Senate Bill 105 passed in the House 60-34. Authored by State Sen. Ed Charbonneau and sponsored by Rep. Ed Soliday (Rs-Valparaiso), the legislation establishes a process distressed political subdivisions can follow as they work to emerge from financial difficulty.
Local units of government could request the assistance of state-appointed financial managers. That person would work to restore fiscal solvency to the local unit, Charbonneau said.
A provision giving political subdivisions in financial distress the final option to seek bankruptcy if they have met a number of strict criteria was removed Wednesday by a House amendment. Charbonneau said at least 27 states allow local governments to file for bankruptcy, but it is rarely used.
Â â€śA lot of credit is owed to Representative Soliday and the work he has done to move the bill through the House,â€ť Charbonneau said. â€śA conference committee is going to meet and hopefully resolve differences between Senate and House versions of the bill.â€ť
Sen. Charbonneau represents Senate District 5, which includes Starke County and portions of Porter, LaPorte,