Michigan Gov. Rick Snyder last week signed into law a bill for fiscally distressed governments, replacing a controversial former law that voters overturned in a November ballot referendum.

The new law, Public Act 436, is set to take effect on March 27, 2013. It restores many of the state's former powers to control governments that are found to be in a state of financial emergency, including an emergency manager's authority to terminate or amend labor contracts. The new law also allows local officials to request to file for Chapter 9 bankruptcy, an option that the state has never allowed.

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