MI HB5385

Creates financial review commissions for qualified cities (population over 600,000 under bankruptcy plans) and qualified school districts with coterminous boundaries to provide fiscal oversight and ensure compliance with state financial laws.

Commission membership includes 9 members: state treasurer (chair), DTMB director, 3 governor-appointed business/finance experts, mayor/chief executive, senate-nominated appointee, house-nominated appointee, and city council president or school board chair.

Grants commissions broad powers including approval of 4-year financial plans, budgets, applicable contracts exceeding $750,000, collective bargaining agreements, debt issuance, and appointment of chief financial officers.

Allows commissions to waive oversight requirements after 3 consecutive deficit-free budgets, sufficient debt capacity, balanced financial projections, and other fiscal stability criteria are demonstrated.

Permits commission dissolution after 10 consecutive fiscal years of waived requirements (if bankruptcy plan expired) and all school district debts are paid, with release of municipality or school district from state oversight.