Mich. Comp. Laws » Michigan Compiled Laws / Chapter 141 / Act 436 of 2012
Michigan Compiled Laws

Mich. Comp. Laws § 141.1562 (2026)

Determination that financial emergency rectified; actions by governor.

✓ current as of July 2026
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LOCAL FINANCIAL STABILITY AND CHOICE ACT


Act 436 of 2012


141.1562 Determination that financial emergency rectified; actions by governor.

Sec. 22.

    (1) If an emergency manager determines that the financial emergency that he or she was appointed to manage has been rectified, the emergency manager shall inform the governor and the state treasurer.

    (2) If the governor disagrees with the emergency manager's determination that the financial emergency has been rectified, the governor shall inform the emergency manager and the term of the emergency manager shall continue or the governor shall appoint a new emergency manager.

    (3) Subject to subsection (4), if the governor agrees that the financial emergency has been rectified, the emergency manager has adopted a 2-year budget as required under section 21, and the financial conditions of the local government have been corrected in a sustainable fashion as required under section 9(7), the governor may do either of the following:

    (a) Remove the local government from receivership.

    (b) Appoint a receivership transition advisory board as provided in section 23.

    (4) Before removing a local government from receivership, the governor may impose 1 or more of the following conditions on the local government:

    (a) The implementation of financial best practices within the local government.

    (b) The adoption of a model charter or model charter provisions.

    (c) Pursue financial or managerial training to ensure that official responsibilities are properly discharged.

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.

     (c) 1851 PA 156, MCL 46.1 to 46.32.

     (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 5 cases, 2015–2019 · 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× “MCL 141.1562(1) and (2). Under the totality of these circumstances, the core nature of the emergency manager may be characterized as an administrative officer of state government.”
Kincaid v. City of Flint, 874 N.W.2d 193 (Mich. Ct. App. 2015). “1549 through MCL 141.1562 under 2012 PA 436 . Of all the powers granted to the EM, ratification is not one of them.”
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.”
Natasha Henderson v. City of Flint, Mich. (6th Cir. 2018). “See Mich. Comp. Laws § 141.1562 . To facilitate such transitions, emergency managers are authorized to recommend to the Michigan governor when municipalities are ready to transition out of emergency management.”
Lawrence Washington Jr v. Governor (Mich. Ct. App. 2019). “1549(5), requiring an emergency manager to submit quarterly reports to the state treasurer; and MCL 141.1562 requiring the governor to review and approve a determination by the emergency manager whether the financial emergency has been rectified.”
— Mich. Comp. Laws § 141.1562(1) — 1 case
Melissa Mays v. Governor Rick Snyder, 916 N.W.2d 227 (Mich. Ct. App. 2018). “MCL 141.1562(1) and (2). Under the totality of these circumstances, the core nature of the emergency manager may be characterized as an administrative officer of state government.”
— Mich. Comp. Laws § 141.1562(3) — 2 cases
Melissa Mays v. Governor Rick Snyder, 916 N.W.2d 227 (Mich. Ct. App. 2018). “MCL 141.1562(1) and (2). Under the totality of these circumstances, the core nature of the emergency manager may be characterized as an administrative officer of state government.”
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.”
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