Louisiana Senate Bill SB71

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10
• Refer: 4/27/10
• Report Pass: 5/12/10
• Engrossed: 5/18/10
• Refer: 5/19/10
• Report Pass: 6/7/10
• Enrolled: 6/21/10
• Chaptered: 7/2/10
• Passed: 7/2/10

Caption

Requires state and local contractors to disclose the full disposition, splitting, or sharing of contract commissions, fees, or other consideration by an "affidavit of notice of fee disposition" if the contract is let without bid. (7/1/10) (RE SEE FISC NOTE GF EX)

Impact

The implementation of SB71 is anticipated to significantly alter how public contracts are handled in Louisiana. By requiring contractors to submit detailed affidavits of fee dispositions, the bill aims to diminish the likelihood of undisclosed financial arrangements that could lead to conflicts of interest or misappropriation of funds. Furthermore, if any inaccuracies are discovered in the affidavit, the law states that the respective contract will be rendered void, and all payments must be refunded to the state or local entity. Such stringent requirements emphasize the importance of maintaining integrity in public financial dealings.

Summary

Senate Bill 71 (SB71) mandates that any contractor engaging with state or local entities must fully disclose any commissions, fees, or other considerations related to their contracts through an 'affidavit of notice of fee disposition.' This regulation applies to contracts awarded without bidding and those exceeding $10,000 when competitively bid. The goal of this legislation is to enhance transparency in public contract dealings, thereby fostering accountability and reducing potential corruption.

Sentiment

Overall, the sentiment surrounding SB71 appears to be largely supportive among legislators advocating for transparency and accountability in government. Proponents argue that this bill is a necessary step to protect taxpayer money and ensure fair practices. However, there might be concerns from contractors and businesses regarding the potential administrative burden of the additional documentation and the strict penalties associated with non-compliance. This divergence in viewpoints reflects a broader dialogue on the balance between regulatory oversight and the ease of business operations.

Contention

Notable points of contention regarding SB71 may arise from the perceived impact of increased disclosure requirements on small businesses and contractors that may lack the resources to comply with such regulations. Critics may argue that while the bill's objectives are commendable, the compliance processes could disproportionately burden smaller entities, potentially stifling competition. Additionally, there could be debates about the adequacy of penalties prescribed for misrepresentation in affidavits, with some advocating for a more lenient approach to support compliance rather than penalize it.