5.
(a)This section does not apply to a
school corporation designated before July 1, 2013, as a distressed
political subdivision.
(b)Notwithstanding any other law, an emergency manager of a
distressed political subdivision appointed under this chapter shall
assume and exercise all of the power, authority, and responsibilities of
both the executive and the fiscal body of the political subdivision
during the time the political subdivision is a distressed political
subdivision. An emergency manager's power, authority, and
responsibilities include the following:
(1)Adopting, amending, and enforcing ordinances and
resolutions relating to or affecting the fiscal stability of the
political subdivision. However, the emergency manager may
impose only those taxes or fees that the political subdivi
Free access — add to your briefcase to read the full text and ask questions with AI
5. (a) This section does not apply to a
school corporation designated before July 1, 2013, as a distressed
political subdivision.
(b) Notwithstanding any other law, an emergency manager of a
distressed political subdivision appointed under this chapter shall
assume and exercise all of the power, authority, and responsibilities of
both the executive and the fiscal body of the political subdivision
during the time the political subdivision is a distressed political
subdivision. An emergency manager's power, authority, and
responsibilities include the following:
(1) Adopting, amending, and enforcing ordinances and
resolutions relating to or affecting the fiscal stability of the
political subdivision. However, the emergency manager may
impose only those taxes or fees that the political subdivision is
authorized by law to impose.
(2) Subject to existing labor contracts, setting the salaries and
other compensation of the political subdivision's employees.
(3) Reviewing existing labor contracts and collective bargaining
agreements, and negotiating and entering into labor contracts and
collective bargaining agreements.
(4) Adopting a budget for the political subdivision for each
calendar or fiscal year, as applicable, that the political subdivision
remains a distressed political subdivision.
(5) Approving payrolls and other claims against the political
subdivision before payment.
(6) Making, approving, or disapproving the following:
(A) A contract.
(B) An expenditure.
(C) A loan.
(D) The creation of any new position.
(E) The filling of any vacant position.
(7) Identifying and implementing labor force reductions.
(8) Outsourcing services performed by employees of the
distressed political subdivision.
(9) Renegotiating existing labor contracts and acting as an agent
of the political subdivision in collective bargaining.
(10) Reducing or suspending salaries of the political subdivision's
employees.
(11) Entering into agreements with other political subdivisions for
the provision of services.
(12) Selling assets, including real property, of the distressed
political subdivision. If real property is being sold, any political
subdivision that has territory where the real property is located
and institutions of higher education with real property located in
Indiana shall be given a thirty (30) day first right to make an offer
to purchase the real property. The emergency manager shall
determine whether it is appropriate to accept one (1) of these
offers and shall negotiate the terms and conditions of the sale of
the real property to the offeror. In the case of an emergency
manager appointed for the Gary Community School Corporation,
the emergency manager shall provide written notice to the mayor
of the city of Gary at least thirty (30) days before selling assets
under this subdivision. If the mayor of the city of Gary notifies the
emergency manager of any concerns or objections regarding the
proposed sale of the asset, the emergency manager must confer
with the mayor regarding those concerns or objections.
(13) Closing facilities of the distressed political subdivision.
(14) Requesting technical assistance from the board and state
agencies to assist in carrying out the powers and duties outlined
in this subsection, including assistance from the Indiana
department of administration in evaluating and assessing
facilities.
(15) Reviewing each contract that is in effect and not covered by
subdivision (3) and, if prudent, renegotiating or canceling the
contract to the extent permitted by the contract.
(16) Transferring property not needed by the distressed political
subdivision. In the case of an emergency manager appointed for
the Gary Community School Corporation, the emergency manager
shall provide written notice to the mayor of the city of Gary at
least thirty (30) days before transferring property under this
subdivision. If the mayor of the city of Gary notifies the
emergency manager of any concerns or objections regarding the
proposed transfer of the property, the emergency manager must
confer with the mayor regarding those concerns or objections.
(17) Acquiring real property that is necessary to achieve the goals
expressed in the financial plan.
(18) For a school corporation designated as a distressed political
subdivision, requesting a waiver from the application of IC 6-1.1-20.6-9.8 in order to use IC 6-1.1-20.6-13 regarding the
allocation of protected taxes. To request a waiver, the emergency
manager must submit, before May 1 of the year for which a
waiver is sought, a written request to the board. The board shall
make a determination concerning the request, and if the waiver is
granted the board shall provide, before June 1 of that year, a
written certification of the determination to the department of
local government finance.
(19) If the distressed political subdivision is a school corporation,
requesting a loan from the counter-cyclical revenue and economic
stabilization fund under IC 6-1.1-21.4-3(b) as provided in section
8.3 of this chapter.
(20) Petitioning the board to terminate a political subdivision's
status as a distressed political subdivision when the conditions
found in section 6.5 of this chapter are no longer applicable to the
political subdivision and the conditions set forth in section 13(b)
of this chapter are met.
(c) An emergency manager of a distressed political subdivision
appointed under section 7.5 of this chapter shall do the following:
(1) Review the political subdivision's budget.
(2) Conduct a financial and compliance audit of the internal
operations of the political subdivision.
(3) Report and make recommendations to the board regarding the
following:
(A) A written comprehensive financial plan in consultation with
the officials of the political subdivision not later than six (6)
months after appointment.
(B) A comprehensive long term plan for paying all the political
subdivision's outstanding obligations.
(4) If the distressed political subdivision is a school corporation,
report and make recommendations to the board regarding the
following:
(A) The geographic boundaries of the school corporation and
alternative boundaries.
(B) A long term plan for meeting transportation needs.
(C) A long term plan for providing educational services.
(D) A long term plan for providing noneducational services.
(E) A long term plan for providing adequate personnel and a
plan for compensation.
(F) The capital plant of the school corporation and a long term
plan for meeting the long term capital plant needs of the school
corporation.
(G) A new governance structure for the distressed political
subdivision.
(5) Submit a written report to the board each month concerning
the following:
(A) Actions taken by the emergency manager.
(B) Expenditures made by the distressed political subdivision.
(C) The progress that has been made toward removing the
distressed political subdivision from distressed status.
(d) Except as provided in section 13(d) of this chapter, an
emergency manager of a distressed political subdivision retains the
powers and duties described in subsections (b) and (c) until:
(1) the emergency manager resigns or dies;
(2) the board removes the emergency manager; or
(3) the political subdivision's status as a distressed political
subdivision is terminated under section 13(b) or 13(c) of this
chapter.