HB-6255, As Passed House, July 1, 2010

SUBSTITUTE FOR

HOUSE BILL NO. 6255

     A bill to amend 1990 PA 72, entitled

"Local government fiscal responsibility act,"

by amending section 20 (MCL 141.1220).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 20. (1) In consultation with the local government, the

emergency financial manager shall develop, and may from time to

time amend, a written financial plan for the local government.

Within 180 days after being appointed, the emergency financial

manager, in consultation with the local government, shall develop

and have approved by the local emergency financial assistance loan

board a written financial plan for the local government. If an

emergency financial manager is serving on the effective date of the

amendatory act that added this sentence, within 180 days after the

effective date of the amendatory act that added this sentence, the

emergency financial manager, in consultation with the local

government, shall develop and have approved by the local emergency

financial assistance loan board a written financial plan for the

local government. The emergency financial manager, in consultation

with the local government, may from time to time amend the written

financial plan for the local government. The financial plan shall

provide for both of the following:

     (a) Conducting the operations of the local government within

the resources available according to the emergency financial

manager's revenue estimate.

     (b) The payment in full of the scheduled debt service

requirements on all bonds and notes of the local government and all

other uncontested legal obligations.

     (2) In addition to the requirements of subsection (1), the

written financial plan shall also indicate how all of the

requirements of the local emergency financial assistance loan board

for ending the financial emergency will be met.

(3) (2) After the initial development of a financial plan, the

plan shall be regularly reexamined by the emergency financial

manager in consultation with the local government, and if the

emergency financial manager reduces his or her revenue estimates,

the emergency financial manager shall modify the financial plan to

conform to revised revenue estimates.

(4) (3) The financial plan shall be in a form and shall

contain that information for each year during which year the

financial plan is in effect that the local emergency financial

manager specifies.

(5) (4) The emergency financial manager shall make public the

plan or modified plan. This subsection shall not be construed to

does not mean that the emergency financial manager must receive

public approval before he or she implements the financial plan or

any modification of the plan.