HLS 10RS-2314 ORIGINAL Page 1 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2010 HOUSE BILL NO. 1490 (Substitute for House Bill No. 200 by Representative Connick) BY REPRESENTATIVES CONNICK, GISCLAIR, LABRUZZO, LIGI, LOPINTO, LORUSSO, AND TALBOT AND SENATOR QUINN PUBLIC CONTRACT/BIDS: Provides limitations on persons convicted of felonies from participating in governmental contracts AN ACT1 To enact R.S. 38:2212.8 and Chapter 24 of Title 39 of the Louisiana Revised Statutes of2 1950, to be comprised of R.S. 39:2181 and 2182, relative to procurement; to allow3 for the prohibition of certain convicted felons from participating in the contract and4 procurement process; and to provide for related matters.5 Be it enacted by the Legislature of Louisiana:6 Section 1. R.S. 38:2212.8 is hereby enacted to read as follows: 7 §2212.8. Right to prohibit awards or procurement with individuals convicted of8 certain felony crimes9 A. In awarding contracts, any public entity is authorized to reject the lowest10 bid from, or not award the contract to, a business in which any individual with an11 ownership interest of five percent or more has been convicted of, or has entered a12 plea of guilty or nolo contendere to any state felony crime or equivalent federal13 felony crime committed in the solicitation or execution of a contract or bid awarded14 under the laws governing public contracts under the provisions of Chapter 10 of this15 Title, professional, personal, consulting and social services procurement under the16 provisions of Chapter 16 of Title 39 of the Louisiana Revised Statutes of 1950, or the17 Louisiana Procurement Code under the provisions of Chapter 17 of Title 39 of the18 Louisiana Revised Statutes of 1950.19 HLS 10RS-2314 ORIGINAL HB NO. 1490 Page 2 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. B. Nothing in this Section shall impose a duty, responsibility, or requirement1 on a public entity to perform criminal background checks on contractors, vendors,2 or subcontractors. It shall be the responsibility of any person, company, or entity3 making an allegation of prior convictions on the part of any bidder to present prima4 facie evidence to the public entity supporting their claim.5 C. If prima facie evidence is submitted substantiating that the lowest bidder6 has been convicted of, or has entered a plea of guilty or nolo contendere to any state7 felony crime or equivalent federal felony crime committed in the solicitation or8 execution of a contract or bid awarded under the laws listed in Subsection A of this9 Section and the public entity rejects the lowest bid, the company whose bid is10 rejected shall be responsible to the public entity for the costs of rebidding, the11 increased costs of awarding to the second low bidder, or forfeiture of the bid bond,12 whichever is higher.13 Section 2. Chapter 24 of Title 39 of the Louisiana Revised Statutes of 1950,14 comprised of R.S. 39:2181 and 2182, is hereby enacted to read as follows:15 CHAPTER 24. PROHIBITIONS IN PUBLIC GOVERNMENTAL CONTRACTS AND16 PROCUREMENT17 §2181. Applicability; definitions18 A. This Chapter shall apply to any contract or cooperative endeavor19 agreement that results from any bid or other award governed under Chapter 16 and20 Chapter 17 of this Title.21 B. For the purpose of this Chapter, "public entity" shall mean any agency,22 board, commission, department, or public corporation of the state, created by the23 constitution or statute or pursuant thereto, or any political subdivision of the state,24 including but not limited to any political subdivision as defined by Article VI,25 Section 44 of the Constitution of Louisiana, and any public housing authority, public26 school board, or any public officer whether or not an officer of a public corporation27 or political subdivision.28 HLS 10RS-2314 ORIGINAL HB NO. 1490 Page 3 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. §2182. Right to prohibit awards or procurement with individuals convicted of certain1 felony crimes2 A. In awarding contracts, any public entity is authorized to reject the lowest3 bid from, or not award the contract to, a business in which any individual with an4 ownership interest of five percent or more has been convicted of, or has entered a5 plea of guilty or nolo contendere to any state felony crime or equivalent federal6 felony crime committed in the solicitation or execution of a contract or bid awarded7 under the laws governing public contracts under the provisions of Chapter 10 of Title8 38 of the Louisiana Revised Statutes of 1950, professional, personal, consulting and9 social services procurement under the provisions of Chapter 16 of this Title, or the10 Louisiana Procurement Code under the provisions of Chapter 17 of this Title.11 B. Nothing in this Section shall impose a duty, responsibility, or requirement12 on a public entity to perform criminal background checks on contractors, vendors,13 or subcontractors. It shall be the responsibility of any person, company, or entity14 making an allegation of prior convictions on the part of any bidder to present prima15 facie evidence to the public entity supporting their claim.16 C. If prima facie evidence is submitted substantiating that the lowest bidder17 has been convicted of, or has entered a plea of guilty or nolo contendere to any state18 felony crime or equivalent federal felony crime committed in the solicitation or19 execution of a contract or bid awarded under the laws listed in Subsection A of this20 Section and the public entity rejects the lowest bid, the company whose bid is21 rejected shall be responsible to the public entity for the costs of rebidding, the22 increased costs of awarding to the second low bidder, or forfeiture of the bid bond,23 whichever is higher.24 HLS 10RS-2314 ORIGINAL HB NO. 1490 Page 4 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. 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)] Connick HB No. 1490 Abstract: Provides that a public entity is authorized to reject the lowest bid or a contract from a business in which any individual with an ownership interest of five percent or more has been convicted of or entered a plea of guilty or nolo contendere to certain felony crimes committed in the solicitation or execution of a contract or bid. Proposed law provides that in awarding contracts, any public entity is authorized to reject the lowest bid from, or not award the contract to, a business in which any individual with an ownership interest of five percent or more has been convicted of, or has entered a plea of guilty or nolo contendere to any state felony crime or equivalent federal felony crime committed in the solicitation or execution of a contract or bid awarded under the laws governing public contracts under the provisions of Chapter 10 of Title 38 of the Louisiana Revised Statutes of 1950, professional, personal, consulting and social services procurement under the provisions of Chapter 16 of Title 39 of the Louisiana Revised Statutes of 1950, or the Louisiana Procurement Code under the provisions of Chapter 17 of Title 39 of the Louisiana Revised Statutes of 1950. Proposed law provides that a public entity does not have a duty, responsibility, or requirement to perform criminal background checks on contractors, vendors, or subcontractors. Proposed law further provides that it shall be the responsibility of any person, company, or entity making an allegation of prior convictions on the part of any bidder to present prima facie evidence to the public entity supporting their claim. Proposed law provides that if prima facie evidence is submitted substantiating that the lowest bidder has been convicted of, or has entered a plea of guilty or nolo contendere to any state felony crime or equivalent federal felony crime pursuant to proposed law and the public entity rejects the lowest bid, the company whose bid is rejected will be responsible to the public entity for the costs of rebidding, the increased costs of awarding to the second low bidder, or forfeiture of the bid bond, whichever is higher. Proposed law defines "public entity" as any agency, board, commission, department, or public corporation of the state, created by the constitution or statute or pursuant thereto, or any political subdivision of the state, including but not limited to any political subdivision as defined in Art. VI, §44 of the Const. of La., and any public housing authority, public school board, or any public officer whether or not an officer of a public corporation or political subdivision. (Adds R.S. 38:2212.8 and R.S. 39:2181-2182)