Wow.
Scanned it. The list of things that might trigger state take over boils down to, in essence, "anything that the state might find even slightly disturbing". Sections "a" through "r" detail the conditions under which this can be done. Most seem reasonable, such as bond defaults, written requests for reviews by appropriate people, but then the section "r" states:
Basically: "Whatever we determine relevant at our discretion".The existence of other facts or cir stances that in the
7 state treasurer's sole discretion for a municipal government are
8 indicative of municipal financial stress, or, that in the
9 superintendent of public instruction's sole discretion for a school
10 district are indicative of school district financial stress.
That triggers a review, then a corrective plan embodied by a "consent agreement" shall be negotatied with local officials:
So there must be a consent plan voted on by local officials. If local officials decline to approve one that can be one of the four "findings" of the governor's review panel:In order for the consent agreement to go into effect, it
15 shall be approved, by resolution, by the governing body of the
16 local government and shall be approved and executed by the state
17 financial authority.
The governor can then declare a mandatory receivership, subject to some appeal and judicial review.(c) A local government financial emergency exists
23 as provided in section 14 and no satisfactory plan exists to
24 resolve the emergency.
The state then goes in and cleans things up.
What it does is essentially puts the backing of the state of behind all of its poltical subdivisions, and provides a mechanism to enforce some discipline.
This is not exactly a power that can be exercised capriciously on a whim for the most part, IMO, mostly due to the appeals/judicial review section that seems to be written to avoid
One then has to put faith that a poltiically sympathetic judge would not stand behind such an action.7 (b) Arbitrary, capricious, or clearly an abuse or unwarranted
8 exercise of discretion.

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They won...

