PART III. DISPOSITION OF UTILITY PROPERTY

AND GRANTING OF FRANCHISES

SUBPART A. SALE OR LEASE OF REVENUE

PRODUCING PUBLIC UTILITY

§4341. Sale or lease of revenue-producing utility property; election required; exception

            A. Any municipality, the city of New Orleans excepted, or any parish or any other political subdivision or taxing district authorized to issue bonds under Article VI, Section 37 of the Constitution of Louisiana, all of which are hereinafter in this Subpart referred to as "municipality" or "parish", may sell or lease any revenue-producing properties owned by it, including all proper franchises to operate the properties for a term not to exceed sixty years, provided the governing authority has been first authorized to do so by a vote of a majority of the qualified electors, voting at an election held for that purpose as herein directed. Notwithstanding the foregoing, the governing authority of any city, town, or village that owns and operates a water utility that receives a grade of "D" or "F" under The Community Drinking Water Infrastructure Sustainability Act, referred to as the "Act", and the rule issue pursuant to the Act, shall not be required to conduct an election to authorize the sale or lease of the utility if the governing authority finds by official action that the municipality is either financially, managerially, or technically unable to restore the utility to a grade of "C" or better as specified by the Act. When a city, town, or village owns and operates a water, gas, or other revenue-producing public utility, serving customers outside the territorial limits of the city, town, or village, as is allowed by law, a negotiated sale of all of the connections and utility installations outside the area of the said city, town, or village and within the corporate limits of another city, town, or village may be made to the latter city, town, or village by negotiation and without any election, for such price as may be agreed upon between the parties. No election shall be required to authorize the sale or lease by any municipality or parish of revenue-producing water properties to any other municipality, parish, or other political subdivision.

            B. Notwithstanding any other provisions of law to the contrary, any municipality or any other political subdivision, including without limitation, any joint commission deemed to be a body politic and political subdivision in accordance with Subpart A, Part VII, Chapter 2 of Title 33 of the Louisiana Revised Statutes ("The Local Services Act"), in, and including, the parish of East Baton Rouge, hereinafter referred to as a "public entity", may sell or lease any revenue-producing utility or any other property or equipment owned by it, in connection with the operation, management, financing, or refinancing thereof, to, or may acquire or lease such property or equipment from, any other public entity in, and including, the parish of East Baton Rouge, by negotiation and without any election or application of any other law, for such price and pursuant to such terms and conditions as may be agreed upon between the parties.

            C. The provisions of Subsection A of this Section shall apply to the conveyance or lease of facilities and properties of any sewerage district to a private person or corporation, which person or corporation shall thereby be authorized to operate such facilities. However, the governing authority of any city, town, or village that owns and operates a sewer utility that experiences pollutant discharge in excess of the Final Effluent Limitations specified in the utility's Louisiana Pollutant Discharge Elimination System (LPDES) General or Site Specific Permit, as reported in three or more consecutive quarters pursuant to the electronic document receiving system (NetDMR) promulgated by the Louisiana Department of Environmental Quality shall not be required to conduct an election to authorize the sale or lease of the utility, if the governing authority finds by official action that the municipality is either financially, managerially, or technically unable to restore the utility to regulatory compliance as required by the general or site specific permit.

            D.(1) Notwithstanding any provision of law to the contrary, the governing authority of the parish of Terrebonne may sell, lease, or otherwise convey by any constitutional means its natural gas distribution system and transfer all right and title to all of the assets thereof to the governing authority of the city of Houma by action authorized by ordinance of the governing authority of the parish without the need of an election or any other proceeding.

            (2) The ordinance shall include provisions for the transfer to the city governing authority or retention by the parish governing authority of financial obligations and legal liabilities associated with the gas distribution system. Such provisions shall be in accordance with the laws and constitution of the state of Louisiana.

            Acts 1989, No. 810, §1, eff. July 10, 1989; Acts 1991, No. 288, §1, eff. July 2, 1991; Acts 1995, No. 18, §1, eff. May 25, 1995; Acts 1995, No. 376, §1, eff. June 16, 1995; Acts 2025, No. 452, §1.