§1358. Appointment of a limited jurisdiction fiscal administrator

            A.(1) The legislative auditor, the attorney general, and the state treasurer, or his designee, shall meet to review the necessity for the appointment of a limited jurisdiction fiscal administrator for political subdivisions of the state to address emergencies affecting the fiscal stability and public health, safety, and welfare of the citizens of a political subdivision or the state.

            (2) As used in this Chapter, a limited jurisdiction fiscal administrator shall be a fiscal administrator whose oversight is limited to a specific department or functions of a political subdivision necessary to address the emergency affecting the fiscal stability and public health, safety, and welfare of citizens of a political subdivision of the state.

            (3) Grounds for appointment of a limited jurisdiction fiscal administrator pursuant to this Chapter shall include but not be limited to the inability of the political subdivision pursuant to R.S. 39:72.1 to receive state and local funds or federal funds due to noncompliance with the audit law, R.S. 24:513 et seq.

            (4) If it is determined by unanimous decision of the legislative auditor, attorney general, and state treasurer at a public meeting to consider matters that the appointment of a limited jurisdiction fiscal administrator is required in order to address an emergency, the attorney general shall file a rule to appoint a limited jurisdiction fiscal administrator as provided in this Chapter.

            B. Upon making the decision authorized in Subsection A of this Section, the attorney general shall, upon motion in the district court of the domicile of the political subdivision, file a rule to show cause why a limited jurisdiction fiscal administrator should not be appointed for the political subdivision as provided in this Chapter. The hearing on the rule to show cause may be tried out of term and in chambers, shall always be tried by preference, and shall be held not less than ten, nor more than twenty days from the date the motion was filed. If the political subdivision consents to the appointment of a limited jurisdiction fiscal administrator, then the parties shall file a joint motion and a consent judgment for the appointment of a limited jurisdiction fiscal administrator for the political subdivision within forty-five days. The court shall appoint a limited jurisdiction fiscal administrator according to the terms of the consent judgment within twenty days from the date that the joint motion and consent judgment were filed.

            C.(1) The trial court, in the absence of a joint motion and consent judgment, shall appoint a limited jurisdiction fiscal administrator in the following instances:

            (a) If after a hearing, the court finds by a preponderance of the evidence from the facts and evidence that the political subdivision is reasonably certain to be unable to address an emergency affecting the fiscal stability and public health, safety, and welfare of the citizens of a political subdivision or the state.

            (b) If a political subdivision is prohibited from receiving state or local assistance or federal funds necessary to address an emergency affecting public health, safety, or welfare of the citizens of a political subdivision or the state pursuant to R.S. 39:72.1.

            (2) The limited jurisdiction fiscal administrator shall be recommended by the legislative auditor and attorney general and approved by the court as having sufficient education, experience, and qualifications to perform the duties of limited jurisdiction fiscal administrator as provided in this Chapter.

            (3) The limited jurisdiction fiscal administrator appointed pursuant to this Chapter shall be subject to indemnification as a covered individual as defined in R.S. 13:5108.1.

            (4) All costs and expenses associated with the independent limited jurisdiction fiscal administration of a political subdivision, including but not limited to all costs and expenses incurred by the limited jurisdiction fiscal administrator, legislative auditor, attorney general, state treasurer, and any other person involved with the independent limited jurisdiction fiscal administration of a political subdivision shall be assessed to the political subdivision subject to independent limited jurisdiction fiscal administration.

            D. A limited jurisdiction fiscal administrator may be removed by the court only by request of the fiscal administrator, or as provided in R.S. 39:1354, or for fraud, negligence, or misconduct.

            Acts 2025, No. 96, §1.