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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
(4) "Recovery" shall mean all of the efforts and activities of the state to20
rebuild and redevelop from Hurricane Katrina and its aftermath, Hurricane Rita and21 HLS 10RS-548 ENGROSSED
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its aftermath, Hurricane Gustav and its aftermath, and Hurricane Ike and its1
aftermath.2
B. The office of community development within the division of3
administration shall establish a clear and effective process for implementation of4
action plans for the Community Development Block Grant program, including but5
not limited to providing for the preparation and review of draft plans, fiscal6
management, reporting, technical support, and all other support activities necessary7
to administration and complying with any other federal or state requirements.8
C.(1) No contract for recovery services funded by Community Development9
Block Grant Funds in excess of fifty thousand dollars shall be awarded or executed10
after July 1, 2010, and no Community Development Block Grant Funds shall be11
expended pursuant to such contract, unless any evaluation of a contract proposal and12
the recommendation of the commissioner of administration is first approved by the13
Joint Legislative Committee on the Budget.14
(2) No contract for recovery services entered into by the Louisiana Recovery15
Authority or the office of community development in excess of fifty thousand dollars16
shall be amended after July 1, 2010, unless any evaluation of the proposed contract17
amendment and the recommendation of the commissioner of administration is first18
approved by the Joint Legislative Committee on the Budget19
D.(1)(a) The office shall also develop proposals related to the recovery,20
including CDBG proposals, Action Plans, Partial Action Plans, amendments to21
Action Plans or Partial Action Plans, or any other method utilized for the allocation22
of dollars for the use of Community Development Block Grant or other funds23
provided for the recovery, hereinafter the "proposal". After developing and24
approving a proposal, the office shall send the proposal to the governor for approval.25
If the governor approves the proposal, it shall be submitted to the Joint Legislative26
Committee on the Budget for review and approval. At the same time as the proposal27
is submitted to the Joint Legislative Committee on the Budget, the proposal shall be28
submitted for review to the appropriate oversight committees of the House of29 HLS 10RS-548 ENGROSSED
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Representatives and the Senate which have jurisdiction over the type of matter which1
is the subject of the proposal.2
(b) If the appropriate oversight committee objects to the proposal, it shall so3
notify the Joint Legislative Committee on the Budget. Whenever any proposal4
amounts to ten million dollars or more and is approved by the Joint Legislative5
Committee on the Budget, the authority shall submit the proposal for approval of a6
majority of the elected members of each house of the legislature. If the legislature7
is in session, the approval shall be by resolution or Act. If the legislature is not in8
session, approval shall be obtained using the same mail ballot procedure used to9
obtain such approval of action of the interim emergency board.10
(c) If a proposal is approved as provided by Subparagraphs (a) and (b) of this11
Paragraph, the governor shall submit the proposal to the United States Department12
of Housing and Urban Development or other appropriate federal authority for13
approval.14
(2) After the appropriate federal approval has been obtained, the authority15
shall request the approval of the Joint Legislative Committee on the Budget for a16
budget adjustment in the amount of the approved funding in accordance with the17
procedures set forth in the General Appropriations Act and Title 39 of the Louisiana18
Revised Statutes of 1950.19
(3) In the development of proposals related to the recovery, the authority20
shall give due consideration to the nonprofit organizations which are involved in the21
recovery, especially those which are licensed in Louisiana as residential contractors.22
Additionally, the authority in the development of proposals shall provide for23
maximum practical opportunities for the participation by the broadest number of24
minority-owned businesses to the extent allowable by law.25
E.(1) The office shall submit to the legislature for its approval by a majority26
of the elected members of each house of the legislature any proposals which it has27
developed related to recovery from the hurricanes which provide for expenditures28
of ten million dollars or more.29 HLS 10RS-548 ENGROSSED
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(2) Members of the legislature can only cast an intelligent, responsible vote1
if they have detailed and accurate information, and information which does not2
change as the approval instrument is introduced and moves through the process.3
(3) Legislators can make proper use of such information only if the legislator4
has a reasonable amount of time to review it.5
(4) The office shall provide to each member of the legislature seven days6
before submitting for approval by a committee or by a house of the legislature any7
instrument which provides for expenditures of ten million dollars or more accurate8
detailed information explaining the following about the proposal:9
(a) For each type of proposed expenditure set forth in the proposal, detailed10
information showing how the total amount of expenditure was derived or estimated,11
including the types of goods, services, or contract work expected to be purchased12
with such expenditures.13
(b) If the amounts of the proposed expenditures are estimates, which14
amounts or other information were such estimates based upon and a specific15
designation of the sources of that information.16
(c) A listing of the governmental and nongovernmental, public and private17
beneficiaries of the proposed expenditures.18
(5) Such information shall include any work papers or other documents19
related to estimated expenditures received by the authority from any task force,20
subcommittee, consultant, or state department or agency utilized by the authority in21
preparation of the proposal.22
(6) Any legislative instrument submitted for approval by the legislature shall23
contain a reference to such information provided to members of the legislature24
pursuant to this Subsection which shall become a part of such instrument and25
proposal by reference.26
F. The office shall resubmit the proposals and any modifications thereto to27
the Joint Legislative Committee on the Budget for reapproval, review, modification,28
or rejection of all or part of such proposals by December 31, 2010. If a proposal is29 HLS 10RS-548 ENGROSSED
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modified or if all or part of a proposal is rejected, the modifications to the proposal1
shall be submitted to the United States Department of Housing and Urban2
Development or other appropriate federal authority for approval.3
G. The office shall submit a copy of the quarterly Disaster Recovery Grant4
Report to the Joint Legislative Committee on the Budget and shall make such report5
available via the Internet at the same time the initial quarterly report is submitted to6
the United States Department of Housing and Urban Development.7
Section 2. This Act shall become effective on July 1, 2010; if vetoed by the governor8
and subsequently approved by the legislature, this Act shall become effective on July 1,9
2010, or on the day following such approval by the legislature, whichever is later.10
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 La. 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. Dept. 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. HLS 10RS-548 ENGROSSED
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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.
(1)Information showing 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 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.
Proposed law requires the office to resubmit the proposals and any modifications thereto
previously submitted to the JLCB for reapproval, review, modification, or rejection of all
or part of such proposals by Dec. 31, 2010. If a proposal is modified or if all or part of a
proposal is rejected, the modifications to the proposal shall be submitted to the U.S. Dept.
of Housing and Urban Development or other appropriate federal authority for approval.
Proposed law adds a requirement that the office submit to the JLCB and make available
online the quarterly Disaster Recovery Grant Report at the same time the initial quarterly
report is submitted to the U.S. Dept. of Housing and Urban Development.
Effective on July 1, 2010.
(Adds R.S. 39:136)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Appropriations to the
original bill.
1. Added requirement that the office resubmit the proposals and any modifications
thereto to the JLCB for reapproval, review, modification, or rejection by Dec. 31,
2010.
2. Added requirement that the office submit to the JLCB and make available online
the quarterly Disaster Recovery Grant Report at the same time the initial
quarterly report is submitted to HUD.