MI SB0865

Establishes the "Local Financial Stability and Choice Act" to address financial emergencies in municipalities and school districts through state oversight and intervention mechanisms.

Authorizes the governor to appoint an emergency manager with broad powers to restructure finances, modify contracts, reject collective bargaining agreements, and manage local government operations during receivership.

Provides local governments four options to address financial emergencies: consent agreements with the state treasurer, emergency manager receivership, neutral evaluation process mediation with creditors, or Chapter 9 federal bankruptcy.

Creates a preliminary review process triggered by various financial distress indicators (unpaid debts, missed payroll, bond defaults, etc.) leading to review team investigation and governor determination of financial emergency status.

Establishes oversight mechanisms including quarterly reporting requirements, receivership transition advisory boards, local inspectors/auditors, and immunity provisions for emergency managers and state officials acting under the act.