Provides that certain contracts obtained through bribery or other criminal acts shall be absolutely null and void as contrary to public policy. (8/15/10)
Impact
The bill aims to reinforce the principle that contracts acquired through unethical practices compromise public trust and violate public policy. By nullifying contracts linked to criminal convictions, SB720 intends to safeguard taxpayer interests and proactive governance. Should a contract be deemed void under this provision, the individual responsible for the conviction would incur costs associated with rebidding the contract, which may deter individuals and entities from engaging in fraudulent activities in the first place. This shift also enhances scrutiny over public contracts and places a higher standard of accountability on government dealings.
Summary
Senate Bill 720, sponsored by Senator Morrell and several representatives, addresses the enforceability of contracts obtained through criminal activities, specifically fraud, bribery, and corruption. The bill seeks to enact R.S. 9:2716, which stipulates that any contract entered into by a political entity that results from such unlawful acts shall be rendered absolutely null and void, thereby making it unenforceable in Louisiana. This legislative action underscores a commitment to ensuring the integrity of public contracts and the accountability of those involved in securing such agreements through illicit means.
Sentiment
The sentiment surrounding SB720 appears largely supportive among lawmakers who prioritize transparency and ethical behavior in public affairs. Proponents argue that the bill sends a strong message against corruption and reinforces the principle that public resources should not be compromised by illegal actions. However, concerns may arise regarding the potential for abuse of the nullification clause, especially if it is misused to challenge legitimate contracts or if adequate safeguards are not in place to protect against retaliatory actions by disgruntled parties.
Contention
Notable points of contention may include discussions over the clarity and applicability of the bill’s provisions concerning what constitutes 'fraud' or 'corruption.' Critics may advocate for clear definitions to ensure that the bill does not inadvertently target lawful contracts or legitimate business practices. Additionally, there is likely a need for a thorough examination of the processes involved in determining the legitimacy of contract nullification, to prevent any injustice against innocent parties that could arise from misinterpretations or misuse of the law.
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)