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Michigan lawmakers move forward with new emergency manager law

LANSING, Mich. -- Michigan lawmakers approved a replacement for the state's emergency manager law.

The new proposal known as "The Local Financial Stability and Choice Law" was introduced on Wednesday.

It gives communities and school districts several choices in a financial emergency.

  • They can accept an emergency manager
  • File for bankruptcy
  • Mediation
  • Consent agreement with the state

A Michigan House committee passed the plan nine to five.

The law will move forward to the Michigan State House for consideration.

Voters rejected the previous emergency manager law in November.

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