HLS 10RS-548 ORIGINAL Page 1 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2010 HOUSE BILL NO. 1173 BY REPRESENTATIVE TUCKER FUNDS/FUNDING: Requires legislative approval of certain contracts and action plans related to recovery from Hurricanes Katrina, Rita, Gustav, and Ike AN ACT1 To enact R.S. 39:136, relative to the deposit and expenditure of federal funds; to provide for2 legislative approval of any Action Plan or Proposed Action Plan Amendment3 relative to recovery from Hurricanes Katrina, Rita, Gustav, or Ike; to require4 legislative approval of certain contracts and cooperative endeavor agreements, and5 modifications to certain contracts and cooperative endeavor agreements executed6 pursuant to such Action Plan or Action Plan Amendments; and to provide for related7 matters.8 Be it enacted by the Legislature of Louisiana:9 Section 1. R.S. 39:136 is hereby enacted to read as follows:10 ยง136. Federal funds related to disaster recovery; legislative approval11 A. As used in this Section:12 (1) "Authority" shall mean the Louisiana Recovery Authority.13 (2) "CDBG proposal" shall mean an Action Plan, a Partial Action Plan, an14 amendment or amendments to an Action Plan or a Partial Action Plan, or any other15 method utilized for the allocation of dollars for the use of Community Development16 Block Grant funds provided for the recovery.17 (3) "Office" shall mean the office of community development within the18 division of administration.19 HLS 10RS-548 ORIGINAL HB NO. 1173 Page 2 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (4) "Recovery" shall mean all of the efforts and activities of the state to1 rebuild and redevelop from Hurricane Katrina and its aftermath, Hurricane Rita and2 its aftermath, Hurricane Gustav and its aftermath, and Hurricane Ike and its3 aftermath.4 B. The office of community development within the division of5 administration shall establish a clear and effective process for implementation of6 action plans for the Community Development Block Grant program, including but7 not limited to providing for the preparation and review of draft plans, fiscal8 management, reporting, technical support, and all other support activities necessary9 to administration and complying with any other federal or state requirements.10 C.(1) No contract for recovery services funded by Community Development11 Block Grant Funds in excess of fifty thousand dollars shall be awarded or executed12 after July 1, 2010, and no Community Development Block Grant Funds shall be13 expended pursuant to such contract, unless any evaluation of a contract proposal and14 the recommendation of the commissioner of administration is first approved by the15 Joint Legislative Committee on the Budget.16 (2) No contract for recovery services entered into by the Louisiana Recovery17 Authority or the office of community development in excess of fifty thousand dollars18 shall be amended after July 1, 2010, unless any evaluation of the proposed contract19 amendment and the recommendation of the commissioner of administration is first20 approved by the Joint Legislative Committee on the Budget21 D.(1)(a) The office shall also develop proposals related to the recovery,22 including CDBG proposals, Action Plans, Partial Action Plans, amendments to23 Action Plans or Partial Action Plans, or any other method utilized for the allocation24 of dollars for the use of Community Development Block Grant or other funds25 provided for the recovery, hereinafter the "proposal". After developing and26 approving a proposal, the office shall send the proposal to the governor for approval.27 If the governor approves the proposal, it shall be submitted to the Joint Legislative28 Committee on the Budget for review and approval. At the same time as the proposal29 HLS 10RS-548 ORIGINAL HB NO. 1173 Page 3 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. is submitted to the Joint Legislative Committee on the Budget, the proposal shall be1 submitted for review to the appropriate oversight committees of the House of2 Representatives and the Senate which have jurisdiction over the type of matter which3 is the subject of the proposal.4 (b) If the appropriate oversight committee objects to the proposal, it shall so5 notify the Joint Legislative Committee on the Budget. Whenever any proposal6 amounts to ten million dollars or more and is approved by the Joint Legislative7 Committee on the Budget, the authority shall submit the proposal for approval of a8 majority of the elected members of each house of the legislature. If the legislature9 is in session, the approval shall be by resolution or Act. If the legislature is not in10 session, approval shall be obtained using the same mail ballot procedure used to11 obtain such approval of action of the interim emergency board.12 (c) If a proposal is approved as provided by Subparagraphs (a) and (b) of this13 Paragraph, the governor shall submit the proposal to the United States Department14 of Housing and Urban Development or other appropriate federal authority for15 approval.16 (2) After the appropriate federal approval has been obtained, the authority17 shall request the approval of the Joint Legislative Committee on the Budget for a18 budget adjustment in the amount of the approved funding in accordance with the19 procedures set forth in the general appropriations act and Title 39 of the Louisiana20 Revised Statutes of 1950.21 (3) In the development of proposals related to the recovery, the authority22 shall give due consideration to the nonprofit organizations which are involved in the23 recovery, especially those which are licensed in Louisiana as residential contractors.24 Additionally, the authority in the development of proposals shall provide for25 maximum practical opportunities for the participation by the broadest number of26 minority-owned businesses to the extent allowable by law.27 E.(1) The office shall submit to the legislature for its approval by a majority28 of the elected members of each house of the legislature any proposals which it has29 HLS 10RS-548 ORIGINAL HB NO. 1173 Page 4 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. developed related to recovery from the hurricanes which provide for expenditures1 of ten million dollars or more.2 (2) Members of the legislature can only cast an intelligent, responsible vote3 if they have detailed and accurate information, and information which does not4 change as the approval instrument is introduced and moves through the process.5 (3) Legislators can make proper use of such information only if the legislator6 has a reasonable amount of time to review it.7 (4) The office shall provide to each member of the legislature seven days8 before submitting for approval by a committee or by a house of the legislature any9 instrument which provides for expenditures of ten million dollars or more accurate10 detailed information explaining the following about the proposal:11 (a) For each type of proposed expenditure set forth in the proposal, detailed12 information showing how the total amount of expenditure was derived or estimated,13 including the types of goods, services, or contract work expected to be purchased14 with such expenditures.15 (b) If the amounts of the proposed expenditures are estimates, which16 amounts or other information were such estimates based upon and a specific17 designation of the sources of that information.18 (c) A listing of the governmental and nongovernmental, public and private19 beneficiaries of the proposed expenditures.20 (5) Such information shall include any work papers or other documents21 related to estimated expenditures received by the authority from any task force,22 subcommittee, consultant, or state department or agency utilized by the authority in23 preparation of the proposal.24 (6) Any legislative instrument submitted for approval by the legislature shall25 contain a reference to such information provided to members of the legislature26 pursuant to this Subsection which shall become a part of such instrument and27 proposal by reference.28 HLS 10RS-548 ORIGINAL HB NO. 1173 Page 5 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Section 2. This Act shall become effective on July 1, 2010; if vetoed by the governor1 and subsequently approved by the legislature, this Act shall become effective on July 1,2 2010, or on the day following such approval by the legislature, whichever is later.3 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Tucker HB No. 1173 Abstract: Requires prior legislative approval of action plans, action plan amendments, and contracts over $50,000 issued for the recovery from Hurricanes Katrina, Rita, Gustav, and Ike. Present law provides for the powers, duties, and functions of the Louisiana Recovery Authority (the LRA). Further repeals present law effective July 1, 2010. Present law requires the LRA to develop proposals related to the recovery from Hurricane Katrina and its aftermath and Hurricane Rita and its aftermath, including CDBG proposals. Such proposals shall be sent to the governor for approval. If approved by the governor, the proposal shall be submitted to the Joint Legislative Committee on Budget, (the JLCB), and upon approval of same, the proposal shall be submitted by the governor to the U.S. Department of Housing and Urban Development or other appropriate federal agency. Further requires approval of the JLCB for incorporation of any monies associated with such a proposal into the budget. Proposed law provides authority and responsibility for the development of proposals and requirements for legislative approval contained in present law to the division of administration, office of community development (the office). Expands the provisions to the recovery from Hurricane Gustav and its afermath and Hurricane Ike and its aftermath. Proposed law establishes similar requirements for proposals related to Hurricanes Katrina, Rita, Gustav, and Ike for the office. Proposed law prohibits the awarding or execution of any contract after July 1, 2010, for recovery services funded by CDBG funds in excess of $50,000 without recommendation of the commissioner of administration and approval of the JLCB. Further prohibits the amendment of any contract for recovery services after July 1, 2010, funded by CDBG funds in excess of $50,000 entered into by the LRA or the office of community development without recommendation of the commissioner of administration and approval of the JLCB. Present law requires that proposals related to the recovery which provide for expenditures in excess of $10 million will require approval by a majority of both houses of the legislature. Upon approval of same by the JLCB, the LRA shall submit the proposal for full legislative approval. Provides that if the legislature is in session, such approval shall be by resolution or Act; if not, then by IEB-type mail ballot. Prior to the actual expenditure of any federal monies, the LRA must receive approval by the JLCB. Proposed law establishes similar requirements for submissions of proposals in excess of $10 million by the office. Present law requires that the LRA submit certain information to the legislature seven days prior to approval of any proposal in excess of $10 million including. HLS 10RS-548 ORIGINAL HB NO. 1173 Page 6 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (1)Information show the estimate was derived, including the basis of such estimates were derived. (2)A listing of the governmental and nongovernmental, public and private beneficiaries of the proposed expenditures. (3)Any work papers or other documents related to estimated expenditures received by the from any task force, subcommittee, consultant, or state department or agency utilized by the authority in preparation of the proposal. Proposed law establishes similar requirements for submissions of proposals in excess of $10 million by the office. Effective on July 1, 2010. (Adds R.S. 39:136)