The bill amends Louisiana's Revised Statutes to enhance the financial oversight of political subdivisions by introducing a definition of "financial stability" and outlining criteria for determining financial instability, such as failure to make debt service payments or provide required audits. It establishes a process for appointing a limited jurisdiction fiscal administrator to manage emergencies affecting fiscal stability and public welfare, with the attorney general required to file a rule to show cause for such appointments. The bill also creates a Fiscal Administrator and Receiver Revolving Loan Fund to offer financial assistance to political subdivisions or public water systems under fiscal administration, detailing the funding sources and borrowing conditions.

Furthermore, the bill delineates the responsibilities of the fiscal administrator, who is recommended by the legislative auditor and attorney general and approved by the court. This administrator is granted significant authority to manage fiscal operations, including budget amendments and contract oversight, with all associated costs borne by the political subdivision. The fiscal administrator must file written reports on the financial status of the subdivision, and if necessary budget amendments are not adopted, the attorney general can seek court intervention. The court can terminate the fiscal administrator's appointment once the emergency is resolved, allowing the political subdivision to resume normal operations.

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)