Emergency Manager Law: Why Was It Created?

why was the emergency manager law created

The Emergency Manager Law, also known as Public Act 4, was created in 2011 in Michigan to address financial emergencies in local governments. The law allows for the appointment of an Emergency Manager (previously called an Emergency Financial Manager under Public Act 72 of 1990) to take control of the local government if a financial emergency is declared and local officials do not have a viable plan to address it. This law has been controversial, with critics arguing that it disproportionately impacts the political rights of people of color in cities like Detroit, Flint, and Pontiac. The ACLU of Michigan has challenged the law, arguing that it violates international law and results in racial discrimination.

Characteristics Values
Purpose To coordinate the response to a disaster that has occurred in the United States and that overwhelms the resources of local and state authorities
History The concept of federal emergency management has been recognised as a need for over two centuries. The earliest instance of federal involvement was in 1803 when Congress passed legislation providing relief for Portsmouth merchants after a series of fires.
Instances The financial emergency status and the Emergency Financial Manager (EFM) position were created in 1988 for the specific emergency in Hamtramck.
Amendments Public Act 101 was amended by Public Act 72 in 1990, allowing an Emergency Financial Manager to be appointed for any local government unit.
Impact The installation of emergency managers in cities like Pontiac, Flint, Benton Harbor, and Detroit disproportionately impacted the political rights of people of color.
Legal Challenges The ACLU of Michigan filed a brief in 2013, arguing that the declaration of a state of emergency allowing the suspension of political rights is permissible only during emergencies that "threaten the life of the nation."
Appeals The ACLU of Michigan joined the plaintiffs' legal team but the Sixth Circuit affirmed the dismissal in 2016. The U.S. Supreme Court denied the petition in 2017.

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The Emergency Manager Law's impact on people of colour

The Emergency Manager Law, also known as Public Act 436, grants unelected "emergency managers" the authority to supersede or dissolve local governments and school boards. The law was enacted in 2011, replacing Public Act 72 of 1990, which itself amended Public Act 101 of 1988.

The Emergency Manager Law has had a significant impact on people of colour in Michigan. The law has been criticised for disproportionately affecting the political rights of people of colour in cities like Pontiac, Flint, Benton Harbor, River Rouge, Highland Park, and Detroit. These cities have a significant population of people of colour, and the appointment of emergency managers has been seen as an infringement on their democratic rights.

The American Civil Liberties Union (ACLU) of Michigan challenged the law in court, arguing that it violated international law's prohibition on practices with the "purpose or effect" of racial discrimination. They contended that the ""emergencies" in these cities did not meet the international standard of threatening "the life of the nation", which is required to suspend political rights. Despite their efforts, the case was dismissed by Judge George Caram Steeh in 2014, and subsequent appeals to higher courts were unsuccessful.

The impact of the Emergency Manager Law on people of colour in Michigan has been profound. It has led to the displacement of local governments and school districts with significant populations of colour, raising concerns about racial discrimination and the infringement of political rights. The law's implementation highlights the complex dynamics of racial equity and democratic representation in emergency management contexts.

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The law's relation to international law

The Emergency Manager Law, as outlined in Public Act 436, grants "emergency managers" the authority to supersede or disband local governments and school districts. This law has been challenged in court by civil rights groups, including the ACLU of Michigan, which argued that it contravenes international law.

International law permits the declaration of a state of emergency, allowing for the suspension of certain political rights, only when there is an emergency that poses a threat to the life of the nation. Examples of such emergencies include terrorist activities, general strikes, natural disasters, economic collapse, and civil war. The application of the Emergency Manager Law in Michigan cities like Detroit continued to function despite economic challenges, has been questioned as it does not meet the criteria for a state of emergency under international law.

Furthermore, the implementation of the Emergency Manager Law has been criticised for its disproportionate impact on the political rights of people of colour, conflicting with international law's prohibition of practices with the "purpose or effect" of racial discrimination.

In the context of public health emergencies, such as the COVID-19 pandemic, emergency management legal systems play a crucial role in balancing public interests and civil rights protection. Scholars argue that administrative emergency powers and formal emergency laws are necessary to mitigate the impact of emergencies and restore normalcy while safeguarding citizens' legitimate rights.

Additionally, the International Emergency Economic Powers Act (IEEPA) is a US federal law that grants the President broad authority to respond to specific national emergencies, such as imposing sanctions on foreign countries or entities. However, the IEEPA's scope regarding informational materials and freedom of expression has been a subject of debate and legal challenges.

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The financial emergency status

The process of declaring a financial emergency and appointing an EM is detailed and structured. Initial triggers for a financial review include failure to pay debts, failure to pay employee salaries, or requests by local residents or officials. If a financial emergency is suspected, a panel may recommend a consent agreement if local officials have a viable plan to rectify the situation. Otherwise, the panel may recommend the appointment of an EM to assume control of the local government. The governor has 10 days to make this decision, and the local government then has seven days to request a hearing to appeal.

The EM files a plan with the state, and the local governing board may propose an alternative plan for the Local Emergency Financial Board to consider. After one year, a 2/3 vote of the governing body can remove the EM, who is paid by the state government. A transition advisory board may be appointed to oversee the finances of a governmental unit after an EM departs.

The appointment of EMs in Michigan cities like Detroit, Flint, and Pontiac has been criticized for disproportionately impacting the political rights of people of color. The American Civil Liberties Union (ACLU) of Michigan has challenged the implementation of the emergency manager law, arguing that it violates international law's prohibition of practices with the "purpose or effect" of racial discrimination.

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The role of the emergency manager

The position of Emergency Financial Manager (EFM) was first created in 1988 for a specific emergency in Hamtramck, Michigan. The role was amended in 1990 to allow an EFM to be appointed for any local governmental unit. In 2011, the position was renamed Emergency Manager (EM) and given additional authority.

Emergency managers are paid by the state government, and they can be removed after one year by a two-thirds vote of the governing body. A transition advisory board may be appointed after an emergency manager leaves to oversee the finances of the governmental unit.

The Federal Emergency Management Agency (FEMA) is a U.S. agency that coordinates responses to disasters that overwhelm local and state authorities. FEMA became part of the Department of Homeland Security (DHS) in 2003, which was created to coordinate the efforts of different federal agencies dealing with law enforcement, disaster preparedness, recovery, border protection, and civil defense.

FEMA has been criticized for its slow response to disasters, such as Hurricane Andrew in 1992, which left approximately 250,000 people homeless. However, it has also led successful public-private partnerships to create a National Donations Management Program, making it easier for corporations and individuals to offer free assistance to states and the federal government in times of disaster.

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The history of emergency management in the US

In the following decades, an ad hoc approach to emergency management was adopted, with Congress providing relief over 100 times for well-known disasters such as the great fires of New York City (1835) and Chicago (1871), the 1900 hurricane that hit Galveston, Texas, and the 1906 San Francisco earthquake. During the 1930s, the federal government incorporated disaster relief into its legislation to rebuild the economy, providing federal funds for the reconstruction of public facilities, highways, and bridges damaged by natural disasters.

In the 1950s, emergency management was dominated by wartime civil defence activities, with the government focusing on preparing the country for a potential nuclear attack. The 1960s and early 1970s saw a series of massive hurricanes and earthquakes that brought natural disaster relief to the forefront of public attention. The Federal Disaster Assistance Administration led major federal responses to several disasters during this period, including Hurricane Camille (1969) and the San Fernando Earthquake (1971).

The Federal Emergency Management Agency (FEMA), an agency of the United States Department of Homeland Security (DHS), was initially created under President Jimmy Carter in 1978 and implemented in 1979. FEMA's primary purpose is to coordinate responses to disasters that overwhelm state authorities. The governor of the affected state must declare a state of emergency and formally request FEMA and federal government assistance.

FEMA has faced criticism for its response to certain disasters, such as Hurricane Andrew in 1992, where it was accused of not acting swiftly enough to provide relief to those affected. In 2001, FEMA's capabilities were tested by the September 11 terrorist attacks, which exposed weaknesses in the government's coordination of emergency and disaster responses. In 2002, Congress passed the Homeland Security Act, creating the Department of Homeland Security to better coordinate federal agencies' disaster preparedness and response. FEMA was absorbed into the DHS in 2003, becoming part of the department's Emergency Preparedness and Response Directorate.

Frequently asked questions

An emergency manager is a state-appointed receiver who is in charge of taking control of the local government in the event of a financial emergency.

The financial emergency status, along with the Emergency Financial Manager (EFM) position, was first created in Public Act 101 of 1988 for a specific emergency in Hamtramck. Public Act 72 of 1990 amended this, allowing an EFM to be appointed for any local government unit.

Public Act 4 of 2011 replaced Public Act 72, renaming the position to Emergency Manager (EM) and giving the manager additional authority.

The installation of emergency managers in cities like Pontiac, Flint, Benton Harbor, and Detroit disproportionately impacts the political rights of people of color. The ACLU of Michigan has also argued that the nature and quality of the "emergencies" do not justify the suspension of political rights under international law.

If a financial emergency exists, the local government is given four different choices: a consent agreement, Chapter 9 bankruptcy, mediation, or an emergency manager.

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