HB-6254, As Passed House, July 1, 2010

SUBSTITUTE FOR

HOUSE BILL NO. 6254

     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. The emergency financial manager shall

be chosen solely on the basis of his or her competence, and but the

local emergency financial assistance loan board shall give

consideration to the emergency financial manager's experience in

financial management, accounting, or managing units of local

government or other governmental experience. The emergency

financial manager 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. 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, subject to the

agreement or order entered into under section 21, 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, former 1988 PA 101 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.

     (3) On a monthly basis, beginning 30 days after the effective

date of the amendatory act that added this subsection, the chief

financial officer of a unit of local government for which an

emergency financial manager has been appointed pursuant to this

section shall file with the department of treasury a written report

that sets forth with particularity any payments made to the

emergency financial manager during the preceding month. The

department of treasury may prescribe the format and means of

transmittal of the monthly report required by this subsection.

     (4) On a quarterly basis, beginning 90 days after the

effective date of the amendatory act that added this subsection,

the department of treasury shall review the financial records of a

unit of local government for which an emergency financial manager

has been appointed pursuant to this section as those financial

records relate to any payments made to the emergency financial

manager. The department of treasury may review those financial

records more frequently, and on a random basis, to the extent

deemed necessary by the department of treasury.

     (5) An emergency financial manager appointed pursuant to this

section shall, within 5 calendar days of receipt, report in writing

to the local emergency financial assistance loan board any

instances of financial irregularities or purported financial

irregularities that are reported to the emergency financial manager

regarding the unit of local government for which he or she has been

appointed emergency financial manager.