Bill
HB 1243
HB 1243 shifts New Orleans Sewerage & Water Board to a state entity with city oversight, expands council control over leadership, drainage operations, and billing policies.
HB 1243 (2026) – Sewerage/N.O. Water Board: Board composition, powers, and billing policies
Overview
- Jurisdiction: Louisiana, City of New Orleans
- Purpose: Reforms the structure, governance, and oversight of the Sewerage and Water Board of New Orleans (S&WB), including board composition, leadership, drainage operations, funding/funding sources, meeting rules, and city council oversight of billing and related policies.
Key Provisions and Changes
1) Board composition and appointment process
- Present law: S&WB is a city entity with a fixed composition, including the mayor, a council committee chair or appointee, two syndicate members from the Board of Liquidation, City Debt, and seven citizen members appointed by the mayor with advice and consent of the city council (including at least one from each of five council districts and two consumer advocates).
- HB 1243 would:
- Recast the S&WB as a state entity separate from the city, with board composition potentially set forth in New Orleans’ home rule charter.
- Allow the city council to regulate appointments, terms, and service of board members by ordinance.
- Create, or modify, the selection process (via a new or revised selection mechanism) with emphasis on qualifications across disciplines (engineering, finance, law, urban planning, consumer advocacy, etc.).
- Adjust term structure and vacancy rules, and require diversity (racial and gender diversity to the extent practicable).
2) Selection Committee and appointment timeline
- Present law creates a Selection Committee with representatives from several universities and civic organizations to nominate three candidates per vacancy.
- HB 1243 retains the concept but allows the city council to govern appointments by ordinance and clarifies or changes the procedural timelines for vacancies, nominations, mayoral selection, and council approval. It also removes some of the current procedures that require certain steps to be followed if the mayor fails to nominate.
3) Officers and meetings
- Present law: Mayor is ex officio president; board elects a president and a president pro tempore; executive director is hired/fired by the board.
- HB 1243: The board would elect a president from its own membership (instead of automatically having the mayor as president). The board would elect a president pro tempore as needed.
- Meetings: Present law requires meetings under Open Meetings Law and board rules; HB 1243 ties meeting rules to board-adopted rules and city council ordinances, while preserving openness and public recording requirements.
4) Drainage operations and funding
- Present law: S&WB is responsible for all drainage in New Orleans; the city must transfer drainage staff/equipment; city must allocate funds equivalent to FY2023 DPW drainage operations.
- HB 1243: Shifts to a framework where the board is responsible for drainage unless a parish or other law provides otherwise. Cities may still transfer staff/equipment, but it is no longer a strict requirement.
- Funding: The city must allocate funding to the board for drainage unless operations are managed by another public entity; “public entity” is defined as in state law.
5) Billing policies and city oversight
- Present law: The city council may establish, by ordinance, procedures for the board’s billing policies; a dedicated billing ordinance working group is required to review proposed ordinances before adoption.
- HB 1243: Replaces the detailed working group mechanism with broader city council oversight authority. The city council would have explicit authority to regulate and approve: rates/fees/charges, budgets (operating and capital), billing policies, contracts, and the hiring/election of the executive director and board employees. The language emphasizes oversight but clarifies it does not authorize conflicting state powers or impair existing obligations.
- The bill allows the council to require attendance of a board representative at council meetings.
6) Investigations and council access
- Present law: City council may investigate after catastrophic failures.
- HB 1243: Expands the council’s authority to investigate any matter within the scope of its regulatory authority over the board.
Timeline and Effective Details
- The bill contains various procedural timelines for selection and approval processes (e.g., nomination submission, council approval windows), though some specifics are adjusted from present law to align with new governance structure.
- Effective dates are not explicitly stated in the excerpt; the act would amend and reenact specified R.S. sections upon passage.
Summary of Potential Impacts
- Governance: Greater city council oversight and potential reorganization of S&WB’s leadership and appointment processes; possible realignment of board leadership away from the mayor’s direct presidency.
- Operations: Possible shift in accountability for drainage operations, with the board taking on greater responsibility unless otherwise directed by parish or law.
- Billing: Expanded regulatory oversight by the city council over rates, budgets, capital plans, and billing practices, potentially increasing administrative oversight and uniformity.
- Equity and diversity: Emphasis on diverse appointments and professional qualifications across disciplines.
- Financial: Implications for budgeting, capital planning, and intergovernmental funding for drainage operations.
Who is Affected
- City of New Orleans residents served by the S&WB (customer billing, service rates, and local governance).
- S&WB board members and leadership.
- City Council committees and staff involved in budgeting, billing, and governance oversight.
- Parish entities and potential intergovernmental drainage arrangements.
Note: This summary focuses on substantive provisions and their likely effects, based on the text of HB 1243 as engrossed.
Compiled from official sources — confirm details with the bill’s official record.
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