LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 129 SLS 21RS 37
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 4, 2021 1:25 PM Author: MILLS, FRED
Dept./Agy.: LDH
Subject: Drinking water Analyst: Tanesha Morgan
WATER QUALITY EN SEE FISC NOTE LF RV See Note Page 1 of 1
Creates and provides for the Community Drinking Water Infrastructure Sustainability Act. (8/1/21)
Proposed law provides that LDH will implement a statewide accountability system that assesses letter grades to community
water systems. Proposed law provides for the assignment of a letter grade of "A", "B", "C", "D", or "F". Proposed law
provides that any community water system that receives a letter grade of "D" or "F" shall be considered operationally
unacceptable and may be subject to present law enforcement actions including administrative compliance orders, court
appointed receivership, or LDH mandated receivership. Proposed law provides that a receiver shall submit an improvement
plan to LDH, which may include proposals such as a rate increase for users of the community water system. Proposed law
provides that a community water system receiving federal funds for the upgrade, repair, or otherwise replacement of the
water system infrastructure shall submit a detailed plan describing how the federal funds will be used to LDH.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
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 $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
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
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure. Currently, through
the Safe Drinking Water Program (SDWP) review process, LDH already has the data needed to assign grades to the water
systems as required in this bill. Additionally, the SDWP has an existing enforcement section that can implement the
receivership requirements provided in the bill.
REVENUE EXPLANATION
To the extent that a water system is appointed a receiver due to being assigned a grade of “D” of “F”, the bill provides that a
receiver may increase the rates paid by the users of the water system. The LFO cannot anticipate the amount of additional
local revenue that a water system may collect due to increased rates.
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}
Alan M. Boxberger
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} Staff Director


Statutes affected:
SB129 Original: 40:9(C)(4), 36:259(B)(9)
SB129 Engrossed: 40:9(C)(4), 36:259(B)(9)
SB129 Reengrossed: 40:9(C)(4), 36:259(B)(9)
SB129 Enrolled: 40:9(C)(4), 36:259(B)(9)
SB129 Act : 40:9(C)(4), 36:259(B)(9)