HB 1321 Summary

• DUAB must establish financial and qualitative indicators and thresholds by January 1, 2019, to determine which political subdivisions seeking state assistance must enter into oversight agreements before receiving funds.

• After June 30, 2019, political subdivisions must apply these indicators and thresholds, enter oversight agreements if required, and submit financial stability plans addressing staffing costs, revenue maximization, service constraints, and audit findings.

• Supervised political subdivisions face restrictions on employment actions, salary increases, travel expenses, service expansion, grants, contracts over $20,000, and expenditures for food, entertainment, and charitable contributions without prior DUAB approval.

• DUAB gains authority to regulate capital financing exceeding $1 million, property tax abatements, tax increment financing, fee waivers, and receives copies of all meeting notices and legal judgments or settlements exceeding $100,000.

• Management performance hub must assist DUAB in carrying out its duties; DUAB must provide annual reports to the state budget committee describing indicators used, oversight activities, and progress of supervised political subdivisions toward financial stability.