§ 45:1206 — Water and wastewater companies; receivership; bond; dissolution

§1206. Water and wastewater companies; receivership; bond; dissolution
A. As used in this Section, the following terms have the following meanings:
(1) "Wastewater company" means any wastewater company regulated by the
commission.
(2) "Water company" means any water company regulated by the commission.
B.(1) In any civil action brought in accordance with this Section, relative to water
companies or wastewater companies, the court, upon application by the commission, may
appoint a receiver for a water company or wastewater company to collect the assets and carry
on the business of the water company or wastewater company. Application by the
commission shall not be subject to any bond requirement.
(2) The court may place the water company or wastewater company in receivership
upon finding any of the following:
(a) The water company or wastewater company has been abandoned by the operator,
or service to its customers has ceased, and no provisions have been made for the continued
operation by a qualified operator, or for providing customers with services required to serve
the users of the systems.
(b) The water company or wastewater company has failed or refused to comply with
enforceable orders, judgments, or actions issued by the Louisiana Department of Health or
the Louisiana Department of Environmental Quality.
(c) After an audit by the commission, the commission determines the water company
or wastewater company is in financial distress.
(d) Other circumstances as may be identified by rules adopted by the commission
pursuant to the commission's Rules of Practice and Procedure under which a receivership
may be needed.
(e) The water company receives a grade of "D" or "F" pursuant to R.S. 40:5.9.1 et
seq., and the commission finds that the water company is either financially, managerially, or
technically unable to restore the utility to a grade of "C" or better.
(f) The wastewater company experiences a sewerage discharge in excess of the Final
Effluent Limitations specified in the company's Louisiana Pollutant Discharge Elimination
System General or Site Specific Permit, as reported in three or more consecutive quarters
pursuant to the electronic document receiving system promulgated by the Louisiana
Department of Environmental Quality, and the commission finds that the wastewater
company is either financially, managerially, or technically unable to restore the utility to
regulatory compliance.
(3) The receiver, if a private person, shall execute a bond to ensure the proper
performance of the receiver's duties in an amount to be set by the court. The court may
waive the bond upon a showing of just cause. If the receiver is a local governmental
subdivision, no bond shall be required.
(4) The receiver shall carry out the orders specified and directed by the court until
discharged.
(5) The court may dissolve the receivership if the person owning or operating the
defendant water company or wastewater company requests that the receivership be dissolved
or such owner or operator can show good cause for the dissolution of the receivership.
Nothing herein shall prohibit a receiver from purchasing the company put in receivership.
C. Within ninety days of appointment, the receiver shall submit to the commission
and publish in a manner accessible to the affected customers a transition and operational
plan. This plan shall include all of the following:
(1) Measures to restore or maintain service.
(2) Financial assessments and projected costs.
(3) Customer service provisions.
(4) An anticipated timeline for resolution or return of control to the original operator
or transfer to a new operator.

Legislative History

Acts 2025, No. 257, §1.