The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Brandi Cannon.
DIGEST
SB 122 Original 2023 Regular Session Fred Mills
Proposed law creates the "Community Sewerage System Infrastructure Sustainability Act" and
provides for legislative intent to develop a community sewerage system accountability process which
supports sewerage system infrastructure sustainability for the citizens of Louisiana.
Proposed law defines "community sewerage system" as any treatment works, whether publically or
privately owned, which serves multiple connections and consists of a collection or pumping and
transport system or a treatment facility. For the purposes of proposed law, "community sewerage
system" includes any local governing authority which operates a community sewerage system.
Proposed law provides that a community sewerage system shall submit a compliance report from the
Department of Environmental Quality (DEQ), a compliance report from the La. Department of
Health (LDH), and a sewer fiscal responsibility certification from the legislative auditor if the
community sewerage system does any of the following:
(1)Seeks approval from the State Bond Commission to incur any additional debt not directly
related to the improvement and sustainability of the community sewerage system or a related
community water system.
(2)Submits to the division of administration a project for the capital outlay program not directly
related to the improvement and sustainability of the community sewerage system or a related
community water system.
(3)Seeks approval for a rate adjustment from the appropriate rate setting authority not directly
related to the improvement and sustainability of the community sewerage system or a related
community water system.
Proposed law provides that any community sewerage system found to have significant violations or
to be out of compliance in either of the compliance reports or the sewer fiscal responsibility
certification shall also submit all of the following information:
(1)A plan of correction for the deficiencies noted in any of the compliance reports or the sewer
fiscal responsibility certification.
(2)The anticipated timeline for the completion of the plan of correction, including anticipated
dates for completion of the significant steps in the plan of correction.
(3)The anticipated costs for the completion of the plan of correction and a list of all sources of funds to be used.
(4)Any report prepared by a licensed engineer relative to the deficiencies and the plan of
correction.
Proposed law provides that, after consideration of the compliance reports, sewer fiscal responsibility
certification, and supplemental material relative to the plan of correction for deficiencies, the State
Bond Commission, the division of administration, and the rate setting authority may deny the request
of the community sewerage system.
Proposed law provides that the community sewerage system shall not be precluded from obtaining
funding, participating in the capital outlay program, or obtaining approval for a rate increase for the
purpose of improvement and sustainability of the community sewerage system or a related
community water system based upon the compliance reports, sewer fiscal responsibility certification,
or the supplemental material relative to the plan of correction for deficiencies provided in accordance
with proposed law.
Proposed law provides that, upon request of a community sewerage system, DEQ and LDH shall
each review its own records and provide a compliance report based upon criteria determined by that
department. Proposed law further provides that the legislative auditor shall review its records and
provide a sewer fiscal responsibility certification regarding the community sewerage system's
financial sustainability based upon criteria determined by the auditor.
Proposed law requires the compliance report and sewer fiscal responsibility certification to clearly
indicate in plain language the community sewerage system's compliance status and the level of
severity of violations.
Proposed law prohibits a local governing authority that operates a community sewerage system from
expending any money raised through customer payments or from any other sewerage system revenue
for any item, debt payment, or public purpose other than the improvement and sustainability of the
community sewerage system. Proposed law shall not be construed to prohibit the payment of bonded
indebtedness secured by the sewerage system's revenue incurred prior to the effective date of
proposed law.
Proposed law provides that any community sewerage system considered operationally unacceptable
in any compliance report or sewer fiscal responsibility certification may be subject to receivership
in accordance with present law.
Proposed law provides for rulemaking by DEQ and LDH.
Effective January 1, 2024.
(Adds R.S. 30:2075.4)