September 4, 2013, Introduced by Reps. Geiss, Tlaib, Talabi and Nathan and referred to the Committee on Local Government.
A bill to amend 2012 PA 436, entitled
"Local financial stability and choice act,"
(MCL 141.1541 to 141.1575) by adding sections 15a and 26a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 15a. (1) An emergency manager shall not negotiate,
renegotiate, approve, or enter into any contract or other financial
transaction on behalf of the local government if the emergency
manager or his or her family member has a financial interest or
competing financial interest in the contract or other financial
transaction. For the purposes of this subsection, an emergency
manager or his or her family member is not considered to have a
financial interest in any of the following instances:
(a) A contract or other financial transaction between the
local government and any of the following:
(i) A corporation in which the individual is a stockholder
owning 1% or less of the total stock outstanding in any class if
the stock is not listed on a stock exchange or owning stock that
has a present market value of $25,000.00 or less if the stock is
listed on a stock exchange.
(ii) A corporation in which a trust, if the individual is a
beneficiary under the trust, owns 1% or less of the total stock
outstanding in any class if the stock is not listed on a stock
exchange or owns stock that has a present market value of
$25,000.00 or less if the stock is listed on a stock exchange.
(iii) A professional limited liability company organized under
the Michigan limited liability company act, 1993 PA 23, MCL
450.4101 to 450.5200, if the individual is an employee but not a
member of the company.
(b) A contract or other financial transaction between the
local government and any of the following:
(i) A corporation in which the individual is not or was not a
director, officer, or employee.
(ii) A firm, partnership, or other unincorporated association
in which the individual is not or was not a partner, member, or
employee.
(iii) A corporation or firm that has an indebtedness owed to the
individual.
(c) A contract awarded to the lowest qualified bidder, upon
receipt of sealed bids pursuant to a published notice for bids if
the notice does not bar, except as authorized by law, any qualified
person, firm, corporation, or trust from bidding. This subdivision
does not apply to amendments or renegotiations of a contract or to
additional payments made under the contract that were not
authorized by the contract at the time of the award.
(2) As used in this section, "family member" means an
individual's spouse or spouse's sibling or child; an individual's
sibling or sibling's spouse or child; an individual's child or
child's spouse; or an individual's parent or parent's spouse, and
includes these relationships as created by adoption or marriage.
Sec. 26a. If a local government proceeds under chapter 9 as
provided in section 26, any firm, corporation, partnership, or
other unincorporated association of which the emergency manager was
an owner, partner, director, officer, member, or employee is
ineligible to represent the local government in any way in those
chapter 9 bankruptcy proceedings.