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2025 Regular Session
SENATE BILL NO. 54
BY SENATOR MIZELL
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
LOCAL AGENCIES. Provides for a limited fiscal administrator for political subdivisions.
(8/1/25)
1 AN ACT
2 To amend and reenact R.S. 39:1355 and 1356(E) and to enact R.S. 39:1358, 1358.1, 1358.2,
3 and 1358.3, relative to fiscal administrators; to provide relative to the appointment
4 of a limited jurisdiction fiscal administrator; to provide for the duties of a limited
5 jurisdiction fiscal administrator; to provide relative to budget amendments to address
6 emergencies; to provide for the termination of the appointment of limited jurisdiction
7 fiscal administrator; to provide relative to violations by an officer, official, or
8 employee of a political subdivision; to provide relative to penalties; and to provide
9 for related matters.
10 Be it enacted by the Legislature of Louisiana:
11 Section 1. R.S. 39:1355 and 1356(E) are hereby amended and reenacted and R.S.
12 39:1358, 1358.1, 1358.2, and 1358.3 are hereby enacted to read as follows:
13 §1355. Violations
14 In addition to other violations of this Chapter, it shall be a violation of this
15 Chapter for any officer, official, or employee of a political subdivision:
16 (1) To neglect, fail, or refuse to furnish the fiscal administrator or limited
17 jurisdiction fiscal administrator with such papers, accounts, books, documents,
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1 films, tapes, and other forms of recordation, including but not limited to computer
2 and recording devices, whether confidential, privileged, or otherwise, that the fiscal
3 administrator or limited jurisdiction fiscal administrator has the right to inspect
4 and examine.
5 (2) To deny the fiscal administrator or limited jurisdiction fiscal
6 administrator access to the office, or to papers, accounts, books, documents, films,
7 tapes, and other forms of recordation, including but not limited to computer and
8 recording devices, whether confidential, privileged, or otherwise, that the fiscal
9 administrator has the right to inspect or examine.
10 (3) To refuse, fail, or neglect to transmit to the fiscal administrator or limited
11 jurisdiction fiscal administrator reports, statements of accounts, or other
12 documents upon request as provided by law.
13 (4) To obstruct or impede the fiscal administrator or limited jurisdiction
14 fiscal administrator, in any manner, in making the examination authorized by law.
15 §1356. Penalties
16 * * *
17 E. Neither costs nor attorney fees related to any legal action pursuant to
18 charges of misconduct or malfeasance or to any other matter related to or resulting
19 from the appointment of a fiscal administrator or limited jurisdiction fiscal
20 administrator initiated by either the political subdivision or an officer, official, or
21 employee of a political subdivision shall be reimbursed to an officer, official, or
22 employee of a political subdivision unless the officer, official, or employee is
23 acquitted or the suit is dismissed.
24 * * *
25 §1358. Appointment of a limited jurisdiction fiscal administrator
26 A.(1) The legislative auditor, the attorney general, and the state
27 treasurer, or his designee, shall meet to review the necessity for the appointment
28 of a limited jurisdiction fiscal administrator for political subdivisions of the
29 state to address emergencies affecting the fiscal stability and public health,
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1 safety, and welfare of the citizens of a political subdivision or the state.
2 (2) As used in this Chapter, a limited jurisdiction fiscal administrator
3 shall be a fiscal administrator whose oversight is limited to a specific
4 department or functions of a political subdivision necessary to address the
5 emergency affecting the fiscal stability and public health, safety, and welfare of
6 citizens of a political subdivision of the state.
7 (3) Grounds for appointment of a limited jurisdiction fiscal
8 administrator pursuant to this Chapter shall include, but not be limited to, the
9 inability of the political subdivision pursuant to R.S. 39:72.1 to receive state and
10 local funds or federal funds due to noncompliance with the audit law, R.S.
11 24:513 et seq.
12 (4) If it is determined by unanimous decision of the legislative auditor,
13 attorney general, and state treasurer at a public meeting to consider matters
14 that the appointment of a limited jurisdiction fiscal administrator is required
15 in order to address an emergency, the attorney general shall file a rule to
16 appoint a limited jurisdiction fiscal administrator as provided in this Chapter.
17 B. Upon making the decision authorized in Subsection A of this Section,
18 the attorney general shall, upon motion in the district court of the domicile of
19 the political subdivision, file a rule to show cause why a limited jurisdiction
20 fiscal administrator should not be appointed for the political subdivision as
21 provided in this Chapter. The hearing on the rule to show cause may be tried
22 out of term and in chambers, shall always be tried by preference, and shall be
23 held not less than ten, nor more than twenty days from the date the motion was
24 filed. If the political subdivision consents to the appointment of a limited
25 jurisdiction fiscal administrator, then the parties shall file a joint motion and
26 a consent judgment the for the appointment of a limited jurisdiction fiscal
27 administrator for the political subdivision within forty-five days. The court shall
28 appoint a limited jurisdiction fiscal administrator according to the terms of the
29 consent judgment within twenty days from the date that the joint motion and
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1 consent judgment were filed.
2 C.(1) The trial court, in the absence of a joint motion and consent
3 judgment, shall appoint a limited jurisdiction fiscal administrator in the
4 following instances:
5 (a) If after a hearing, the court finds by a preponderance of the evidence
6 from the facts and evidence that the political subdivision is reasonably certain
7 to be unable to address an emergency affecting the fiscal stability and public
8 health, safety, and welfare of the citizens of a political subdivision or the state.
9 (b) If a political subdivision is prohibited from receiving state or local
10 assistance or federal funds necessary to address an emergency affecting public
11 health, safety, or welfare of the citizens of a political subdivision or the state
12 pursuant to R.S. 39:72.1.
13 (2) The limited jurisdiction fiscal administrator shall be recommended
14 by the legislative auditor and attorney general and approved by the court as
15 having sufficient education, experience, and qualifications to perform the duties
16 of limited jurisdiction fiscal administrator as provided in this Chapter.
17 (3) The limited jurisdiction fiscal administrator appointed pursuant to
18 this Chapter shall be subject to indemnification as a covered individual as
19 defined in R.S. 13:5108.1.
20 (4) All costs and expenses associated with the independent limited
21 jurisdiction fiscal administration of a political subdivision, including but not
22 limited to all costs and expenses incurred by the limited jurisdiction fiscal
23 administrator, legislative auditor, attorney general, state treasurer, and any
24 other person involved with the independent limited jurisdiction fiscal
25 administration of a political subdivision shall be assessed to the political
26 subdivision subject to independent limited jurisdiction fiscal administration.
27 D. A limited jurisdiction fiscal administrator may be removed by the
28 court only by request of the fiscal administrator, or as provided in R.S.
29 39:1354.1, or for fraud, negligence, or misconduct.
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1 §1358.1. Duties of a limited jurisdiction fiscal administrator
2 A.(1) The limited jurisdiction fiscal administrator shall have access to all
3 papers, books, records, documents, films, tapes, and other forms of recordation
4 of the political subdivision or, as related to the political subdivision of the state
5 or emergency.
6 (2) The limited jurisdiction fiscal administrator, subject to state law,
7 shall have authority to direct all fiscal operations of departments and functions
8 of the political subdivision and to take whatever action he considers necessary
9 to address an emergency affecting public health, safety, or welfare of the
10 citizens of a political subdivision or the state. The limited jurisdiction fiscal
11 administrator's authority shall include but not be limited to, authority to take
12 one or more of the following actions as necessary to address the emergency:
13 (a) Amend, formulate, and execute the annual budget and supplemental
14 budgets of the political subdivision.
15 (b) Amend, formulate, and execute capital budgets, including authority
16 to amend borrowing authorization or finance or refinance debt in accordance
17 with law.
18 (c) Review and approve or disapprove all contracts for goods or services.
19 (d) Appoint, remove, supervise, and control all personnel.
20 (e) Alter or eliminate the responsibilities of officials, officers, or
21 employees of the political subdivision as required by the emergency.
22 (f) Employ, retain, and supervise managerial, professional, and clerical
23 staff necessary to carry out the limited jurisdiction fiscal administrator's
24 responsibilities.
25 (g) Reorganize, consolidate, or abolish departments, commissions,
26 authorities, boards, offices, or functions of the political subdivision.
27 (h) Make an appropriation, contract, expenditure, or loan, create a new
28 position, or fill a vacancy, or approve or disapprove any such action.
29 (3) Upon the appointment of a limited jurisdiction fiscal administrator,
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1 the officer, officials, and employees of the political subdivision shall serve in an
2 advisory capacity to the limited jurisdiction fiscal administrator concerning the
3 departments and functions necessary to address the emergency. The limited
4 jurisdiction fiscal administrator shall allow the officers, officials, and employees
5 to serve constituents and fulfill duties by providing advice to the fiscal
6 administrator on matters relating to the emergency. If a conflict arises, the
7 decision of the limited jurisdiction fiscal administrator shall prevail.
8 B.(1) Upon appointment by the court, the limited jurisdiction fiscal
9 administrator shall perform an investigation and file a written report of his
10 findings with the court, the governing authority of the political subdivision,
11 state treasurer, attorney general, and legislative auditor. The report shall be
12 updated quarterly during the term of fiscal administration.
13 (2) The report shall contain the following:
14 (a) Amendments to the comprehensive budget of the political
15 subdivisions adopted pursuant to R.S. 39:1309, or a proposed comprehensive
16 budget if the budget has not been previously adopted, which insures
17 appropriation of funds to address the emergency.
18 (b) An estimate of the financial aid or new revenue needed by the
19 political subdivision if the limited jurisdiction fiscal administrator determines
20 that revenues and available funds of the political subdivision are, or will be,
21 insufficient to address the emergency.
22 (3) The final report shall also contain a proposed two-year plan with the
23 goal of resolving and addressing any further matters concerning the emergency.
24 (4) The limited jurisdiction fiscal administrator shall file any other
25 reports required by the court.
26 C. In order to perform the investigation and reporting required of the
27 limited jurisdiction fiscal administrator pursuant to this Chapter, the officers,
28 officials, and employees of the political subdivision shall provide within three
29 business days, all information the limited jurisdiction fiscal administrator
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1 requests in the performance of his duties. If the officer, official, or employee is
2 unable to provide the information within the required time, then the officer,
3 official, or employee shall send a written notice to the limited jurisdiction fiscal
4 administrator within the three business days of the reason why the information
5 has not been provided. If the officer, official, or employee fails to respond within
6 the three business days, or if the limited jurisdiction fiscal administrator fails
7 to receive the requested information, then the attorney general or his designee
8 shall file either or both of the following with the district court:
9 (1) A writ of mandamus to compel the officer or official to perform the
10 mandatory or ministerial duties.
11 (2) A motion for injunctive relief seeking to compel the officer, official,
12 or employee to act or refrain from acting, pending final resolution of the matter.
13 §1358.2. Adoption of budget amendments to address emergencies
14 A. Within seven days after receipt of the initial report, the governing
15 authority of the political subdivision shall adopt in an open meeting the
16 comprehensive budget, or amendments to the original comprehensive budget
17 of the political subdivision, as proposed in the report of the limited jurisdiction
18 fiscal administrator, which are necessary to address the emergency during the
19 remainder of the current fiscal year and the following fiscal year.
20 B. If the governing authority of the political subdivision fails to adopt the
21 budget or budget amendments, or if the revisions made by the governing
22 authority of the political subdivision are not approved by the limited
23 jurisdiction fiscal administrator, then the attorney general shall file a rule to
24 show cause in the manner provided in R.S. 39:1351.1, why the court should not
25 order the adoption and implementation of the budget without the unapproved
26 revisions. The court shall order the adoption and implementation of the budget
27 proposed by the limited jurisdiction fiscal administrator which includes the
28 revisions by the governing authority of the political subdivision, except the
29 revisions which the court finds with reasonable certainty that the political
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1 subdivision will not have sufficient funds to address the emergency.
2 §1358.3. Termination of appointment of limited jurisdiction fiscal administrator
3 A. The limited jurisdiction fiscal administrator shall monitor revenues
4 and expenditures of the political subdivision under the adopted budget and
5 make supplemental reports which he considers necessary, but not less than
6 required pursuant to R.S. 39:1352.1(B)(1), until the emergency has been
7 resolved. The supplemental reports shall be subject to adoption, approval, and
8 court review as provided in R.S. 39:1352.1.
9 B. The appointment of the limited jurisdiction fiscal administrator shall
10 terminate upon his own motion, or upon the motion of the attorney general or
11 the political subdivision, if the court finds that the emergency has been resolved.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Senate Legislative Services.
The keyword, summary, 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)]
DIGEST
SB 54 Original 2025 Regular Session Mizell
Proposed law provides that the legislative auditor, attorney general, and state treasurer, or
his designee, shall meet as often as deemed necessary to review the necessity for the
appointment of a limited jurisdiction fiscal administrator for political subdivisions of the
state to address emergencies affecting the fiscal stability and public health, safety, and
welfare of the citizens of a political subdivision or the state.
Proposed law provides that a limited jurisdiction fiscal administrator shall be a fiscal
administrator whose oversight is limited to a specific department or functions of a political
subdivision necessary to address the emergency affecting the fiscal stability and public
health, safety, and welfare of citizens of a political subdivision of the state.
Proposed law provides that the grounds for appointment of a limited jurisdiction fiscal
administrator pursuant to present law shall include, but not be limited to the inability of the
political subdivision pursuant to present law (R.S. 39:72.1) to receive state and local funds
or federal funds due to noncompliance with La. audit law.
Proposed law provides that if it is determined by the unanimous decision of the legislative
auditor, attorney general, and state treasurer at a public meeting to consider matters that the
appointment of a limited jurisdiction fiscal administrator is required in order to address an
emergency, the attorney general shall file a rule to show cause to appoint a limited
jurisdiction fiscal administrator.
Proposed law provides that upon making the decision authorized in proposed law, the
attorney general shall, on motion in the district court of the domicile of the political
subdivision, take a rule on the political subdivision to show cause why a limited jurisdiction
fiscal administrator should not be appointed for the political subdivision as provided in
proposed law.
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Proposed law provides that the hearing on the rule to show cause may be tried out of term
and in chambers, shall always be tried by preference, and shall be held not less than 10, nor
more than 20 days from the date the motion was filed.
Proposed law provides that, if the political subdivision consents to the appointment of a
limited jurisdiction fiscal administrator, then the parties shall file a joint motion and a
consent judgment for the appointment of a limited jurisdiction fiscal administrator for the
political subdivision within 45 days.
Proposed law provides that the court shall appoint a limited jurisdiction fiscal administrator
according to the terms of the consent judgment within 20 days from the date that the joint
motion and consent judgment were filed.
Proposed law provides that the trial court, in the absence of a joint motion and consent
judgement, shall appoint a limited jurisdiction fiscal administrator in the following instances:
(1) If after a hearing, the court finds by a preponderance of the evidence from the facts
and evidence that the political subdivision is reasonably certain to be unable to
address an emergency affecting the fiscal stability and public health, safety, and
welfare of the citizens of a political subdivision or the state.
(2) If a political subdivision is prohibited from receiving state or local assistance or
federal funds necessary to address an emergency affecting public health, safety, or
welfare of the citizens of a political subdivision or the state pursuant to present law.
Proposed law provides that the limited jurisdiction fiscal administrator appointed pursuant
to proposed law shall be subject to indemnification as a covered individual pursuant to
present law.
Proposed law provides that all costs and expenses associated with the independent limited
jurisdiction fiscal administration of a political subdivision, including but not limited to all
costs and expenses incurred by the limited jurisdiction fiscal administrator, legislative
auditor, attorney general, state treasurer, and any other person involved with the independent
limited jurisdiction fiscal administration of a political subdivision shall be assessed to the
political subdivision subject to independent limited jurisdiction fiscal administration.
Proposed law provides that the limited jurisdiction fiscal administrator shall be
recommended by the legislative auditor and attorney general and approved by the court as
having sufficient education, experience, and qualifications to perform the duties of limited
jurisdiction fiscal administrator.
Proposed law provides that a limited jurisdiction fiscal administrator may be removed by the
court only by request of the fiscal administrators, or as provided for in proposed law, or for
fraud, negligence, or misconduct.
Proposed law provides that the limited jurisdiction fiscal administrator shall have access to
all papers, books, records, documents, films, tapes, and other forms of recordation of the
political subdivision or, as related to the political subdivision of the state or emergency.
Proposed law provides that the limited jurisdiction fiscal administrator, subject to state law,
shall have authority to direct all fiscal operations of departments and functions of the
political subdivision and to take whatever action he deems necessary to address an
emergency affecting public health, safety, or welfare of the citizens of a political subdivision
or the state. The authority shall include but not be limited to authority to take one or more
of the following actions as necessary to address the emergency:
(1) Amend, formulate, and execute the annual budget and supplemental budgets of the
political subdivision.
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(2) Amend, formulate, and execute capital budgets, including authority to amend
borrowing authorization or finance or refinance debt in accordance with law.
(3) Review and approve or disapprove all contracts for goods or services.
(4) Appoint, remove, supervise, and control all personnel.
(5) Alter or eliminate the responsibilities of officials, officers, or employees of the
political subdivision as required by the emergency.
(6) Employ, retain, and supervise managerial, professional, and clerical staff necessary
to carry out the limited jurisdiction fiscal administrator's responsibilities.
(7)Reorganize, consolidate, or abolish departments, commissions, authorities, boards,
offices, or functions of the political subdivision.
(8) Make an appropriation, contract, expenditure, or loan, create a new position, fill a
vacancy, or approve or disapprove any such action.
Proposed law provides that upon the appointment of a limited jurisdiction fiscal
administrator, the officer, officials, and employees of the political subdivision shall serve in
an advisory capacity to the limited jurisdiction fiscal administrator concerning the
departments and functions necessary to address the emergency. If a conflict arises, the
decision of the limited jurisdiction fiscal administrators shall prevail.
Proposed law provides that upon appointment by the court, the limited jurisdiction fiscal
administrator shall perform an investigation and file a written report of his findings with the
court, governing authority of the political subdivision, state treasurer, attorney general, and
legislative auditor. The report shall be updated quarterly during the term of fiscal
administration.
Proposed law provides that the report shall contain the following:
(1) Amendments to the comprehensive budget of the political subdivisions adopted
pursuant to present law, or a proposed comprehensive budget if the budget has not
been previously adopted, which insures appropriation of funds to address the
emergency.
(2) An estimate of the financial aid or new revenue needed by the political subdivision
if the limited jurisdiction fiscal administrator determines that revenues and available
funds of the political subdivision are, or will be, insufficient to address the
emergency.
(3) The final report shall also contain a proposed two-year plan with the goal of
resolving and addressing any further matters concerning the emergency.
(4) The limited jurisdiction fiscal administrator shall file any other reports required by
the court.
Proposed law provides that in order to perform the investigation and reporting required of
the limited jurisdiction fiscal administrator pursuant to present law, the officers, officials,
and employees of the political subdivision shall provide within three business days, all
information the limited jurisdiction fiscal administrator requests in the performance of his
duties. If the officer, official, or employee is unable to provide the information within the
required time, then the officer, official, or employee shall send written notice within the
three business days of the reason why the information has not been provided to the limited
jurisdiction fiscal administrator. If the officer, official, or employee fails to respond within
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the three business days, or if the limited jurisdiction fiscal administrator fails to receive the
requested information, then the attorney general or his designee shall file either or both of
the following with the district court:
(1) A writ of mandamus to compel the officer or official to perform the mandatory or
ministerial duties.
(2) A motion for injunctive relief seeking to compel the officer, official, or employee to
act or refrain from acting, pending final resolution of the matter.
Proposed law provides that within seven days after receipt of the initial report, the governing
authority of the political subdivision shall adopt in an open meeting the comprehensive
budget, or amendments to the original comprehensive budget of the political subdivision,
as proposed in the report of the limited jurisdiction fiscal administrator which are necessary
to address the emergency during the remainder of the current fiscal year and the following
fiscal year.
Proposed law provides that if the governing authority of the political subdivision fails to
adopt the budget or budget amendments, or if the revisions made by the governing authority
of the political subdivision are not approved by the limited jurisdiction fiscal administrator,
then the attorney general shall file a rule to show cause in the manner provided for in
proposed law, why the court should not order the adoption and implementation of the budget
without the unapproved revisions. The court shall order the adoption and implementation of
the budget proposed by the limited jurisdiction fiscal administrator which includes the
revisions by the governing authority of the political subdivision, except the revisions which
the court finds with reasonable certainty that the political subdivision will not have sufficient
funds to address the emergency.
Proposed law provides that the limited jurisdiction fiscal administrator shall monitor
revenues and expenditures of the political subdivision under the adopted budget, and make
supplemental reports which he considers necessary, but not less than required pursuant to
proposed law, until the emergency has been resolved. The supplemental reports shall be
subject to adoption, approval, and court review as provided by proposed law.
Proposed law provides that the appointment of the limited jurisdiction fiscal administrator
shall terminate upon his own motion, or upon the motion of the attorney general or the
political subdivision, if the court finds that the emergency has been resolved.
Present law (R.S. 39:1355) provides that it shall be a violation of present law for any officer,
official, or employee of a political subdivision:
(1) To neglect, fail, or refuse to furnish the fiscal administrator with such papers,
accounts, books, documents, films, tapes, and other forms of recordation, including
but not limited to computer and recording devices, whether confidential, privileged,
or otherwise, that the fiscal administrator has the right to inspect and examine.
(2) To deny the fiscal administrator access to the office, or to papers, accounts, books,
documents, films, tapes, and other forms of recordation, including but not limited to
computer and recording devices, whether confidential, privileged, or otherwise, that
the fiscal administrator has the right to inspect or examine.
(3) To refuse, fail, or neglect to transmit to the fiscal administrator reports, statements
of accounts, or other documents upon request as provided by law.
(4) To obstruct or impede the fiscal administrator in any manner, in making the
examination authorized by law.
Proposed law retains present law and provides a limited jurisdiction fiscal administrator with
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the same authority as a fiscal administrator for inspection and examination purposes.
Present law (R.S. 39:1356(E)) provides that neither costs nor attorney fees related to any
legal action pursuant to charges of misconduct or malfeasance or to any other matter related
to or resulting from the appointment of a fiscal administrator initiated by either the political
subdivision or an officer, official, or employee of a political subdivision shall be reimbursed
to an officer, official, or employee of a political subdivision unless the officer, official, or
employee is acquitted or the suit is dismissed.
Proposed law retains present law and provides that neither costs nor attorney fees related to
any legal action pursuant to charges of misconduct or malfeasance or to any other matter
related to or resulting from the appointment of a fiscal administrator or limited fiscal
administrator initiated by either the political subdivision or an officer, official, or employee
of a political subdivision shall be reimbursed to an officer, official, or employee of a political
subdivision unless the officer, official, or employee is acquitted or the suit is dismissed.
Effective August 1, 2025.
(Amends R.S. 39:1355 and 1356(E); adds R.S. 39:1358, 1358.1, 1358.2, and 1358.3)
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