Michigan Compiled Laws

Mich. Comp. Laws § 141.1501 (2026)

Act 4 of 2011 was rejected by a majority of the electors at the November 2012 general election.

✓ current as of July 2026

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LOCAL GOVERNMENT AND SCHOOL DISTRICT FISCAL ACCOUNTABILITY ACT

Act 4 of 2011

141.1501 Act 4 of 2011 was rejected by a majority of the electors at the November 2012 general election.

Compiler's Notes:

Act 4 of 2011, which was approved by the governor March 16, 2011 and filed with the secretary of state March 16, 2011, provided a new act (MCL 141.1501 to 141.1531) known as the local government and school district fiscal accountability act, effective March 16, 2011. On February 29, 2012, a petition seeking a referendum on Act 4 of 2011 was filed with the secretary of state. Const 1963, art 2, sec 9, provides that no law as to which the power of referendum properly has been invoked shall be effective thereafter unless approved by a majority of the electors voting thereon at the next general election. A referendum was presented at the November 2012 general election as Proposal 12-1, which read as follows:

PROPOSAL 12-1

A REFERENDUM ON PUBLIC ACT 4 OF 2011 –

THE EMERGENCY MANAGER LAW

Public Act 4 of 2011 would:

Establish criteria to assess the financial condition of local government units, including school districts.

Authorize Governor to appoint an emergency manager (EM) upon state finding of a financial emergency, and allow the EM to act in place of local government officials.

Require EM to develop financial and operating plans, which may include modification or termination of contracts, reorganization of government, and determination of expenditures, services, and use of assets until the emergency is resolved.

Alternatively, authorize state-appointed review team to enter into a local government approved consent decree.

Should this law be approved?

YES ____

NO ____

Act 4 of 2011 was rejected by a majority of the electors at the November 2012 general election. The vote was certified by the state board of canvassers on November 26, 2012.

Act 72 of 1990, which had been repealed by Act 4 of 2011, came back into effect while the referendum on Act 4 of 2011 was pending. Act 436 of 2012, which was approved by the governor December 26, 2012 and filed with the secretary of state December 27, 2012, provided a new act (MCL 141.1541 to 141.1575) known as the local financial stability and choice act, effective March 28, 2013. Act 436 of 2012 repeals Act 72 of 1990, effective March 28, 2013.

Notes of Decisions

Cited in 13 cases (3 in the last 5 years), 2011–2025 · leading case: Stand Up for Democracy v. Sec'y of State, 822 N.W.2d 159 (Mich. 2012).

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Stand Up for Democracy v. Sec'y of State, 822 N.W.2d 159 (Mich. 2012). · cites it 6× “FACTS AND PROCEDURAL HISTORY On February 29, 2012, plaintiff filed its referendum petition to invoke a referendum with regard to 2011 PA 4 , MCL 141.1501 et seq., the emergency financial manager law, and to request certification of the petition from the Board of State Canvassers.”

Davis v. City of Detroit Fin. Review Team, 296 Mich. App. 568 (Mich. Ct. App. 2012). · cites it 3× “309250, we remand for an evidentiary hearing on Davis’s allegations that various state officials and members of the Detroit Financial Review Team were in contempt of court.”

Kincaid v. City of Flint, 874 N.W.2d 193 (Mich. Ct. App. 2015). · cites it 2× “3 See 2011 PA 4 , the local government and school district fiscal accountability act, formerly MCL 141.1501 et seq. At the time, former MCL 141.”

Martin v. Murray, 867 N.W.2d 444 (Mich. Ct. App. 2015). “3 Former MCL 141.1501 et seq. 4 Opinions of the Attorney General are not binding on the courts.”

City of Pontiac Retired Employees Ass'n v. Schimmel, 726 F.3d 767 (6th Cir. 2013). “Once the effect of 2011 PA 4 [Public Act 4], the Local Government and School District Fiscal Accountability Act, MCL 141.1501 et seq., was suspended under Const 1963, art.”

Gen. Ret. Sys. v. Snyder, 822 F. Supp. 2d 686 (E.D. Mich. 2011). “§ 141.1501 et seq. (“the Act”), was enacted on March 16, 2011, and took effect on that same date.”

Stand up for Democracy v. Sec'y of State, 824 N.W.2d 220 (Mich. Ct. App. 2012). · cites it 2× “Plaintiff urges this Court to direct that defendants certify for *49 placement on the November 2012 general election ballot a referendum of 2011 PA 4 , MCL 141.1501 et seq., the Local Government and School District Accountability Act, commonly known as the “emergency financial…”

Bd. of Trs. of the City of Pontiac v. City of Pontiac, 912 N.W.2d 195 (Mich. 2018). · cites it 2× “Public Act 436 of 2012 has since replaced former MCL 141.1501 through 141.1531, but MCL 141.”

Pinebrook Warren LLC v. City of Warren (Mich. 2024). · cites it 2× “In Davis, the relevant question was whether a financial review team appointed by the Governor under the former emergency financial manager 22 act, MCL 141.1501 et seq., was a public body subject to the OMA.”

City of Pontiac Retired Employees v. Louis Schimmel, 498 F.3d 767 (6th Cir. 2013). · cites it 2× “Once the effect of 2011 PA 4 [Public Act 4], the Local Government and School District Fiscal Accountability Act, MCL 141.1501 et seq., was suspended under Const 1963, art 2, § 9 and MCL 168.”

Mun. Employees Ret. Sys. v. David Halstead (Mich. Ct. App. 2021). “2011 PA 4 Halstead first argues that the trial court erred by concluding that the emergency manager had authority to transfer or authorize the transfer of the retirement system from FERS to MERS under the Local Government and School District Fiscal Accountability Act, MCL 141.”

The Est. of Eric Bradford Mays v. Mayor Sheldon Neeley (Mich. Ct. App. 2025). “We first consider whether the ARPA committee meets the definition of “public body” in its own right, either as a legislative or governing body.”

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