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Regular Session, 2010
HOUSE BILL NO. 913
BY REPRESENTATIVES CHAMPAGNE, BALDONE, BARRAS, BILLIOT, HENRY
BURNS, CARMODY, CARTER, CHANDLER, CORTEZ, DOWNS, FANNIN,
FOIL, GISCLAIR, GUINN, HARRISON, HAZEL, HOFFMANN, SAM JONES,
KATZ, LANDRY, LIGI, MILLS, MONTOUCET, MORRIS, ROBIDEAUX, GARY
SMITH, JANE SMITH, ST. GERMAIN, THIBAUT, TUCKER, AND WHITE
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 Subtitle II3
of Title 30 of the Louisiana Revised Statutes of 1950, to be comprised of R.S.4
30:2301 through 2306, and R.S. 39:1022(C), and to repeal R.S. 30:2078 through5
2088, relative to certain loans for water infrastructure from the revolving loan funds;6
to provide for the Department of Environmental Quality; to provide for the powers7
and duties of the secretary of the Department of Environmental Quality; to8
redesignate the Municipal Facilities Revolving Loan Fund as the Clean Water State9
Revolving Fund; to provide for notices of intention to issue certain bonds; and to10
provide for 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 Subtitle II of Title 30 of the Louisiana Revised14
Statutes of 1950, comprised of R.S. 30:2301 through 2306, is hereby enacted to read as15
follows:16
§2011. Department of Environmental Quality created; duties; powers; structure17
A.18
* * *19
(3) The department is authorized and empowered to administer, maintain,20
and operate the Municipal Facilities Revolving Loan Clean Water State Revolving21 HLS 10RS-1049 RE-REENGROSSED
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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
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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 is15
also 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
CHAPTER 14. CLEAN WATER STATE REVOLVI NG FUND21
§2301. Definitions22
As used in this Chapter, the following terms shall have the following23
meaning:24
(1) "Clean Water State Revolving Fund" or "CWSRF" means the water25
pollution control revolving loan fund previously established by Act No. 349 of the26
1986 Regular Session of the Legislature, as amended, and formerly known as the27
"Municipal Facilities Revolving Loan Fund".28
(2) "Department" means the Department of Environmental Quality.29 HLS 10RS-1049 RE-REENGROSSED
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(3) "Eligible recipient" means a political subdivision, public trust, agency or1
commission of the state, or a private entity, to the extent permitted by the federal act2
or federal regulations.3
(4) "Federal act" means the Clean Water Act of 1972, as amended by the4
Water Quality Act of 1987, specifically Subchapter VI, Chapter 26 of Title 33 of the5
United States Code, and any amendments thereto relating to water pollution control6
revolving loan funds established by the respective states, including the CWSRF.7
(5) "Federal regulations" means Part 35, Title 40 of the Code of Federal8
Regulations (40 CFR 35.3100, et seq.) relating to water pollution control revolving9
loan funds established by the respective states, including the CWSRF.10
§2302. Clean Water State Revolving Fund; established11
A. The Clean Water State Revolving Fund is hereby established and shall be12
maintained and operated by the department. Grants from the federal government13
allotted to the state for the capitalization of the CWSRF, and state funds when14
required, or otherwise made available, shall be deposited directly in or credited to the15
account of the CWSRF in compliance with the terms of the federal or state grant.16
The CWSRF shall provide assistance to eligible recipients for any activities of the17
CWSRF as may be permitted by the federal act or federal regulations and by this18
Chapter.19
B. The department is authorized to enter into contracts and other agreements20
in connection with the operation of the CWSRF, including but not limited to credit21
enhancement devices, guarantees, pledges, interest rate swap agreements, contracts22
and agreements with federal agencies, political subdivisions, public trusts, agencies23
or commissions of the state, and other parties to the extent necessary or convenient24
for the implementation of the CWSRF. The department shall maintain full authority25
for the operation of the CWSRF in accordance with applicable federal and state law.26
§2303. Clean Water State Revolving Fund; authorized activities27
A. Money in or credited to the account of or to be received by the CWSRF,28
including sums to be received pursuant to letters of credit or from any other source,29 HLS 10RS-1049 RE-REENGROSSED
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shall be expended, committed, or pledged, in a manner consistent with terms and1
conditions of the grants and other sources of said deposits, credits, and letters of2
credit, and of all applicable federal and state law and may be used:3
(1) To make loans to eligible recipients, or to purchase debt obligations using4
federal funds or funds on deposit in, credited to, or to be received by the CWSRF,5
including from the proceeds of letters of credit, at or below market interest rates for6
a period not to exceed thirty years from the completion of the construction of a7
project approved by the department.8
(2) To offer and to make or enter into loan guarantees for eligible recipients.9
(3) To provide payments to reduce interest on loans and loan guarantees to10
eligible recipients.11
(4) To provide additional subsidization to eligible recipients in the form of12
bond interest subsidies, forgiveness of principal, negative interest loans or grants, or13
any combination of these.14
(5) To provide bond guarantees to eligible recipients.15
(6) To provide assistance to eligible recipients with respect to the nonfederal16
share of the costs of a project.17
(7) To finance the cost of facility planning and the preparation of plans,18
specifications, and estimates for construction of projects for eligible recipients as19
may be approved by the department.20
(8) To provide financial assistance to eligible recipients for the construction21
and rehabilitation of a project on the state priority list.22
(9) To secure principal, interest, and premium if any, on bonds or other23
evidence of indebtedness issued by the department, or any agency, commission,24
authority, or public corporation of the state, by any public trust or by any other entity25
having the authority to issue debt for or on behalf of the state, or any political26
subdivision of the state if the proceeds of such bonds are deposited in the CWSRF,27
if the proceeds of such bonds are used to pay for a project approved by the28
department, or if the proceeds of such bonds are used to refund any obligation the29 HLS 10RS-1049 RE-REENGROSSED
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proceeds of which are used to pay for an approved project to the extent provided and1
allowed by the terms of the federal grant.2
(10) To make, enter into, or provide for loan guarantees for similar revolving3
funds established by instrumentalities, public trusts or agencies of the state, political4
subdivisions, or intermunicipal or interstate agencies.5
(11) To purchase or refinance, at or below market rates, debt incurred by6
political subdivisions for wastewater treatment projects, where such debt obligations7
were incurred after March 7, 1985.8
(12) To improve credit market access by guaranteeing, arranging, or9
purchasing bond insurance or other credit enhancement devices for debt obligations10
issued by the department, or any eligible recipient issued for a purpose authorized11
by this Section.12
(13) To provide any other assistance or to fund any other programs which13
the federal government authorizes by law, regulation, or the terms of any grants.14
(14) To fund the administrative expenses of the department related to the15
CWSRF.16
(15) To provide for any other expenditure consistent with the federal grant17
program and state law, including grants.18
B. Money not currently needed for the operation of the Clean Water State19
Revolving Fund or otherwise dedicated may be invested in an interest-bearing20
account. All such interest earned on investments shall be credited to the Clean Water21
State Revolving Fund.22
§2304. Clean Water State Revolving Fund; political subdivisions and public trusts;23
loans24
A. Notwithstanding any provisions of law to the contrary, and in addition to25
the authority to borrow money or incur debt under any other provisions of law, any26
political subdivision or public trust is hereby authorized to borrow money from and27
incur debt payable to the CWSRF in accordance with the provisions hereof and28
subject to the approval of the State Bond Commission. This Section shall not be29 HLS 10RS-1049 RE-REENGROSSED
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deemed to be the exclusive authority under which political subdivisions or public1
trusts may borrow money from or incur indebtedness to the CWSRF.2
B. All bonds, notes, or other evidence of indebtedness of any political3
subdivisions and public trusts issued to represent an obligation to repay a CWSRF4
loan shall be authorized and issued pursuant to a resolution or ordinance of the5
governing authority of such entity, which shall prescribe the form and details thereof,6
including the terms, security for, manner of execution, repaymen t schedule, and7
redemption features thereof and such resolution or ordinance may provide that an8
officer of such entity may execute in connection with such obligation any related9
contract, including but not limited to a credit enhancement device, indenture of trust,10
loan agreement, pledge agreement, or other agreement or contract needed to11
accomplish the purposes for which said indebtedness is given. Any such resolution12
or ordinance shall set forth the maximum principal amount, the maximum interest13
rate, the maximum redemption premium, if any, and the maximum term of such14
indebtedness.15
C. Notwithstanding any other provision of law to the contrary, any political16
subdivision, or public trust upon entering into a loan from the CWSRF under this17
Section may dedicate and pledge a portion of any revenues it has available to it18
including but not limited to revenues from the general revenue fund, sales taxes, user19
fees, assessments, parcel fees, or property taxes of the political subdivision for a term20
not exceeding thirty years for repayment of the principal of, interest on, and any21
premium, administrative fee, or other fee or cost imposed by the department in22
connection with such loan; provided that any loan made solely for the purpose of23
financing the cost of facility planning and the preparation of plans, specifications,24
and estimates for construction of projects approved by the department shall have a25
term not to exceed five years from the date thereof.26
D. Any evidence of indebtedness authorized pursuant to the provisions of27
this Chapter shall bear a rate or rates of interest that shall not exceed the rate or rates28
set forth in the resolution or ordinance authorizing and providing for the issuance29 HLS 10RS-1049 RE-REENGROSSED
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thereof. Any such rate or rates of interest may be at fixed, variable, or adjustable1
rates.2
E. Bonds, notes, or other evidence of indebtedness of a political subdivision3
shall be sold at a private, negotiated sale to the CWSRF at such price or prices,4
including premiums and discounts as shall be authorized in the resolution or5
ordinance of the borrower and agreed to by the department. The general laws of the6
state governing fully registered securities of public entities shall be applicable to the7
bonds, notes, or other evidence of indebtedness issued pursuant to this Section.8
F. All resolutions or ordinances authorizing the issuance of bonds, notes, or9
other evidence of indebtedness of a political subdivision hereunder shall be10
published once in the official journal of the borrower. It shall not be necessary to11
publish exhibits to such resolution or ordinance, but such exhibits shall be made12
available for public inspection at the offices of the governing authority of the13
borrower at reasonable times and such fact must be stated in the publication. For a14
period of thirty days after the date of such publication, any persons in interest may15
contest the legality of the resolution or ordinance authorizing such evidence of16
indebtedness and any provisions thereof made for the security and payment thereof.17
After such thirty-day period no one shall have any cause or right of action to contest18
the regularity, formality, legality, or effectiveness of said resolution or ordinance and19
the provisions thereof or of the bonds, notes, or other evidence of indebtedness20
authorized thereby for any cause whatsoever. If no suit, action, or proceeding is21
begun contesting the validity of the bonds, notes, or other evidence of indebtedness22
authorized pursuant to such resolution or ordinance within the thirty days prescribed23
in this Subsection, the authority to issue the bonds, notes, or other evidence of24
indebtedness, or to provide for the payment thereof, and the legality thereof, and all25
of the provisions of the resolution or ordinance and such evidence of indebtedness26
shall be conclusively presumed, and no court shall have authority or jurisdiction to27
inquire into any such matter.28 HLS 10RS-1049 RE-REENGROSSED
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G. Bonds, notes, or other evidence of indebtedness of a political subdivision1
issued under the authority of this Section shall be exempt from all taxation for state,2
parish, municipal, or other purposes. Such bonds, notes, or other evidence of3
indebtedness shall be legal and authorized investments for banks, savings banks,4
insurance companies, any other financial institution, tutors of minors, curators of5
interdicts, trustees, and other fiduciaries. Such bonds, notes, or other evidence of6
indebtedness may be used for deposit with any officer, board, or political subdivision7
of the state, in any case where, by present or future laws, deposit of security is8
required for state funds.9
H. The department may by suit, action, mandamus, or other proceedings,10
protect and enforce any covenant relating to and the security provided in connection11
with any indebtedness issued pursuant to this Section, and may by suit, action,12
mandamus, or other proceedings enforce and compel performance of all of the duties13
required to be performed by the governing body and officials of any borrower14
hereunder and in any proceedings authorizing the issuance of such bonds or other15
evidences of indebtedness.16
§2305. Authority of the department; incur debt; issue and undertake guarantees of17
debt of other entities18
A. The department is hereby authorized to issue, incur, and deliver debt19
evidenced by bonds, notes, or other evidences of indebtedness, payable from or20
secured by sums deposited in, credited to, or to be received in, including sums21
received pursuant to letters of credit, by the department in the CWSRF.22
B. The department is further authorized to undertake and to issue and deliver23
evidences of its guarantee of the debt of other entities and is authorized to enter and24
execute pledges of the sums deposited in, credited to, or to be received in the25
CWSRF, including payments pursuant to letters of credit, to secure the debt of other26
entities. Such bonds, notes, or other evidences of indebtedness, such guarantees, and27
such pledges issued and delivered pursuant to the authority hereof shall constitute28
special and limited obligations of the department, and shall not be secured by the full29 HLS 10RS-1049 RE-REENGROSSED
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faith and credit of the state, any source of revenue of the state other than those sums1
on deposit in, credited to, or to be received in the CWSRF, including payments to be2
made pursuant to letters of credit. It is hereby found and determined that such bonds,3
notes, or other evidences of indebtedness, guarantees, and pledges shall constitute4
revenue bonds, debts, or obligations within the meaning of Article VII, Section 6(C)5
of the Constitution of Louisiana and shall not constitute the incurring of state debt6
thereunder.7
C. Withdrawals from the CWSRF to pay debt service on any bond, note, or8
other evidence of indebtedness, obligation of guarantee of any debt, or pledge to9
secure any debt does not constitute and shall not be subject to annual appropriation10
by the legislature as provided by Article III, Section 16 of the Constitution of11
Louisiana.12
D. The department is hereby authorized to issue, execute, and deliver13
refunding bonds, notes, or other evidences of indebtedness for the purpose of14
refunding, readjusting, restructuring, refinancing, extending, or unifying in whole or15
any part of its outstanding obligations, and the department is also authorized to issue16
short-term revenue notes for the purposes of anticipating any revenues to be received17
by the department in connection with the CWSRF.18
§2306. Manner of authorizing, issuing, executing, and delivering debt or guarantees19
of debt of other entities20
A. All bonds, notes, or other evidences of indebtedness, guarantees of the21
debt of other entities or pledges of assets to the payment of debts of other entities22
shall be authorized and issued pursuant to an executive order issued by the secretary23
of the department, and such executive order shall include a statement as to the24
maximum principal amount of any such obligation, guarantee, or pledge, the25
maximum interest rate to be incurred or borne by said obligation or guaranteed by26
said obligation, the maximum redemption premium, if any, and the maximum term27
in years for such evidence of indebtedness, obligation, guarantee, or pledge, and such28
executive order shall prescribe the form, anticipated terms, security, manner of29 HLS 10RS-1049 RE-REENGROSSED
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execution, redemption features, and method of fixing the final details thereof. Such1
executive order may provide that the secretary or his designee shall execute in2
connection with any such obligation any other related contract, including but not3
limited to credit enhancement devices, indentures of trust, pledge agreements, loan4
agreements, or any other ancillary agreements or contracts needed to accomplish the5
purposes for which said evidence of indebtedness, guarantee, or pledge is given in6
substantially the form attached to said executive order but which final indenture,7
guarantee, pledge, or other contract or agreement may contain such changes,8
additions, and deletions as shall, in the sole opinion of the designated officer of the9
department executing any such contract, be determined to be appropriate under the10
circumstances. The bonds, notes, other evidences of indebtedness, and obligations11
issued under the provisions of this Section shall be subject to the general laws of the12
state regarding defeasance and fully registered securities of public entities.13
B. Bonds, notes, or other evidences of indebtedness of the department may14
bear, and the department may guarantee or pledge the assets of the CWSRF to the15
payment of debt of other entities that bear, a rate or rates of interest at fixed, variable,16
or adjustable rates. Any such obligation may be non-interest bearing in the form of17
capital appreciation obligations.18
C. Bonds, notes, or other evidences of indebtedness of the department shall19
be sold by the State Bond Commission at either public or private sale and may be20
sold at such price or prices, including premiums and discounts, as may be determined21
to be in the best interest of the department by the secretary, with the approval of the22
State Bond Commission. If any such evidences of indebtedness are to be sold at a23
public sale, a notice of the sale shall be published in accordance with the provisions24
of R.S. 39:1426 and shall be awarded to the best bidder therefor by the State Bond25
Commission, but the State Bond Commission may reject any and all bids received.26
D. The department may, in connection with the sale of any bonds, notes, or27
other evidences of indebtedness, use municipal bond insurance, bank guarantees,28
surety bonds, letters of credit, interest rate swap agreements, and other devices to29 HLS 10RS-1049 RE-REENGROSSED
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enhance the credit quality of any such obligations, the cost of which may be paid1
from the proceeds of the bonds, notes, or other evidences of indebtedness or other2
lawfully available funds. Such credit enhancement devices may be entered into prior3
to, at the time of, or subsequent to, the issuance of any such obligations.4
E. All executive orders of the secretary authorizing the issuance of bonds,5
notes, or other evidences of indebtedness of the department shall be published once6
in the official journal of the state. It shall not be necessary to publish exhibits to any7
such executive order, but such exhibits shall be made available for public inspection8
at the offices of the secretary of the department at reasonable times and such fact9
must be stated in the publication. For a period of thirty days after the date of such10
publication any persons in interest may contest the legality of the executive order and11
any provisions thereof made for the security and payment of any such bonds, notes,12
or other obligations, guarantees, or pledges. After such thirty-day period no one13
shall have any cause or right of action to contest the regularity, formality, legality,14
or effectiveness of said executive order and the provisions thereof or of the bonds,15
notes, or other evidence of indebtedness authorized thereby or any guarantee or16
pledge authorized thereby for any cause whatsoever. If no suit, action, or proceeding17
is begun contesting the validity of the bonds, notes, or other obligations authorized18
pursuant to such executive order within the thirty days herein prescribed, the19
authority to issue the bonds, notes, or other obligations, to enter into the guarantee,20
or to make the pledge to provide for the payment thereof, and the legality thereof,21
and of all the provisions of the executive order shall be conclusively presumed and22
no court shall have authority or jurisdiction to inquire into any such matter.23
F. Bonds, notes, or other evidences of indebtedness issued under the24
authority of this Section or Chapter 32 of Title 40 of the Louisiana Revised Statutes25
of 1950, shall be exempt from all taxation for state, parish, municipal, or other26
purposes. Such bonds, notes, or other evidences of indebtedness may be used for27
deposit with any officer, board, or other political subdivision of the state, in any case28
where, by present or future laws, deposit of security is required for state funds.29 HLS 10RS-1049 RE-REENGROSSED
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G. Notwithstanding the provisions of this Chapter, the department shall not1
directly issue any bonds, notes, or other evidences of indebtedness except to any2
commission, authority, or public corporation of the state, any public trust, political3
subdivision of the state, or any other entity having the authority to issue debt for or4
on behalf of the state, or any other political subdivision of the state.5
* * *6
§2397. Distribution of revenue7
The state treasurer shall each fiscal year deposit the revenues generated under8
the provisions of this Chapter, from taxes applicable to the sale of reclaimed water,9
or other sources as provided for by law into the Bond Security and Redemption10
Fund. Out of the funds from such sources remaining in the Bond Security and11
Redemption Fund after a sufficient amount is allocated from that fund to pay all12
obligations secured by the full faith and credit of the state which become due and13
payable within any fiscal year, the treasurer shall deposit an amount equal to one-14
quarter of the revenues generated from the reclaimed water program into the15
Municipal Facilities Revolving Loan Clean Water State Revolving Fund, enacted in16
R.S. 30:2078 30:2301 et seq., which shall be used for making grants to local17
governments to finance primary waste treatment facilities; one-quarter into the18
Coastal Resources Trust Fund, created in R.S. 49:214.40, and the remainder shall be19
used by the Department of Natural Resources for the protection of groundwater20
resources. Use of these funds shall be subject to an appropriation by the legislature.21
Section 2. R.S. 33:4548.13 is hereby amended and reenacted to read as follows: 22
§4548.13. Cooperation of state agencies23
All state officers and agencies are authorized to render such services to the24
authority within their respective functions as may be requested by the authority. In25
addition, the authority is authorized to enter into such contracts, cooperative26
endeavor agreements, or other agreements with the Department of Environmental27
Quality with respect to the Municipal Facilities Revolving Loan Clean Water State28
Revolving Fund or any other state agency regarding other revolving loan funds as29 HLS 10RS-1049 RE-REENGROSSED
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the parties may desire in order to implement the provisions of this Chapter and1
Chapter 4 14 of Subtitle II of Title 30 of the Louisiana Revised Statutes of 1950.2
Section 3. R.S. 39:1022(C) is hereby enacted to read as follows: 3
§1022. Publication of resolution; contesting validity4
* * *5
C. Notwithstanding the provisions of Subsection A of this Section, any6
indebtedness that represents a loan to a political subdivision under this Part from the7
Drinking Water Revolving Loan Fund or the Clean Water State Revolving Fund8
must be approved by the State Bond Commission prior to the incurring of such9
indebtedness; however, the State Bond Commission shall not be required to approve10
the contents of the notice of intention required by Subsection A of this Section.11
Section 4. R.S. 40:2821(B)(2) and 2824(B) are hereby amended and reenacted to12
read as follows:13
§2821. Legislative findings14
* * *15
B. The legislature finds and declares that:16
* * *17
(2) The Department of Environmental Quality has, since 1989, been18
operating and maintaining the Municipal Facilities Revolving Loan Clean Water19
State Revolving Fund in accordance with the Federal Water Pollution Control Act20
(33 U.S.C. 1251 et seq.), commonly referred to as the Clean Water Act, to provide21
assistance to wastewater treatment facilities owned or operated by municipalities and22
other political subdivisions, and for other assistance allowed by such Act.23
* * *24
§2824. Drinking Water Revolving Loan Fund25
* * *26
B. The Department of Health and Hospitals, office of public health, shall27
segregate the funds associated with the drinking water loan fund as may be required28
by the federal act, grant agreements, or interagency agreements. The Department of29 HLS 10RS-1049 RE-REENGROSSED
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Health and Hospitals shall keep any accounts associated with the drinking water loan1
fund separate from any accounts associated with the Municipal Facilities Revolving2
Loan Clean Water State Revolving Fund authorized in R.S. 30:2078 30:2301 et seq.3
* * *4
Section 5. R.S. 30:2078 through 2088 are hereby repealed in their entirety.5
Section 6. This Act shall become effective upon signature by the governor or, if not6
signed by the governor, upon expiration of the time for bills to become law without signature7
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If8
vetoed by the governor and subsequently approved by the legislature, this Act shall become9
effective on the day following such approval.10
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 name of the Municipal Facilities Revolving Loan Fund to the Clean
Water State Revolving Fund and provides for the administration of the program and
approval of indebtedness of loan programs.
Present law authorizes the Dept. 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 La. 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 meaning of Art. VII, §6(C)
of the La. 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. HLS 10RS-1049 RE-REENGROSSED
HB NO. 913
Page 16 of 16
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
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 the department may enforce any covenant relating to
indebtedness or any security for such indebtedness by suit, action, mandamus, or other
appropriate proceedings.
Proposed law provides certain revenue bonds issued by a political subdivision and sold to
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;
however, no prior approval shall be required of the contents of the notice of intention to
issue the revenue bonds.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 30:2011(A)(3) and (D)(4) and (23), 2074(A)(4), 2397, R.S. 33:4548.13, and
R.S. 40:2821(B)(2) and 2824(B); Adds R.S. 30:2301-2306 and R.S. 39:1022(C); Repeals
R.S. 30:2078-2088)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Natural Resources and
Environment to the original bill.
1. Made technical changes.
Committee Amendments Proposed by House Committee on Appropriations to the
engrossed bill.
1. Made technical changes.