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Regular Session, 2010
HOUSE BILL NO. 913
BY REPRESENTATIVE CHAMPAGNE
ENVIRONMENT/WATER: Provides for Dept. of Environmental Quality revolving loan
programs
AN ACT1
To amend and reenact R.S. 30:2011(A)(3) and (D)(4) and (23), 2074(A)(4), 2397, R.S.2
33:4548.13, and R.S. 40:2821(B)(2) and 2824(B), to enact Chapter 14 of Title 303
of the Louisiana Revised Statutes of 1950, to be comprised of R.S. 30:2301 through4
2306 and R.S. 39:1022(C), and to repeal R.S. 30:2078 through 2088, relative to5
certain loans for water infrastructure from the revolving loan funds; to provide for6
the Department of Environmental Quality; to provide for the powers and duties of7
the secretary of the Department of Environmental Quality; to establish the Clean8
Water State Revolving Fund and replace the Municipal Facilities Revolving Loan9
Fund; to provide for approval of the State Bond Commission; and to provide for10
related matters.11
Be it enacted by the Legislature of Louisiana:12
Section 1. R.S. 30:2011(A)(3) and (D)(4) and (23),2074(A)(4), and 2397 are hereby13
amended and reenacted and Chapter 14 of Title 30 of the Louisiana Revised Statutes of14
1950, comprised of R.S. 30:2301 through 2306 is hereby enacted to read as follows:15
§2011. Department of Environmental Quality created; duties; powers; structure16
A.17
* * *18
(3) The department is authorized and empowered to administer, maintain,19
and operate the Municipal Facilities Revolving Loan Clean Water State Revolving20 HLS 10RS-1049 ORIGINAL
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Fund as created and provided in R.S. 30:2078 30:2301 et seq. In connection with1
such administration, maintenance, and operation, the department is authorized to2
incur debt and issue bonds, notes, or other evidences of indebtedness, and is3
authorized to pledge the sums in, credited to, or payable to the Municipal Facilities4
Revolving Loan Clean Water State Revolving Fund as security for the debt of other5
entities, and is authorized to arrange, provide for, and pay the cost of credit6
enhancement devices for its debt and the debt of other entities in order to provide7
funds in connection with the Municipal Facilities Revolving Loan Clean Water State8
Revolving Fund Program. Any such evidence of indebtedness, guarantee, pledge,9
or credit enhancement device shall be authorized, executed, and delivered by the10
secretary or his designee in accordance with the provisions and subject to the11
limitations provided in R.S. 30:2011(D)(23) and 2080 through 2088 R.S. 30:230112
et seq. for the Municipal Facilities Revolving Loan Clean Water State Revolving13
Fund.14
* * *15
D. The secretary shall have the following powers and duties:16
* * *17
(4) To apply for and accept grants of money from the United States18
Environmental Protection Agency or other federal agencies for the purpose of19
making funds available to political subdivisions eligible recipients in this state for20
the planning, design, construction, and rehabilitation of wastewater treatment21
facilities and or other related eligible activities. The department may contract to22
receive such grants, agree to match the grant in whole or in part when required, and23
to comply with applicable federal laws and regulations in order to secure the grants.24
Money received through these grants and state matching funds shall be deposited25
into the Municipal Facilities Revolving Loan Clean Water State Revolving Fund or26
used for appropriate administrative purposes.27
* * *28 HLS 10RS-1049 ORIGINAL
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(23) To authorize by executive order, the issuance, sale, execution, and1
delivery of bonds, notes, or other evidences of indebtedness of the department,2
obligations representing guarantees by the department of the debt of other entities,3
and the granting of pledges of the sums deposited in, credited to, or payable to the4
Municipal Facilities Revolving Loan Clean Water State Revolving Fund as created5
and provided in R.S. 30:2078 30:2301 et seq., including sums to be received6
pursuant to letters of credit, as security for the debts of other entities, subject to the7
approval of the State Bond Commission.8
* * *9
§2074. Water quality control; secretary of environmental quality; powers and duties10
A. The department shall have the following powers and duties with respect11
to water quality control:12
* * *13
(4) To administer the Municipal Facilities Revolving Loan Clean Water14
State Revolving Fund as established in R.S. 30:2078 30:2302. The department is also15
authorized to enter into contracts and other agreements in connection with the16
operation of the Municipal Facilities Revolving Loan Clean Water State Revolving17
Fund to the extent necessary or convenient for the implementation of the Municipal18
Facilities Revolving Loan Clean Water State Revolving Fund Program.19
* * *20
§2397. Distribution of revenue21
The state treasurer shall each fiscal year deposit the revenues generated under22
the provisions of this Chapter, from taxes applicable to the sale of reclaimed water,23
or other sources as provided for by law into the Bond Security and Redemption24
Fund. Out of the funds from such sources remaining in the Bond Security and25
Redemption Fund after a sufficient amount is allocated from that fund to pay all26
obligations secured by the full faith and credit of the state which become due and27
payable within any fiscal year, the treasurer shall deposit an amount equal to one-28
quarter of the revenues generated from the reclaimed water program into the29 HLS 10RS-1049 ORIGINAL
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Municipal Facilities Revolving Loan Clean Water State Revolving Fund, enacted in1
R.S. 30:2078 30:2301, which shall be used for making grants to local governments2
to finance primary waste treatment facilities; one-quarter into the Coastal Resources3
Trust Fund, created in R.S. 49:214.40, and the remainder shall be used by the4
Department of Natural Resources for the protection of groundwater resources. Use5
of these funds shall be subject to an appropriation by the legislature.6
* * *7
CHAPTER 14. CLEAN WATER STATE REVOLVI NG FUND8
§2301. Definitions9
As used in this Chapter, the following terms shall have the following10
meaning:11
(1) "Clean Water State Revolving Fund" or "CWSRF" means the water12
pollution control revolving loan fund previously established by Act No. 349 of the13
Regular Session of the Louisiana Legislature for the year 1986, as amended, and14
formerly known as the "Municipal Facilities Revolving Loan Fund", which fund15
shall continue to exist pursuant to and under the terms of this Chapter.16
(2) "Department" means the Department of Environmental Quality.17
(3) "Eligible recipient" means a political subdivision, public trust, agency or18
commission of the State, or a private entity, to the extent permitted by the federal act19
or federal regulations.20
(4) "Federal act" means the Clean Water Act of 1972, as amended by the21
Water Quality Act of 1987, specifically Subchapter VI, Chapter 26 of Title 33 of the22
United States Code, and any amendments thereto relating to water pollution control23
revolving loan funds established by the respective states, including the CWSRF.24
(5) "Federal regulations" means Part 35, Title 40 of the Code of Federal25
Regulations (40 CFR 35.3100, et seq.) relating to water pollution control revolving26
loan funds established by the respective states, including the CWSRF.27 HLS 10RS-1049 ORIGINAL
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§2302. Clean Water State Revolving Fund; established1
A. The Clean Water State Revolving Fund is hereby established and shall be2
maintained and operated by the department. Grants from the federal government3
allotted to the state for the capitalization of the CWSRF, and state funds when4
required, or otherwise made available, shall be deposited directly in or credited to the5
account of the CWSRF in compliance with the terms of the federal or state grant.6
The CWSRF shall provide assistance to eligible recipients for any activities of the7
CWSRF as may be permitted by the federal act or federal regulations and by this8
Chapter.9
B. The department is authorized to enter into contracts and other agreements10
in connection with the operation of the CWSRF, including but not limited to credit11
enhancement devices, guarantees, pledges, interest rate swap agreements, contracts12
and agreements with federal agencies, political subdivisions, public trusts, agencies13
or commissions of the state, and other parties to the extent necessary or convenient14
for the implementation of the CWSRF. The department shall maintain full authority15
for the operation of the CWSRF in accordance with applicable federal and state law.16
§2303. Clean Water State Revolving Fund; authorized activities17
A. Money in or credited to the account of or to be received by the CWSRF,18
including sums to be received pursuant to letters of credit or from any other source,19
shall be expended, committed or pledged, in a manner consistent with terms and20
conditions of the grants and other sources of said deposits, credits, and letters of21
credit, and of all applicable federal and state legislation and may be used:22
(1) To make loans to eligible recipients to purchase debt obligations from23
federal funds or funds on deposit in, credited to, or to be received by the CWSRF,24
including from the proceeds of letters of credit, at or below market interest rates for25
a period not to exceed thirty years from the completion of the construction of a26
project approved by the department.27
(2) To offer and to make or enter into loan guarantees for eligible recipients.28 HLS 10RS-1049 ORIGINAL
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(3) To provide payments to reduce interest on loans and loan guarantees to1
eligible recipients.2
(4) To provide additional subsidization to eligible recipients in the form of3
bond interest subsidies, forgiveness of principal, negative interest loans or grants, or4
any combination of these.5
(5) To provide bond guarantees to eligible recipients.6
(6) To provide assistance to eligible recipients with respect to the non-federal7
share of the costs of a project.8
(7) To finance the cost of facility planning and the preparation of plans,9
specifications, and estimates for construction of projects for eligible recipients as10
may be approved by the department.11
(8) To provide financial assistance to eligible recipients for the construction12
and rehabilitation of a project on the state priority list.13
(9) To secure principal, interest, and premium if any, on bonds or other14
evidence of indebtedness issued by the department, or any agency, commission,15
authority, or public corporation of the state, by any public trust or by any other entity16
having the authority to issue debt for or on behalf of the state, or any political17
subdivision state if the proceeds of such bonds are deposited in the CWSRF, the18
proceeds of such bonds are used to pay for a project approved by the department, or19
the proceeds of such bonds are used to refund any obligation the proceeds of which20
are used to pay for an approved project to the extent provided and allowed by the21
terms of the federal grant.22
(10) To make, enter into, or provide for loan guarantees for similar revolving23
funds established by instrumentalities, public trusts or agencies of the state, political24
subdivisions, or intermunicipal or interstate agencies.25
(11) To purchase or refinance, at or below market rates, debt incurred by26
political subdivisions for wastewater treatment projects, where such debt obligations27
were incurred after March 7, 1985.28 HLS 10RS-1049 ORIGINAL
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(12) To improve credit market access by guaranteeing, arranging, or1
purchasing bond insurance or other credit enhancement devices for debt obligations2
issued by the department, or any eligible recipient issued for a purpose authorized3
by this section.4
(13) To provide any other assistance or to fund any other programs which the5
federal government authorizes by law, regulation, or the terms of any grants.6
(14) To fund the administrative expenses of the department related to the7
CWSRF.8
(15) To provide for any other expenditure consistent with the federal grant9
program and state law, including grants.10
B. Money not currently needed for the operation of the Clean Water State11
Revolving Fund or otherwise dedicated may be invested in an interest bearing12
account. All such interest earned on investments shall be credited to the Clean Water13
State Revolving Fund.14
§2304. Clean Water State Revolving Fund; political subdivisions and public trusts;15
loans16
A. Notwithstanding any provisions of law to the contrary, and in addition to17
the authority to borrow money or incur debt under any other provisions of law, any18
political subdivision or public trust is hereby authorized to borrow money from and19
incur debt payable to the department in accordance with the provisions hereof and20
subject to the approval of the State Bond Commission. This Section shall not be21
deemed to be the exclusive authority under which political subdivisions or public22
trusts may borrow money from or incur indebtedness to the department.23
B. All bonds, notes, or other evidence of indebtedness of any political24
subdivisions and public trusts issued to represent an obligation to repay a CWSRF25
loan shall be authorized and issued pursuant to a resolution or ordinance of the26
governing authority of such entity, which shall prescribe the form and details thereof,27
including the terms, security for, manner of execution, repayment schedule, and28
redemption features thereof and such resolution or ordinance may provide that an29 HLS 10RS-1049 ORIGINAL
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officer of such entity may execute in connection with such obligation any related1
contract, including but not limited to a credit enhancement device, indenture of trust,2
loan agreement, pledge agreement, or other agreement or contract needed to3
accomplish the purposes for which said indebtedness is given. Any such resolution4
or ordinance shall set forth the maximum principal amount, the maximum interest5
rate, the maximum redemption premium, if any, and maximum term of such6
indebtedness.7
C. Notwithstanding any other provision of law to the contrary, any political8
subdivision, or public trust upon entering into a loan from the CWSRF under this9
section may dedicate and pledge a portion of any revenues it has available to it10
including but not limited to revenues from the general revenue fund, sales taxes,11
sewer user fees, assessments, parcel fees, or property taxes of the political12
subdivision for a term not exceeding thirty years for repayment of the principal of,13
interest on, and any premium, administrative fee, or other fee or cost imposed by the14
department in connection with such loan; provided that any loan made solely for the15
purpose of financing the cost of facility planning and the preparation of plans,16
specifications, and estimates for construction of projects approved by the department17
shall have a term not to exceed five years from the date thereof.18
D. Any evidence of indebtedness authorized pursuant to the provisions19
thereof shall bear a rate or rates of interest that shall not exceed the rate or rates set20
forth in the resolution or ordinance authorizing and providing for the issuance21
thereof. Any such rate or rates of interest may be at fixed, variable or adjustable22
rates.23
E. Bonds, notes or other evidence of indebtedness of a political subdivision24
shall be sold at a private, negotiated sale to the department at such price or prices,25
including premiums and discounts as shall be authorized in the resolution or26
ordinance of the borrower and agreed to by the department. The general laws of the27
state governing fully registered securities of public entities shall be applicable to the28
bonds, notes, or other evidence of indebtedness issued pursuant to this Section.29 HLS 10RS-1049 ORIGINAL
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F. All resolutions or ordinances authorizing the issuance of bonds, notes, or1
other evidence of indebtedness of a political subdivision hereunder shall be2
published once in the official journal of the borrower. It shall not be necessary to3
publish exhibits to such resolution or ordinance, but such exhibits shall be made4
available for public inspection at the offices of the governing authority of borrower5
at reasonable times and such fact must be stated in the publication. For a period of6
thirty days after the date of such publication any persons in interest may contest the7
legality of the resolution or ordinance authorizing such evidence of indebtedness and8
any provisions thereof made for the security and payment thereof. After such thirty9
day period no one shall have any cause or right of action to contest the regularity,10
formality, legality, or effectiveness of said resolution or ordinance and the provisions11
thereof or of the bonds, notes or other evidence of indebtedness authorized thereby12
for any cause whatsoever. If no suit, action, or proceeding is begun contesting the13
validity of the bonds, notes, or other evidence of indebtedness authorized pursuant14
to such resolution or ordinance within the thirty days herein prescribed, the authority15
to issue the bonds, notes, or other evidence of indebtedness, or to provide for the16
payment thereof, and the legality thereof, and all of the provisions of the resolution17
or ordinance and such evidence of indebtedness shall be conclusively presumed, and18
no court shall have authority or jurisdiction to inquire into any such matter.19
G. Bonds, notes, or other evidence of indebtedness of a political subdivision20
issued under the authority of this Section shall be exempt from all taxation for state,21
parish, municipal, or other purposes. Such bonds, notes, or other evidence of22
indebtedness shall be legal and authorized investments for banks, savings banks,23
insurance companies, any other financial institution, tutors of minors, curators of24
interdicts, trustees, and other fiduciaries. Such bonds, notes, or other evidence of25
indebtedness may be used for deposit with any officer, board, or political subdivision26
of the state, in any case where, by present or future laws, deposit of security is27
required for state funds.28 HLS 10RS-1049 ORIGINAL
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H. The department may by suit, action, mandamus, or other proceedings,1
protect and enforce any covenant relating to and the security provided in connection2
with any indebtedness issued pursuant to this section, and may by suit, action,3
mandamus, or other proceedings enforce and compel performance of all of the duties4
required to be performed by the governing body and officials of any borrower5
hereunder and in any proceedings authorizing the issuance of such bonds or other6
evidences of indebtedness.7
§2305. Authority of the department; incur debt; issue and undertake guarantees of8
debt of other entities9
A. The department is hereby authorized to issue, incur, and deliver debt10
evidenced by bonds, notes, or other evidences of indebtedness, payable from or11
secured by sums deposited in, credited to, or to be received in, including sums12
received pursuant to letters of credit, by the department in the CWSRF.13
B. The department is further authorized to undertake and to issue and deliver14
evidences of its guarantee of the debt of other entities and is authorized to enter and15
execute pledges of the sums deposited in, credited to, or to be received in the16
CWSRF, including payments pursuant to letters of credit, to secure the debt of other17
entities. Such bonds, notes, or other evidences of indebtedness, such guarantees, and18
such pledges issued and delivered pursuant to the authority hereof shall constitute19
special and limited obligations of the department, and shall not be secured by the full20
faith and credit of the state, any source of revenue of the state other than those sums21
on deposit in, credited to, or to be received in the CWSRF, including payments to be22
made pursuant to letters of credit. It is hereby found and determined that such bonds,23
notes, or other evidences of indebtedness, guarantees, and pledges shall constitute24
revenue bonds, debts, or obligations within the meaning of Article VII, Section 6(C)25
of the Constitution of Louisiana and shall not constitute the incurring of state debt26
thereunder.27
C. Withdrawals from the CWSRF to pay debt service on any bond, note, or28
other evidence of indebtedness, obligation of guarantee of any debt, or pledge to29 HLS 10RS-1049 ORIGINAL
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secure any debt does not constitute and shall not be subject to annual appropriation1
by the legislature as provided by Article III, Section 16 of the Constitution of2
Louisiana.3
D. The department is hereby authorized to issue, execute, and deliver4
refunding bonds, notes, or other evidences of indebtedness for the purpose of5
refunding, readjusting, restructuring, refinancing, extending, or unifying in whole or6
any part of its outstanding obligations, and the department is also authorized to issue7
short-term revenue notes for the purposes of anticipating any revenues to be received8
by the department in connection with the CWSRF.9
§2306. Manner of authorizing, issuing, executing, and delivering debt or guarantees10
of debt of other entities 11
A. All bonds, notes, or other evidences of indebtedness, guarantees of the12
debt of other entities or pledges of assets to the payment of debts of other entities13
shall be authorized and issued pursuant to an executive order issued by the secretary14
of the department, and such executive order shall include a statement as to the15
maximum principal amount of any such obligation, guarantee, or pledge, the16
maximum interest rate to be incurred or borne by said obligation or guaranteed by17
said obligation, the maximum redemption premium, if any, and the maximum term18
in years for such evidence of indebtedness, obligation, guarantee, or pledge, and such19
executive order shall prescribe the form, anticipated terms, security, manner of20
execution, redemption features, and method of fixing the final details thereof. Such21
executive order may provide that the secretary or his designee shall execute in22
connection with any such obligation any other related contract, including but not23
limited to credit enhancement devices, indentures of trust, pledge agreements, loan24
agreements, or any other ancillary agreements or contracts needed to accomplish the25
purposes for which said evidence of indebtedness, guarantee, or pledge is given in26
substantially the form attached to said executive order but which final indenture,27
guarantee, pledge, or other contract or agreement may contain such changes,28
additions, and deletions as shall in the sole opinion of the designated officer of the29 HLS 10RS-1049 ORIGINAL
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department executing any such contract be determined to be appropriate under the1
circumstances. The bonds, notes, other evidences of indebtedness, and obligations2
issued under the provisions of this Section shall be subject to the general laws of the3
state regarding defeasance and fully registered securities of public entities.4
B. Bonds, notes, or other evidences of indebtedness of the department may5
bear, and the department may guarantee or pledge the assets of the CWSRF to the6
payment of debt of other entities that bear, a rate or rates of interest at fixed, variable,7
or adjustable rates. Any such obligation may be non-interest bearing in the form of8
capital appreciation obligations.9
C. Bonds, notes, or other evidences of indebtedness of the department shall10
be sold by the State Bond Commission at either public or private sale and may be11
sold at such price or prices, including premiums and discounts, as may be determined12
to be in the best interest of the department by the secretary, with the approval of the13
State Bond Commission. If any such evidences of indebtedness are to be sold at a14
public sale, a notice of the sale shall be published in accordance with the provisions15
of R.S. 39:1426 and shall be awarded to the best bidder therefor by the State Bond16
Commission, but the State Bond Commission may reject any and all bids received.17
D. The department may, in connection with the sale of any bonds, notes, or18
other evidences of indebtedness, use municipal bond insurance, bank guarantees,19
surety bonds, letters of credit, interest rate swap agreements, and other devices to20
enhance the credit quality of any such obligations, the cost of which may be paid21
from the proceeds of the bonds, notes, or other evidences of indebtedness or other22
lawfully available funds. Such credit enhancement devices may be entered into prior23
to, at the time of, or subsequent to, the issuance of any such obligations.24
E. All executive orders of the secretary authorizing the issuance of bonds,25
notes, or other evidences of indebtedness of the department shall be published once26
in the official journal of the state. It shall not be necessary to publish exhibits to any27
such executive order, but such exhibits shall be made available for public inspection28
at the offices of the secretary of the department at reasonable times and such fact29 HLS 10RS-1049 ORIGINAL
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must be stated in the publication. For a period of thirty days after the date of such1
publication any persons in interest may contest the legality of the executive order and2
any provisions thereof made for the security and payment of any such bonds, notes,3
or other obligations, guarantees, or pledges. After such thirty-day period no one4
shall have any cause or right of action to contest the regularity, formality, legality,5
or effectiveness of said executive order and the provisions thereof or of the bonds,6
notes, or other evidence of indebtedness authorized thereby or any guarantee or7
pledge authorized thereby for any cause whatsoever. If no suit, action, or proceeding8
is begun contesting the validity of the bonds, notes, or other obligations authorized9
pursuant to such executive order within the thirty days herein prescribed, the10
authority to issue the bonds, notes, or other obligations, to enter into the guarantee,11
or to make the pledge to provide for the payment thereof, and the legality thereof,12
and of all the provisions of the executive order shall be conclusively presumed and13
no court shall have authority or jurisdiction to inquire into any such matter.14
F. Bonds, notes, or other evidences of indebtedness issued under the authority15
of this Section or Chapter 32 of Title 40 of the Louisiana Revised Statutes of 1950,16
shall be exempt from all taxation for state, parish, municipal, or other purposes.17
Such bonds, notes, or other evidences of indebtedness may be used for deposit with18
any officer, board, or other political subdivision of the State, in any case where, by19
present or future laws, deposit of security is required for state funds.20
G. Notwithstanding the provisions of this Chapter, the department shall not21
directly issue any bonds, notes, or other evidences of indebtedness except to any22
commission, authority, or public corporation of the state , any public trust, political23
subdivision of the state , or any other entity having the authority to issue debt for or24
on behalf of the state, or any other political subdivision of the state.25
Section 2. R.S. 33:4548.13 is hereby amended and reenacted to read as follows: 26
§4548.13. Cooperation of state agencies27
All state officers and agencies are authorized to render such services to the28
authority within their respective functions as may be requested by the authority. In29 HLS 10RS-1049 ORIGINAL
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addition, the authority is authorized to enter into such contracts, cooperative1
endeavor agreements, or other agreements with the Department of Environmental2
Quality with respect to the Municipal Facilities Revolving Loan Clean Water State3
Revolving Fund or any other state agency regarding other revolving loan funds as4
the parties may desire in order to implement the provisions of this Chapter and5
Chapter 4 14 of Subtitle II of Title 30 of the Louisiana Revised Statutes of 1950.6
Section 3. R.S. 39:1022(C) is hereby enacted to read as follows: 7
§1022. Publication of resolution; contesting validity8
* * *9
C. Notwithstanding the provisions of Subsection A of this Section, any10
indebtedness that represents a loan to a political subdivision under this Part from the11
Drinking Water Revolving Loan Fund or the Clean Water State Revolving Fund12
must be approved by the State Bond Commission prior to the incurring of such13
indebtedness; however the State Bond Commission shall not be required to approve14
the contents of the notice of intention required by Subsection A of this Section.15
Section 4. R.S. 40:2824(B)(2) and 2824(B) are hereby amended and reenacted to read16
as follows:17
§2821. Legislative findings18
* * *19
B. The legislature finds and declares that:20
* * *21
(2) The Department of Environmental Quality has, since 1989, been22
operating and maintaining the Municipal Facilities Revolving Loan Clean Water23
State Revolving Fund in accordance with the Federal Water Pollution Control Act24
(33 U.S.C. 1251 et seq.), commonly referred to as the Clean Water Act, to provide25
assistance to wastewater treatment facilities owned or operated by municipalities and26
other political subdivisions, and for other assistance allowed by such Act.27
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§2824. Drinking Water Revolving Loan Fund1
* * *2
B. The Department of Health and Hospitals, office of public health, shall3
segregate the funds associated with the drinking water loan fund as may be required4
by the federal act, grant agreements, or interagency agreements. The Department of5
Health and Hospitals shall keep any accounts associated with the drinking water loan6
fund separate from any accounts associated with the Municipal Facilities Revolving7
Loan Clean Water State Revolving Fund authorized in R.S. 30:2078 30:2301 et seq.8
* * *9
Section 5. R.S. 30:2078 through 2088 are hereby repealed in their entirety.10
Section 6. This Act shall become effective upon signature by the governor or, if not11
signed by the governor, upon expiration of the time for bills to become law without signature12
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If13
vetoed by the governor and subsequently approved by the legislature, this Act shall become14
effective on the day following such approval.15
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Champagne HB No. 913
Abstract: Changes the Municipal Facilities Revolving Loan Fund to the Clean Water State
Revolving Fund, provides for the administration of the program, and approval of
indebtedness of loan programs.
Present law authorizes the Department of Environmental Quality (hereinafter "DEQ") to
administer and operate the Municipal Facilities Revolving Loan Fund. DEQ is authorized
to issue, incur, and deliver debt evidenced by bonds, notes or other evidences of
indebtedness, and to guarantee the debt of local municipalities, all payable from or secured
by sums in the Municipal Facilities Revolving Loan Fund, for the purpose of assisting
municipalities in the financing of construction of wastewater treatment facilities. DEQ is
further authorized to provide low cost loans to such entities for such purposes. The secretary
of DEQ may use an executive order to authorize the issuance, sale, execution, and delivery
of bonds and other evidences of indebtedness of the department, which order shall include
the maximum principal amount of any such obligation. All sales of bonds shall be subject
to approval of, and the sale performed by, the State Bond Commission. Such bonds shall not
be secured by the full faith and credit of any source of revenue of the state of Louisiana other
than monies from the Municipal Facilities Revolving Loan Fund. Such bonds, pledges and
guarantees shall be exempt from all taxation for state, parish, and municipal or other
purposes. Such bonds, pledges and guarantees shall constitute revenue bonds within the HLS 10RS-1049 ORIGINAL
HB NO. 913
Page 16 of 16
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
meaning of Art. VII, Section 6(C) of the Louisiana Constitution, and shall not constitute the
incurring of state debt. Payments from the Municipal Facilities Revolving Loan Fund to pay
debt service on any bond, guarantee, or pledge to secure any debt shall not be subject to
annual appropriation by the legislature.
Present law authorizes DEQ to enter into contracts and agreements as necessary for the
administration of the Municipal Facilities Revolving Loan Fund.
Present law authorizes DEQ to issue and deliver refunding bonds and revenue anticipation
notes in connection with the Municipal Facilities Revolving Loan Fund.
Proposed law retains present law except changes the name of the fund to the Clean Water
State Revolving Loan Fund.
Proposed law increases the maximum term for loans from the fund from 20 years to 30 years
and increases the term for planning and preparations for projects from two years to five
years.
Proposed law provides that any indebtedness that represents a loan to a political subdivision
from the Clean Water State Revolving Fund or the Drinking Water Revolving Loan Fund
must be approved by the State Bond Commission prior to the incurring of such indebtedness,
but not for the contents of the notice of intention.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amend R.S. 30:2011(A)(3) and (D)(4) and (23), 2074(A)(4), 2397, R.S. 33:4548.13, and
R.S. 40:2824(B)(2) and 2824(B); Adds R.S. 30:2301-2306 and R.S. 39:1022(C); And
Repeals R.S. 30:2078-2088)