HLS 14RS-6178 ORIGINAL
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Regular Session, 2014
HOUSE RESOLUTION NO. 223
BY REPRESENTATIVE BARROW
LOCAL FINANCE: Requests the House Committee on Municipal, Parochial and Cultural
Affairs to study and make recommendations relative to the duties and responsibilities
that fiscal administrators have while investigating the financial stability of political
subdivisions of the state
A RESOLUTION1
To urge and request the House Committee on Municipal, Parochial and Cultural Affairs to2
study and make recommendations relative to the duties and responsibilities that fiscal3
administrators have while investigating the financial stability of political4
subdivisions of the state of Louisiana.5
WHEREAS, the Great Recession has caused a significant decrease in state aid to6
local governments and during the same time period property tax revenues also have7
declined; and8
WHEREAS, the loss of revenue has had a devastating impact on local governments9
as the demand for government services has increased, driven by consistently high10
unemployment rates, population changes, and other factors; and 11
WHEREAS, many local governments, including some of the nation's largest cities,12
are facing heightened fiscal stress and are unable to meet their financial responsibilities13
causing some to file for bankruptcy; and14
WHEREAS, over the years, several states have been proactive in establishing15
intervention programs in order to help local governments avoid financial disaster while16
others have held to a long-standing tradition of leaving it up to local officials to fix their17
broken finances; and18
WHEREAS, R.S. 39:1351 et seq. requires the attorney general, to file a rule to19
appoint a fiscal administrator for a political subdivision of the state of Louisiana if the20 HLS 14RS-6178 ORIGINAL
HR NO. 223
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legislative auditor, the attorney general, and the state treasurer decide that a political1
subdivision is reasonably certain to not have sufficient revenue to pay current expenditures,2
excluding civil judgments, or to fail to make a debt service payment; and3
WHEREAS, R.S. 39:1351 et seq. requires the court to appoint a fiscal administrator4
when a political subdivision has failed to provide an audit required by law to the legislative5
auditor for a period of three consecutive fiscal years; and6
WHEREAS, R.S. 39:1351 et seq. grants the fiscal administrator, subject to approval7
of the court, authority to direct all fiscal operations of the political subdivision and to take8
whatever action he deems necessary to return the political subdivision to financial stability9
including the authority to appoint, remove, supervise, and control all personnel and to10
reorganize, consolidate, or abolish departments, commissions, authorities, boards, offices,11
or functions; and12
WHEREAS, R.S. 39:1351 et seq. requires the fiscal administrator to file a report with13
the court after his investigation containing specified estimates, proposals, and14
recommendations and to file other reports the court requires; and15
WHEREAS, House Bill No. 1164 of the 2014 Regular Session of the Legislature16
proposes to amend R.S. 39:1352(A)(3)(h) and to repeal R.S. 39:1352(A)(3)(e) in order to17
limit the powers granted to the fiscal administrator by authorizing him to appoint, remove,18
supervise, and control all personnel only if he takes action to reorganize, consolidate, or19
abolish departments, commissions, authorities, boards, offices, or functions; and20
WHEREAS, House Bill No. 1164 of the 2014 Regular Session of the Legislature also21
proposes to amend R.S. 39:1352(A)(1) and (B)(1) to require the fiscal administrator, during22
his investigation, to file a written status report with the political subdivision on the last day23
of each month and further to require him to complete his investigation within six months if24
the political subdivision has an annual budget of five hundred thousand dollars or less; and25
WHEREAS, although the state of Louisiana has a vested interest in the financial26
stability of its local governments, the state should be careful not to infringe upon the rights27
of the citizens of its local governments by granting too much power to fiscal administrators28
and taking too much power away from the local officials elected by those citizens and29
arguably leaving them without representation.30 HLS 14RS-6178 ORIGINAL
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THEREFORE, BE IT RESOLVED that the House of Representatives of the1
Legislature of Louisiana does hereby urge and request the House Committee on Municipal,2
Parochial and Cultural Affairs to study and make recommendations relative to the duties and3
responsibilities that fiscal administrators have while investigating the financial stability of4
political subdivisions of the state of Louisiana.5
BE IT FURTHER RESOLVED that the committee shall report its findings and6
recommendations to the legislature not later than sixty days prior to the convening of the7
2015 Regular Session of the Legislature.8
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)]
Barrow HR No. 223
Requests the House Committee on Municipal, Parochial and Cultural Affairs to study and
make recommendations relative to the duties and responsibilities that fiscal administrators
have while investigating the financial stability of political subdivisions of the state. Provides
for a report of study findings and recommendations at least 60 days prior to the 2015 R.S.