MI HB5892

Amends Section 41 of the Local Government Fiscal Responsibility Act (1990 PA 72) to restrict emergency financial manager powers regarding contracts and borrowing.

Prohibits emergency financial managers from entering into contracts on behalf of school districts that extend beyond the manager's term of appointment as fixed by the governor.

Adds requirement that borrowing money and issuance of obligations by emergency financial managers must be subject to the contract duration limitation in subdivision (c).

Clarifies references to the Revised School Code (1976 PA 451), Michigan Election Law (1954 PA 116), and the state constitution regarding school millage elections.

Permits emergency financial managers to authorize school districts to proceed under federal bankruptcy law (Chapter 9, 11 USC 901 to 946) with written notice to the superintendent of public instruction.