House Bill No. 257, introduced by Representative St. Blanc, aims to establish new provisions regarding the receivership of water and wastewater companies in Louisiana. The bill enacts R.S. 45:1206, which includes definitions for "water company" and "wastewater company," and outlines the circumstances under which a court may appoint a receiver for these companies. Specifically, a receiver can be appointed if the company has been abandoned, has failed to comply with administrative orders, is in financial distress as determined by an audit, or under other conditions set by the commission's rules. The bill also stipulates that the commission's application for receivership will not require a bond, and if the receiver is a local governmental subdivision, no bond will be necessary.

Additionally, the bill mandates that the appointed receiver must execute a bond to ensure proper performance of their duties, with the amount determined by the court. The receiver is required to follow court orders until discharged, and the court may dissolve the receivership if the original owner or operator requests it and demonstrates good cause for the dissolution. This legislation aims to provide a structured process for managing distressed water and wastewater companies to ensure continued service to customers.