Following the citizen-initiative referendum
and resulting repeal of Public Act 4 in November, Michigan reverted to the
previously PA 72 for governance of emergency managers appointed to
financially-strapped local units. The Snyder Administration believed; however,
that stronger measures were still needed and got their wish Thursday.
The House version of Senate
Bill 865, introduced by Senator Phil Pavlov (R-St. Clair), was concurred in
by the Senate on a mostly party-line vote and will now be presented to the
Governor for his expected signature. The measure passed 23-15 with Republican
Senators Bruce Caswell (Hillsdale), Mike Kowall (White Lake Township) and Tonya
Schuitmaker (Lawton) joining all Democrats in opposition.
The legislation provides failing local units
(the measure would not affect school districts) with four options: a consent
agreement, an emergency manager, mediation or Chapter 9 bankruptcy.