HLS 14RS-2534 ORIGINAL
Page 1 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2014
HOUSE BILL NO. 1164
BY REPRESENTATIVE KATRINA JACKSON
LOCAL FINANCE: Provides relative to fiscal administrators, including provisions for their
powers and duties and prohibition of retroactive application of certain provisions of
law relative to fiscal administrators
AN ACT1
To amend and reenact R.S. 39:1352(A)(1) and (3)(h) and (B)(1) and (2) and to repeal R.S.2
39:1352(A)(3)(e), relative to fiscal administrators for political subdivisions; to3
provide relative to the powers and duties of fiscal administrators; to provide relative4
to investigations of political subdivisions by fiscal administrators, including time5
limits and reports; to provide for powers of fiscal administrators related to personnel;6
to provide relative to provisions of Act No. 336 of the 2013 Regular Session and to7
provide that such provisions shall be applied prospectively only and shall not be8
applied retroactively; and to provide for related matters.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 39:1352(A)(1) and (3)(h) and (B)(1) and (2) are hereby amended and11
reenacted to read as follows:12
ยง1352. Duties of a fiscal administrator13
A.(1) A fiscal administrator shall perform such investigation of the financial14
affairs of the political subdivision as he deems necessary. If the political subdivision15
has an annual budget of less than five hundred thousand dollars, he shall complete16
the investigation in six months or less. He shall have access to all papers, books,17
records, documents, films, tapes, and other forms of recordation of the political18
subdivision or, as they relate to such political subdivision, of the state.19 HLS 14RS-2534 ORIGINAL
HB NO. 1164
Page 2 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
* * *1
(3) The fiscal administrator, subject to approval of the court, shall have2
authority to direct all fiscal operations of the political subdivision and to take3
whatever action he deems necessary to return the political subdivision to financial4
stability in accordance with all applicable laws, rules, regulations, and policies with5
which the political subdivision must comply. Such authority shall include but not6
be limited to authority to take one or more of the following actions:7
* * *8
(h) Reorganize, consolidate, or abolish departments, commissions,9
authorities, boards, offices, or functions of the political subdivision, and if any such10
action is taken, appoint, remove, supervise, and control personnel affected by such11
action.12
* * *13
B.(1) During the course of his investigation, the fiscal administrator shall file14
a written status report with the political subdivision on the last day of each month.15
The report shall include a summary of his activities and findings for the month,16
together with a proposed schedule of activities for the remainder of the investigation.17
(2)(a) After his investigation is completed, the fiscal administrator shall file18
a written report with the court, the governing authority of the political subdivision,19
the state treasurer, the attorney general, and the legislative auditor.20
(2) (b) The report shall contain the following:21
(a) (i) An estimate of the revenue and expenditures of the political22
subdivision for the remainder of its current fiscal year and the fiscal year following.23
(b) (ii) Amendments to the comprehensive budget of the political24
subdivisions adopted pursuant to R.S. 39:1309, or a proposed comprehensive budget25
if such budget has not been previously adopted, which will insure that payments of26
debt service are a priority budget item and that they will be timely made by the27
political subdivision during the remainder of the current fiscal year and the fiscal28
year following or such amendments which will insure having sufficient revenue to29 HLS 14RS-2534 ORIGINAL
HB NO. 1164
Page 3 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
pay current expenditures, excluding civil judgments, or, in the case of a city, parish,1
or other local public school board, such amendments which will insure resolving its2
status as financially at risk as that status has been defined by rule by the State Board3
of Elementary and Secondary Education.4
(c)(iii) An estimate of the financial aid or new revenue which may be needed5
by the political subdivision if the fiscal administrator determines that revenues of the6
political subdivision are, or will be, insufficient to insure both timely payments of7
debt service as a priority over items in the budget, and a reduced, but adequate,8
funding level for other needs of the political subdivision or as is needed to have9
sufficient revenue to pay current expenditures, excluding civil judgments, or, in the10
case of a city, parish, or other local public school board, as is needed to resolve its11
status as financially at risk as that status has been defined by rule by the State Board12
of Elementary and Secondary Education.13
(d)(iv) A recommendation as to whether the political subdivision should be14
permitted to file a petition in a court of bankruptcy of the United States in order to15
provide for a readjustment of its debts.16
* * *17
Section 2. R.S. 39:1352(A)(3)(e) is hereby repealed in its entirety.18
Section 3. The provisions of Act No. 336 of the 2013 Regular Session, which was19
effective on August 1, 2013, shall be applicable prospectively from and after that date and20
shall not be applied retroactively.21
Section 4. This Act shall become effective upon signature by the governor or, if not22
signed by the governor, upon expiration of the time for bills to become law without signature23
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If24
vetoed by the governor and subsequently approved by the legislature, this Act shall become25
effective on the day following such approval.26 HLS 14RS-2534 ORIGINAL
HB NO. 1164
Page 4 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Katrina Jackson HB No. 1164
Abstract: Relative to fiscal administrators for political subdivisions, provides for time
limits on and reports of investigations by fiscal administrators, limits certain powers
of fiscal administrators related to personnel, and provides that Act No. 336 of the
2013 Regular Session shall not be applied retroactively.
Present law provides relative to fiscal administrators for political subdivisions. Provides for
appointment of a fiscal administrator for a political subdivision if the political subdivision
is: (1) reasonably certain to fail to make a debt service payment; (2) reasonably certain to
not have sufficient revenue to pay current expenditures, excluding civil judgments; (3) in the
case of a local public school board, reasonably certain to fail to resolve its status as
financially at risk as that status has been defined by BESE rule; or (4) when a political
subdivision has failed to provide an audit required by law to the legislative auditor for a
period of three consecutive fiscal years, unless the political subdivision provides sufficient
evidence to establish that the political subdivision has an audit for one or more of three such
years. Present law provides for the powers of a fiscal administrator, including an
investigation of the fiscal affairs of the political subdivision and issuance of a report and
authority to direct all fiscal operations of the political subdivision and to take action to return
the political subdivision to financial stability. Provides for budget changes by the political
subdivision. Provides for further monitoring of revenues and expenditures and for
termination of appointment of the fiscal administrator. Provides for violations and penalties.
Present law provides that a fiscal administrator shall perform such investigation of the
financial affairs of the political subdivision as he deems necessary. Proposed law provides,
if the political subdivision has an annual budget of less than $500,000, that the fiscal
administrator shall complete the investigation in six months or less.
Present law provides that the fiscal administrator, subject to approval of the court, shall have
authority to direct all fiscal operations of the political subdivision and to take whatever
action he deems necessary to return the political subdivision to financial stability in
accordance with all applicable laws, rules, regulations, and policies with which the political
subdivision must comply. Provides that his authority includes (among others) authority to:
(1) appoint, remove, supervise, and control all personnel and (2) reorganize, consolidate, or
abolish departments, commissions, authorities, boards, offices, or functions of the political
subdivision. Proposed law limits such personnel authority by providing that if the fiscal
administrator reorganizes, consolidates or abolishes departments, commissions, authorities,
boards, offices, or functions, he may appoint, remove, supervise, and control personnel
affected by such action.
Present law requires, after his investigation, that the fiscal administrator file a written report
with the court, the governing authority of the political subdivision, the state treasurer, the
attorney general, and the legislative auditor and specifies its contents. Proposed law retains
present law and additionally requires that, during the course of his investigation, the fiscal
administrator file a written status report with the political subdivision on the last day of each
month and that this report include a summary of his activities and findings for the month,
together with a proposed schedule of activities for the remainder of the investigation.
Proposed law provides that Act No. 336 of the 2013 R.S., which was effective on August 1,
2013, shall be applicable prospectively from and after that date and shall not be applied
retroactively. Act No. 336 of the 2013 R.S. substantially amended the law relative to fiscal HLS 14RS-2534 ORIGINAL
HB NO. 1164
Page 5 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
administrators, including adding provisions for financial instability and appointment of a
fiscal administrator for failure to file an audit with the legislative auditor for three
consecutive years, for fiscal administrator authority to direct all fiscal operations of the
political subdivision and to take action to return the political subdivision to financial
stability, for local personnel to provide information and materials to the fiscal administrator,
and for violations and penalties.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 39:1352(A)(1) and (3)(h) and (B)(1) and (2); Repeals R.S. 39:1352(A)(3)(e))