Sec. 7.5. (a) This section does not apply to a school corporation designated before July 1, 2013, as a distressed political subdivision.

(b) If a political subdivision is designated as a distressed political subdivision under this chapter, the board shall appoint an emergency manager for the distressed political subdivision. An emergency manager serves at the pleasure of the board. For purposes of IC 34-13, an emergency manager appointed under this section is acting on behalf of the distressed political subdivision and not the state.

(c) The chairperson of the board shall oversee the activities of an emergency manager.

(d) Except as provided in this chapter, the distressed political subdivision shall pay the emergency manager's compensation and reimburse the emergency manager for actual and necessary expenses.

(e) A member of a fiscal management board, an emergency manager, a chief financial officer, or a chief academic officer is immune from civil liability for an act or omission within the scope and arising out of the performance of duties prescribed by the board under this chapter. This subsection does not apply to an act or omission that constitutes gross negligence or willful misconduct.

(f) The attorney general shall represent a member of the distressed unit appeal board, a member of a fiscal management board, an emergency manager, a chief financial officer, or a chief academic officer in a legal action arising out of the exercise of powers granted under this chapter, if the member of the distressed unit appeal board, the member of a fiscal management board, emergency manager, chief financial officer, or chief academic officer makes a written request to the attorney general requesting representation. The attorney general may not represent a member of the distressed unit appeal board, a member of a fiscal management board, an emergency manager, a chief financial officer, or a chief academic officer under this subsection if the legal action is initiated or the claim is asserted by the member of the distressed unit appeal board, the member of the fiscal management board, emergency manager, or the distressed political subdivision. If the attorney general represents a member of the distressed unit appeal board, a member of a fiscal management board, an emergency manager, a chief financial officer, or a chief academic officer under this subsection, the member of the distressed unit appeal board, the member of a fiscal management board, emergency manager, chief financial officer, or chief academic officer is entitled to recover attorney's fees from the losing party to the extent the member of the distressed unit appeal board, the member of the fiscal management board, emergency manager, chief financial officer, or chief academic officer prevails. Any attorney's fees recovered shall be deposited in the state general fund.

As added by P.L.145-2012, SEC.8. Amended by P.L.257-2013, SEC.22; P.L.234-2013, SEC.4; P.L.2-2014, SEC.22; P.L.241-2017, SEC.10; P.L.213-2018(ss), SEC.8.