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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 of the7
Legislature and to provide that such provisions shall be applied prospectively only8
and shall not be 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 HLS 14RS-2534 ENGROSSED
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records, documents, films, tapes, and other forms of recordation of the political1
subdivision or, as they relate to such political subdivision, of the state.2
* * *3
(3) The fiscal administrator, subject to approval of the court, shall have4
authority to direct all fiscal operations of the political subdivision and to take5
whatever action he deems necessary to return the political subdivision to financial6
stability in accordance with all applicable laws, rules, regulations, and policies with7
which the political subdivision must comply. Such authority shall include but not8
be limited to authority to take one or more of the following actions:9
* * *10
(h) Reorganize, consolidate, or abolish departments, commissions,11
authorities, boards, offices, or functions of the political subdivision, and if any such12
action is taken, appoint, remove, supervise, and control personnel affected by such13
action.14
* * *15
B.(1) During the course of his investigation, the fiscal administrator shall file16
a written status report with the political subdivision on the last day of each month.17
The report shall include a summary of his activities and findings for the month,18
together with a proposed schedule of activities for the remainder of the investigation.19
(2)(a) After his investigation is completed, the fiscal administrator shall file20
a written report with the court, the governing authority of the political subdivision,21
the state treasurer, the attorney general, and the legislative auditor.22
(2) (b) The report shall contain the following:23
(a) (i) An estimate of the revenue and expenditures of the political24
subdivision for the remainder of its current fiscal year and the fiscal year following.25
(b) (ii) Amendments to the comprehensive budget of the political26
subdivisions adopted pursuant to R.S. 39:1309, or a proposed comprehensive budget27
if such budget has not been previously adopted, which will insure ensure that28
payments of debt service are a priority budget item and that they will be timely made29 HLS 14RS-2534 ENGROSSED
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by the political subdivision during the remainder of the current fiscal year and the1
fiscal year following or such amendments which will insure ensure having sufficient2
revenue to pay current expenditures, excluding civil judgments, or, in the case of a3
city, parish, or other local public school board, such amendments which will insure4
ensure resolving its status as financially at risk as that status has been defined by rule5
by the State Board of Elementary and Secondary Education.6
(c)(iii) An estimate of the financial aid or new revenue which may be needed7
by the political subdivision if the fiscal administrator determines that revenues of the8
political subdivision are, or will be, insufficient to insure ensure both timely9
payments of debt service as a priority over items in the budget, and a reduced, but10
adequate, funding level for other needs of the political subdivision or as is needed11
to have sufficient revenue to pay current expenditures, excluding civil judgments, or,12
in the case of a city, parish, or other local public school board, as is needed to resolve13
its status as financially at risk as that status has been defined by rule by the State14
Board of Elementary and Secondary Education.15
(d)(iv) A recommendation as to whether the political subdivision should be16
permitted to file a petition in a court of bankruptcy of the United States in order to17
provide for a readjustment of its debts.18
* * *19
Section 2. R.S. 39:1352(A)(3)(e) is hereby repealed in its entirety.20
Section 3. The provisions of Act No. 336 of the 2013 Regular Session of the21
Legislature, which were effective on August 1, 2013, shall be applicable prospectively from22
and after that date and shall not be applied retroactively.23
Section 4. This Act shall become effective upon signature by the governor or, if not24
signed by the governor, upon expiration of the time for bills to become law without signature25
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If26
vetoed by the governor and subsequently approved by the legislature, this Act shall become27
effective on the day following such approval.28 HLS 14RS-2534 ENGROSSED
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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 R.S. 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 ENGROSSED
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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))