LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 73 SLS 24RS 345
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 17, 2024 10:49 AM Author: WOMACK
Dept./Agy.: State Bond Commission/Environmental Quality/Health
Subject: Community Sewerage System Infrastructure Sustainability Analyst: Kimberly Fruge
WATER QUALITY EN SEE FISC NOTE GF EX Page 1 of 1
Creates and provides for the Community Sewerage System Infrastructure Sustainability Act. (1/1/25)
Proposed law creates a community sewerage system infrastructure accountability process whereas any community sewerage
system that seeks approval to 1) incur additional debt through the State Bond Commission, 2) submit a project for capital
outlay, or 3) seek approval for a rate adjustment, that is not directly related to the improvement and sustainability of the
system must submit a compliance verification status from the Louisiana Department of Environmental Quality (DEQ) and the
Louisiana Department of Health (LDH) and a fiscal status verification from the Louisiana Legislative Auditor (LLA) with their
application. State Bond Commission (SBC), the Division of the Administration (DOA), and any rate setting authority must
take into consideration whether these entities are compliant/fiscally sustainable before making a decision. Proposed law
provides for civil and criminal action if a system is not compliant or financially sustainable. Proposed law provides that if
state funds are required to address or mitigate an emergency related to that community sewerage system, the system may
be subject to receivership or the appointment of a fiscal administrator.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Annual Total
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
Proposed law may result in an increase in government expenditures for the Louisiana Department of Environmental Quality
(DEQ) to produce compliance reports. DEQ currently does not produce compliance reports of community sewerage systems
and is unable to determine at this time how much of the process can be automated. DEQ indicates they would likely be able
to handle the increased workload with a WAE. The State Bond Commission, the Division of Administration, the Louisiana
Legislative Auditor, and the Public Service Commission report that they expect the increased workload associated with
proposed law to be minimal and should be able to absorb the increase with existing resources. To the extent the workload
associated with this legislation is greater than anticipated by the State Bond Commission and DEQ, they may require an
additional staff member to process and analyze reports. Louisiana Department of Health (LDH) indicates compliance reports
are available within the Enforcement Unit and can be sent to the appropriate entity at no additional costs.
Proposed law may lead to an increase in local fund expenditures to bring community sewerage system infrastructure into
compliance. If state funds are required to address an emergency related to a community sewerage system, the system may
be subject to receivership or fiscal administration. Current law provides that any costs incurred by the fiscal administrator
are to be paid by the system, but the magnitude of such costs is indeterminable at this time. The likelihood or frequency of
any system being placed under receivership or fiscal administration due to proposed law is unknown.
REVENUE EXPLANATION
The net impact on revenue as a result of proposed law is indeterminable. Proposed law may result in a decrease in fee
revenue collected by the State Bond Commission (SBC). To the extent proposed law reduces the issuance of debt due to
compliance issues, SBC will not be able to collect closing fees for these projects. The total fee paid to SBC is based on a
percentage of the issuance of debt, with the percentage decreasing on a sliding scale as the size of the debt issuance
increases. The potential loss in revenue is indeterminable at this time.
Proposed law may result in an indeterminable, but minimal, increase in fees collected by rate setting authorities. According
to the Public Service Commission (PSC), if proposed legislation influences sewerage systems to increase their rates to
become compliant, then the fee paid to PSC will increase. The potential increase in revenue is indeterminable at this time
but is likely to be negligible.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Patrice Thomas
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer


Statutes affected:
SB73 Enrolled: 40:9(C)(1), 40:1(F)
SB73 Act : 40:9(C)(1), 40:1(F)