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Michigan legislature working on replacement of Public Act 4

Michigan House of Representatives
Michigan House of Representatives

LANSING (WKZO) -- A new bill to replace the Emergency Manager law that was defeated by voters in November will give cities more options.

Public Act 4 gave the state the power to impose an emergency manager to take over the finances of troubled cities and school districts.  The new proposal unveiled in Lansing will let cities opt for municipal bankruptcy instead of a manager.

The Michigan House of Representatives advanced the bill Thursday, while the Senate is working on their own measure.  The Senate bill includes the options of bankruptcy, mediation, a financial consent agreement or an emergency manager.