The bill amends Louisiana law to clarify the role and responsibilities of limited jurisdiction fiscal administrators in political subdivisions facing financial instability. It defines "financial stability" and outlines conditions under which a subdivision is deemed unstable, such as failing to make debt service payments. The attorney general is empowered to file a rule for appointing a fiscal administrator if a subdivision is at risk. Additionally, the bill reduces the required consecutive fiscal years for audits from three to two, which can influence a subdivision's financial status.

New provisions detail the appointment process for limited jurisdiction fiscal administrators, which requires a unanimous decision from the legislative auditor, attorney general, and state treasurer, followed by a court hearing. These administrators will manage fiscal operations during emergencies affecting public welfare and have the authority to amend budgets and oversee contracts. They must also conduct investigations and report on financial status, with governing authorities required to adopt budget amendments within seven days. If they fail to comply, the attorney general can seek court intervention. The court can terminate the administrator's appointment once the emergency is resolved, allowing the political subdivision to regain control over its finances.

Statutes affected:
SB54 Original: 39:1356(E)
SB54 Engrossed: 39:1351(A)(1), 39:1356(E)
SB54 Reengrossed: 39:1351(A)(1), 39:1356(E), 39:1357(A)
SB54 Enrolled: 39:1351(A)(1), 39:1356(E), 39:1357(A)
SB54 Act : 39:1351(A)(1), 39:1356(E), 39:1357(A)