Bill Text: MI HB5892 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Education; school districts; emergency financial manager entering contracts that extend past his or her term; prohibit. Amends sec. 41 of 1990 PA 72 (MCL 141.1241).

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Introduced - Dead) 2010-02-25 - Printed Bill Filed 02/25/2010 [HB5892 Detail]

Download: Michigan-2009-HB5892-Introduced.html

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HOUSE BILL No. 5892

 

February 24, 2010, Introduced by Reps. Lemmons, Bettie Scott, Womack, Roy Schmidt, Johnson and Dean and referred to the Committee on Education.

 

     A bill to amend 1990 PA 72, entitled

 

"Local government fiscal responsibility act,"

 

by amending section 41 (MCL 141.1241).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 41. (1) Upon appointment under section 38, an emergency

 

financial manager shall immediately assume control over all fiscal

 

matters of, and make all fiscal decisions for, the school district

 

for which he or she is appointed.

 

     (2) In implementing this article and performing his or her

 

functions under this article, an emergency financial manager may

 

take 1 or more of the following actions:

 

     (a) Examine the books and records of the school district.

 

     (b) Review payrolls or other claims against the school

 

district before payment.

 

     (c) Negotiate, renegotiate, approve, and enter into contracts

 

on behalf of the school district. However, an emergency financial

 

manager may not enter into a contract on behalf of the school

 

district that obligates the school district beyond the term fixed

 

by the governor in the appointment of the emergency financial

 

manager under section 38.

 

     (d) Receive and disburse on behalf of the school district all

 

federal, state, and local funds earmarked for the school district.

 

These funds may include, but are not limited to, funds for specific

 

programs and the retirement of debt.

 

     (e) Adopt a final budget for the next school fiscal year and

 

amend any adopted budget of the school district.

 

     (f) Act as an agent of the school district in collective

 

bargaining and, to the extent possible under state labor law,

 

renegotiate existing and negotiate new labor agreements.

 

     (g) Analyze factors contributing to the financial condition of

 

the school district and recommend to the legislature steps that

 

need to be taken to improve the district's financial condition.

 

     (h) Require compliance with his or her orders, by court action

 

if necessary.

 

     (i) Require the attendance of witnesses and the production of

 

books, papers, contracts, and other documents relevant to an

 

analysis of the financial condition of the school district.

 

     (j) Recommend to the governor, the legislature, and the state

 

board that the school district be reorganized with 1 or more

 

contiguous school districts.

 

     (k) Consolidate divisions or transfer functions from 1

 

division to another division within the school district and

 

appoint, supervise, and, at his or her discretion, remove, within

 

legal limitations, heads of divisions of the school district.

 

     (l) Create a new position or approve or disapprove the creation

 

of any new position or the filling of a vacancy in a permanent

 

position by an appointing authority.

 

     (m) Seek approval from the state board for a reduced class

 

schedule in accordance with administrative rules governing the

 

distribution of state school aid.

 

     (n) Employ or contract for, at the expense of the school

 

district and with the approval of the superintendent of public

 

instruction, auditors and other technical personnel considered

 

necessary to implement this article.

 

     (o) Reduce expenditures in the budget of the school district.

 

     (p) Borrow Subject to subdivision (c), borrow money on behalf

 

of the school district.

 

     (q) Approve Subject to subdivision (c), approve or disapprove

 

of the issuance of obligations of the school district.

 

     (r) Order, as necessary, 1 or more school millage elections

 

for the school district consistent with the school code of 1976,

 

the Michigan election law, Act No. 116 of the Public Acts of 1954,

 

being sections 168.1 to 168.992 of the Michigan Compiled Laws,

 

revised school code, 1976 PA 451, MCL 380.1 to 380.1852, the

 

Michigan election law, 1954 PA 116, MCL 168.1 to 168. 992, and

 

sections 6 and 25 through 34 of article IX of the state

 

constitution of 1963.

 

     (s) Sell or otherwise use the assets of the school district to

 

meet past or current obligations, provided the use of assets for

 

this purpose does not impair the education of the pupils of the

 

district.

 

     (t) Exercise the authority and responsibilities affecting the

 

financial condition of the school district that are prescribed by

 

law to the school board and superintendent of the school district.

 

     (3) After giving written notice to the superintendent of

 

public instruction, the emergency financial manager may authorize

 

the school district to proceed under chapter 9 of title 11 of the

 

United States Code, 11 U.S.C. 901 to 904, 921 to 932, and 941 to

 

946. the federal bankruptcy code, 11 USC 901 to 946. This section

 

empowers the school district for which an emergency financial

 

manager has been appointed to become a debtor under chapter 9 of

 

title 11 of the United States Code.the federal bankruptcy code, 11

 

USC 901 to 946.