HB 4945 Summary

• Emergency managers are prohibited from negotiating, renegotiating, approving, or entering contracts or financial transactions on behalf of local government if the emergency manager or their family member has a financial interest or competing financial interest in the transaction.

• Financial interest restrictions do not apply to: stockholdings of 1% or less in non-exchange corporations or $25,000 or less in exchange-listed stock; trust-owned stock meeting the same thresholds; employees of professional limited liability companies who are not members; and corporations or firms where the individual is not a director, officer, or employee.

• Contracts awarded to the lowest qualified bidder through published sealed bid processes are exempt from conflict of interest rules, provided the notice does not bar qualified bidders; exemption does not apply to contract amendments, renegotiations, or unauthorized additional payments.

• "Family member" is defined to include spouses, siblings, children, and parents of the emergency manager, including relationships created by adoption or marriage.

• When a local government proceeds under Chapter 9 bankruptcy, any firm, corporation, partnership, or association where the emergency manager was an owner, partner, director, officer, member, or employee is ineligible to represent the local government in those bankruptcy proceedings.