Introduced House Bill (H)

Authored by

DIGEST

Oversight requirements for state assistance. Provides that the distressed unit appeal board (DUAB) must before January 1, 2019, establish financial and qualitative indicators and thresholds that will be used by the DUAB to determine if a political subdivision that is seeking state assistance must: (1) enter into an oversight agreement with the DUAB; and (2) comply with specified requirements and conditions; before any state assistance may be provided to the political subdivision. Provides that in establishing these indicators and thresholds, the DUAB shall consider: (1) certain factors specified in current law for the purposes of evaluating the fiscal health of Oversight requirements for state assistance. Provides that the distressed unit appeal board (DUAB) must before January 1, 2019, establish financial and qualitative indicators and thresholds that will be used by the DUAB to determine if a political subdivision that is seeking state assistance must: (1) enter into an oversight agreement with the DUAB; and (2) comply with specified requirements and conditions; before any state assistance may be provided to the political subdivision. Provides that in establishing these indicators and thresholds, the DUAB shall consider: (1) certain factors specified in current law for the purposes of evaluating the fiscal health of school corporations and other political subdivisions; and (2) the conditions specified in current law as the grounds for the designation of distressed political subdivisions. Specifies that the DUAB may not establish or revise financial and qualitative indicators and thresholds unless the proposed indicators and thresholds or proposed revisions have been reviewed by the state budget committee. Provides that after June 30, 2019, state assistance may not be provided to a political subdivision unless: (1) the DUAB has first applied the financial and qualitative indicators and thresholds to determine whether the political subdivision must enter into an oversight agreement and comply with the statutory oversight requirements and conditions; and (2) if required based on the DUAB's application of the financial and qualitative indicators and thresholds, the political subdivision has entered into an oversight agreement, has submitted a financial stability plan to the DUAB, and otherwise complies with the statutory oversight requirements and conditions. Requires the DUAB to provide a model oversight agreement that the DUAB and political subdivisions shall use as a template in determining the terms and conditions of oversight agreements. Requires an oversight agreement entered into by the DUAB and a political subdivision to do the following: (1) Set out the conditions, requirements, and oversight required as a condition of the political subdivision receiving state assistance. (2) Require the political subdivision to comply with the statutory oversight requirements and conditions. (3) Designate the political subdivision as a supervised political subdivision. (4) Include the conditions that must be satisfied before the political subdivision's status as a supervised political subdivision is terminated and the political subdivision is no longer required to comply with oversight agreement and the statutory requirements and conditions. Requires the DUAB to assist a supervised political subdivision in developing a financial stability plan. Specifies oversight requirements and duties that apply to a supervised political subdivision. Specifies certain actions that a supervised political subdivision may not take unless the supervised political subdivision has first obtained the approval of the DUAB. Requires the management performance hub to assist the DUAB in carrying out the DUAB's duties under these provisions. ... View more