Louisiana 2018 2018 Regular Session

Louisiana Senate Bill SB372 Engrossed / Bill

                    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.
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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
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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	*          *          *
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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
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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.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.