Bill Text: MI HB4765 | 2019-2020 | 100th Legislature | Introduced

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Bill Title: Local government; financing; reference to emergency managers in the Michigan financial review commission act; modify to include reference to financial management teams. Amends secs. 6 & 12 of 2014 PA 181 (MCL 141.1636 & 141.1642). TIE BAR WITH: HB 4751'19

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2019-06-26 - Bill Electronically Reproduced 06/26/2019 [HB4765 Detail]

Download: Michigan-2019-HB4765-Introduced.html

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HOUSE BILL No. 4765

 

 

June 20, 2019, Introduced by Reps. Greig and Yaroch and referred to the Committee on Government Operations.

 

     A bill to amend 2014 PA 181, entitled

 

"Michigan financial review commission act,"

 

by amending sections 6 and 12 (MCL 141.1636 and 141.1642), as

 

amended by 2016 PA 53.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 6. (1) The commission shall provide oversight for a

 

qualified city beginning on the effective date of the plan for

 

adjustment or of this act, June 20, 2014, whichever is later. The

 

commission shall provide oversight for a qualified school district

 

beginning on the date the school district becomes a qualified

 

school district.

 

     (2) The commission shall ensure that the qualified city or

 

qualified school district is complying with the terms and

conditions of this act and of the plan for adjustment, if

 

applicable. Except as otherwise provided in section 8, the

 

commission shall by October 1 each year certify that the qualified

 

city or qualified school district is in substantial compliance with

 

the provisions of this act.

 

     (3) The commission shall ensure that, where applicable, a

 

qualified city or qualified school district complies with the

 

provisions of all of the following, as applicable, and may request

 

verification of compliance:

 

     (a) Section 8 of the publicly funded health insurance

 

contribution act, 2011 PA 152, MCL 15.568.

 

     (b) Sections 4i, 4p, 4s, and 4t of the home rule city act,

 

1909 PA 279, MCL 117.4i, 117.4p, 117.4s, and 117.4t.

 

     (c) The revised municipal finance act, 2001 PA 34, MCL

 

141.2101 to 141.2821.

 

     (d) The uniform budgeting and accounting act, 1968 PA 2, MCL

 

141.421 to 141.440a.

 

     (e) For a qualified school district, all of the following:

 

     (i) The revised school code, 1976 PA 451, MCL 380.1 to

 

380.1852.

 

     (ii) Article I of the state school aid act of 1979, 1979 PA

 

94, MCL 388.1601 to 388.1772.

 

     (iii) The public school employees retirement act of 1979, 1980

 

PA 300, MCL 38.1301 to 38.1437.

 

     (4) During the period of oversight for a qualified city, the

 

commission shall review and approve that qualified city's 4-year

 

financial plan required by section 4t of the home rule city act,

1909 PA 279, MCL 117.4t. A 4-year financial plan described in this

 

subsection shall must be submitted at least 100 days prior to

 

before the commencement of a qualified city's fiscal year. The

 

commission shall approve or disapprove the 4-year financial plan

 

within 30 days of receipt. If disapproved, the commission shall

 

provide rationale in writing for disapproval and a qualified city

 

shall submit a revised plan within 15 days that comports with the

 

commission's rationale for rejection. The commission shall approve

 

or disapprove that revised plan within 15 days. The commission may

 

also require adjustments to the financial plan to modify

 

expenditures to satisfy debt service, adjust projected revenues to

 

comply with financial controls or accounting practices, and reduce

 

expenditures to conform to consensus revenue estimates if required

 

in section 7 to comply with the provisions of section 4t of the

 

home rule city act, 1909 PA 279, MCL 117.4t. If the qualified city

 

fails to submit an acceptable financial plan, the commission may

 

adopt and impose upon the qualified city a financial plan

 

satisfying the requirements of this act and section 4t of the home

 

rule city act, 1909 PA 279, MCL 117.4t, until that time as the

 

qualified city submits an acceptable financial plan.

 

     (5) Subject to a plan for adjustment and any collective

 

bargaining agreements still in effect, the commission shall

 

establish and maintain programs and requirements for the

 

responsible fiscal management of that qualified city or qualified

 

school district. The commission's programs and requirements shall

 

must include all of the following:

 

     (a) Increased managerial accountability.

     (b) The streamlining of the provision of city or qualified

 

school district services.

 

     (c) Improved collection of outstanding tax revenues.

 

     (d) Review of the compensation and benefits of city or

 

qualified school district employees and recommendation of

 

adjustments where necessary.

 

     (6) Notwithstanding any charter provision or local ordinance

 

to the contrary, all applicable contracts are subject to review and

 

approval by the commission. The commission may consider a number of

 

factors when reviewing an applicable contract, including whether

 

the applicable contract was subject to a competitive bid process.

 

Only applicable contracts that are first approved by the governing

 

body and mayor or chief executive officer of a qualified city or

 

qualified school district as required by law, charter, ordinance,

 

or policy are subject to review by the commission. If an applicable

 

contract is not rejected by the commission within 30 days of its

 

submission, that applicable contract shall be is considered

 

approved by the commission.

 

     (7) A qualified city or qualified school district, when

 

required by the commission, shall present written reports regarding

 

its financial stability and shall permit the commission to audit or

 

inspect financial statements, actuarial reports, revenue estimates,

 

and any and all other documents, data, reports, or findings that

 

the commission considers necessary to carry out its purpose under

 

this act. The commission may require that qualified city's or

 

qualified school district's chief financial officer to certify in

 

writing the accuracy of any documents the commission requests.

     (8) The commission shall, on June 1 and December 1 of each

 

year in which the commission has oversight over a qualified city or

 

a qualified school district, file a written report with the

 

governor. A copy of the report shall must be submitted to the

 

senate majority leader and the speaker of the house of

 

representatives and posted on the department of treasury website. A

 

copy of the report shall must be sent to the mayor or chief

 

executive officer and governing body of the qualified city or

 

qualified school district.

 

     (9) Except as otherwise provided in this subsection, the

 

commission shall approve all collective bargaining agreements,

 

including any addendums to those agreements, to which that

 

qualified city or qualified school district is a party after

 

approval by the governing body and mayor or chief executive officer

 

of the qualified city or qualified school district as required by

 

charter or law. The commission shall approve or reject collective

 

bargaining agreements submitted to it within 45 days of submission.

 

Collective bargaining agreements submitted to the commission shall

 

must not be executed unless and until the commission approves those

 

agreements. Collective bargaining agreements approved by an

 

emergency manager appointed or a financial management team under

 

section 12 of the local financial stability and choice act, 2012 PA

 

436, MCL 141.1552, shall are not be subject to commission approval

 

under this subsection.

 

     (10) For a qualified city, the commission may file

 

supplementary information relating to the financial condition of

 

the qualified city with an arbitration panel in arbitration

proceedings in which the qualified city is a party pursuant to 1969

 

PA 312, MCL 423.231 to 423.247.

 

     (11) The mayor or chief executive officer, governing body, and

 

chief financial officer of a qualified city or qualified school

 

district shall, at least 45 days prior to before the beginning of

 

each fiscal quarter, certify in writing to the commission the

 

amount of debt service due on bonds, leases, or other debt. A

 

qualified city or qualified school district shall specifically

 

report debt service requirements, calculated through final

 

maturity, and certify its ability to meet those requirements

 

through the end of the current fiscal year.

 

     Sec. 12. (1) Subject to subsections (2) and (3), if a

 

commission has waived the requirements of sections 6 and 7 under

 

section 8 each year for the immediately preceding 10 consecutive

 

fiscal years, and the plan for adjustment, if applicable, has

 

expired, the commission shall, by resolution, dissolve itself. All

 

property, funds, and assets of the commission, if any, shall must

 

be transferred to and vested in this state.

 

     (2) The commission for a qualified school district shall not

 

dissolve itself until the state treasurer certifies that all

 

outstanding debts of that qualified school district are paid in

 

full.

 

     (3) If a commission is in place for both a qualified city and

 

a qualified school district and the requirements of subsection (1)

 

have been met for a qualified city or the requirements of

 

subsections (1) and (2) have been met for a qualified school

 

district, that qualified city or that qualified school district

shall must be released from oversight by the commission under this

 

act.

 

     (4) Notwithstanding any other provision of this act, if a

 

qualified school district is subject to an emergency manager or a

 

financial management team under the local financial stability and

 

choice act, 2012 PA 436, MCL 141.1541 to 141.1575, then, for the

 

period of time that the qualified school district is subject to an

 

emergency manager or a financial management team, that qualified

 

school district is not subject to oversight by the commission under

 

this act.

 

     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.