Louisiana 2013 Regular Session

Louisiana House Bill HB427

Introduced
4/8/13  

Caption

(Constitutional Amendment) Limits power of the PSC to regulate nonprofit water utility cooperatives wholly owned by water users (OR SEE FISC NOTE SD RV)

Impact

If enacted, the bill will significantly alter the relationship between state regulators and nonprofit water utilities. Currently, the PSC oversees the regulation of public utilities to ensure fair practices and consumer protection. With the passage of HB 427, the PSC will lose authority over certain cooperatives unless these organizations voluntarily agree to such oversight or if a majority of the cooperative members vote for it. This amendment could lead to a significant shift in how water services are managed in Louisiana, particularly in rural areas where cooperatives are more prevalent.

Summary

House Bill 427 proposes an amendment to the Louisiana Constitution that limits the regulatory power of the Public Service Commission (PSC) over nonprofit water utility cooperatives that are wholly owned by water users. This bill aims to provide these cooperatives a degree of autonomy by freeing them from state oversight, provided that decisions regarding directors are made through a voting process involving the users themselves. The intent behind this bill is to empower community-based organizations, maintaining that control should lie with the users of the services rather than state regulators.

Sentiment

The sentiment surrounding HB 427 appears to be mixed. Proponents argue that the amendment will promote local governance and self-determination among water users, allowing them to make decisions tailored to their specific needs. Conversely, opponents worry that reducing regulatory oversight could lead to inefficiencies and a lack of accountability, potentially compromising service quality and consumer protections. This division reflects broader debates regarding the balance between state control and local autonomy.

Contention

Key points of contention in discussions surrounding HB 427 revolve around the implications of removing state-level oversight. Critics express concerns that without proper regulation, there is potential for service quality to decline, with users having less recourse against mismanagement by the cooperative. Proponents counter by emphasizing the importance of user control, arguing that local managers are more attuned to the nuances of their service area. The debate highlights underlying tensions regarding governance and accountability in the face of changing regulatory landscapes.

Companion Bills

No companion bills found.

Previously Filed As

LA HB154

(Constitutional Amendment) Limits the power of the Public Service Commission to regulate nonprofit water utility cooperatives wholly owned by water users

LA HB223

(Constitutional Amendment) Limits power of the Public Service Commission to regulate nonprofit water utility cooperatives wholly owned by water users

LA HB600

Provides for the regulation of nonprofit water utility cooperatives wholly owned by water users

LA HB234

Provides for the regulation of nonprofit water utility cooperatives wholly owned by water users

LA HB729

Provides relative to nonprofit water utility cooperatives wholly owned by water users

LA HB1236

Provides relative to nonprofit water utility cooperatives and corporations wholly owned by water users

LA HB459

(Constitutional Amendment) Provides for changes to the powers, duties, limitations, and processes of the Public Service Commission

LA HB448

(Constitutional Amendment) Prohibits ad valorem tax exemptions for property owned by nonprofit organizations used for commercial purposes (OR SEE FISC NOTE LF RV)

LA HB414

(Constitutional Amendment) Provides relative to various sources of state and local revenue (OR SEE FISC NOTE GF RV)

LA HB419

(Constitutional Amendment) Amends Article 7 of the state constitution (OR SEE FISC NOTE GF RV)

Similar Bills

No similar bills found.