§4341. Sale or lease of revenue-producing utility property; election required; exception
A.Any municipality, the city of New Orleans excepted, or any parish or any other
political subdivision or taxing district authorized to issue bonds under Article VI, Section 37
of the Constitution of Louisiana, all of which are hereinafter in this Subpart referred to as
"municipality" or "parish", may sell or lease any revenue-producing properties owned by it,
including all proper franchises to operate the properties for a term not to exceed sixty years,
provided the governing authority has been first authorized to do so by a vote of a majority
of the qualified electors, voting at an election held for that purpose as herein directed.
Notwithstanding the foregoing, the governing authority of any city,
Free access — add to your briefcase to read the full text and ask questions with AI
§4341. Sale or lease of revenue-producing utility property; election required; exception
A. Any municipality, the city of New Orleans excepted, or any parish or any other
political subdivision or taxing district authorized to issue bonds under Article VI, Section 37
of the Constitution of Louisiana, all of which are hereinafter in this Subpart referred to as
"municipality" or "parish", may sell or lease any revenue-producing properties owned by it,
including all proper franchises to operate the properties for a term not to exceed sixty years,
provided the governing authority has been first authorized to do so by a vote of a majority
of the qualified electors, voting at an election held for that purpose as herein directed.
Notwithstanding the foregoing, the governing authority of any city, town, or village that
owns and operates a water utility that receives a grade of "D" or "F" under The Community
Drinking Water Infrastructure Sustainability Act, referred to as the "Act", and the rule issue
pursuant to the Act, shall not be required to conduct an election to authorize the sale or lease
of the utility if the governing authority finds by official action that the municipality is either
financially, managerially, or technically unable to restore the utility to a grade of "C" or better
as specified by the Act. When a city, town, or village owns and operates a water, gas, or other
revenue-producing public utility, serving customers outside the territorial limits of the city,
town, or village, as is allowed by law, a negotiated sale of all of the connections and utility
installations outside the area of the said city, town, or village and within the corporate limits
of another city, town, or village may be made to the latter city, town, or village by negotiation
and without any election, for such price as may be agreed upon between the parties. No
election shall be required to authorize the sale or lease by any municipality or parish of
revenue-producing water properties to any other municipality, parish, or other political
subdivision.
B. Notwithstanding any other provisions of law to the contrary, any municipality or
any other political subdivision, including without limitation, any joint commission deemed
to be a body politic and political subdivision in accordance with Subpart A, Part VII, Chapter
2 of Title 33 of the Louisiana Revised Statutes ("The Local Services Act"), in, and including,
the parish of East Baton Rouge, hereinafter referred to as a "public entity", may sell or lease
any revenue-producing utility or any other property or equipment owned by it, in connection
with the operation, management, financing, or refinancing thereof, to, or may acquire or lease
such property or equipment from, any other public entity in, and including, the parish of East
Baton Rouge, by negotiation and without any election or application of any other law, for
such price and pursuant to such terms and conditions as may be agreed upon between the
parties.
C. The provisions of Subsection A of this Section shall apply to the conveyance or
lease of facilities and properties of any sewerage district to a private person or corporation,
which person or corporation shall thereby be authorized to operate such facilities. However,
the governing authority of any city, town, or village that owns and operates a sewer utility
that experiences pollutant discharge in excess of the Final Effluent Limitations specified in
the utility's Louisiana Pollutant Discharge Elimination System (LPDES) General or Site
Specific Permit, as reported in three or more consecutive quarters pursuant to the electronic
document receiving system (NetDMR) promulgated by the Louisiana Department of
Environmental Quality shall not be required to conduct an election to authorize the sale or
lease of the utility, if the governing authority finds by official action that the municipality is
either financially, managerially, or technically unable to restore the utility to regulatory
compliance as required by the general or site specific permit.
D.(1) Notwithstanding any provision of law to the contrary, the governing authority
of the parish of Terrebonne may sell, lease, or otherwise convey by any constitutional means
its natural gas distribution system and transfer all right and title to all of the assets thereof to
the governing authority of the city of Houma by action authorized by ordinance of the
governing authority of the parish without the need of an election or any other proceeding.
(2) The ordinance shall include provisions for the transfer to the city governing
authority or retention by the parish governing authority of financial obligations and legal
liabilities associated with the gas distribution system. Such provisions shall be in accordance
with the laws and constitution of the state of Louisiana.