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Senate agrees to substitute creating distressed-municipality process and court-appointed receivership after heated debate
Summary
The Senate agreed to a house substitute for Senate Bill 17 that defines criteria for declaring municipalities 'distressed' and requires appointment of a court receiver under specified conditions. Supporters pointed to extreme municipal failures; opponents called it a state takeover of locally elected governments. The motion prevailed 32–17.
The Senate agreed to a substantial substitute for Senate Bill 17 that establishes a statutory process to identify "distressed municipalities" and directs superior courts to appoint a receiver when defined conditions are met. Backers said the measure provides legal tools to address municipal failures — examples cited included unpaid debts, broken utility systems, and missing audits — while critics said it strips local…
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