MI HB6032

Creates the Office of the Local Government Financial Emergency Ombudsman within the legislative council to investigate complaints from employees, residents, and legislators regarding local governments in financial emergency.

Ombudsman must have minimum 3 years' experience in municipal or school district operations and is appointed by and serves at the pleasure of the council; establishes procedures for receiving complaints, conducting investigations, holding hearings, and reporting findings.

Ombudsman has authority to access information and documents, inspect premises, hold informal hearings, subpoena witnesses, and complete investigations within 90 days (extendable to 180 days maximum).

Requires ombudsman to report findings to the council and notify relevant parties; establishes confidentiality protections for complainants and exempts ombudsman reports from freedom of information act disclosure.

Prohibits retaliation against employees filing complaints or cooperating with ombudsman investigations; provides that emergency managers hindering ombudsman actions shall receive a warning from the governor and may be removed if obstruction continues.

Amends Section 9 regarding emergency managers by adding reference to Section 7b(17) regarding removal procedures and clarifies effective date applicability to emergency managers serving before March 28, 2013.