The bill amends Louisiana law concerning fiscal administrators, specifically targeting the financial stability of political subdivisions. It introduces a definition of "financial stability" and outlines criteria for determining financial instability, such as insufficient revenue and failure to meet debt obligations. The attorney general is granted the authority to file a rule for appointing a fiscal administrator if a political subdivision is at risk of losing financial stability. Additionally, the bill reduces the required consecutive fiscal years for audits from three to two, which can lead to a loss of financial stability status.

Moreover, the bill establishes a framework for appointing a limited jurisdiction fiscal administrator during emergencies that affect public health, safety, or welfare. The appointment process requires a unanimous decision from the legislative auditor, attorney general, and state treasurer, followed by a court hearing. The fiscal administrator is empowered to manage fiscal operations, amend budgets, and oversee contracts, with all associated costs borne by the political subdivision. The administrator must also conduct quarterly investigations and reports on the financial status of the subdivision, and if necessary budget amendments are not adopted, the attorney general can seek court intervention to enforce compliance. The court can terminate the administrator's appointment once the emergency is resolved, ensuring a structured response to fiscal crises.

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)