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
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))