Bill Text: MI HB6511 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Local government; other; removal of an emergency manager by a vote of the electors of the local government; provide for. Amends sec. 9 of 2012 PA 436 (MCL 141.1549).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-11-28 - Bill Electronically Reproduced 11/27/2018 [HB6511 Detail]

Download: Michigan-2017-HB6511-Introduced.html

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HOUSE BILL No. 6511

 

 

November 27, 2018, Introduced by Reps. Howrylak, Robinson and Cochran 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, section,

 

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 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 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 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 subdivision

 

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 section 25.

 

     (d) Until removed by the registered and qualified electors of

 

the local government as provided in subsection (12).

 

     (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 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, before March 28, 2013, shall be

 

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.

 

     (12) Upon the filing of a petition to remove an emergency

 

manager from a local government signed by the registered and

 

qualified electors equal to not less than 25% of the number of

 

votes cast for candidates for the office of governor at the last

 

preceding general election in the local government in which the

 

emergency manager has been appointed, the clerk of the local

 

government, or the school district election coordinator of the

 

school district if the local government is a school district,

 

shall, upon verifying the required number of signatures on the

 

petition, submit the question of whether to remove the emergency

 

manager from the local government to a vote of the electors of the

 

local government at the next general election or special election

 

called for that purpose and conducted in accordance with the

 

Michigan election law, 1954 PA 116, MCL 168.1 to 168.992. If the

 

question to remove the emergency manager from the local government

 

is approved by a majority of the electors in the local government

 

voting on the question, the governor shall immediately remove the

 

emergency manager. If an emergency manager is removed under this

 

subsection, the local government shall proceed with the neutral

 

evaluation process pursuant to section 25.