Sec. 13. (a) If an emergency manager of a distressed political subdivision files a petition with the board for termination of the political subdivision‘s status as a distressed political subdivision, the board shall conduct a public hearing on the question of whether to terminate the political subdivision’s status as a distressed political subdivision.

     (b) In the case of a political subdivision designated as distressed under this chapter, the board shall terminate the political subdivision’s status as a distressed political subdivision if the board finds that the conditions found in section 6.5 of this chapter are no longer applicable to the political subdivision and all the following conditions are met:

(1) The political subdivision has achieved and maintained financial solvency for a period of at least two (2) years, including the following:

(A) Maintaining a structurally balanced budget for at least two (2) years.

(B) Having no unpaid or past due critical contractual financial obligations or vendor payments.

(2) The political subdivision has a fiscal plan that maintains financial solvency for a period of at least five (5) years after the termination of its distressed status.

(3) The political subdivision meets all other conditions identified by the board.

(4) The board determines that the political subdivision is financially stable.

     (c) Notwithstanding subsection (b), in the case of a township designated as distressed under section 6.7 of this chapter, the board shall terminate the township’s status as a distressed political subdivision if the board finds that the township’s township assistance property tax rate (as defined in section 6.7(a) of this chapter) for the current calendar year is not more than the result of:

(1) the statewide average township assistance property tax rate (as determined by the department of local government finance) for property taxes first due and payable in the preceding year; multiplied by

(2) twelve (12).

     (d) Notwithstanding any other section of this chapter, not later than ninety (90) days after taking office, a new executive of a distressed political subdivision may petition the board for suspension of the political subdivision’s distressed status. In the case of a political subdivision designated as distressed under section 6.5 of this chapter, the executive must include in its petition a written plan to resolve the applicable issues described in section 6.5 of this chapter. In the case of a township designated as distressed under section 6.7 of this chapter, the executive must include in its petition a written plan to lower the township’s township assistance property tax rate (as defined in section 6.7(a) of this chapter). If the board approves the executive’s written plan, the board may suspend the political subdivision’s distressed status for one hundred eighty (180) days. Suspension under this chapter terminates automatically upon expiration of the one hundred eighty (180) day period. The board may consider a petition to terminate the political subdivision’s distressed status during a period of suspension.

As added by P.L.145-2012, SEC.14. Amended by P.L.257-2013, SEC.27; P.L.234-2013, SEC.7; P.L.2-2014, SEC.25; P.L.249-2015, SEC.16; P.L.241-2017, SEC.15; P.L.213-2018(ss), SEC.12.