2014 House Bill 5566 / Public Act 181

Detroit bankruptcy settlement and grant package - oversight commission

Introduced in the House

May 8, 2014

Introduced by Rep. John Walsh (R-19)

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 $195 million state bailout of he city.

Referred to the Committee on Detroit's Recovery and Michigan's Future

May 21, 2014

Reported without amendment

With the recommendation that the substitute (H-3) be adopted and that the bill then pass.

May 22, 2014

Substitute offered

The substitute passed by voice vote

Passed in the House 103 to 7 (details)

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.

Received in the Senate

May 27, 2014

Referred to the Committee on Government Operations

June 3, 2014

Reported without amendment

With the recommendation that the bill pass.

Passed in the Senate 36 to 2 (details)

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.

Signed by Gov. Rick Snyder

June 20, 2014