§ 30:2075.4 — Community sewerage system infrastructure accountability

Louisiana § 30:2075.4

• Jurisdiction: Louisiana
• Title 30: Mortgages and Privileges

Text

§2075.4. Community sewerage system infrastructure accountability
A. This Section shall be known and may be cited as the "Community Sewerage
System Infrastructure Sustainability Act" which has been enacted by the legislature to
provide:
(1) For the development and implementation of a community sewerage system
accountability process which supports sewerage system infrastructure sustainability for the
residents of Louisiana.
(2) Assurance to the residents that the quality of sewage treatment is monitored and
maintained at levels essential for health, safety, welfare, and long-term sustainability.
(3) Accountability of local government authorities and other entities operating
community sewerage systems.
(4) Consequences for community sewerage systems that do not achieve state and
federal standards.
(5) Transparent regulatory compliance and fiscal accountability information presented
to the State Bond Commission, the division of administration for the capital outlay program,
and rate setting authorities for consideration in approving additional debt, capital outlay, or
a rate increase.
B.(1) "Community sewerage system" means any treatment works, whether publicly
or privately owned, which serves multiple connections and consists of a collection or
pumping and transport system and a treatment facility. For the purposes of this Section,
"community sewerage system" includes any local governing authority which operates a
community sewerage system.
(2) "Community water system" has the same meaning as provided for in R.S. 40:5.8.
C.(1)(a) Except as provided in Subparagraph (b) of this Paragraph, any community
sewerage system that seeks approval from the State Bond Commission to incur any
additional debt for anything not directly related to the improvement and sustainability of the
community sewerage system or a related community water system shall submit with the
application to the commission a compliance status verification from the Department of
Environmental Quality, a compliance status verification from the Louisiana Department of
Health, and a fiscal status verification from the legislative auditor in accordance with
Subsection F of this Section.
(b) The provisions of this Subsection shall not apply to any application to the State
Bond Commission seeking approval for financing involving:
(i) Cash flow loans.
(ii) Dedicated tax or bond revenue streams.
(iii) Emergency financing as determined by the State Bond Commission.
(iv) Refinancing of existing debt.
(2) After consideration of the information provided pursuant to Paragraph (1) of this
Subsection, the State Bond Commission may prohibit the community sewerage system from
incurring any additional debt for anything not directly related to the improvement and
sustainability of the community sewerage system or a related community water system.
(3) Notwithstanding any provision of law to the contrary, the community sewerage
system shall not be precluded from obtaining funding for the improvement and sustainability
of the community sewerage system or a related community water system based upon the
information provided pursuant to Paragraph (1) of this Subsection or R.S. 40:5.9.1.
D.(1) Any community sewerage system that receives notification of a capital outlay
appropriation from the division of administration, office of facility planning and control shall
submit to the division of administration a compliance status verification from the Department
of Environmental Quality, a compliance status verification from the Louisiana Department
of Health, and a fiscal status verification from the legislative auditor in accordance with
Subsection F of this Section.
(2) After consideration of the information provided pursuant to Paragraph (1) of this
Subsection, the division of administration may prohibit the community sewerage system
from participating in the capital outlay program for anything not directly related to the
improvement and sustainability of the community sewerage system or a related community
water system.
(3) The provisions of this Subsection notwithstanding, the community sewerage
system shall not be precluded from obtaining funding for the improvement and sustainability
of the community sewerage system or a related community water system based upon the
information provided pursuant to Paragraph (1) of this Subsection.
E.(1) Any community sewerage system that seeks approval for a rate adjustment
from the appropriate rate setting authority not directly related to the improvement and
sustainability of the community sewerage system or a related community water system shall
submit with the application to the rate setting authority a compliance status verification from
the Department of Environmental Quality, a compliance status verification from the
Louisiana Department of Health, and a fiscal status verification from the legislative auditor
in accordance with Subsection F of this Section.
(2) After consideration of the information provided pursuant to Paragraph (1) of this
Subsection, the rate setting authority may prohibit the community sewerage system from
adjusting rates for anything not directly related to the improvement and sustainability of the
community sewerage system or a related community water system.
(3) The provisions of this Subsection notwithstanding, the community sewerage
system shall not be precluded from receiving approval for a rate adjustment for the
improvement and sustainability of the community sewerage system or a related community
water system based upon the information provided pursuant to Paragraph (1) of this
Subsection.
F.(1)(a) Not later than twenty calendar days after receiving a request from a
community sewerage system, the Department of Environmental Quality shall review the
department's records and provide a compliance status verification based upon criteria
determined by the department, including but not limited to the following:
(i) Federal water quality significant violation history.
(ii) State enforcement action history.
(b) The compliance status verification provided by the Department of Environmental
Quality shall clearly state whether the community sewerage system is "NOT IN
COMPLIANCE – Found on a federal significant noncompliance list or is under state
enforcement action" or "IN COMPLIANCE – Not found on a federal significant
noncompliance list or is under state enforcement action" as appropriate.
(2)(a) Not later than twenty calendar days after receiving a request from a community
sewerage system, the Louisiana Department of Health shall review the department's records
and provide a compliance status verification based upon criteria determined by the
department, including but not limited to the following:
(i) State violation history.
(ii) Operation and maintenance performance history.
(iii) Infrastructure violations.
(b) The compliance status verification provided by the Louisiana Department of
Health shall clearly state the community sewerage system's compliance status using the
phrase "IN COMPLIANCE" or "NOT IN COMPLIANCE" as appropriate.
(3) Not later than twenty calendar days after receiving a request from a community
sewerage system, the legislative auditor shall review its records and provide a fiscal status
verification regarding the community sewerage system's financial sustainability based upon
criteria determined by the auditor. The fiscal status verification shall clearly state in plain
language the community sewerage system's level of financial sustainability.
(4)(a) A compliance status verification provided by the Department of Environmental
Quality or the Louisiana Department of Health pursuant to this Section shall be either of the
following:
(i) On an official certification form supplied by the department.
(ii) On the department's official letterhead and signed by a member of the
department's staff who is qualified to verify the compliance status of the community
sewerage system.
(b) A fiscal status verification provided pursuant to this Section shall be on the
legislative auditor's official letterhead and signed by a member of the auditor's staff who is
qualified to verify the fiscal status of the community sewerage system.
G.(1) Notwithstanding any provision of law to the contrary, a local governing
authority that operates a community sewerage system shall not expend any money raised
through payments made by customers for sewerage services or from any other sewerage
system revenue for any item, debt payment, or public purpose other than the improvement
and sustainability of the community sewerage system. For purposes of this Subsection,
"sustainability" means the ability to be maintained at the required rate or level necessary to
comply with applicable state and federal regulations. Sustainability may include but not be
limited to the purchase and maintenance of equipment and employment of personnel whose
primary functions are related to ensuring compliance with state and federal laws, rules, and
regulations governing the effective operation of a sewer system.
(2) The provisions of this Subsection shall not be construed to prohibit the payment
of bonded indebtedness secured by the sewerage system's revenue prior to August 1, 2024.
H.(1) Any community sewerage system that is not in compliance with the Department
of Environmental Quality or the Louisiana Department of Health, is not financially
sustainable based on the standards of the legislative auditor, or is in violation of the
expenditure prohibitions of Subsection G of this Section shall, in addition to the provisions
of Subsection C of this Section, be subject to either or both of the following, as appropriate:
(a) An oversight and accountability hearing before the Legislative Audit Advisory
Council.
(b) A hearing before the Fiscal Review Committee for potential initiation of an action
for a court-appointed fiscal administrator filed in accordance with R.S. 39:1351 et seq.
(2) Any community sewerage system that is not in compliance with the Department
of Environmental Quality or the Louisiana Department of Health, is not financially
sustainable based on the standards of the legislative auditor, or is in violation of the
expenditure prohibitions of Subsection G of this Section may, in addition to the provisions
of Subsection C of this Section, be subject to either or both of the following, as appropriate:
(a) A civil action for court-appointed receivership filed in accordance with R.S.
30:2075.3 or R.S. 33:42.
(b) A criminal action for malfeasance in office pursuant to R.S. 14:134.
(3) If the condition or operations of any community sewerage system that is not in
compliance with the Department of Environmental Quality or the Louisiana Department of
Health, is not financially sustainable based on the standards of the legislative auditor, or is
in violation of the expenditure prohibitions of Subsection G of this Section necessitates the
expenditure of state funds to address or mitigate an emergency related to that community
sewerage system, the circumstances shall be grounds for a civil action for court-appointed
receivership in accordance with R.S. 30:2075.3 or R.S. 33:42, or to the appointment of a
fiscal administrator in accordance with R.S. 39:1351 et seq.

Legislative History

Acts 2024, No. 144, §1, eff. May 22, 2024.