HB 5337 Summary

• Amends the Local Financial Stability and Choice Act to introduce a new "financial management team" option as an alternative to single emergency managers for addressing local government financial emergencies.

• Financial management teams consist of three members appointed by the governor with senate advice and consent: one with 5+ years financial expertise, one with 3+ years local government experience, and one local resident recommended by the governing body to serve as ombudsman.

• Establishes that financial management teams have the same broad receivership powers as emergency managers, including budget authority, contract modification, pension fund oversight, and asset sales, subject to the same limitations and reporting requirements.

• Provides for transition from emergency manager to financial management team upon the effective date of this amendatory act, with new emergency manager vacancies triggering financial management team appointments instead of replacement emergency managers.

• Maintains all existing emergency manager authorities and processes while creating a parallel governance structure that allows for collegial decision-making rather than single-person authority in addressing municipal financial crises.