Constitutional amendment to allow for the use of public funds to replace drinking water utility service lines located on private property. (2/3 - CA13s1(A)) (EG SEE FISC NOTE LF EX)

Senate Bill 228 proposes a constitutional amendment that adds a new authorized exception to Article VII, Section 14 of the Louisiana Constitution, which generally prohibits the donation or pledge of public credit. The amendment would permit political subdivisions to use public funds for identifying, inventorying, removing, or replacing drinking water utility service lines that are made of or affected by hazardous materials, including lead, copper, galvanized steel, and iron, on property owned by utility customers. This constitutional change is necessary because current law treats such expenditures as donations of public credit on private property, which are constitutionally prohibited without explicit authorization. The proposed amendment would be submitted to Louisiana voters for approval or rejection at the statewide election scheduled for November 3, 2026.

The practical effect of this amendment would extend to political subdivisions operating water utilities throughout the state, including municipal and parish governments that provide water service. If approved by voters, water utility systems would gain the authority to use public funds to address hazardous materials in service lines on customer property without legal restriction. This would particularly benefit low-income and disadvantaged customers who cannot afford privately funded replacements of lead-contaminated or otherwise hazardous service lines, thereby reducing public health risks associated with water quality degradation. Water utilities would be able to conduct comprehensive identification and inventory programs and execute full removal or replacement projects on customer-owned portions of service lines, which currently creates legal and financial barriers to addressing widespread lead contamination and other water quality issues.

Article VII, Section 14 of the Louisiana Constitution establishes the general prohibition against donations or pledges of public credit except for specifically enumerated purposes. The proposed amendment adds a sixteenth exception to the list of authorized uses already established by the Constitution, which currently includes social welfare programs, public employee benefits, bond issuances, donations of blighted property, water infrastructure damage waivers, and various investment authorities. This amendment operates within the existing constitutional framework by following the established procedure for constitutional amendments through joint resolution requiring a two-thirds majority in both legislative houses and voter approval. The addition is narrowly tailored to drinking water service lines containing or affected by specified hazardous materials, distinguishing this use from general municipal finance and aligning with federal and state public health priorities related to lead remediation and water safety.