House Bill No. [insert number] enacts R.S. 45:1206, which establishes a legal framework for the receivership of water and wastewater companies in Louisiana. The bill defines key terms, including "water company" and "wastewater company," and outlines the conditions under which a court may appoint a receiver to manage a company that is in distress. These conditions include abandonment of service, non-compliance with regulatory orders, financial distress as determined by an audit, and failure to meet certain performance standards. The bill also specifies that the commission's application for receivership does not require a bond, and if a private receiver is appointed, they must execute a bond unless waived by the court.

Additionally, the bill mandates that the appointed receiver must submit a transition and operational plan within ninety days, detailing measures to restore service, financial assessments, customer service provisions, and a timeline for resolution. The court has the authority to dissolve the receivership upon request from the company owner or operator, provided they can demonstrate good cause. The legislation aims to ensure the continued operation and compliance of water and wastewater services, thereby protecting public health and safety.