HOUSE BILL No. 5739

 

June 14, 2012, Introduced by Reps. Stallworth, Tlaib, Durhal, Howze, Talabi, Dillon, Hobbs, Liss, Rutledge, Greimel, Townsend and Segal and referred to the Committee on Government Operations.

 

     A bill to expand and clarify the consent agreement process for

 

local governments; to prescribe the powers and duties of the

 

governor, other state departments, officials, and employees, and

 

officials and employees of local governments, including school

 

districts; and to provide certain conditions for the negotiation of

 

a new consent agreement.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. This act shall be known and may be cited as the

 

"consent agreement process act".

 

     Sec. 3. As used in this act:

 

     (a) "Chief administrative officer" means that term as defined

 

in section 5 of the local government and school district fiscal

 

accountability act, MCL 141.1505.

 

     (b) "Local government" means a municipal government or school


 

district.

 

     (c) "Local government and school district fiscal

 

accountability act" means the local government and school district

 

fiscal accountability act, 2011 PA 4, MCL 141.1501 to 141.1531.

 

     (d) "Municipal government" means that term as defined in

 

section 5 of the local government and school district fiscal

 

accountability act, MCL 141.1505.

 

     (e) "Review team" means a review team appointed under section

 

12 of the local government and school district fiscal

 

accountability act, MCL 141.1512.

 

     (f) "School district" means that term as defined in section 5

 

of the local government and school district fiscal accountability

 

act, MCL 141.1505.

 

     Sec. 5. (1) In addition to the consent agreement requirements

 

provided under sections 13 and 14a of the local government and

 

school district fiscal accountability act, MCL 141.1513 and

 

141.1514a, a consent agreement entered into by a local government

 

under the local government and school district fiscal

 

accountability act shall include all of the following:

 

     (a) A statement clearly defining in measurable terms the

 

reasons the local government is in a condition of severe financial

 

stress.

 

     (b) A preliminary plan of specific actions necessary to

 

correct the severe financial stress in the local government.

 

     (c) Specific actions to be taken to correct the severe

 

financial stress in the local government and the target dates by

 

which those actions shall occur. The specific actions to be taken


 

shall include, but are not limited to, all of the following:

 

     (i) Defining core services for the local government.

 

     (ii) Establishing a measurable commitment to acceptable service

 

levels and establishing how and when the acceptable service levels

 

will be met.

 

     (iii) A commitment to local contracting to reinforce the local

 

government's economy.

 

     (iv) Defining specific state legislative support and financial

 

support to remediate issues.

 

     (d) The specific date the consent agreement expires.

 

     (2) If a specific action required under this section to

 

correct the severe financial stress in the local government is not

 

accomplished by the target date set for that action, the chief

 

administrative officer of the local government and the review team

 

shall conduct a public meeting to discuss with the residents of the

 

local government all of the following:

 

     (a) Why the specific action required to correct the severe

 

financial stress was not met.

 

     (b) A proposed corrective action plan.

 

     (c) Target date for completion of the corrective action plan.

 

     (3) The chief administrative officer of the local government

 

and the review team shall conduct additional public meetings in

 

addition to the public meeting required under subsection (2) if the

 

target date for the completion of the corrective action plan is not

 

met. If the completion of the corrective action plan is not met

 

after a third public meeting with the residents of the local

 

government, the chief administrative officer of the local


 

government and the review team shall negotiate a new consent

 

agreement.

 

     Enacting section 1. This act does not take effect unless

 

Senate Bill No.____ or House Bill No.____ (request no. 06080'12 a)

 

of the 96th Legislature is enacted into law.