2021 Louisiana Laws
Revised Statutes
Title 39 - Public Finance
§100.56. Water Sector Program

RS 100.56 - Water Sector Program

A. As used in this Section, the following terms shall have the following meanings:

(1) "Commission" shall mean the Water Sector Commission.

(2) "Committee" shall mean the Joint Legislative Committee on the Budget.

(3) "Division" shall mean the division of administration.

(4) "Fund" shall mean the Water Sector Fund.

B.(1) The Water Sector Commission is hereby established to review applications submitted pursuant to the Water Sector Program and make recommendations for funding to the Joint Legislative Committee on the Budget.

(2) The commission shall be comprised of the following members:

(a) Five members of the House of Representatives appointed by the speaker of the House of Representatives.

(b) Five members of the Senate appointed by the president of the Senate.

(3) A Senate member of the commission and a House member of the commission shall serve as co-chairmen of the commission.

(4) A quorum of the commission shall be six members. Any recommendations made by the commission shall require a quorum for approval.

(5) The staffs of the Senate, House of Representatives, and legislative fiscal office shall provide staff support and otherwise assist the commission as requested by the commission.

C. The Water Sector Program is hereby established to provide grant funding for repairs, improvements, and consolidation of community water and sewer systems, and repairs and improvements necessitated by storm water. The division of administration, office of facility planning and control, and the office of community development shall administer the program in consultation with the Louisiana Department of Health and the Department of Environmental Quality. The division shall establish a working panel comprised of employees of the office of facility planning and control and the office of community development, within the division of administration, the office of public health within the Louisiana Department of Health, and the Department of Environmental Quality. The working panel shall review and rate applications submitted by community water systems, community sewer systems, and local governing authorities and submit recommendations for funding to the commission.

D.(1) The commission shall hold its first meeting no later than June 30, 2021. At its first meeting, the commission shall issue directives to the division to utilize in the development of the guidance required in Paragraph (2) of this Subsection.

(2) The division shall promulgate guidance for the administration of the program. The guidance shall include application requirements, deadlines for application submissions and approval, criteria for ratings, and a process for prioritizing critical infrastructure needs. The Administrative Procedure Act, R.S. 49:950 et seq., shall not apply to guidance promulgated pursuant to this Section. No later than July 15, 2021, the division shall submit the proposed guidance to the commission for review and approval. Any changes to the guidance shall require approval by the commission.

E. In addition to the guidance provided for in Subsection D of this Section, the division shall submit a proposal outlining administrative costs for the program to the commission for review and approval prior to implementing the program no later than July 15, 2021. The commission shall review the proposed administrative costs and make a recommendation to the Joint Legislative Committee on the Budget for funding for administrative costs. The committee shall review the recommendations submitted by the commission and approve administrative costs for the program.

F. Notwithstanding any provision of law to the contrary, the division may enter into consulting services, professional services, and information and technology services contracts for the purpose of the procurement of any goods or services necessary to implement and expedite the distribution of funds as emergency procurements exempt from the provisions of the Louisiana Procurement Code and corresponding rules and regulations. The cost of such contracts shall be considered administrative costs.

G. Each grant recipient shall be required to provide matching funds unless the commission recommends waiving the match requirement.

H. The division shall begin accepting applications no later than August 1, 2021. The applications shall include the following, at a minimum:

(1) The amount of grant funding requested.

(2) The amount and proposed source of funding for the proposed match.

(3) Proposals for repairs, improvements, or consolidation with neighboring systems.

(4) Assurance the entity will comply with the rate determination of the rate study completed by a third party chosen by the division prior to release of funds for construction and permission to bid.

(5) A certification from the local governing authority that operates the system or the water system operator that funding from the Coronavirus Fiscal Recovery Fund of the American Rescue Plan Act of 2021 is being used as a source of funding for the required match or explanation of legitimate cause that precluded the use of those funds for the match.

I. Within forty-five days of the end of the application period, the division shall submit the working panel's ratings of proposed projects and recommendations for funding for the projects to the commission. The working panel's recommendations to the commission shall include recommendations for utilization of existing funding sources including the Drinking Water Revolving Loan Fund, Clean Water State Revolving Fund, and Community Water Enrichment and Other Improvements Fund.

J. The commission shall review the ratings and recommendations submitted by the working panel. The commission shall submit its recommendations for projects to receive monies from the fund and funding amounts to the Joint Legislative Committee on the Budget. The recommendations shall include proposed matching funds unless the commission recommends a waiver of matching funds or decreased match for any project based on the determination that the local governing authority or water system is unable to provide the match.

K. The committee shall review the recommendations submitted by the commission and have final approval of funding for projects. No monies shall be expended from the fund without approval of the Joint Legislative Committee on the Budget.

L. Beginning January 1, 2022, the division shall submit a quarterly construction progress report for projects that received funding approval to the Joint Legislative Committee on the Budget.

M. Each grant recipient that receives funding pursuant to this Section shall comply with the provisions of R.S. 24:513.

N. The provisions of R.S. 39:72.1(A) shall not apply to monies appropriated pursuant to this Section.

O.(1) Priority for funding shall be given to community water system projects, community sewer system projects, or projects necessitated by storm water that are contained in Act No. 485 of the 2021 Regular Session of the Legislature.

(2) Projects eligible pursuant to this Subsection shall not be required to submit an application pursuant to the provisions of this Section. The division may request supplemental information for the project as directed by the commission.

P. If an appropriation for a community water system project, community sewer system project, or a project necessitated by storm water has received a line of credit or is recommended for a line of credit pursuant to Act No. 485 of the 2021 Regular Session of the Legislature and the project is eligible for funding through the Water Sector Program, the commission may recommend to the commissioner of administration that the project not be recommended for a line of credit in lieu of funding from the Water Sector Program.

Acts 2021, No. 410, §1, eff. June 17, 2021.