with respect to the financial
condition of the local government in receivership, with a copy to
the superintendent of public instruction if the local government is
a school district and a copy to each state senator and state
representative who represents that local government. In addition,
each quarterly report must be posted on the local government's
website within 7 days after the report is submitted to the state
treasurer.
(15) A financial management team continues in the capacity of
a financial management team as follows:
(a) Until removed by the governor. If a financial management
team is removed, the governor shall within 30 days after the
removal appoint a new financial management team.
(b) Until the financial emergency is rectified.
(c) If a financial management team has served the local
government for at least 18 months, a financial management team may,
by resolution, be removed by a 2/3 vote of the governing body of
the local government. If the local government has a strong mayor,
the resolution requires strong mayor approval before the financial
management team may be removed. Notwithstanding section 7(4), if a
financial management team is removed under this subsection and the
local government has not previously breached a consent agreement
under this act, the local government may, within 10 days after the
removal, negotiate a consent agreement with the state treasurer. If
a consent agreement is not agreed upon within that 10-day period,
the local government shall proceed with the neutral evaluation
process pursuant to section 25.
(16) A local government must be removed from receivership when
the financial conditions are corrected in sustainable fashion as
provided in this act. In addition, the local government may be
removed from receivership if a financial management team is removed
under subsection (15)(c) and the governing body of the local
government by a 2/3 vote approves a resolution for the local
government to be removed from receivership. If the local government
has a strong mayor, the resolution requires strong mayor approval
before the local government is removed from receivership. A local
government that is removed from receivership while a financial
emergency continues to exist as determined by the governor shall
proceed under the neutral evaluation process pursuant to section
25.
(17) Notwithstanding section 7(4) and subject to the
requirements of this section, if a financial management team has
served for less than 18 months, the governing body of the local
government may pass a resolution petitioning the governor to remove
the financial management team as provided in this section and allow
the local government to proceed under the neutral evaluation
process as provided in section 25. If the local government has a
strong mayor, the resolution requires strong mayor approval. If the
governor accepts the resolution, notwithstanding section 7(4), the
local government shall proceed under the neutral evaluation process
as provided in section 25.
(18) The governor may delegate his or her duties under this
section to the state treasurer.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 4751 (request no.
01329'19) of the 100th Legislature is enacted into law.
