The Republican-led Michigan Senate is expected to consider a replacement for an emergency manager law struck down by voters in the November election.
The Senate on Thursday is expected to review the legislation passed the day before by the House. The measure met with fierce opposition from Democrats in that chamber.
Old EM law vs. new
The previous law empowered the governor to appoint managers with broad powers to overrule elected leaders of financially struggling cities and school districts and throw out contracts.
The new version proposed by Gov. Rick Snyder and GOP legislative leaders gives four choices to communities in financial trouble: accept an emergency manager; undergo bankruptcy; engage in mediation; or enter into a consent agreement similar to one between the state and Detroit.
The Legislature is nearing the end of its session.
Michigan has appointed EM managers in five cities and three school districts.
Michigan voted to get rid of emergency manager law
In November, residents voted down the state's emergency managers law.
Voters defeated a proposal to keep the law that allowed state-appointed managers to dismiss local elected leaders and negate union contracts in municipalities and school districts deemed to be in fiscal emergencies.
Critics argued the law was a state power grab that usurped local elected officials' rights.