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Regular Session, 2010 ENROLLED
SENATE BILL NO. 71
BY SENATOR APPEL AND REPRESENTATIVES AUSTIN BADON, BOBBY BADON,
BALDONE, BILLIOT, CONNICK, FANNIN, GISCLAIR, GUINN,
HARRISON, HENRY, HINES, HOFFMANN, ROSALIND JONES,
LABRUZZO, LEGER, LIGI, LOPINTO, MORENO, MORRIS,
PEARSON, JANE SMITH, TALBOT AND WILLMOTT
AN ACT1
To amend and reenact R.S. 39:1767 and R.S. 48:251.8, and to enact R.S. 38:2196.1, R.S.2
39:200(N), 1493.1, and Part X of Chapter 17 of Subtitle III of Title 39 of the3
Louisiana Revised Statutes of 1950, to be comprised of R.S. 39:1758, relative to4
public contracts; to require certain contractors to disclose the full disposition,5
splitting, or sharing of contract commissions, fees, or other consideration by6
affidavit; to provide for the form of the affidavit; to provide for nullification of7
contracts in certain circumstances; to provide for criminal penalties; and to provide8
for related matters.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 38:2196.1 is hereby enacted to read as follows:11
§2196.1. Public contracts; disclosure of disposition of commission, fee, or other12
consideration; penalties13
A.(1)(a) Notwithstanding any other provision of law to the contrary or14
any limitation of the applicability of any of this Part or Chapter in any other15
provision of law, when any person or other entity enters into any contract16
awarded without bidding with a state entity or local entity, or any contract with17
a local entity exceeding ten thousand dollars awarded with bidding, in which a18
commission, fee, or other consideration is paid to the contractor for the19
contractor to sell to or provide to the state entity or local entity any commodity,20
goods, brokerage service or other service of any kind, insurance, or anything of21
value, then the full disposition, splitting, or sharing of such commission, fee, or22
ACT No. 868 SB NO. 71 ENROLLED
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other consideration shall be disclosed to the state entity or local entity by the1
contractor in writing by an affidavit of notice of fee disposition in the manner2
provided for in this Section.3
(b) For purposes of this Section, the following terms shall have the4
following meanings:5
(i) "State entity" means the state, or any agency, department, office, or6
other instrumentality of the state.7
(ii) "Local entity" means any political subdivision of the state, including8
those entities with home rule charters which were existing or adopted when the9
Constitution of Louisiana of 1974 was adopted, or any agency, department,10
office, or other instrumentality of such political subdivision.11
(2) The affidavit of notice of fee disposition shall be on a form which shall12
be prescribed by the Board of Ethics and shall be notarized as to its13
authenticity. The affidavit of notice of fee disposition shall include the full value14
of the commission, fee, or other consideration to be paid, the names of all15
parties to receive dispositions, splits, or shares of the commission, fee, or other16
consideration, and the signature of the party authorized to commit the entity17
receiving the commission, fee, or other consideration to the contract, who shall18
attest to the truth of the facts set forth in the affidavit. The affidavit of notice19
of fee disposition shall be attached to and made a part of the contract for which20
the commission, fee, or other consideration is paid and shall be recorded in the21
public record.22
B. If at any time the disposition, splitting, or sharing of the commission,23
fee, or other consideration changes, or the amount of the commission, fee, or24
other consideration changes, then a new affidavit reflecting the changes from25
the first affidavit shall be prepared, executed, notarized, and recorded by the26
contractor in the public record.27
C.(1) If for any reason the information on the recorded affidavit shall28
be found to be incorrect, then the contract shall become null and void and all29
payments of the commission, fee, or other consideration shall be rebated to the30 SB NO. 71 ENROLLED
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state entity or local entity which entered into the contract.1
(2) In addition, intentional misrepresentation of the facts on an affidavit2
shall subject the party attesting to the facts to the penalties provided for filing3
or maintaining false public records provided for in R.S. 14:133.4
Section 2. R.S. 39:1767 is hereby amended and reenacted and R.S. 39:200(N),5
1493.1, and Part X of Chapter 17 of Subtitle III of Title 39 of the Louisiana Revised Statutes6
of 1950, comprised of R.S. 39:1758, are hereby enacted to read as follows:7
§200. General provisions8
The following general provisions shall apply to all procurements under this Part:9
* * *10
N. Notwithstanding any limitation of the applicability of this Part or11
Chapter in any other provision of law, contracts shall be subject to the12
provisions of R.S. 38:2196.1 regarding the requirement for an affidavit of notice13
of fee disposition, if applicable.14
* * *15
§1493.1. Requirement for affidavit of notice of fee disposition16
Notwithstanding any limitation of the applicability of this Part or17
Chapter in any other provision of law, contracts shall be subject to the18
provisions of R.S. 38:2196.1 regarding the requirement for an affidavit of notice19
of fee disposition, if applicable.20
* * *21
PART X. REQUIREMENTS OF CONTRACTS22
§1758. Requirement for affidavit of notice of fee disposition23
Notwithstanding any limitation of the applicability of this Part or24
Chapter in any other provision of law, contracts shall be subject to the25
provisions of R.S. 38:2196.1 regarding the requirement for an affidavit of notice26
of fee disposition, if applicable.27
* * *28
§1767. Appropriation dependency; requirement for affidavit of notice of fee29
disposition30 SB NO. 71 ENROLLED
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A. All lease-purchase contracts entered into pursuant to this Chapter shall1
contain an annual appropriation dependency requirement to the effect that renewal2
and continuation of such contract is contingent upon the appropriation of funds to3
fulfill the requirements of the contract and if the legislature, after a diligent and good4
faith effort, fails to appropriate sufficient monies to provide for the continuation of5
a contract, or if such appropriation can not be effected, the contract shall terminate6
in accordance with the terms of the lease on the last day of the last fiscal year for7
which funds were appropriated, provided the equipment is returned to the nonprofit8
lessor or his agent, as provided in the equipment-lease-purchase contract and such9
contract shall not be a long-term debt of the state or the applicable purchasing10
agency. In addition, in such equipment-lease-purchase contracts, the nonprofit lessor11
shall covenant and agree to indemnify and hold the lessee harmless against any loss,12
damage, liability, cost, penalty, or expense, including attorney fees, which is not13
otherwise agreed to by the lessee in the equipment-lease-purchase contract and14
which is incurred and arises upon a failure of the legislature to appropriate funds in15
the manner described above for a continuation of the contract or the exercise of the16
option to purchase the selected equipment.17
B. Notwithstanding any limitation of the applicability of this Part or18
Chapter in any other provision of law, contracts shall be subject to the19
provisions of R.S. 38:2196.1 regarding the requirement for an affidavit of notice20
of fee disposition, if applicable.21
Section 3. R.S. 48:251.8 is hereby amended and reenacted to read as follows:22
§251.8. Public contracts; certain provisions invalid; requirement for affidavit of23
notice of fee disposition24
A. The legislature hereby declares null and void and unenforceable as against25
public policy any provision in a department contract which requires either of the26
following:27
(1) That a suit or arbitration proceeding must be brought in a forum or28
jurisdiction outside of this state, instead of being pursued in accordance with the laws29
of this state governing such actions.30 SB NO. 71 ENROLLED
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(2) That the agreement must be interpreted according to the laws of another1
jurisdiction.2
B. Notwithstanding any limitation of the applicability of this Part or3
Chapter in any other provision of law, contracts shall be subject to the4
provisions of R.S. 38:2196.1 regarding the requirement for an affidavit of notice5
of fee disposition, if applicable.6
Section 4. This Act shall become effective on July 1, 2010; if vetoed by the governor7
and subsequently approved by the legislature, this Act shall become effective on July 1,8
2010, or on the day following such approval by the legislature, whichever is later.9
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: