HB 1243 — SEWERAGE/N O WATER BD: Provides relative to the Sewerage and Water Board of New Orleans

The city council may, by ordinance, prescribe rules and regulations governing the appointment, terms, and service of board members.

Any amendments or changestosuchrulesshallbeadoptedonlyafterapprovedbyaquorumoftheboard.changestosuchrulesshall beadoptedonlyafterapprovedbyaquorumoftheboard.

Notwithstanding anyprovisionsany provisions of law to the contrary, the board may adopt rules and procedures authorizing the adjusting, releasing, or extinguishing of anyindebtednessfromacustomer's sewerageandwaterbill.

(1) Instances of error on the part of the district such as equipment failure or processfailure,includinginstancesinwhichtheboardgeneratesinaccurateinvoices, Pageand 5in ofsuch 15instances, CODING:only to the extent that the failure increased the customer's indebtedness.

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1243 and in such instances, only to the extent that the failure increased the customer's indebtedness.

(3)Page Instances5 of error10 notCODING: on the part of the customer due to unforeseen damage or an extreme weather-related event or mandatory evacuation, and in such instances, only to the extent the situation increased the customer's indebtedness.

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1243 ENROLLED (3) Instances of error not on the part of the customer due to unforeseen damage or an extreme weather-related event or mandatory evacuation, and in such instances, only to the extent the situation increased the customer's indebtedness.

PageB.(1) 6The Unless otherwise provided by the parish governing authority or other law to the contrary, the Sewerage and Water Board of 15New CODING:Orleans shall be responsible for all drainage operations in the cityof New Orleans.

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1243 B.(1) The Unless otherwise provided by the parish governing authority or other law to the contrary, the Sewerage and Water Board of New Orleans shall be responsible for all drainage operations in the cityof New Orleans.

Any otherPage increases6 in funding by the city of New10 OrleansCODING: to the Sewerage and Water Board of New Orleans shall be subject to New Orleans City Council approval.

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1243 ENROLLED other increases in funding by the city of New Orleans to the Sewerage and Water Board of New Orleans shall be subject to New Orleans City Council approval.

TheelectionorThe removalelectionorremovalofthe ofthe executive director, the amount of his salary, and the acceptanceofacceptance of his bond shall be determined by a majority vote of the entire board at one of its regular monthly meetings.

Meetings of the board All meetings of the board shall be held in accordance with rules adopted by the board and shall be open and public as provided by ordinance adopted pursuant Pageto 7R.S. of 15 CODING:

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1243 to R.S.

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1243 ENROLLED B.

Powers of the city council A.(1) Thecitycouncilmayestablish,byordinance,proceduresregardingthe billing policies of the board, including reducing or modifying a bill received by a customer, or waiving late charges or accrued interest, subject to the authority established bybythe the billing ordinance as set forth in Paragraph (2) of this Subsection.

Page(2) 8The city council shall establish a billing ordinance working group to reviewandopineonordinancesbeforeanysuchordinancemaybeconsideredbythe Public Works, Sanitation, and Environmental Committee of 15the CODING:city council, including evaluating the necessity of such an ordinance.

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1243 (2) The city council shall establish a billing ordinance working group to reviewandopineonordinancesbeforeanysuchordinancemaybeconsideredbythe Public Works, Sanitation, and Environmental Committee of the city council, including evaluating the necessity of such an ordinance.

(a)Page ThechairmanoftheNewOrleansCityCouncilBudget,Audit,andBoard8 of Review10 Committee,CODING: or his designee.

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1243 ENROLLED (a) ThechairmanoftheNewOrleansCityCouncilBudget,Audit,andBoard of Review Committee, or his designee.

exercise regulatory authority and oversight over the board absent any Pagelaw 9to ofthe 15contrary. CODING:

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1243 law to the contrary.

This authority shall include, but is not limited to, the ability to regulate and to require city council approval of the following:

(f) The electionelectionoftheexecutivedirector ofand the executivehiring directorof andboard theemployees. hiringofboardemployees.

(2) Nothing in this Subsection shall be deemed to delegate powers held exclusivelybythe legislature or to authorize the citycouncil to enact anyordinance inconsistentPage with9 thisof Part10 orCODING: other applicable state law.

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1243 ENROLLED inconsistent with this Part or other applicable state law.

B.(1) The citycouncil mayopen an investigationinvestigationofthe of the board regardingany matter within the scope of its regulatoryauthority, including after the occurrenceoccurrenceof of any catastrophic failure of the city's sewerage and drainage infrastructure.

PageSPEAKER 10OF ofTHE 15HOUSE CODING:OF REPRESENTATIVES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED:

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1243 DIGEST ThedigestprintedbelowwaspreparedbyHouseLegislative Services.

It constitutes nopart of the legislative instrument.

The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent.

[R.S.

1:13(B) and 24:177(E)] HB 1243 Engrossed 2026 Regular Session Hilferty Abstract:

Provides relative to the board composition, powers and duties, and billing policies of the Sewerage and Water Board of New Orleans.

Present law provides that the public water system, the public sewerage system, and the public drainage system of the city of New Orleans shall be constructed, controlled, maintained, and operated bya sewerage and water board to be composed as follows:

(1) The mayor.

(2) The chair of the Public Works, Sanitation and Environment Committee of the New Orleans city council or an appointee selected by the council president with a backgroundinengineering, law,orconsumeradvocacyselectedwith theadviceand consent of the city council.

(3) Twosyndicatemembersoftheboardofliquidation,citydebt,tobeappointedbythe mayor on the recommendation of the board of liquidation, citydebt.

(4) Sevencitizens,tobeappointedbythemayor,with the advice andconsentofthecity council from a list of nominees submitted by the Sewerage and Water Board Selection Committee.

Presentlawprovidesthatthemembersappointedpursuantto(3)and(4)aboveshallinclude one citizen from each of the five councilmanic districts within the city of New Orleans.

Additionally provides that two of the appointments shall be consumer advocates with community advocacy or consumer protection experience or experience in a related field.

Provides that members appointed pursuant to (3) and (4) above shall serve four-year staggered terms.

Present law provides that each citizen member shall be a registered voter in Orleans Parish and shall have been a domiciliary of Orleans Parish for two years prior to his appointment.

Provides that if any appointed person is elected to anyoffice or removes his domicile from Orleans Parish, his membership shall be vacated, and his successor shall be immediately appointed.

Provides that no person who is a stockholder or bondholder in anysewerage or waterworks company or who holds public office yielding emoluments to the holder other than those specified in present law shall be eligible for appointment to the board.

Proposed law removes present law and provides that the public water system, the public sewerage system, and the public drainage system of the city is a state entity separate and apart from the city of New Orleans.

Provides that the composition of the board may be set forth in the home rule charter for the city of New Orleans.

Provides that the city council may, by ordinance, prescribe rules and regulations governing the appointment, terms, and service of board members.

Present law requires that a quorum of the board adopt rules and regulations fixing its own meetings and procedures.

Provides that six members shall constitute a quorum.

Proposed law provides the adoption of such rules and regulations bya quorum of the board issubjecttolimitationsprovidedbyproposedlaw.

Removesprovisionregardingthenumber of members that constitute a quorum.

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1243 PresentlawprovidesforthecreationoftheSewerageandWaterBoardSelectionCommittee comprised as follows:

(1) The president of Dillard University or his designee.

(2) The president of Loyola University or his designee.

(3) The president of Tulane Universityor his designee.

(4) The president of Xavier Universityor his designee.

(5) The chancellor of Delgado Community College or his designee.

(6) The chancellor of Universityof New Orleans or his designee.

(7) The chancellor of Southern Universityat New Orleans or his designee.

(8) ThechairoftheboardofdirectorsoftheNewOrleansChamberofCommerceorhis designee.

(9) ThepresidentoftheboardofdirectorsoftheNewOrleansRegionalBlackChamber of Commerce or his designee.

(10) The chair of the board of directors of the Urban League of Greater New Orleans or his designee.

Presentlawrequiresthatanoticeofavacancyonthesewerageandwaterboardbepublished in the official journal for Orleans Parish by the sewerage and water board and be communicated through anyotherpublication,website,orelectronicmedium maintained by the board or the city of New Orleans for the purpose of achieving public awareness of the vacancy.

Provides for the contents of the notice.

Present law requires that any interested person who meets the qualifications submit an application to the board confirming their eligibility, professional qualifications, and experience.

Requires the board to transmit all applications received to the selection committeewithinsevendaysafterthedeadlineforsubmissionofapplications.

Requiresthe selectioncommitteeto meetnolessthan15days andnomorethan30daysaftercloseofthe applicationdeadlineto considereachnamesubmitted fornomination.

Authorizes selection committee members to submit names of persons who also meet the qualification requirements.

Present law requires the selection committee to verify that each nominee meets the qualification requirements.

Provides that the selection committee shall by majority vote submit to the mayor three names for each vacancy on the sewerage and water board.

Requires that each nominee have experience in either architecture, environmental quality, finance, accounting, business administration, engineering, law, public health, urban planning, facilities management, public administration, science, construction, business management, community or consumer advocacy, or other pertinent disciplines.

Present law requires the mayor, within 60 days of receipt of the list of nominees, to select one of the three nominees for submission to the citycouncil for approval.

Provides that the city council shall have 30 days from receipt of submission of the nomination by the mayor todisapprovethenominee.

Providesthatifthecitycouncildoesnotdisapprovethenominee within such time, it shall be deemed that the city council consents to the appointment.

Additionally provides that if the city council disapproves the nominee from the mayor, the selection committee shall convene in no less than 30 days and no more than 60 days after disapproval to resubmit three nominees to the mayor.

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1243 Presentlawprovides that if for anyreason themayorfailsto submit anomination tothecity council within 60 days of receipt of the list of nominees by the selection committee, the selection committee shall submit such list of nominees directly to the city council for selection and approval.

Proposed law removes present law.

Present law provides that if the mayor is unable to attend a meeting of the sewerage and water board, the mayor may be represented at the board meeting by a person designated by themayorwhoshallbeanunclassifiedmemberofthemayor'sadministration.

Providesthat the person shall have all rights and powers granted to the mayor with regard to any such board meeting including the right to vote and shall be counted for purposes of a quorum.

Proposed law removes present law.

Present law provides that at the beginning of every quarter, the Coastal Protection Restoration Authority, the La.

Dept.

of Transp.

and Dev., the Gov.'s Office of Homeland Security and Emergency Preparedness, and representatives from the Jefferson Parish DepartmentofPublicWorks,theSaintBernardParishDepartmentofPublicWorks,andthe PlaqueminesParishEngineering&PublicWorksDepartmentshall meetwith theexecutive director of the Sewerage and Water Board and his team to develop a coordinated southeast La.

urban flood prevention plan.

Present law requires that the plan be presented to the members of the New Orleans Delegation and the city council annually on May 15th, beginning May 15th, 2025.

Proposed law removes requirement that the specified entities meet with the team of the executive director of the sewerage and water board and additionally requires that the specified entities meet with the director of public works for the city of New Orleans or his designee.

Proposed law otherwise retains present law.

Present law provides that the Sewerage and Water Board of New Orleans shall be responsiblefor all drainage operationsin thecityofNewOrleans.

RequiresthecityofNew Orleanstotransferallemployeesandequipmentusedfordrainagemaintenancetotheboard.

Proposed law provides that the board shall be responsible for such drainage operations unless otherwise provided by the parish governing authority or other law to the contrary.

Authorizes, rather than requires, the city of New Orleans to transfer all employees and equipment used for drainage maintenance to the board.

Present law requires the cityof New Orleans to allocate on an annual basis to the Sewerage and Water Board of New Orleans the same level of funding that the New Orleans Department of Public Works utilized in Fiscal Year 2023 for drainage operations.

Proposed law provides that such funding shall be required unless such operations are maintained by any other public entity.

Provides the term "public entity" has the same meaning as provided in present law (R.S.

39:1421(2)).

Present law provides that the mayor shall be ex officio president of the board.

Proposed law instead authorizes the board to elect a president from its membership.

Presentlawauthorizestheboardtoelectoneofitsmemberspresidentprotemporewhoshall act in the absence or disability of the president.

Proposed law retains present law.

Present law provides that all meetings of the board shall be held in accordance with rules adopted by the board and shall be open and public.

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1243 Proposed law provides that all meetings of the board shall be held in accordance with rules adopted by the board and as provided by ordinance of the city council.

Requires that all meetings be held in accordance with present law (Open Meetings Law).

Present law provides that the board may make reasonable rules and regulations necessary for the proper administration of the sewerage system.

Proposedlawprovidesthatsuchrulesandregulationsshallbesubjecttolimitationsprovided in proposed law.

Present law authorizes the citycouncil to establish, by ordinance, procedures regarding the billing policies of the board.

Requires the city council to establish a billing ordinance working group to review and opine on ordinances before any such ordinance may be considered by the Public Works, Sanitation, and Environmental Committee of the city council, includingevaluatingthe necessityof such an ordinance.

Provides that the working group shall be composed as follows:

(1) ThechairmanoftheNewOrleansCityCouncilBudget,Audit,andBoardofReview Committee, or his designee.

(2) The chairman of the New Orleans City Council Public Works, Sanitation, and Environment Committee, or his designee.

(3) The chairman of the New Orleans City Council Governmental Affairs Committee, or his designee.

(4) A member of the House of Representatives residing in Orleans Parish, or his designee, appointed by the New Orleans City Council president.

(5) AmemberoftheSenateresidinginOrleansParish,orhisdesignee,appointedbythe New Orleans City Council president.

(6) The executive director of the Sewerage and Water Board of New Orleans, or his designee.

(7) The president of the Sewerage and Water Board of New Orleans, or his designee.

Proposed law removes present law and authorizes the city council to exercise regulatory authority and oversight over the board absent any law to the contrary.

Provides that the authorityshallinclude,butisnotlimitedto,theabilityto regulateandtorequirecitycouncil approval of the following:

(1) Rates, fees, and charges imposed by the board.

(2) The board's annual operating budgets.

(3) Creation, adoption, andimplementation ofcapitalbudgetsandcapital improvement plans.

(4) Board policies relating to billing, finance, operations, and governance, including policies related to reducing or modifying a bill received by a customer, or waiving late charges or accrued interest.

(5) Contracts entered into by the board.

(6) The election of the executive director and the hiring of board employees.

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1243 Proposedlawprovidesthatnothinginproposedlawshallbedeemedtodelegatepowersheld exclusively by the legislature or to authorize the city council to enact any ordinance inconsistentwithproposedlaworotherapplicablestatelaw.

Prohibitsthecitycouncilfrom impairing existing obligations of the board.

Present law authorizes the city council to open an investigation of the board after the occurrence of anycatastrophic failure of the city's sewerage and drainage infrastructure.

Proposed law additionally authorizes the city council to open an investigation of the board regarding any matter within the scope of its regulatory authority.

Present law provides that the citycouncil mayrequest the attendance of a representative of the board at any meeting of the Public Works, Sanitation, and Environment Committee of the city council.

Proposedlawinsteadauthorizesthecitycounciltorequesttheattendanceofarepresentative of the board at any meeting of the city council or a council committee.

(AmendsR.S.33:4071,4072(A)and(B),4073,4074,4123,and4159.2(A),(B)(1),and(C)) Page 15 of 15 CODING: