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Regular Session, 2010
SENATE BILL NO. 295
BY SENATOR DONAHUE
HEALTH/HOSPITALS DEPT. Authorizes the Department of Health and Hospitals to
contract for the operation of state inpatient mental health facilities and certain services
provided at such facilities. (8/15/10)
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 provide for the lease or use of public lands or buildings;6
to require contractors to enter into hold harmless agreements; to require the release7
of financial statements by contractors; to require insurance, bonding, and8
indemnification for the state or political subdivisions; to provide for approval and9
monitoring of the contract; and to provide for related matters.10
Be it enacted by the Legislature of Louisiana:11
Section 1. R.S. 28:22.11 is hereby enacted to read as follows:12
ยง22.11. Agreements with private contractors13
A. The Department of Health and Hospitals is hereby authorized to enter14
into contracts with private contractors for the financing, acquiring, designing,15
leasing, constructing, and operating of inpatient mental health facilities.16
B. (1) Contracts entered into under the terms of this Section shall be17 SB NO. 295
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
negotiated with the contractor chosen by the Department of Health and1
Hospitals pursuant to a competitive process. Notwithstanding any other2
provision of law to the contrary, contracts entered into under the terms of this3
Section shall not be subject to capital outlay requirements, Title 38 of the4
Louisiana Revised Statutes of 1950, or the request for proposals process of R.S.5
39:1503. A contract for the financing, acquiring, designing, leasing and6
constructing of an inpatient mental health facility may also contain provisions7
relating to the maintenance and operation of administrative and treatment8
services in the inpatient mental health facility, if the department determines9
that combining the contract services would be efficient and cost effective.10
However, no contract for services may be entered into unless the contractor11
demonstrates that it has:12
(a) The financial and programmatic qualifications, experience, and13
personnel necessary to carry out the terms of the contract.14
(b) The financial strength and ability to provide indemnification for15
liability arising from the operation of inpatient mental health facility projects.16
(c) Evidence of past performance of similar contracts.17
(d) The ability to comply with applicable mental health standards.18
(2) Contracts awarded under the provisions of this Section may be19
entered into for a period not to exceed twenty years, subject to annual20
appropriation by the legislature.21
C. No contract for inpatient mental heath treatment or services shall be22
entered into unless the following requirements are met:23
(1) The contractor provides audited financial statements for the24
previous five years or for each of the years the contractor has been in operation,25
if less than five years, and provides other financial information as requested.26
(2) The contractor shall agree to hold harmless the state, its agencies,27
political subdivisions, and the employees and contractors of the state, its28
agencies and political subdivisions for any claim or cause of action which arises29 SB NO. 295
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
from any act or omission by the contractor or any of the contractor's employees1
or subcontractors.2
(3) The contractor shall agree to provide insurance, or equal bonding,3
and proof of such insurance or bonding for the indemnification of the state or4
its agencies and political subdivisions and the employees and contractors of the5
state and its agencies and political subdivisions for any claim or cause of action6
which arises from any act or omission by the contractor or any of the7
contractor's employees or subcontractors. Nothing in this Section is intended8
to deprive a contractor or the state and its agencies and political subdivisions9
of the benefits of any law limiting liability or setting a limit on damages.10
D. Nothing in this Section shall limit or affect the ability of the11
Department of Health and Hospitals to contract for professional, personal,12
consulting or social services under the authority existing as of July 1, 2010.13
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Greg Waddell.
DIGEST
Proposed law provides that DHH may enter into contracts with private contractors for the
financing, acquiring, designing, leasing, constructing, and operating of inpatient mental
health facilities.
Proposed law 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 of 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:
(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. SB NO. 295
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(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 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 five years or
for each of the years the contractor has been in operation, if less than five years, and
provides other financial information as requested.
(2)The contractor shall agree 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 shall agree 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 August 15, 2010.
(Adds R.S. 28:22.11)