Michigan Compiled Laws

Mich. Comp. Laws § 141.1541 (2026)

Short title.

✓ current as of July 2026

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LOCAL FINANCIAL STABILITY AND CHOICE ACT

Act 436 of 2012

141.1541 Short title.

Sec. 1.

This act shall be known and may be cited as the "local financial stability and choice act".

History: 2012, Act 436, Eff. Mar. 28, 2013

Compiler's Notes:

Enacting section 2 of Act 436 of 2012 provides:

"Enacting section 2. It is the intent of the legislature that this act function and be interpreted as a successor statute to former 1988 PA 101, former 1990 PA 72, and former 2011 PA 4, and that whenever possible a reference to former 1988 PA 101, former 1990 PA 72, or former 2011 PA 4, under other laws of this state or to a function or responsibility of an emergency financial manager or emergency manager under former 1988 PA 101, former 1990 PA 72, or former 2011 PA 4, under other laws of this state shall function and be interpreted to reference to this act, with the other laws of this state referencing former 1988 PA 101, former 1990 PA 72, or former 2011 PA 4, including, but not limited to, all of the following:

(a) The charter township act, 1947 PA 359, MCL 42.1 to 42.34.

(b) 1966 PA 293, MCL 45.501 to 45.521.

(d) The general law village act, 1895 PA 3, MCL 61.1 to 74.25.

(e) The home rule village act, 1909 PA 278, MCL 78.1 to 78.28.

(f) The fourth class city act, 1895 PA 215, MCL 81.1 to 113.20.

(g) The home rule city act, 1909 PA 279, MCL 117.1 to 117.38.

(h) The metropolitan transportation authorities act of 1967, 1967 PA 204, MCL 124.401 to 124.426.

(i) 1947 PA 336, MCL 423.201 to 423.217."

Notes of Decisions

Cited in 29 cases (2 in the last 5 years), 2014–2023 · leading case: Melissa Mays v. Governor Rick Snyder, 916 N.W.2d 227 (Mich. Ct. App. 2018).

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Melissa Mays v. Governor Rick Snyder, 916 N.W.2d 227 (Mich. Ct. App. 2018). · cites it 3× “1549(2), Upon appointment, an emergency manager shall act for and in the place and stead of the governing body and the office of chief administrative officer of 15 MCL 141.1541 et seq. -21- the local government.”

Charles Kaminski v. Brad Coulter, 865 F.3d 339 (6th Cir. 2017). · cites it 2× “In response to this crisis, the Lincoln Park City Council voted 1 Local Financial Stability and Choice Act, Mich. Comp. Laws § 141.1541 et seq. 2 Clinton remained a party to the dispute in his individual capacity.”

Lm v. State of Michigan, 307 Mich. App. 685 (Mich. Ct. App. 2014). · cites it 2× “Specifically, the state defendants argue that this statutory provision, part of the Local Financial Stability and Choice Act, MCL 141.1541 et seq., is applicable because plaintiffs’ claims are premised on the state’s liability through appointment of an emergency manager for the…”

Wayne Cnty. v. Afscme Local 3317, 928 N.W.2d 709 (Mich. Ct. App. 2018). “*617 In the midst of a financial emergency, respondent, Wayne County (the County), entered into a consent agreement with Michigan's treasurer (the State Treasurer) under the Local Financial Stability and Choice Act (Act 436), MCL 141.1541 et seq. , as enacted by 2012 PA 436 .”

Trahey v. City of Inkster, 876 N.W.2d 582 (Mich. Ct. App. 2015). “The revived act, 1990 PA 72 , was later repealed and replaced by the Local Financial Stability and Choice Act, 2012 PA 436 , MCL 141.1541 et seq., effective March 28, 2013.”

Kincaid v. City of Flint, 874 N.W.2d 193 (Mich. Ct. App. 2015). “7 MCL 141.1541 et seq. 8 2012 PA 436 repealed 1990 PA 72 , effective March 28, 2013.”

Gary B. v. Snyder, 329 F. Supp. 3d 344 (E.D. Mich. 2018). · cites it 2× “See Mich. Comp. Laws § 141.1541 , et seq. Just as with the prior Public Acts, 4 and 436 also required the Governor to appoint a review board principally composed of state actors.”

Martin v. Murray, 867 N.W.2d 444 (Mich. Ct. App. 2015). “5 MCL 141.1541 et seq. 6 Martin had previously served as emergency manager of the Highland Park Public Schools and as a financial officer for the city of Detroit.”

Beatrice Boler v. Governor, 923 N.W.2d 287 (Mich. Ct. App. 2018). “Defendants additionally assert that the state's emergency management of a municipality under the Local Financial Stability and Choice Act, MCL 141.1541 et seq., transforms the municipality into an arm of the state and that the Court of Claims has exclusive jurisdiction over…”

Pontiac Police & Fire Retiree Prefunded Grp. Health & Ins. Trust Bd. of Trs. v. City of Pontiac No 1, 873 N.W.2d 121 (Mich. Ct. App. 2015). “The revived 1990 PA 72 was repealed and replaced by 2012 PA 436 , MCL 141.1541 et seq., effective March 28, 2013.”

Beatrice Boler v. Governor, 924 N.W.2d 250 (Mich. 2019). · cites it 2× “In this case, the Court of Appeals held that, for purposes of Court of Claims jurisdiction: (1) “a municipality is not an arm of the state when it operates a waterworks plant,” and (2) a municipality and its employees operating under emergency management pursuant to the Local…”

Gary B. v. Snyder, 313 F. Supp. 3d 852 (E.D. Mich. 2018). · cites it 2× “See Mich. Comp. Laws § 141.1541 , et seq. Just as with the prior Public Acts, 4 and 436 also required the Governor to appoint a review board principally composed of state actors.”

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