MI HB5566

Creates the Michigan Financial Review Commission Act to establish financial oversight commissions for cities with population over 600,000 that are subject to a federal bankruptcy plan for adjustment.

Each commission consists of 9 members including the state treasurer (chair), director of technology/management/budget, three governor-appointed business/finance experts, the city mayor, one legislative-nominated member each from senate and house, and the city council president.

Commission powers include reviewing and approving the city's 4-year financial plan, budget, debt issuance, applicable contracts exceeding $750,000 or 2+ year terms, and collective bargaining agreements; the city cannot execute these without commission approval.

Commission oversight can be waived if the city meets eight conditions including 3 consecutive deficit-free budgets, balanced financial projections, employee retirement contributions capped at 7% of base pay, and public posting of all contracts within 30 days.

Appropriates $900,000 from the general fund for fiscal year 2014 to support commission operations, professional services, and enforcement; commission dissolves after 10 consecutive years of waived requirements if the bankruptcy plan expires.