SLS 10RS-697 REENGROSSED Page 1 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2010 SENATE BILL NO. 641 BY SENATORS MORRELL AND HEBERT AND REPRESENTATI VE LEGER MUNICIPALITIES. Provides that certain contracts shall be null and void and requires the attorney of a local government subdivision to file an injunction. (gov sig) AN ACT1 To enact 33:41, relative to a local government authority; to provide that certain contracts2 are void and unenforceable; to impose a duty upon the local government authority;3 to provide for an effective date; and to provide for related matters.4 Be it enacted by the Legislature of Louisiana:5 Section 1. R.S. 33:41 is hereby enacted to read as follows: 6 ยง41. Illegal contracts7 A. Any contract awarded or executed, or purchase made in violation of8 R.S. 14:118 (public bribery), and where a conviction has been obtained, shall be9 null and void and shall not be enforced in the courts of this state. However, in10 instances where the contract or purchase agreement encompasses a service or11 commodity that is of a vital need to or for the public, a court may allow a12 limited transition period to enable the local government authority to secure an13 alternative source for the service or commodity.14 B.(1) Pursuant to Subsection A, the local government authority that is15 a party to the contract or purchase agreement shall apply, in its name, through16 an attorney of its choosing, to a court of competent jurisdiction for an order or17 SB NO. 641 SLS 10RS-697 REENGROSSED Page 2 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. injunction to restrain the misapplication of funds or the execution or1 performance of any contract or purchase order made on its behalf in2 contravention of law, or which was procured by fraud or corruption.3 (2) In the event the attorney chosen by the local government authority4 fails to apply for the order or injunction required by Paragraph (B)(1) of this5 Section, within ninety days following a conviction, the district attorney shall6 apply for such order or injunction on behalf of the local government authority.7 Section 2. This Act shall become effective upon signature by the governor or, if not8 signed by the governor, upon expiration of the time for bills to become law without signature9 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If10 vetoed by the governor and subsequently approved by the legislature, this Act shall become11 effective on the day following such approval.12 The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Ann S. Brown. DIGEST Morrell (SB 641) Proposed law provides that any contract awarded or executed, or purchase made in violation of the criminal statute defining public bribery, and where a conviction has been obtained, shall be null and void and shall not be enforced in the courts of this state. Proposed law provides that in instances where the contract or purchase agreement encompasses a service or commodity that is of a vital need to or for the public, a court may allow a limited transition period to enable the local government authority to secure an alternative source for the service or commodity. Proposed law imposes a duty on the local governmental authority that is a party to the contract or purchase agreement, to apply in its name, through an attorney of its choosing, to a court of competent jurisdiction for an order or injunction to restrain the misapplication of funds or the execution or performance of any contract or purchase order made on its behalf in contravention of law, or which was procured by fraud or corruption. Proposed law provides that if the attorney chosen by the local government authority fails to apply for the order or injunction required by proposed law, within 90 days following a conviction, the district attorney shall apply for such order or injunction on behalf of the local government authority. Effective upon signature of the governor or lapse of time for gubernatorial action. (Adds R.S. 33:41) SB NO. 641 SLS 10RS-697 REENGROSSED Page 3 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Local and Municipal Affairs to the original bill. 1. Requires a conviction of public bribery in order to void and nullify certain contracts. 2. Allows courts to authorize a transition period for certain contracts. 3. Allows the government authority to select an attorney. 4. Provides relative to the application for an order or injunction. Senate Floor Amendments to engrossed bill. 1. Technical amendments.