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LouisianaSB 3242026 Regular SessionSenateWALLET

FUNDS/FUNDING: Provides for changes to the Water Sector Program. (gov sig) (EN NO IMPACT See Note)

Sponsored By: Mike Reese (Republican)

Signed by Governor

AppropriationsFinance

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 2 costs, 1 mixed.

More emergency help for water systems

Louisiana expands emergency grants for community water and sewer systems. Systems under a fiscal administrator, limited fiscal administrator, or receiver appointed under state law can now qualify. This adds to eligibility for systems under the specified court-appointed receiverships. Grants must address or reduce an emergency. Requests and approvals follow program guidance, including procedures for limited fiscal administrator and receivership expenses.

Water projects gain follow-up grant flexibility

The Water Sector Commission can recommend follow-up grants to the Joint Legislative Committee on the Budget without a new application period. Recommendations must use the working panel’s ratings and recommendations; another grant is not guaranteed. The commission can also approve changes to an original grant project’s planned work. Minor technical changes need no commission approval when they leave the project’s purpose unchanged, including changes to construction methods.

Water applicants face rules and longer reviews

For emergency grants and new grants awarded after July 1, 2024, state guidance must spell out application requirements and deadlines. It must also cover rating criteria, rate studies, matching funds, and requests and approvals for emergency expenses. Those expense procedures include limited fiscal administrator and receivership costs. The Water Sector Commission must review and approve proposed guidance and any changes. After an application period ends, the Division of Administration has 60 days, instead of 45, to submit panel ratings and funding recommendations.

Water systems risk losing grant funding

The Water Sector Commission can cancel a project’s grant when the recipient fails to follow commission-approved guidance. Recipients subject to rate study requirements become ineligible for future program grants when they fail to comply. These consequences affect water and sewer project funding, not a direct household payment duty.

Water grants shift toward critical needs

The Water Sector Commission must submit grant priorities to the Division of Administration and update them as needed. This replaces the former meeting and priority-submission deadline of September 1, 2024. Priorities guide emergency grants and new grants awarded on or after July 1, 2024. Recommendations to the Joint Legislative Committee on the Budget must address critical infrastructure needs defined in program guidance. This replaces the former focus on small water and sewer systems, without guaranteeing funding for any system.

Sponsors & Cosponsors

Sponsor

  • Mike Reese

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 145 • No: 0

House vote • 5/12/2026

Read third time by title, roll called on final passage, yeas 95, nays 0. Finally passed, ordered to the Senate.

Yes: 95 • No: 0

House vote • 5/5/2026

Reported favorably

Yes: 19 • No: 0

Senate vote • 4/1/2026

Read by title, passed by a vote of 31 yeas and 0 nays, and sent to the House. Motion to reconsider tabled.

Yes: 31 • No: 0

Actions Timeline

  1. Signed by the Governor. Becomes Act No. 261.

    5/15/2026Senate

  2. Effective date 5/15/2026.

    5/15/2026Senate

  3. Sent to the Governor by the Secretary of the Senate.

    5/14/2026Senate

  4. Enrolled. Signed by the President of the Senate.

    5/13/2026Senate

  5. Signed by the Speaker of the House.

    5/13/2026House

  6. Read third time by title, roll called on final passage, yeas 95, nays 0. Finally passed, ordered to the Senate.

    5/12/2026House

  7. Received from the House without amendments.

    5/12/2026Senate

  8. Scheduled for floor debate on 05/12/2026.

    5/11/2026House

  9. Read by title, passed to 3rd reading.

    5/7/2026House

  10. Reported without Legislative Bureau amendments.

    5/6/2026House

  11. Reported favorably (19-0). Referred to the Legislative Bureau.

    5/5/2026House

  12. Read by title, under the rules, referred to the Committee on Appropriations.

    4/7/2026House

  13. Read by title, passed by a vote of 31 yeas and 0 nays, and sent to the House. Motion to reconsider tabled.

    4/1/2026Senate

  14. Received in the House from the Senate, read by title, lies over under the rules.

    4/1/2026House

  15. Read by title. Ordered engrossed and passed to third reading and final passage.

    3/31/2026Senate

  16. Reported favorably.

    3/30/2026Senate

  17. Introduced in the Senate; read by title. Rules suspended. Read second time and referred to the Committee on Finance.

    3/9/2026Senate

  18. Prefiled and under the rules provisionally referred to the Committee on Finance.

    2/27/2026Senate

Bill Text

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