§1352. Duties of a fiscal administrator
A.
(1)A fiscal administrator shall perform such internal investigation of the financial
affairs of the political subdivision as he considers necessary. He shall have access to all
papers, books, records, documents, films, tapes, and other forms of recordation of the
political subdivision or, as they relate to such political subdivision, of the state.
(2)With regard to the reasonable certainty of failure to make a debt service payment,
investigation may include written interrogatories directed to the persons or entities who
assisted the political subdivision in issuing and marketing the bonds, the bond trustee, if any,
representatives of the bond holders, and any other person or entity with an interest in insuring
that the political subdivision makes
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§1352. Duties of a fiscal administrator
A.(1) A fiscal administrator shall perform such internal investigation of the financial
affairs of the political subdivision as he considers necessary. He shall have access to all
papers, books, records, documents, films, tapes, and other forms of recordation of the
political subdivision or, as they relate to such political subdivision, of the state.
(2) With regard to the reasonable certainty of failure to make a debt service payment,
investigation may include written interrogatories directed to the persons or entities who
assisted the political subdivision in issuing and marketing the bonds, the bond trustee, if any,
representatives of the bond holders, and any other person or entity with an interest in insuring
that the political subdivision makes timely payment of debt service payments.
(3) The fiscal administrator, subject to state law, shall have authority to direct all
fiscal operations of the political subdivision and to take whatever action he deems necessary
to return the political subdivision to financial stability. Such authority shall include but not
be limited to authority to take one or more of the following actions:
(a) Amend, formulate, and execute the annual budget and supplemental budgets of
the political subdivision.
(b) Implement and maintain uniform budget guidelines and procedures for all
departments.
(c) Amend, formulate, and execute capital budgets, including authority to amend any
borrowing authorization or finance or refinance any debt in accordance with law.
(d) Review and approve or disapprove all contracts for goods or services.
(e) Appoint, remove, supervise, and control all personnel.
(f) Alter or eliminate the responsibilities of officials, officers, or employees of the
political subdivision as required by the fiscal emergency.
(g) Employ, retain, and supervise such managerial, professional, and clerical staff
as are necessary to carry out the fiscal administrator's responsibilities.
(h) Reorganize, consolidate, or abolish departments, commissions, authorities,
boards, offices, or functions of the political subdivision.
(i) Make any appropriation, contract, expenditure, or loan, create any new position,
or fill any vacancy, or approve or disapprove any such action.
(4) Upon the appointment of a fiscal administrator, the officers, officials, and
employees of the political subdivision shall serve in an advisory capacity to the fiscal
administrator. The fiscal administrator shall allow the officers, officials, and employees to
serve their constituents and fulfill their duties by providing advice to the fiscal administrator
on matters relating to the operation of the political subdivision. If a conflict arises, the fiscal
administrator's decision shall prevail.
B.(1) After his initial investigation, the fiscal administrator shall file a written report
with the court, the governing authority of the political subdivision, the state treasurer, the
attorney general, and the legislative auditor. This report shall be updated on at least a
quarterly basis during the term of fiscal administration.
(2) The report shall contain the following:
(a) An estimate of the revenue and expenditures of the political subdivision for the
remainder of its current fiscal year and the fiscal year following.
(b) Amendments to the comprehensive budget of the political subdivisions adopted
pursuant to R.S. 39:1309, or a proposed comprehensive budget if such budget has not been
previously adopted, which will insure that payments of debt service are a priority budget item
and that they will be timely made by the political subdivision during the remainder of the
current fiscal year and the fiscal year following or such amendments which will insure having
sufficient revenue to pay current expenditures, excluding civil judgments, or, in the case of
a city, parish, or other local public school board, such amendments which will insure
resolving its status as financially at risk as that status has been defined by rule by the State
Board of Elementary and Secondary Education.
(c) An estimate of the financial aid or new revenue which may be needed by the
political subdivision if the fiscal administrator determines that revenues of the political
subdivision are, or will be, insufficient to insure both timely payments of debt service as a
priority over items in the budget, and a reduced, but adequate, funding level for other needs
of the political subdivision or as is needed to have sufficient revenue to pay current
expenditures, excluding civil judgments, or, in the case of a city, parish, or other local public
school board, as is needed to resolve its status as financially at risk as that status has been
defined by rule by the State Board of Elementary and Secondary Education.
(d) A recommendation as to whether the political subdivision should be permitted
to file a petition in a court of bankruptcy of the United States in order to provide for a
readjustment of its debts.
(e) A proposed three-year plan with the goal of establishing and maintaining
financial stability for the political subdivision once fiscal administration is terminated.
(3) The fiscal administrator shall file such other reports as required by the court.
(4) Upon the termination of fiscal administration, the fiscal administrator shall
submit a final plan for approval by the state treasurer, the attorney general, and the legislative
auditor. The approved plan shall remain in place for three years and shall be subject to
periodic review by the state treasurer, the attorney general, and the legislative auditor.
C. In order to perform the investigation and reporting required of the fiscal
administrator by this Chapter, the officers, officials, and employees of the political
subdivision shall cooperate in providing any and all information required by the fiscal
administrator in the performance of his statutorily required duties within three business days
of the fiscal administrator's request. If the officer, official, or employee is unable to provide
the information within the required time, then the officer, official, or employee shall send a
written notice to the fiscal administrator within the three-business-day deadline explaining
the reason the information is not forthcoming. If the officer, official, or employee fails to
respond by the three- business-day deadline, or if the 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 correctly.
(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 issue.