HB 07050 Summary

• Establishes a Municipal Accountability Review Board in the Office of Policy and Management composed of equal representation from municipal employee unions and government officials to oversee financially distressed municipalities.

• Creates a four-tier municipal designation system (Tier I, II, III, IV) based on fiscal metrics including bond ratings, fund balance percentages, state aid dependency, and equalized mill rates, with increased state oversight at higher tiers.

• Tier III and IV municipalities are subject to Municipal Accountability Review Board review and approval of annual budgets, bond ordinances, collective bargaining agreements, and contracts exceeding $200,000.

• Tier IV municipalities receive the most intensive oversight, including board approval of all budgets and tax levies, binding arbitration authority for labor disputes, and authority for extended bond maturities and deficit financing as approved by the board.

• Requires designated tier II, III, and IV municipalities to limit annual property tax levy increases to 3% or less without board approval of exceptions, effective July 1, 2017.