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2014 House Bill 5566: Detroit bankruptcy settlement and grant package - oversight commission

Public Act 181 of 2014

  1. Introduced by Rep. John Walsh (R) on May 8, 2014, to establish a Detroit fiscal management oversight commission consisting of the Governor and the Mayor of Detroit (or their appointees), two state department heads, one Detroit resident with relevant financial training and experience, and two candidates from lists submitted by the House Speaker and Senate Majority Leader. Among the commission’s powers would be final approval of city budgets, borrowing, union contracts, police and firefighters contracts imposed by binding arbitration, and more. The commission could waive any of these powers if the city adopts deficit-free budgets for three consecutive years and meets other specified conditions, but could resume its powers in the event of subsequent backsliding. This is part of a legislative package consisting of House Bills 5566 to 5575 that are related to the Detroit bankruptcy and a proposed state grant to the city of $195 million.
    • Referred to the House Detroit's Recovery and Michigan's Future Committee on May 8, 2014.
      • Reported in the House on May 21, 2014, with the recommendation that the substitute (H-3) be adopted and that the bill then pass.
    • Substitute offered in the House on May 22, 2014. The substitute passed by voice vote in the House on May 22, 2014.
  2. Passed 103 to 7 in the House on May 22, 2014, to establish a Detroit fiscal management oversight commission consisting of the two state department heads, five other individuals appointed by the Governor, the Mayor and the president of the city council. Among the commission’s powers would be final approval of city budgets, larger purchases, borrowing, union contracts (except police and firefighter contracts imposed through binding arbitration), and more. The commission could waive any of these powers if the city adopts deficit-free budgets for three consecutive years and meets other specified conditions, but could resume its powers in the event of subsequent backsliding. This is part of a legislative package consisting of House Bills 5566 to 5575 that are related to the Detroit bankruptcy and a proposed state grant to the city of $195 million.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on May 27, 2014.
    • Referred to the Senate Government Operations Committee on May 27, 2014.
      • Reported in the Senate on June 3, 2014, with the recommendation that the bill pass.
  4. Passed 36 to 2 in the Senate on June 3, 2014, to establish a Detroit fiscal management oversight commission consisting of the two state department heads, five other individuals appointed by the Governor, the Mayor and the president of the city council. Among the commission’s powers would be final approval of city budgets, larger purchases, borrowing, union contracts (except police and firefighter contracts imposed through binding arbitration), and more. The commission could waive any of these powers if the city adopts deficit-free budgets for three consecutive years and meets other specified conditions, but could resume its powers in the event of subsequent backsliding. This is part of a legislative package consisting of House Bills 5566 to 5575 that are related to the Detroit bankruptcy and a proposed state grant to the city of $195 million.
    Who Voted "Yes" and Who Voted "No"

  5. Signed by Gov. Rick Snyder on June 20, 2014.

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