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Michigan House passes new emergency manager law


LANSING (WKZO) -- The Michigan House has passed a bill to replace the emergency manager law which was repealed by voters in November.

The measure would allow officials in financially troubled cities and school districts to choose whether to accept an emergency manager, a financial consent agreement, mediation or bankruptcy.  The legislation also contains an appropriation to pay for an emergency financial manager, a change from the repealed law, which required communities and school districts to pay the salary of the person appointed to the position.

Representative Maureen Stapleton, a Democrat from Detroit, says the new bill contains essentially the same language as the old law, but allows local governments to "pick their poison."  The measure now heads back to the Senate for a final vote.