SLS 21RS-37 REENGROSSED
2021 Regular Session
SENATE BILL NO. 129
BY SENATORS FRED MILLS, BARROW AND MIZELL
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
WATER QUALITY. Creates and provides for the Community Drinking Water
Infrastructure Sustainability Act. (8/1/21)
1 AN ACT
2 To amend and reenact R.S. 40:5.9(C)(4) and (5), to enact R.S. 40:5.9(C)(6), 5.9.1, and 5.9.2,
3 and to repeal R.S. 36:259(B)(9) and R.S. 40:4.13, relative to public drinking water;
4 to create and provide for the Community Drinking Water Infrastructure
5 Sustainability Act; to provide for public purpose; to provide for a statewide system
6 of community water system accountability; to provide for rulemaking; to provide for
7 development of a letter grade schedule reflective of community water system quality
8 and performance; to provide for publication of quality and performance scores and
9 letter grades; to provide for requirement of an improvement plan; to provide for
10 penalties; to provide for the use of federal funds; to repeal certain provisions relative
11 to rulemaking; and to provide for related matters.
12 Be it enacted by the Legislature of Louisiana:
13 Section 1. R.S. 40:5.9(C)(4) and (5) are hereby amended and reenacted and R.S.
14 40:5.9(C)(6), 5.9.1, and 5.9.2 are hereby enacted to read as follows:
15 §5.9. Enforcement of drinking water regulations; administrative compliance orders;
16 civil actions; receiverships
17 * * *
Page 1 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 129
SLS 21RS-37 REENGROSSED
1 C. * * *
2 (4) No later than ninety days after appointment, the receiver shall
3 develop and submit an improvement plan to the Louisiana Department of
4 Health for approval. The improvement plan shall include the ability to increase
5 rates paid by users of the community water system based on a fair assessment
6 of the community water system compared to other comparable water systems,
7 the consolidation of the community water system with a neighboring system or
8 systems, or other measure which may be proposed by the receiver or the
9 Louisiana Department of Health to ensure the sustainability of the system for
10 the benefit of the customers who rely on the community water system for their
11 drinking water. The receiver shall include in the improvement plan any
12 additional measures proposed by the Louisiana Department of Health necessary
13 to bring the community water system into technical and operational compliance
14 and financial sustainability. The appointing court shall grant authority to the
15 receiver necessary to implement the improvement plan as approved by the
16 Louisiana Department of Health. Rate adjustments shall be subject to approval
17 by the appropriate rate setting authority.
18 (4)(5) The receiver shall carry out the orders specified and directed by the
19 court until discharged.
20 (5)(6) The court may dissolve the receivership if the person owning or
21 operating the defendant public water system requests that the receivership be
22 dissolved and such owner or operator can show good cause for the dissolution of the
23 receivership.
24 §5.9.1. Community water system accountability process; creation of letter
25 grade schedule; penalties for failing systems
26 A. This Section shall be known and may be cited as "The Community
27 Drinking Water Infrastructure Sustainability Act" which has been enacted by
28 the legislature to provide:
29 (1) For the development and implementation of a community water
Page 2 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 129
SLS 21RS-37 REENGROSSED
1 system accountability process which requires and supports drinking water
2 infrastructure sustainability for the citizens of Louisiana.
3 (2) Assurance to the citizens that the quality of drinking water is
4 monitored and maintained at levels essential for health, safety, welfare, and
5 long-term sustainability.
6 (3) Clear standards and expectations for community water systems so
7 that assessment of their quality, performance, and sustainability will be
8 understood.
9 (4) Information that will assist community water systems and citizens in
10 understanding expectations, outcomes, and consequences for failing community
11 water systems.
12 (5) Consequences and penalties for community water systems that do not
13 achieve minimum standards.
14 B. "Community water system" has the same meaning as provided for in
15 R.S. 40:5.8.
16 C. The Louisiana Department of Health, referred to in this Section as the
17 "department", shall provide for a statewide system of accountability for
18 community water systems and establish a letter grade schedule reflective of
19 community water system quality, performance, and sustainability based on, at
20 a minimum, the following standards:
21 (1) Federal water quality violation history.
22 (2) State violation history.
23 (3) Water system financial sustainability.
24 (4) Operation and maintenance performance history.
25 (5) Infrastructure violations.
26 (6) Customer satisfaction.
27 (7) Level of secondary contaminants.
28 D.(1) The department shall promulgate rules and regulations to establish
29 and implement the community water system letter grade schedule provided for
Page 3 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 129
SLS 21RS-37 REENGROSSED
1 in this Section. The rules and regulations shall provide clear and appropriate
2 point values for each standard set forth in Subsection C of this Section and
3 other assessed criteria as determined by the department that is used to calculate
4 the community water system's letter grade. Point values shall be based on
5 objective criteria so that each community water system is assessed equally and
6 fairly. Community water systems shall be assigned a letter grade of "A", "B",
7 "C", "D", or "F".
8 (2) The department shall publish scores and letter grades earned by each
9 community water system on its website in a frequency and duration established
10 by rule.
11 E.(1) Any community water system that receives a letter grade of "D"
12 or "F" shall be considered operationally unacceptable and may be subject to the
13 following:
14 (a) Enforcement actions as provided for in R.S. 40:5.9.
15 (b) Oversight of all federal or state funding by an auditor approved by
16 the legislative auditor who has experience with fiscal management of local
17 government. The oversight provided for in this Paragraph shall include the
18 authority to make decisions regarding the expenditure of funding.
19 (c) Notice being submitted to the State Bond Commission, the Public
20 Service Commission, and the attorney general to prohibit the community water
21 system or the local governing authority operating the community water system
22 from incurring any additional debt for anything not directly related to the
23 improvement and sustainability of the community drinking water system
24 pursuant to a plan approved by the department.
25 (2) A community water system that receives a letter grade of "D" or "F"
26 shall not be precluded from obtaining funding for the improvement and
27 sustainability of the community drinking water system based solely on the letter
28 grade.
29 F. Notwithstanding any provision of law to the contrary, no local
Page 4 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 129
SLS 21RS-37 REENGROSSED
1 governing authority that operates a community water system that receives a
2 grade of "D" or "F" shall expend any money raised through payments made by
3 customers for access to water or from any other water system revenue for any
4 item, debt payment, or public purpose other than the improvement and
5 sustainability of the community water system. A violation of this Subsection
6 shall be grounds for a court to appoint a receiver or fiscal administrator or to
7 order the mandatory safe water purchase from another system determined to
8 be available by the Louisiana Department of Health. The provisions of this
9 Subsection shall not be construed to prohibit the payment of bonded
10 indebtedness secured by the water system's revenue prior to August 1, 2021.
11 G. The department shall publish the first letter grades issued pursuant
12 to this Section no later than January 1, 2023.
13 §5.9.2. Community water system accountability; federal funds
14 A community water system or local governing authority operating a
15 community water system receiving federal funds, including stimulus or relief
16 payments or grants, for the upgrade, repair, or otherwise replacement of the
17 water system infrastructure shall submit a detailed plan describing how the
18 federal funds will be used to the Louisiana Department of Health.
19 Section 2. R.S. 36:259(B)(9) and R.S. 40:4.13 are hereby repealed.
The original instrument was prepared by Brandi Cannon. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Christine Arbo Peck.
DIGEST
SB 129 Reengrossed 2021 Regular Session Fred Mills
Present law provides for the remedies available to the state health officer for the enforcement
of public drinking water laws and regulations relative to public water including
administrative compliance orders, civil penalties, and civil actions for injunctions and to
place a public water system in receivership. Proposed law requires a receiver, within 90 days
after appointment, to develop and submit an improvement plan to the La. Dept. of Health
(LDH) for approval, and provides for the content of the improvement plan. Proposed law
provides that rate adjustments pursued pursuant to the plan are subject to approval by the
appropriate rate setting authority.
Proposed law creates the "Community Drinking Water Infrastructure Sustainability Act" and
provides for legislative intent for development of a community water system accountability
process to provide public assurance that drinking water is of high quality with clear
Page 5 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 129
SLS 21RS-37 REENGROSSED
standards and expectations of the community water system.
Proposed law defines "community water system" as a public water system that serves
year-round residents within a residential setting including systems serving municipalities,
water districts, subdivisions, and mobile home parks.
Proposed law provides that LDH will implement a statewide accountability system that
assesses letter grades to community water systems based on a clear and appropriate point
value assigned, at a minimum, for federal water quality violation history, state violation
history, water system financial sustainability, operation and maintenance performance
history, infrastructure violations, customer satisfaction, and level of secondary contaminants.
Proposed law provides for the assignment of a letter grade of "A", "B", "C", "D", or "F".
Proposed law provides that LDH shall publish scores and letter grades earned by each
community water system on its website in a frequency and duration established by LDH in
rulemaking.
Proposed law provides that any community water system that receives a letter grade of "D"
or "F" shall be considered operationally unacceptable and may be subject to present law
enforcement actions including administrative compliance orders, civil actions, and court
appointed receivership, oversight of federal or state grant funding by an auditor approved
by the legislative auditor, or being placed on notice to the State Bond Commission, the
Public Service Commission, and the attorney general to prohibit the incurring of any
additional debt for anything not directly related to the water system.
Proposed law provides that no local governing authority that operates a community water
system that receives a grade of "D" or "F" shall expend any money raised through payments
made by customers for access to water or from any other water system revenue for any item,
debt payment, or public purpose other than the improvement and sustainability of the
community water system. Proposed law shall not be construed to prohibit the payment of
bonded indebtedness secured by the water system's revenue incurred prior to the effective
date of proposed law.
Proposed law provides that a community water system with an "F" or "D" grade shall not
be denied access to funding to improve or sustain the community water system based solely
on the grade.
Proposed law provides that LDH shall publish the first letter grades no later than
January 1, 2023.
Proposed law provides that a community water system or local governing authority operating
a community water system receiving federal funds, including stimulus or relief payments or
grants, for the upgrade, repair, or otherwise replacement of the water system infrastructure
shall submit a detailed plan describing how the federal funds will be used to LDH.
Present law provides that LDH shall promulgate a rule or take action requiring the
modification of an existing community water system in operation before August 1, 2013,
only if LDH demonstrates that the public water system is incapable of attaining compliance
with the National Primary Drinking Water Regulations without the modification and
provides for permits for a new public water supply system or in connection with the
modification of an existing public water system. Present law establishes the Louisiana
Standards for Water Works Construction, Operation, and Maintenance Committee and
provides for the duties, membership, and meetings of the committee. Proposed law repeals
present law.
Effective August 1, 2021.
(Amends R.S. 40:5.9(C)(4) and (5); adds R.S. 40:5.9(C)(6), 5.9.1, and 5.9.2; repeals R.S.
Page 6 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 129
SLS 21RS-37 REENGROSSED
36:259(B)(9) and R.S. 40:4.13)
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill
1. Make technical changes.
2. Provide that rate adjustments are subject to approval by the appropriate rate
setting authority.
3. Provide that a community water system with an "F" or "D" grade shall not
be denied access to funding to improve or sustain the community water
system based solely on the grade.
Page 7 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.