A month after voters overturned Michigan’s controversial emergency management law, lawmakers last week passed new legislation that restores many of the state’s powers over distressed local governments and features a new focus on Chapter 9 bankruptcy as an early option. If signed into law by Gov. Rick Snyder as expected, the legislation will take effect in late March. The law comes as Detroit teeters on the edge of insolvency, with the municipal finance world watching to see if it will be the largest American city to file for Chapter 9. But despite the new law’s emphasis on bankruptcy as an option to deal with a financial emergency, it will likely remain a last resort for Detroit and many other local governments struggling across the state, experts said.