IN SB0355

Political subdivisions may petition the distressed unit appeal board for designation as "distressed" based on conditions including defaulting on bond payments, missing payrolls for 30+ days, failing to make required pension contributions, or having property tax credits reduce non-debt levies by at least 75%

Two failed referenda (either general property tax or school corporation operating fund referenda) can serve as grounds for distressed designation

The board must appoint an emergency manager for distressed political subdivisions who assumes authority over the executive and fiscal body, including power to renegotiate labor contracts, reduce salaries, approve all contracts and expenditures, and adopt budgets

Distressed school corporations may receive loans from the state rainy day fund or common school fund and cannot make purchases over $10,000 or acquire property without board approval

The distressed unit appeal board is reduced from nine members to five, consisting of the OMB director, DLGF commissioner, state examiner, superintendent of public instruction, and a legislative council appointee