Alternative to emergency manager law approved by state House panel

LANSING, Mich. (AP) - A proposed replacement for an emergency manager law rejected by Michigan voters has been approved by a state House panel.  

The House Local, Intergovernmental and Regional Affairs Committee voted 9-5 Thursday along party lines with one "pass" vote on what's known as The Local Financial Stability and Choice Act. The legislation now goes to the full House for consideration.

Republican Gov. Rick Snyder and legislative leaders unveiled it on Wednesday. The plan gives four choices to communities and school districts found to be in a financial emergency: accept an emergency manager, bankruptcy, mediation or a consent agreement with the state like the one in Detroit.

Voters decisively rejected Proposal 1 in November. The state since has been operating under a previous law that gives managers fewer powers.

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