HB 6254 Summary

• Amends the Local Government Fiscal Responsibility Act to clarify that when the Governor declares a financial emergency, management responsibility goes to the local emergency financial assistance loan board, which appoints an emergency financial manager under the Emergency Municipal Loan Act (1980 PA 243, MCL 141.931 to 141.942).

• Requires emergency financial managers to be selected based on competence and considers experience in financial management, accounting, managing local government units, or other governmental experience; prohibits candidates who were employed by the affected government within the 5 years before appointment.

• Allows emergency financial managers to appoint additional staff with board approval and secure professional assistance as needed to implement their duties, subject to agreements or orders under section 21.

• Requires the chief financial officer of the local government to file monthly reports with the Department of Treasury detailing all payments made to the emergency financial manager, beginning 30 days after the act's effective date.

• Directs the Department of Treasury to quarterly review financial records related to emergency financial manager payments, beginning 90 days after the effective date, and allows more frequent random reviews as deemed necessary; requires emergency financial managers to report financial irregularities to the loan board within 5 calendar days of receipt.