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.
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.
(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 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 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)