HLS 14RS-847 ORIGINAL
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are additions.
Regular Session, 2014
HOUSE BILL NO. 234
BY REPRESENTATIVES REYNOLDS, FANNIN, AND MONTOUCET
UTILITIES: Provides for the regulation of nonprofit water utility cooperatives wholly
owned by water users
AN ACT1
To enact Part I-B of Chapter 4 of Title 12 of the Louisiana Revised Statutes of 1950, to be2
comprised of R.S. 12:435.1 through 435.2, relative to nonprofit water cooperatives;3
to provide for rate changes; to provide for election by members; to provide for4
election limitations; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. Part I-B of Chapter 4 of Title 12 of the Louisiana Revised Statutes of7
1950, comprised of R.S. 12:435.1 through 435.2, is hereby enacted to read as follows:8
PART I-B. WATER COOPERATIVES9
§435.1. Nonprofit water utility cooperative or corporation; rate changes; elections10
A. Any nonprofit water utility cooperative or corporation wholly owned by11
water user members not under the jurisdiction of the Public Service Commission,12
prior to any change in rates charged for water, shall conduct an election as follows:13
(1) The board of directors of any nonprofit water utility cooperative or14
corporation wholly owned by water user members shall conduct a meeting of the15
board to discuss evidence of a need for a rate change and shall provide all directors16
with an opportunity to participate. If by a majority vote of the board of directors, the17
board agrees that a change in rates is needed, the board shall conduct an election of18
the water user members to request approval of the rate change.19 HLS 14RS-847 ORIGINAL
HB NO. 234
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(2) Written notice by mail shall be given to all water user members sixty1
days prior to an election. The notice may be included in a billing notice, but shall2
be a separate and prominent document. The notice shall contain a brief explanation3
of the reasons for the rate change increase on water user members and inform the4
water user members of the availability of a complete, written explanation of the5
reasons for the rate change. Such written explanation shall be available for6
examination by any water user member or his representative at all cooperative or7
corporation offices during regular business hours at least sixty days prior to the8
election.9
(3)(a) Sixty days after notification to the water user members, an election to10
determine approval of a change in rates shall be conducted. The election may be by11
mail ballot sent to each water user member or may be conducted by written ballot12
during a public hearing in a meeting of the water user members. No rate change13
shall be allowed without the approval of a majority of the water user members.14
(b) If a mail ballot is conducted, a written ballot may be included in a billing15
notice, but shall be a separate and prominent document. The ballot shall contain a16
brief explanation of the reasons for the effect of the rate change and the amount of17
the requested rate change and any other information the board deems necessary,18
including a deadline for ballot return. Ballots shall be collected and counted at the19
cooperative or corporation office.20
(c) If the election is conducted during a meeting of the water user members,21
written ballots shall be collected and counted at the meeting.22
(4) Affirmative approval by a majority vote of the water user members shall23
be required to change the rates.24
B. All costs of the election shall be paid by the cooperative or corporation.25
§435.2. Election limitations26
A. If the board of directors fails to implement the approved rate change27
within sixty days after the ballots are tabulated, the election is void and a new28
election shall be held prior to a change in rates.29 HLS 14RS-847 ORIGINAL
HB NO. 234
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are additions.
B. Unless the board of directors declares by majority vote that an emergency1
exists requiring a change in rates, at least three years shall intervene between2
elections requesting a change in rates.3
Section 2. This Act shall become effective on January 1, 2015.4
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)]
Reynolds HB No. 234
Abstract: Allows nonprofit water utility cooperatives wholly owned by water user members
not under the jurisdiction of the PSC to conduct elections of its user members to
make changes in rates charged for water.
Present law (constitution) provides for the regulation of public utilities by the Public Service
Commission.
Proposed law allows any nonprofit water utility cooperative wholly owned by water user
members to conduct an election of its user members to approve any change in rates charged
for water. Requires the board of directors to conduct a meeting of the board to determine
the need for a rate change and requires a majority of the board to agree to request a change.
Requires written notice by mail to all water user members 60 days prior to an election.
Allows the election notice, which must contain a brief explanation of the reasons for
requested change, to be included in a billing notice.
Proposed law further allows for an election to determine approval of a change in rates to be
conducted by mail ballot or by written ballot at a public meeting of water user members.
Requires the cooperative to pay all costs of the election. Requires affirmative approval by
a majority vote of the water user members to change the rates.
Proposed law provides that if the board of directors fails to implement the approved rate
change within 60 days after the ballots are tabulated, the election is void and a new election
must be held before a change in rates. Requires at least three years between elections
requesting a rate change, unless the board of directors declares by majority vote that an
emergency exists requiring a rate change.
Effective Jan. 1, 2015.
(Adds R.S. 12:435.1-435.2)