Perpetual Care for Levees | Lafitte Area Independent Levee District

LEGISLATIVE POLICY PACKET

Proposal: Louisiana Levee Maintenance Perpetuation Trust

Prepared for Members of the Louisiana Legislature

Contents: (1) Policy Memorandum and (2) Draft Bill

Prepared (pro-bono) by: Alex Lauricella

Date: March 2026

POLICY MEMORANDUM

To: Members of the Louisiana Legislature
From: Alex Lauricella
Date: March 2026
Re: Proposal for a Louisiana Levee Maintenance Perpetuation Trust

Executive Summary

Louisiana has invested billions of dollars constructing levees, floodgates, and storm-risk reduction systems. However, constructing flood protection infrastructure is only the first step. These systems require continuous inspection, maintenance, and repair to remain effective over time.

Currently, Louisiana lacks a dedicated long-term maintenance funding mechanism for levees. Maintenance funding typically depends on annual appropriations, local tax revenues, or project-specific funding streams. As additional flood protection infrastructure is built, the costs associated with maintaining that infrastructure continue to increase.

This memorandum proposes legislation establishing a Louisiana Levee Maintenance Perpetuation Trust, administered by the Coastal Protection and Restoration Authority (CPRA), to ensure stable and reliable funding for long-term levee maintenance.

The proposed legislation is modeled on an existing concept already embedded in Louisiana law: the cemetery perpetual-care trust system established under Louisiana Revised Statutes Title 8, including La. R.S. 8:457.

Under those statutes:

Cemeteries that advertise “perpetual care” must maintain a care fund equal to at least 10% of the gross sales of burial plots.
Funds must be placed in a trust account administered by a trustee.
The principal of the trust must remain intact.
Only investment income from the trust may be used.
Income is used exclusively for maintenance and preservation of cemetery grounds.

The underlying policy principle is straightforward: When infrastructure must be maintained indefinitely, the law can require a dedicated trust fund whose earnings provide permanent maintenance funding.

Levees are infrastructure that must function indefinitely in order to protect life and property. Applying the same concept used for cemetery maintenance to levee maintenance would create a stable long-term funding structure.

Current Maintenance Funding Challenges

Levees and flood-protection systems require continuous maintenance, including:

structural inspections
vegetation control
slope stabilization
floodgate servicing
pump station maintenance
erosion repair
emergency stabilization following storm events

Maintenance funding currently relies on a combination of:

local property taxes
annual legislative appropriations
federal funding programs
project-specific funding sources

These funding sources may fluctuate annually and may not keep pace with expanding flood protection infrastructure.

Example: Lafitte Area Independent Levee District

Recent discussions at the Lafitte Area Independent Levee District illustrate the growing gap between infrastructure and maintenance funding.

Current Operating Revenue

Approximately 5 mills property tax
Generates roughly $200,000 annually

Projected Operating Needs

Expansion of levees and floodgates could require $600,000 or more annually

This situation highlights a broader statewide issue: infrastructure expansion is increasing maintenance obligations faster than stable revenue sources are growing.

Proposed Legislative Solution

The proposed legislation would establish a Louisiana Levee Maintenance Perpetuation Trust.

Structure

Administered by the Coastal Protection and Restoration Authority (CPRA)
Deposits made from designated levee funding sources
Funds placed into a protected trust account

Trust Structure

Principal remains permanently intact
Funds invested pursuant to Louisiana public fund investment laws
Investment earnings used exclusively for levee maintenance

Permitted Uses of Trust Income: Trust income could be used for:

levee inspections
structural repairs
vegetation management
floodgate maintenance
pump system maintenance
emergency stabilization

Policy Benefits

Establishing a levee maintenance perpetuation trust would provide several important benefits:

Long-Term Funding Stability: Maintenance funding would not depend solely on annual appropriations or fluctuating local revenues.
Protection of Maintenance Funds: Trust structure prevents diversion of funds intended for levee maintenance.
Improved Planning for Levee Districts: Local districts could enter contracts and plan infrastructure projects with greater financial certainty.
Transparency: Trust reporting requirements would provide clear accounting of maintenance funding and expenditures.
Strengthened Flood Protection: Reliable maintenance funding ensures that levees continue functioning effectively for decades.

Policy Rationale

Louisiana law already requires perpetual funding to maintain cemeteries. Levees protect entire communities; critical infrastructure and billions of dollars in property. Applying the same perpetual maintenance concept to levees aligns with existing Louisiana law and strengthens the state’s long-term flood protection strategy.

DRAFT BILL LANGUAGE

AN ACT

To enact the “Louisiana Levee Maintenance Perpetuation Trust Act”; to provide for the creation, administration, funding, investment, and use of a dedicated trust for the long-term maintenance of levees and flood-control infrastructure; to provide duties of the Coastal Protection and Restoration Authority; to provide for reporting, auditing, enforcement, and rulemaking; and to provide for related matters.

Be it enacted by the Legislature of Louisiana:

Section 1. Short Title.

This Act may be cited as the “Louisiana Levee Maintenance Perpetuation Trust Act”.

Section 2. Legislative Findings and Purpose.

A. The legislature finds that levees, floodgates, pump stations, and related flood-protection infrastructure require continuous inspection, operation, and maintenance to preserve structural integrity and public safety.

B. The legislature further finds that maintenance costs increase as new levees and floodgates are constructed, and that reliance solely on annual appropriations or ad valorem millage may create long-term funding uncertainty.

C. The purpose of this Act is to establish a protected, dedicated trust fund to provide stable, long-term maintenance funding for eligible levee and flood-protection assets, using investment earnings while preserving principal, and to ensure that funds intended for levee maintenance are not diverted to unrelated uses.

Section 3. Enactment of New Law.

A. The following is hereby enacted as R.S. 49:XXXX.1 through 49:XXXX.12, to be codified within Title 49, relative to CPRA and coastal and flood protection, unless the legislative counsel determines another more appropriate placement.

R.S. 49:XXXX.1. Definitions.

As used in this Part, unless the context clearly indicates otherwise:

(1) “Authority” or “CPRA” means the Coastal Protection and Restoration Authority.

(2) “Eligible flood-protection asset” means any levee, floodwall, floodgate, sector gate, pump station, closure structure, armoring, related appurtenance, and associated right-of-way and drainage interface that provides primary or secondary flood protection to persons or property in Louisiana, including assets constructed, improved, or funded in whole or in part by state funds administered by CPRA.

(3) “Local sponsor” means a levee district, flood protection authority, parish, municipality, or other political subdivision with operation and maintenance responsibility for an eligible flood-protection asset.

(4) “Maintenance” or “operation and maintenance” means inspection, routine and non-routine repair, vegetation management, slope and embankment stabilization, mechanical and electrical servicing, corrosion control, access road and perimeter maintenance, gate exercise and operational testing, pump and generator servicing, debris removal, emergency stabilization, and other work reasonably necessary to preserve functional performance and safety.

(5) “Perpetuation Trust” means the Louisiana Levee Maintenance Perpetuation Trust Fund created by this Part.

(6) “Trust income” means interest, dividends, realized gains, and other earnings generated from investment of the Perpetuation Trust corpus.

(7) “Trust corpus” means the principal balance of the Perpetuation Trust, including deposits and any amounts required by this Part to be retained as principal.

R.S. 49:XXXX.2. Creation of the Louisiana Levee Maintenance Perpetuation Trust Fund.

A. There is hereby created in the state treasury a special fund to be known as the “Louisiana Levee Maintenance Perpetuation Trust Fund”.

B. The Perpetuation Trust shall be administered by CPRA in accordance with this Part and shall be held for the exclusive public purpose of providing long-term maintenance funding for eligible flood-protection assets.

C. Monies in the Perpetuation Trust shall be segregated from other funds and shall not be commingled except for lawful investment pooling as permitted by law and by the state treasurer.

R.S. 49:XXXX.3. Deposits; Funding Sources.

A. Required deposits. CPRA shall deposit into the Perpetuation Trust the monies described in Subsections B and C of this Section, subject to federal-law constraints, grant conditions, and bond covenants.

B. Project-based maintenance set-aside.

(1) For each CPRA-administered project that constructs, improves, replaces, or expands an eligible flood-protection asset, CPRA shall include in the project budget a maintenance set-aside.

(2) The maintenance set-aside shall be an amount not less than a percentage established by the legislature in the general appropriation act or in this Part. Legislative counsel note: Insert percentage (e.g., 5% of eligible construction costs) after fiscal review.

(3) Upon substantial completion of the project or at such earlier time as CPRA determines is administratively feasible, CPRA shall deposit the maintenance set-aside into the Perpetuation Trust as trust corpus.

C. Dedicated appropriations and other revenues.

(1) Any direct legislative appropriation made for deposit to the Perpetuation Trust shall be deposited as corpus.

(2) CPRA may accept and deposit into the Perpetuation Trust any grants, donations, mitigation payments, settlement proceeds, or other revenues restricted for levee maintenance, to the extent permitted by law and by the terms of the funding source.

D. Local sponsor participation. CPRA may enter cooperative endeavor agreements with local sponsors to allow voluntary deposits by local sponsors into the Perpetuation Trust, including deposits attributable to specific eligible flood-protection assets or regions, provided such agreements do not conflict with this Part.

R.S. 49:XXXX.4. Trust Corpus; Preservation of Principal.

A. The trust corpus shall be preserved. No expenditure shall be made from corpus except as expressly authorized by this Part.

B. Exception—emergency or catastrophic event.

(1) CPRA may recommend a limited invasion of corpus only upon a written finding that:

(a) A declared emergency, catastrophic event, or imminent failure condition exists affecting eligible flood-protection assets; and

(b) Trust income and other available funds are insufficient to address the condition within a reasonable timeframe; and

(2) Any invasion of corpus shall require approval by:

(a) The Joint Legislative Committee on the Budget, and

(b) The State Bond Commission, if required by law for fund movements or financing.

(3) Any amount expended from corpus shall be scheduled for replenishment from future deposits to the maximum extent practicable.

R.S. 49:XXXX.5. Investments; Custody.

A. The state treasurer shall be the custodian of the Perpetuation Trust and shall invest monies in accordance with state law governing investment of public funds and any additional guidelines adopted by CPRA pursuant to this Part.

B. CPRA may recommend investment guidelines consistent with the long-term nature of the Perpetuation Trust, subject to approval processes required by law.

C. All investment earnings shall be credited to the Perpetuation Trust.

R.S. 49:XXXX.6. Authorized Uses of Trust Income.

A. Trust income may be used solely for maintenance of eligible flood-protection assets, including:

(1) Routine operation and maintenance activities;

(2) Non-routine repairs and rehabilitation;

(3) Required inspections, monitoring, and condition assessments;

(4) Vegetation management and erosion control;

(5) Mechanical, electrical, and control systems maintenance for gates and pumps;

(6) Emergency stabilization and temporary measures that prevent deterioration pending permanent repair.

B. Trust income shall not be used for:

(1) New construction that expands the footprint or capacity of an asset, except minor replacement-in-kind necessary for maintenance;

(2) Administrative overhead unrelated to maintenance;

(3) Any purpose not directly tied to preserving functional flood-protection performance.

C. CPRA shall prioritize expenditures based on risk, condition, consequence of failure, and public safety.

R.S. 49:XXXX.7. Allocation Framework; Local Sponsor Reimbursements.

A. CPRA shall adopt by rule a transparent allocation framework for trust-income expenditures, including:

(1) Eligibility criteria for requests;

(2) Documentation requirements;

(3) Prioritization methodology; and

(4) Disbursement procedures.

B. Trust-income funds may be disbursed by:

(1) Direct CPRA procurement for maintenance work; or

(2) Reimbursement to local sponsors for qualifying maintenance expenditures; or

(3) Advance funding to local sponsors under an agreement with audit safeguards, if CPRA determines advance funding is necessary to avoid vendor nonpayment, project delay, or escalating costs.

C. Vendor payment safeguard. CPRA shall, by rule, provide a process for timely payment or reimbursement for qualifying maintenance invoices to reduce the risk of work stoppage, late fees, and increased costs.

R.S. 49:XXXX.8. Contracting Preconditions; Maintenance Funding Certification.

A. Prior to CPRA executing a contract for construction or expansion of an eligible flood-protection asset, CPRA shall issue a written certification that:

(1) A maintenance funding plan exists for the asset; and

(2) The plan identifies anticipated annual operation and maintenance costs and projected revenue sources, including the Perpetuation Trust to the extent applicable.

B. The certification requirement may be satisfied through inclusion of a maintenance plan and funding strategy in the project file and public meeting materials.

R.S. 49:XXXX.9. Reporting; Transparency.

A. CPRA shall submit an annual report to the governor and the legislature not later than sixty days after the close of each fiscal year containing:

(1) Beginning and ending balances of corpus and trust income;

(2) Deposits made during the year and their sources;

(3) Investment performance and fees;

(4) Expenditures by project, parish, and asset type, including descriptions of work performed;

(5) A list of pending maintenance needs and estimated costs; and

(6) Any recommendations for statutory changes, including adjustment of deposit percentages.

B. CPRA shall publish the report on its website and maintain an accessible public dashboard of Perpetuation Trust activity.

R.S. 49:XXXX.10. Audit and Oversight.

A. The Perpetuation Trust shall be subject to audit by the legislative auditor.

B. CPRA shall maintain records sufficient to document compliance with this Part, including procurement files, reimbursement documentation, and inspection reports supporting maintenance needs.

R.S. 49:XXXX.11. Rulemaking Authority.

CPRA shall promulgate rules in accordance with the Administrative Procedure Act to implement this Part, including the allocation framework, application process, emergency procedures, and compliance standards.

R.S. 49:XXXX.12. Applicability; Effective Date; Transitional Provisions.

A. This Part shall apply to eligible flood-protection assets as defined herein, including assets completed prior to the effective date to the extent trust-income funding is available.

B. CPRA shall, within one hundred eighty days of the effective date, promulgate initial rules and create interim guidance for applications and disbursements.

C. The legislature encourages CPRA to prioritize early trust-income expenditures for:

(1) assets with documented maintenance backlogs;

(2) assets with known funding shortfalls by local sponsors; and

(3) projects where failure to timely pay vendors risks cost escalation and delay.

Section 4. Effective Date.

This Act shall become effective on July 1, 2026.