SLS 18RS-589 REENGROSSED 2018 Regular Session SENATE BILL NO. 372 BY SENATOR CORTEZ FLOOD PROTECTION AUTH. Provides for Rural Grant Opportunity Program in the Statewide Flood Control Program. (8/1/18) 1 AN ACT 2 To amend and reenact the introductory paragraph of R.S. 38:90.4(A)(1) and 90.9, and to 3 enact R.S. 38:90.1(12) and (13) and 90.4.1, relative to the Statewide Flood Control 4 Program; to provide for the Rural Grant Opportunity Program within the Statewide 5 Flood Control Program; to provide for requirements, limitations, and eligibility for 6 participation in the rural program; and to provide for related matters. 7 Be it enacted by the Legislature of Louisiana: 8 Section 1. The introductory paragraph of R.S. 38:90.4(A)(1) and 90.9 are hereby 9 amended and reenacted and R.S. 38:90.1(12) and (13) and 90.4.1 are hereby enacted to read 10 as follows: 11 §90.1. Definitions 12 As used in this Chapter, unless the context clearly indicates otherwise, the 13 following terms shall have the meanings ascribed to them as follows: 14 * * * 15 (12) "Rural grant opportunity authority" means a municipality with a 16 population of fewer than five thousand people or a parish with a population of 17 fewer than twenty-five thousand people located in a rural area. Page 1 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 372 SLS 18RS-589 REENGROSSED 1 (13) "Rural Grant Opportunity Program" means a mechanism for a 2 rural grant opportunity authority located in a rural area that lacks the financial 3 ability to satisfy the local match requirements to participate in the Statewide 4 Flood Control Program. 5 * * * 6 §90.4. Methodology for flood-control project evaluation 7 A.(1) Applications for funding of any flood-control projects under the 8 Statewide Flood Control Program may be submitted by any duly authorized 9 municipal, parish, or other governing authority. Applications shall be made to the 10 office of engineering by October first of each year, for consideration of funding in 11 the following fiscal year. Pre-applications may be submitted at any time 12 throughout the year but shall be received no later than May first of each year 13 to be eligible for consideration of funding in the next program approval as 14 provided in this Section. In the event that a flood disaster declaration has been 15 issued by the governor for a municipality or parish, no later than September first of 16 the year immediately following the gubernatorial flood disaster declaration, the 17 Department of Transportation and Development shall send notice by registered or 18 certified mail to the governing authority of that municipality or parish containing 19 information regarding the application procedures and deadlines to submit eligible 20 flood control projects in that particular municipality or parish. The governing 21 authority of the municipality or parish shall submit an application for funding to the 22 office of engineering by October first of the year following the declaration. 23 Applications submitted in accordance with the provisions of this Chapter shall not 24 be subject to the provisions of R.S. 39:101. Sponsoring authorities with a population 25 of fifty thousand persons or more shall be responsible for the preparation of 26 applications for their respective projects. For sponsoring authorities with a 27 population of less than fifty thousand persons, the office shall prepare the 28 applications for the projects, or the sponsoring authority may prepare its application 29 in the event the office cannot accomplish required engineering services in a timely Page 2 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 372 SLS 18RS-589 REENGROSSED 1 manner. Information to be provided in the application shall include but not be limited 2 to the following: 3 * * * 4 §90.4.1. Rural Grant Opportunity Program 5 A. Applications for funds in the Rural Grant Opportunity Program may 6 be submitted by a rural grant opportunity authority. Applications shall be 7 reviewed in accordance with R.S. 38:90.4(B). 8 B. Funds for the program shall not exceed twenty-five percent of the 9 annual capital outlay appropriation of the legislature for the Statewide Flood 10 Control Program. Unencumbered Rural Grant Opportunity Program funds 11 shall be available for use in the Statewide Flood Control Program for rural 12 authorities who do not qualify for grant program funding. 13 C. Information included in the application shall satisfy the requirements 14 of R.S. 38:90.4(A)(1) and shall also include, but is not limited to the following: 15 (1) A resolution from the authority declaring its financial inability to 16 satisfy the local match required pursuant to R.S. 38:90.9(A)(4). 17 (2) Financial documentation to support its declaration of financial 18 inability in the resolution shall include a sworn affidavit executed by the 19 authority's private certified public accountant certifying that, after an 20 examination of the authority's financial records, monies are not available out 21 of the accumulated unreserved earnings generated by the authority to meet the 22 Statewide Flood Control Program's ten percent local match requirement. 23 D. If the grant application is approved, the authority shall not be 24 required to satisfy the ten percent local match for construction. 25 E. Federal matching projects shall not be eligible for funds in 26 accordance with this Section. 27 F. No special district shall be eligible to participate in the Rural Grant 28 Opportunity Program. 29 * * * Page 3 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 372 SLS 18RS-589 REENGROSSED 1 §90.9. Statement of sponsorship 2 A. Prior to the commencement of any work, the office shall require the 3 presiding officer of each authority involved in a project to execute a statement of 4 sponsorship. The statement of sponsorship shall include but not be limited to the 5 following: 6 (1) Agreement to furnish all lands, easements, rights-of-way, permits, and 7 spoil disposal areas necessary to construct and maintain the project without cost to 8 the state. 9 (2) Agreement to assume all maintenance and operation costs for the project 10 and all future alterations as may be required without cost to the state. 11 (3) Agreement to accomplish all necessary utility and any other facility 12 relocations, alterations, and maintenance without cost to the state. 13 (4) Agreement to provide at least a ten percent local match for cost of the 14 project; however, the Statewide Flood Control Program may provide funds for the 15 total cost for any modifications to drainage structures located within state highway 16 rights-of-way. Where practical, the local levee board may authorize payment of part 17 or all of the local authority's costs. 18 B. A sponsoring authority that is an eligible rural grant opportunity 19 authority and lacks the financial ability to satisfy the local match required to 20 participate in the Statewide Flood Control Program may apply for funds 21 pursuant to R.S. 38:90.4.1. The original instrument was prepared by Sharon F. Lyles. The following digest, which does not constitute a part of the legislative instrument, was prepared by Laura Gail Sullivan. DIGEST SB 372 Reengrossed 2018 Regular Session Cortez Present law provides for the Statewide Flood Control Program administered by the office of engineering in the Department of Transportation and Development. The program requires a local match of 10% of the cost of construction from an authority. Proposed law creates the Rural Grant Opportunity Program to provide a mechanism for a municipality with fewer than 5,000 people or a parish with fewer than 25,000 people located in a rural area ("rural grant opportunity authority" or "authority") without financial ability to provide the local match requirement of the Statewide Flood Control Program to apply for Page 4 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 372 SLS 18RS-589 REENGROSSED funds. Proposed law provides that funds for the Rural Grant Opportunity Program shall not exceed 25% of the annual capital outlay appropriation by the legislature for the Statewide Flood Control Program. Proposed law requires an authority's application to meet the requirements of R.S. 38:90.4(A)(1) and also to include a resolution declaring its financial inability to meet a 10% local match and documentation to support its declaration. Proposed law relieves an authority whose grant application is approved from satisfying the 10% local match. Proposed law makes federal matching projects ineligible for funds under the Rural Grant Opportunity Program. Prohibits special districts from participating in the program. Effective August 1, 2018. (Amends R.S. 38:90.4(A)(1)(intro para) and 90.9; adds R.S. 38:90.1(12) and (13) and 90.4.1) Summary of Amendments Adopted by Senate Senate Floor Amendments to the engrossed bill 1. Define "Rural grant opportunity authority" to mean a municipality with a population of fewer than 5,000 people or a parish with a population of fewer than 25,000 people located in a rural area. 2. Allow pre-applications for funding of flood-control projects to be submitted by May 1st of each year for funding consideration. 3. Prohibit special districts from participating in the program. Page 5 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.