Michigan Compiled Laws

Mich. Comp. Laws § 141.1543 (2026)

Findings; declarations.

✓ current as of July 2026

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LOCAL FINANCIAL STABILITY AND CHOICE ACT

Act 436 of 2012

141.1543 Findings; declarations.

Sec. 3.

The legislature finds and declares all of the following:

(a) That the health, safety, and welfare of the citizens of this state would be materially and adversely affected by the insolvency of local governments and that the fiscal accountability of local governments is vitally necessary to the interests of the citizens of this state to assure the provision of necessary governmental services essential to public health, safety, and welfare.

(b) That it is vitally necessary to protect the credit of this state and its political subdivisions and that it is necessary for the public good and it is a valid public purpose for this state to take action and to assist a local government in a financial emergency so as to remedy the financial emergency by requiring prudent fiscal management and efficient provision of services, permitting the restructuring of contractual obligations, and prescribing the powers and duties of state and local government officials and emergency managers.

(c) That the fiscal stability of local governments is necessary to the health, safety, and welfare of the citizens of this state and it is a valid public purpose for this state to assist a local government in a condition of financial emergency by providing for procedures of alternative dispute resolution between a local government and its creditors to resolve disputes, to determine criteria for establishing the existence of a financial emergency, and to set forth the conditions for a local government to exercise powers under federal bankruptcy law.

(d) That the authority and powers conferred by this act constitute a necessary program and serve a valid public purpose.

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 10 cases, 2017–2019 · leading case: Melissa Mays v. Governor Rick Snyder, 916 N.W.2d 227 (Mich. Ct. App. 2018).

Sort: Relevance Newest Treatment

Melissa Mays v. Governor Rick Snyder, 916 N.W.2d 227 (Mich. Ct. App. 2018). · cites it 2× “Once the Governor agrees that the emergency has been sustainably resolved, power passes from the neutral receiver back to local officials.”

Wayne Cnty. v. Afscme Local 3317, 928 N.W.2d 709 (Mich. Ct. App. 2018). “MCL 141.1543. Under Act 436, the State Treasurer, acting as the "state financial authority" for "municipal governments," which by statutory definition include counties, 2 may conduct, under certain enumerated circumstances, preliminary reviews in order to help determine whether…”

Beatrice Boler v. Governor, 923 N.W.2d 287 (Mich. Ct. App. 2018). · cites it 2× “That Act states, at MCL 141.1543 : The legislature finds and declares all of the following: (a) That the health, safety, and welfare of the citizens of this state would be materially and adversely affected by *627 the insolvency of local governments and that the fiscal…”

Bd. of Trs. of the City of Pontiac v. City of Pontiac, 912 N.W.2d 195 (Mich. 2018). · cites it 2× “1531, but MCL 141.1543(a) currently contains this same language as former MCL 141.”

Bellant v. Snyder, 338 F. Supp. 3d 651 (E.D. Mich. 2018). · cites it 2× “The court thus finds that PA 436 survives rational basis review with regard to plaintiffs' facial challenge.”

Detroit Water & Sewerage Dep't v. Afscme Council 25 (Mich. Ct. App. 2017). “MCL 141.1543. When DWSD reclassified all of its jobs, the City of Detroit was under the management of Emergency Manager Kevyn Orr.”

Melissa Mays v. Governor Rick Snyder (Mich. Ct. App. 2018). “Once the Governor agrees that the emergency has been sustainably resolved, power passes from the neutral receiver back to local officials.”

Wayne Cnty. v. Afscme Local 3317 (Mich. Ct. App. 2018). “MCL 141.1543. Under Act 436, the State Treasurer, as the “state financial authority” for “municipal governments,” which by statutory definition include counties,2 may conduct, under certain enumerated circumstances, preliminary reviews in order to help determine whether a county…”

Lawrence Washington Jr v. Governor (Mich. Ct. App. 2019). “MCL 141.1543 specifically declares: (a) That the health, safety, and welfare of the citizens of this state would be materially and adversely affected by the insolvency of local governments and that the fiscal accountability of local governments is vitally necessary to the…”

— Mich. Comp. Laws § 141.1543(a) — 1 case

Bd. of Trs. of the City of Pontiac v. City of Pontiac, 912 N.W.2d 195 (Mich. 2018). “1531, but MCL 141.1543(a) currently contains this same language as former MCL 141.”

— Mich. Comp. Laws § 141.1543(b) — 2 cases

Beatrice Boler v. Governor, 923 N.W.2d 287 (Mich. Ct. App. 2018). “That Act states, at MCL 141.1543 : The legislature finds and declares all of the following: (a) That the health, safety, and welfare of the citizens of this state would be materially and adversely affected by *627 the insolvency of local governments and that the fiscal…”

Bd. of Trs. of the City of Pontiac v. City of Pontiac, 912 N.W.2d 195 (Mich. 2018). “1531, but MCL 141.1543(a) currently contains this same language as former MCL 141.”

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