Bill Text: MI HB6306 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Local government; financing; salary cap on emergency manager; provide for. Amends sec. 9 of 2012 PA 436 (MCL 141.1549).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-09-06 - Bill Electronically Reproduced 09/05/2018 [HB6306 Detail]
Download: Michigan-2017-HB6306-Introduced.html
HOUSE BILL No. 6306
September 5, 2018, Introduced by Rep. Neeley and referred to the Committee on Local Government.
A bill to amend 2012 PA 436, entitled
"Local financial stability and choice act,"
by amending section 9 (MCL 141.1549).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 9. (1) The governor may appoint an emergency manager to
address a financial emergency within that local government as
provided for in this act.
(2)
Upon appointment, an emergency manager shall act acts for
and in the place and stead of the governing body and the office of
chief administrative officer of the local government. The emergency
manager
shall have 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 an
emergency manager 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
emergency manager or as otherwise provided by this act and are
subject to any conditions required by the emergency manager.
(3) All of the following apply to an emergency manager:
(a)
The emergency manager shall must
have a minimum of 5
years' experience and demonstrable expertise in business,
financial, or local or state budgetary matters.
(b) The emergency manager may, but need not, be a resident of
the local government.
(c)
The emergency manager shall must
be an individual.
(d) Except as otherwise provided in this subdivision, the
emergency
manager shall serve serves
at the pleasure of the
governor. An emergency manager 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. A
vacancy
in the office of emergency manager shall must be filled in
the same manner as the original appointment.
(e)
The Subject to this
subdivision, the emergency manager's
compensation
shall must be paid by this state and shall must be
set
forth in a contract approved by the state treasurer. The annual
salary for the emergency manager must not exceed the annual salary
for
the governor. The contract shall must be
posted on the
department of treasury's website within 7 days after the contract
is approved by the state treasurer.
(f)
In addition to the salary provided to an emergency manager
in
a contract approved by the state treasurer under subdivision
(e),
this state may receive and distribute private funds to an
emergency
manager. As used in this subdivision, "private funds"
means
any money the state receives for the purpose of allocating
additional
salary to an emergency manager. Private funds
distributed
under this subdivision are subject to section 1 of 1901
PA
145, MCL 21.161, and section 17 of article IX of the state
constitution
of 1963.
(4) In addition to staff otherwise authorized by law, an
emergency manager shall appoint additional staff and secure
professional assistance as the emergency manager considers
necessary to fulfill his or her appointment.
(5) The emergency manager 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
shall must be posted on the local government's website
within 7 days after the report is submitted to the state treasurer.
(6)
The emergency manager shall continue continues in the
capacity of an emergency manager as follows:
(a) Until removed by the governor or the legislature as
provided in subsection (3)(d). If an emergency manager is removed,
the governor shall within 30 days of the removal appoint a new
emergency manager.
(b) Until the financial emergency is rectified.
(c) If the emergency manager has served for at least 18 months
after his or her appointment under this act, the emergency manager
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
emergency manager may be removed. Notwithstanding section 7(4), if
the emergency manager 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 negotiate a
consent agreement with the state treasurer. If a consent agreement
is not agreed upon within 10 days, the local government shall
proceed
with the neutral evaluation process pursuant to under
section 25.
(7) A local government shall be removed from receivership when
the financial conditions are corrected in a sustainable fashion as
provided in this act. In addition, the local government may be
removed from receivership if an emergency manager is removed under
subsection (6)(c) and the governing body of the local government by
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 under section
25.
(8) The governor may delegate his or her duties under this
section to the state treasurer.
(9) Notwithstanding section 3(1) of 1968 PA 317, MCL 15.323,
an emergency manager 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.
(10) An emergency financial manager appointed under former
1988
PA 101 or former 1990 PA 72, and serving immediately prior to
the
effective date of this act, shall be before March 28, 2013, is
considered an emergency manager under this act and shall continue
under this act to fulfill his or her powers and duties.
Notwithstanding any other provision of this act, the governor may
appoint a person who was appointed as an emergency manager under
former 2011 PA 4 or an emergency financial manager under former
1988 PA 101 or former 1990 PA 72 to serve as an emergency manager
under this act.
(11) Notwithstanding section 7(4) and subject to the
requirements of this section, if an emergency manager has served
for less than 18 months after his or her appointment under this
act, the governing body of the local government may pass a
resolution petitioning the governor to remove the emergency manager
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.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
