The state House is holding hearings this week on a package of bills that would allow the state treasurer to appoint corporations to replace the elected governments of towns in fiscal crisis.
The legislation before the House Local, Intergovernmental and Regional Affairs Committee allows the state treasurer and state superintendent to appoint firms rather than individuals to take over insolvent municipalities and school systems.
The proposed law gives emergency financial managers the power to cancel existing labor contracts, suspend collective bargaining for up to five years, and remove officials from office and prohibit them from seeking office for 10 years.
Emergency financial managers would also get power to restructure local government, exclude elected officials from meetings and sell, lease or otherwise use local government assets to pay off debt, according to a House Fiscal Agency analysis.
The bills also make it easier for the treasurer to appoint an emergency financial manager.