SB-0461, As Passed Senate, September 29, 2005

SUBSTITUTE FOR

SENATE BILL NO. 461

     A bill to amend 1990 PA 72, entitled

"Local government fiscal responsibility act,"

by amending section 18 (MCL 141.1218).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 18. (1) If the governor determines that a financial

emergency exists under section 15, the governor shall assign the

responsibility for managing the local government financial

emergency to the local emergency financial assistance loan board

created under the emergency municipal loan act,  Act No. 243 of the

Public Acts of 1980, being sections 141.931 to 141.942 of the

Michigan Compiled Laws  1980 PA 243, MCL 141.931 to 141.942. The

local emergency financial assistance loan board shall  appoint an

emergency financial manager  submit to the governor the names of

not less than 3 nominees who shall be considered for appointment to

serve as the emergency financial manager for the local government.

From the list of nominees submitted to the governor, the governor

shall appoint, with the advice and consent of the senate, an

emergency financial manager for the local government who shall hold

office for a term fixed by the governor, but not to exceed 1 year.

The appointment shall be by written contract and may be renewed on

an annual basis for not more than 1 year. A contract of an

emergency financial manager on the effective date of the amendatory

act that added subsection (4) shall not be renewed for a period

greater than 1 year.

     (2) The emergency financial manager shall be chosen solely on

the basis of his or her competence and shall not have been either

an elected or appointed official or employee of the local

government for which appointed for not less than 5 years before the

appointment. The emergency financial manager need not be a resident

of the local government for which he or she is appointed. The

emergency financial manager shall serve at the pleasure of the

local emergency financial assistance loan board  governor.

     (3) The emergency financial manager shall be entitled to

compensation and reimbursement for actual and necessary expenses

from the local government as approved by the local emergency

financial assistance loan board. In addition to staff otherwise

authorized by law, with the approval of the local emergency

financial assistance loan board, the emergency financial manager

may appoint additional staff and secure professional assistance

considered necessary to implement this article.

     (2) An emergency financial manager appointed under the local

government fiscal responsibility act, former Act No. 101 of the

Public Acts of 1988, and serving on the effective date of this act,

except as provided in subsection (1), shall continue under this act

to fulfill his or her powers and duties.

     (4) The emergency financial manager shall submit a quarterly

report detailing his or her activities to the local emergency

financial assistance board and to the chairpersons of the house and

senate committees with oversight of local government issues.