2019 Indiana Code
Title 6. Taxation
Article 1.1. Property Taxes
Chapter 20.3. Distressed Political Subdivisions
6-1.1-20.3-8.5. Powers and duties of emergency manager
Sec. 8.5. (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.
As added by P.L.145-2012, SEC.11. Amended by P.L.257-2013, SEC.25; P.L.234-2013, SEC.5; P.L.2-2014, SEC.23; P.L.241-2017, SEC.11; P.L.213-2018(ss), SEC.9.
