HB 4214 Summary

• Establishes the "Local Government and School District Fiscal Accountability Act" to address financial emergencies in municipal governments and school districts through state oversight and emergency management powers.

• Creates a three-tier financial stress classification system (mild stress, severe stress, financial emergency) with triggers including unpaid debts over 6 months, wage payment delays, bond covenant violations, and budget deficits exceeding 5% of revenues.

• Authorizes the governor to appoint an emergency manager with broad powers to control local government operations, including ability to reject or modify collective bargaining agreements, eliminate positions, sell assets, and restructure contracts when a financial emergency is declared.

• Requires emergency managers to develop financial and operating plans within 45 days, submit quarterly reports detailing expenditures over $5,000 and all contracts, and obtain state treasurer approval for asset sales exceeding $50,000.

• Repeals the Local Government Fiscal Responsibility Act of 1990 (PA 72) and is contingent on enactment of Senate Bill 158.