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ACT No. 9382026 Regular Session
HOUSE BILL NO. 1243 (Substitute for House Bill No. 573 by Representative
Hilferty)
BY REPRESENTATIVES HILFERTY, BAYHAM, BOYD, COX, DEVILLIER,
DOMANGUE, FISHER, JACKSON, AND TAYLOR
1 AN ACT
2 To amend and reenact R.S. 33:4071, 4072(A) and (B), 4073, 4074, 4123, and 4159.2(A),
3 (B)(1), and (C), relative to the city of New Orleans; to provide relative to the
4 Sewerage and Water Board of New Orleans; to provide relative to the composition
5 of the board; to provide relative to the officers of the board; to provide relative to the
6 powers and duties of the board; to provide relative to the powers and duties of the
7 city council with respect to the board; to provide relative to billing policies of the
8 board; and to provide for related matters.
9 Notice of intention to introduce this Act has been published
10 as provided by Article III, Section 13 of the Constitution of
11 Louisiana.
12 Be it enacted by the Legislature of Louisiana:
13 Section 1. R.S. 33:4071, 4072(A) and (B), 4073, 4074, 4123, and 4159.2(A), (B)(1),
14 and (C) are hereby amended and reenacted to read as follows:
15 §4071. Creation and organization of sewerage and water board
16 A.(1) The public water system, the public sewerage system, and the public
17 drainage system of the city of New Orleans shall be constructed, controlled,
18 maintained, and operated by a sewerage and water board. The composition of the
19 board may be as set forth in the New Orleans home rule charter, unless otherwise
20 provided by law. The New Orleans city council may, by ordinance in accordance
21 with applicable state law, prescribe rules and regulations governing the appointment,
22 terms, and service of board members. to be composed as follows:
23 (a) The mayor.
24 (b) The chair of the Public Works, Sanitation and Environment Committee
25 of the New Orleans city council or an appointee selected by the council president
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1 with a background in engineering, law, or consumer advocacy selected with the
2 advice and consent of the city council. Any member appointed by the council
3 president shall serve at the pleasure of the council president.
4 (c) Two syndicate members of the board of liquidation, city debt, to be
5 appointed by the mayor on the recommendation of the board of liquidation, city debt.
6 (d) Seven citizens, to be appointed by the mayor, with the advice and consent
7 of the city council from a list of nominees submitted by the Sewerage and Water
8 Board Selection Committee.
9 (e) The members appointed pursuant to Subparagraphs (c) and (d) of this
10 Paragraph shall include one citizen from each of the five councilmanic districts
11 within the city of New Orleans. In addition, two of the appointments shall be
12 consumer advocates with community advocacy or consumer protection experience
13 or experience in a related field.
14 (2)(a) For purposes of this Section, the Sewerage and Water Board Selection
15 Committee, hereinafter referred to as the "selection committee", is hereby created to
16 be comprised as follows:
17 (i) The president of Dillard University or the president's designee.
18 (ii) The president of Loyola University or the president's designee.
19 (iii) The president of Tulane University or the president's designee.
20 (iv) The president of Xavier University or the president's designee.
21 (v) The chancellor of Delgado Community College or the chancellor's
22 designee.
23 (vi) The chancellor of University of New Orleans or the chancellor's
24 designee.
25 (vii) The chancellor of Southern University at New Orleans or the
26 chancellor's designee.
27 (viii) The chair of the board of directors of the New Orleans Chamber of
28 Commerce or the chair's designee.
29 (ix) The president of the board of directors of the New Orleans Regional
30 Black Chamber of Commerce or the president's designee.
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1 (x) The chair of the board of directors of the Urban League of Greater New
2 Orleans or the chair's designee.
3 (b) Notice of a vacancy on the sewerage and water board shall be published
4 in the official journal for Orleans Parish by the sewerage and water board and shall
5 be communicated through any other publication, website, or electronic medium
6 maintained by the New Orleans Sewerage and Water Board or the city of New
7 Orleans for the purpose of achieving public awareness of the vacancy. Such notice
8 shall advise potential candidates of the residency requirements, professional
9 qualifications, and application deadlines. Such notices shall be published no less
10 than two times within a thirty day period after a vacancy has been declared by the
11 sewerage and water board. Any interested person who meets the qualifications
12 provided for in this Section shall submit an application to the sewerage and water
13 board confirming their eligibility, professional qualifications, and experience. The
14 sewerage and water board shall transmit all applications received to the selection
15 committee within seven days after the deadline for submission of applications.
16 (c) The selection committee shall meet no less than fifteen days and no more
17 than thirty days after close of the application deadline to consider each name
18 submitted for nomination. Selection committee members may also submit names of
19 persons who also meet the qualification requirements provided in this Section. The
20 selection committee shall verify that each nominee meets such qualification
21 requirements. After a thorough review of each application, the selection committee
22 shall by majority vote submit to the mayor three names for each vacancy on the
23 sewerage and water board.
24 (d) Within sixty days of receipt of the list of nominees, the mayor shall select
25 one of the three nominees for submission to the city council for approval.
26 (e) The city council shall have thirty days from receipt of submission of the
27 nomination by the mayor to disapprove the nominee. If the city council does not
28 disapprove the nominee within such time, it shall be deemed that the city council
29 consents to the appointment.
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1 (f) If the city council disapproves the nominee from the mayor, the selection
2 committee shall convene in no less than thirty days and no more than sixty days after
3 disapproval to resubmit three nominees to the mayor.
4 (g) If for any reason the mayor fails to submit a nomination to the city
5 council within sixty days of receipt of the list of nominees by the selection
6 committee, the selection committee shall submit such list of nominees directly to the
7 city council for selection and approval.
8 (3) Each nominee shall have experience in either architecture, environmental
9 quality, finance, accounting, business administration, engineering, law, public health,
10 urban planning, facilities management, public administration, science, construction,
11 business management, community or consumer advocacy, or other pertinent
12 disciplines.
13 (4)(a) For members appointed pursuant to Subparagraphs (1)(c) and (d) of
14 this Subsection, the terms of office shall be four years after initial terms as provided
15 in Subparagraph (b) of this Paragraph. A member shall serve no more than two
16 consecutive terms of office.
17 (b) Three members shall serve an initial term of one year; three members
18 shall serve an initial term of two years; three members shall serve an initial term of
19 three years; and two members shall serve an initial term of four years, as determined
20 by lot at the first meeting of the board.
21 (5) If the mayor is unable to attend a meeting of the sewerage and water
22 board, the mayor may be represented at the board meeting by a person designated by
23 the mayor who shall be an unclassified member of the mayor's administration. The
24 person shall have all rights and powers granted to the mayor with regard to any such
25 board meeting including the right to vote and shall be counted for purposes of a
26 quorum.
27 (6) The appointments to the board shall reflect the racial and gender diversity
28 of the population of the city of New Orleans to the extent practicable.
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1 B.(1) Each of the citizen members shall be a registered voter in Orleans
2 Parish and shall have been a domiciliary of Orleans Parish for two years previous to
3 his appointment.
4 (2) In the event any appointed member is elected to any office or removes
5 his domicile from Orleans Parish, his membership on the board shall be ipso facto
6 vacated, and his successor shall be immediately appointed.
7 C. All vacancies occurring in the membership of the board under
8 appointment by the mayor shall be filled in the manner prescribed by this Section for
9 the original appointment.
10 D. No person who is a stockholder or bondholder in any sewerage or
11 waterworks company or who holds any public office yielding emoluments to the
12 holder other than those specified in this Part shall be eligible for appointment to the
13 board.
14 E. B. A Subject to limitations provided in this Part, a quorum of the board
15 shall adopt rules fixing its own meetings and procedures. Any amendments or
16 changes to such rules shall be adopted only after approved by a quorum of the board.
17 F. C. Notwithstanding any provisions of law to the contrary, the board may
18 adopt rules and procedures authorizing the adjusting, releasing, or extinguishing of
19 any indebtedness from a customer's sewerage and water bill. The rule shall limit the
20 board's compromising authority to appropriate instances in which any of the
21 following occur:
22 (1) Instances of error on the part of the district such as equipment failure or
23 process failure, including instances in which the board generates inaccurate invoices,
24 and in such instances, only to the extent that the failure increased the customer's
25 indebtedness.
26 (2) Instances in which an employee of the board, or a person acting on behalf
27 of the board, fails to properly read a customer's water meter regardless of whether
28 the board has submitted an invoice to the customer for an amount owed during any
29 such period or fails to submit an invoice to the customer for two or more consecutive
30 months.
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1 (3) Instances of error not on the part of the customer due to unforeseen
2 damage or an extreme weather-related event or mandatory evacuation, and in such
3 instances, only to the extent the situation increased the customer's indebtedness.
4 (4) Instances where the customer is disproportionately impoverished or
5 needy and qualifies for an adjustment, release, or extinguishment pursuant to an
6 established social welfare program of the district.
7 §4072. Drainage operations; city of New Orleans
8 A. At the beginning of every quarter, the Coastal Protection Restoration
9 Authority, the Louisiana Department of Transportation and Development, the
10 Governor's Office of Homeland Security and Emergency Preparedness, and
11 representatives from the Jefferson Parish Department of Public Works, the Saint
12 Bernard Parish Department of Public Works, and the Plaquemines Parish
13 Engineering & Public Works Department shall meet with the executive director of
14 the Sewerage and Water Board of New Orleans and his team the director of public
15 works for the city of New Orleans, or his designee, to develop a coordinated
16 southeast Louisiana urban flood prevention plan. The purposes of the meetings shall
17 be to identify areas that need to be addressed in order to allow for proper drainage,
18 to model and predict storm drainage in the multiparish area, and to anticipate
19 emergency response priorities. The plan shall be presented to the members of the
20 New Orleans Delegation and the city council of New Orleans annually on May
21 fifteenth, beginning May 15, 2025.
22 B.(1) The Unless otherwise provided by the parish governing authority or
23 other law to the contrary, the Sewerage and Water Board of New Orleans shall be
24 responsible for all drainage operations in the city of New Orleans. The city of New
25 Orleans shall may transfer all employees and equipment used for drainage
26 maintenance to the Sewerage and Water Board of New Orleans.
27 (2) The city of New Orleans shall allocate on an annual basis to the
28 Sewerage and Water Board of New Orleans the same level of funding that the New
29 Orleans Department of Public Works utilized in Fiscal Year 2023 for drainage
30 operations unless such operations are maintained by any other public entity. Any
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1 other increases in funding by the city of New Orleans to the Sewerage and Water
2 Board of New Orleans shall be subject to New Orleans City Council approval.
3 "Public entity" for purposes of this Part shall have the same meaning as provided in
4 R.S. 39:1421(2).
5 * * *
6 §4073. Officers of sewerage and water board; compensation of members
7 The mayor shall be ex officio president of the board shall elect from its
8 membership a president and a president pro tempore. The board shall also elect an
9 executive director, whose salary and bond shall be fixed by the board. The executive
10 director shall hold office at the pleasure of the board. The election or removal of the
11 executive director, the amount of his salary, and the acceptance of his bond shall be
12 determined by a majority vote of the entire board at one of its regular monthly
13 meetings. The duties of the executive director shall be fixed by the board. No
14 member of the board shall receive any salary or compensation for his services,
15 except actual expenses incurred in travelling traveling by authority of, or for the
16 benefit of the board. The board shall have power to elect one of its members
17 president pro tempore who shall act in the absence or disability of the president.
18 §4074. Meetings of the board
19 All meetings of the board shall be held in accordance with rules adopted by
20 the board and shall be open and public as provided by ordinance adopted pursuant
21 to R.S. 33:4159.2. All board meetings shall be conducted in accordance with the
22 Open Meetings Law. All its transactions shall be recorded in the minutes to be kept
23 in writing by the executive director, and its records shall be public. Six members
24 thereof shall constitute a quorum.
25 * * *
26 §4123. New Orleans; rules and regulations; provisions self-operative; board
27 continued; repeal; severability
28 A. The Subject to limitations provided in this Part, the board may make
29 reasonable rules and regulations necessary for the proper administration of the
30 sewerage system.
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1 B. The provisions hereof are self-operative, and the sewerage and water
2 board of New Orleans, the Board of Liquidation, City Debt, and the council of the
3 city of New Orleans, or its successor as the governing body of said city of New
4 Orleans shall have full power to carry them into effect.
5 C. The Board of Liquidation, City Debt, as now organized and created, and
6 with the powers, duties and functions prescribed by existing laws and by the
7 constitution, shall be continued while any bonds authorized by R.S. 33:4121 are
8 outstanding and unpaid.
9 D. No proceedings or approvals, not required by the provisions of this
10 Section, shall be necessary to the validity of such bonds.
11 E. Any provision of the constitution or any law in conflict herewith is hereby
12 repealed. Should any provision hereof be declared null and void, such declaration
13 shall not affect the balance of this amendment.
14 * * *
15 §4159.2. Powers of the city council
16 A.(1) The city council may establish, by ordinance, procedures regarding the
17 billing policies of the board, including reducing or modifying a bill received by a
18 customer, or waiving late charges or accrued interest, subject to the authority
19 established by the billing ordinance as set forth in Paragraph (2) of this Subsection.
20 (2) The city council shall establish a billing ordinance working group to
21 review and opine on ordinances before any such ordinance may be considered by the
22 Public Works, Sanitation, and Environmental Committee of the city council,
23 including evaluating the necessity of such an ordinance. This working group shall
24 convene within ninety days of August 1, 2022, to establish procedural guidelines and
25 within thirty days of the filing of an ordinance that impacts any aspect of the
26 Sewerage and Water Board of New Orleans billing process or policies. The findings
27 of this working group shall be made part of the official record before consideration
28 of any such ordinance drafted pursuant to this Section.
29 (3) The billing ordinance review working group shall be comprised of the
30 following members:
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1 (a) The chairman of the New Orleans City Council Budget, Audit, and Board
2 of Review Committee, or his designee.
3 (b) The chairman of the New Orleans City Council Public Works, Sanitation,
4 and Environment Committee, or his designee.
5 (c) The chairman of the New Orleans City Council Governmental Affairs
6 Committee, or his designee.
7 (d) A member of the House of Representatives residing in Orleans Parish,
8 or his designee, appointed by the New Orleans City Council president.
9 (e) A member of the Senate residing in Orleans Parish, or his designee,
10 appointed by the New Orleans City Council president.
11 (f) The executive director of the Sewerage and Water Board of New Orleans,
12 or his designee.
13 (g) The president of the Sewerage and Water Board of New Orleans, or his
14 designee.
15 (4) The procedures established by the city council shall be uniformly
16 implemented so as to prevent special treatment as it relates to any bill modification
17 or amnesty. exercise regulatory authority and oversight over the board absent any
18 law to the contrary. This authority shall include but is not limited to the ability to
19 regulate and to require city council approval of the following:
20 (a) Rates, fees, and charges imposed by the board.
21 (b) The board's annual operating budgets.
22 (c) Creation, adoption, and implementation of capital budgets and capital
23 improvement plans.
24 (d) Board policies relating to billing, finance, operations, and governance,
25 including policies related to reducing or modifying a bill received by a customer, or
26 waiving late charges or accrued interest.
27 (e) Contracts entered into by the board.
28 (f) The election of the executive director and the hiring of board employees.
29 (2) Nothing in this Subsection shall be deemed to delegate powers held
30 exclusively by the legislature or to authorize the city council to enact any ordinance
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1 inconsistent with this Part or other applicable state law. In exercising its authority
2 under this Subsection, the city council shall not impair existing obligations of the
3 board.
4 B.(1) The city council may open an investigation of the board regarding any
5 matter within the scope of its regulatory authority, including after the occurrence of
6 any catastrophic failure of the city's sewerage and drainage infrastructure. Any
7 information regarding such a failure an investigation requested in writing from the
8 board by the city council shall be submitted to the council not later than thirty days
9 after receipt of the written request.
10 * * *
11 C. The city council may request the attendance of a representative of the
12 board at any meeting of the Public Works, Sanitation, and Environment Committee
13 of the city council or a council committee.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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