HLS 10RS-1596 ORIGINAL
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Regular Session, 2010
HOUSE BILL NO. 979
BY REPRESENTATIVE SIMON
STATE DEPARTMENTS: Authorizes the Dept. of Health and Hospitals to contract for the
operation of state inpatient mental health facilities and certain services provided at
such facilities
AN ACT1
To enact R.S. 28:22.11, relative to inpatient mental health institutions; to authorize the2
Department of Health and Hospitals to contract with private contractors for the3
provision of inpatient mental health treatment and services; to provide for the4
financing, acquiring, designing, leasing, constructing, and operating of inpatient5
mental health facilities; to require contractors to enter into hold harmless agreements;6
to require the release of financial statements by contractors; to require insurance,7
bonding, and indemnification for the state or political subdivisions; and to provide8
for related matters.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 28:22.11 is hereby enacted to read as follows:11
ยง22.11. Agreements with private contractors12
A. The Department of Health and Hospitals is hereby authorized to enter into13
contracts with private contractors for the financing, acquiring, designing, leasing,14
constructing, and operating of inpatient mental health facilities.15
B. (1) Contracts entered into pursuant to the terms of this Section shall be16
negotiated with the contractor chosen by the Department of Health and Hospitals17
pursuant to a competitive process. Notwithstanding any other provision of law to the18
contrary, contracts entered into pursuant to the terms of this Section shall not be19 HLS 10RS-1596 ORIGINAL
HB NO. 979
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subject to capital outlay requirements, Title 38 of the Louisiana Revised Statutes of1
1950, or the request for proposals process in R.S. 39:1503. A contract for the2
financing, acquiring, designing, leasing, and constructing of an inpatient mental3
health facility may also contain provisions relating to the maintenance and operation4
of administrative and treatment services in the inpatient mental health facility, if the5
department determines that combining the contract services would be efficient and6
cost effective; however, no contract for services may be entered into unless the7
contractor demonstrates that it has:8
(a) The financial and programmatic qualifications, experience, and personnel9
necessary to carry out the terms of the contract.10
(b) The financial strength and ability to provide indemnification for liability11
arising from the operation of inpatient mental health facility projects.12
(c) Evidence of past performance of similar contracts.13
(d) The ability to comply with applicable mental health standards.14
(2) Contracts awarded pursuant to the provisions of this Section may be15
entered into for a period not to exceed twenty years, subject to annual appropriation16
by the legislature.17
C. No contract for inpatient mental heath treatment or services shall be18
entered into unless the following requirements are met:19
(1) The contractor provides audited financial statements for the previous five20
years or for each of the years the contractor has been in operation, if less than five21
years, and provides other financial information as requested.22
(2) The contractor shall agree to hold harmless the state, its agencies,23
political subdivisions, and the employees and contractors of the state, its agencies24
and political subdivisions for any claim or cause of action which arises from any act25
or omission by the contractor or any of the contractor's employees or subcontractors.26
(3) The contractor shall agree to provide insurance, or equal bonding, and27
proof of such insurance or bonding for the indemnification of the state or its agencies28
and political subdivisions and the employees and contractors of the state and its29 HLS 10RS-1596 ORIGINAL
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agencies and political subdivisions for any claim or cause of action which arises1
from any act or omission by the contractor or any of the contractor's employees or2
subcontractors. Nothing in this Section shall be intended to deprive a contractor or3
the state and its agencies and political subdivisions of the benefits of any law4
limiting liability or setting a limit on damages.5
D. Nothing in this Section shall limit or affect the ability of the Department6
of Health and Hospitals to contract for professional, personal, consulting, or social7
services under the authority existing as of July 1, 2010.8
Section 2. This Act shall become effective upon signature by the governor or, if not9
signed by the governor, upon expiration of the time for bills to become law without signature10
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If11
vetoed by the governor and subsequently approved by the legislature, this Act shall become12
effective on the day following such approval.13
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)]
Simon HB No. 979
Abstract: To authorize the Department of Health and Hospitals to contract with private
contractors for the provision of inpatient mental health treatment and services.
Proposed law (R.S. 28:22.11(A)) provides that the Department of Health and Hospitals
(DHH) may enter into contracts with private contractors for the financing, acquiring,
designing, leasing, constructing, and operating of inpatient mental health facilities.
Proposed law (R.S. 28:22.11(B)(1)) provides that contracts entered into under proposed law
shall be negotiated with the contractor chosen by DHH pursuant to a competitive process.
Proposed law provides that contracts entered into under the terms of proposed law shall not
be subject to capital outlay requirements, Title 38 of the Louisiana Revised Statutes of 1950,
or the request for proposals process in R.S. 39:1503.
Proposed law provides that a contract for the financing, acquiring, designing, leasing, and
constructing of an inpatient mental health facility may also contain provisions relating to the
maintenance and operation of administrative and treatment services in the inpatient mental
health facility, if DHH determines that combining the contract services would be efficient
and cost effective.
Proposed law further provides that no contract for services may be entered into unless the
contractor demonstrates that it has: HLS 10RS-1596 ORIGINAL
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(1)The financial and programmatic qualifications, experience, and personnel necessary
to carry out the terms of the contract.
(2)The financial strength and ability to provide indemnification for liability arising from
the operation of inpatient mental health facility projects.
(3)Evidence of past performance of similar contracts.
(4)The ability to comply with applicable mental health standards.
Proposed law provides that contracts awarded under the provisions of proposed law may be
entered into for a period not to exceed 20 years, subject to annual appropriation by the
legislature.
Proposed law (R.S. 28:22.11(C)) provides that no contract for inpatient mental heath
treatment or services shall be entered into unless the following requirements are met:
(1)The contractor provides audited financial statements for the previous 5 years or for
each of the years the contractor has been in operation, if less than 5 years, and
provides other financial information as requested.
(2)The contractor agrees to hold harmless the state, its agencies, political subdivisions,
and the employees and contractors of the state, its agencies and political subdivisions
for any claim or cause of action which arises from any act or omission by the
contractor or any of the contractor's employees or subcontractors.
(3)The contractor agrees to provide insurance, or equal bonding, and proof of such
insurance or bonding for the indemnification of the state or its agencies and political
subdivisions and the employees and contractors of the state and its agencies and
political subdivisions for any claim or cause of action which arises from any act or
omission by the contractor or any of the contractor's employees or subcontractors.
Proposed law provides that nothing in the provisions of proposed law shall limit or affect the
ability of DHH to contract for professional, personal, consulting, or social services under the
authority existing as of July 1, 2010.
Effective upon signature of the governor or lapse of the time for gubernatorial action.
(Adds R.S. 28:22.11)