HLS 10RS-1085 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2010
HOUSE BILL NO. 426
BY REPRESENTATIVE GREENE
CONTRACTS/BIDS: Prohibits certain persons or business entities from bidding on or
maintaining a contract with the state
AN ACT1
To enact R.S. 38:2212.8 and R.S. 39:1496.3 and 1594.4, relative to procurement; to prohibit2
persons or business entities with unpaid final judgments from participating in the3
contract and public bid process; to provide for an effective date; and to provide for4
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 contracts and bids from a person or business entity who8
has not paid a final judgment9
A. A public entity shall not accept a bid from or otherwise contract with a10
person or business entity who has failed to fully satisfy a valid final judgment.11
(1) A public entity shall require that any submission of a bid shall include12
verification that the person or business entity submitting the bid has not failed to13
fully satisfy any valid final judgment rendered against the person or business entity.14
(2) A public entity shall require that each contract or cooperative endeavor15
agreement, or any other agreement for the procurement of goods or services, shall16
contain a clause attesting that the person or business entity entering into the contract17
or cooperative endeavor agreement has not failed to fully satisfy any valid final18
judgment rendered against the person or business entity.19 HLS 10RS-1085 ORIGINAL
HB NO. 426
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(3) If a public entity finds that they have entered into a contract with a person1
or business entity who withheld information or was not truthful pursuant to the2
requirements of this Section, the public entity shall not make further payments3
pursuant to the terms of the contract until verification of satisfaction of a final4
judgment rendered against the person or business entity is provided to the public5
entity.6
(4) Any verification required as a result of this Section shall be in a form and7
manner prescribed by the public entity accepting a bid or entering into any contract8
or cooperative endeavor agreement or any other agreement for the procurement of9
goods or services.10
Section 2. R.S. 39:1496.3 and 1594.4 are hereby enacted to read as follows:11
§1496.3. Right to prohibit contracts and bids from a person or business entity who12
has not paid a final judgment13
A. A public entity shall not accept a bid from or otherwise contract with a14
person or business entity who has failed to fully satisfy a valid final judgment.15
(1) A public entity shall require that any submission of a bid shall include16
verification that the person or business entity submitting the bid has not failed to17
fully satisfy any valid final judgment rendered against the person or business entity.18
(2) A public entity shall require that each contract or cooperative endeavor19
agreement, or any other agreement for the procurement of goods or services, shall20
contain a clause attesting that the person or business entity entering into the contract21
or cooperative endeavor agreement has not failed to fully satisfy any valid final22
judgment rendered against the person or business entity.23
(3) If a public entity finds that they have entered into a contract with a person24
or business entity who withheld information or was not truthful pursuant to the25
requirements of this Section, the public entity shall not make further payments26
pursuant to the terms of the contract until verification of satisfaction of a final27
judgment rendered against the person or business entity is provided to the public28
entity.29 HLS 10RS-1085 ORIGINAL
HB NO. 426
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(4) Any verification required as a result of this Section shall be in a form and1
manner prescribed by the public entity accepting a bid or entering into any contract2
or cooperative endeavor agreement or any other agreement for the procurement of3
goods or services.4
* * *5
§1594.4. Right to prohibit contracts and bids from a person or business entity who6
has not paid a final judgment7
A. A public entity shall not accept a bid from or otherwise contract with a8
person or business entity who has failed to fully satisfy a valid final judgment.9
(1) A public entity shall require that any submission of a bid shall include10
verification that the person or business entity submitting the bid has not failed to11
fully satisfy any valid final judgment rendered against the person or business entity.12
(2) A public entity shall require that each contract or cooperative endeavor13
agreement, or any other agreement for the procurement of goods or services, shall14
contain a clause attesting that the person or business entity entering into the contract15
or cooperative endeavor agreement has not failed to fully satisfy any valid final16
judgment rendered against the person or business entity.17
(3) If a public entity finds that they have entered into a contract with a person18
or business entity who withheld information or was not truthful pursuant to the19
requirements of this Section, the public entity shall not make further payments20
pursuant to the terms of the contract until verification of satisfaction of a final21
judgment rendered against the person or business entity is provided to the public22
entity.23
(4) Any verification required as a result of this Section shall be in a form and24
manner prescribed by the public entity accepting a bid or entering into any contract25
or cooperative endeavor agreement or any other agreement for the procurement of26
goods or services. 27
Section 3. This Act shall become effective upon signature by the governor or, if not28
signed by the governor, upon expiration of the time for bills to become law without signature29 HLS 10RS-1085 ORIGINAL
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by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If1
vetoed by the governor and subsequently approved by the legislature, this Act shall become2
effective on the day following such approval.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)]
Greene HB No. 426
Abstract: Prohibits persons or business entities who have unpaid final judgments from
submitting bids to, or contracting with, the state.
Proposed law requires that any submission of a bid to a public entity include verification that
the person or business entity submitting the bid has not failed to fully satisfy any valid final
judgment rendered against them.
Proposed law requires that each contract or cooperative endeavor agreement with a public
entity contain a clause attesting that the person or business entity entering into the contract
or cooperative endeavor agreement has not failed to fully satisfy any valid final judgment
rendered against them.
Proposed law provides that if a public entity finds that a person or business entity, into which
the public entity has entered into a contract, withheld information or was not truthful
pursuant to the requirements of proposed law, the public entity shall not make further
payments on the contract until the person or business entity provides verification of
satisfaction of a final judgment to the public entity.
Proposed law provides that any verification required as a result of proposed law shall be in
a form and manner prescribed by the public entity.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 38:2212.8 and R.S. 39:1496.3 and 1594.4)