ENROLLED
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ACT No. 418
Regular Session, 2011
HOUSE BILL NO. 549
BY REPRESENTATIVES TUCKER, ANDERS, ARNOLD, BOBBY BADON,
BURFORD, HENRY BURNS, CARMODY, CARTER, CHANDLER, CHANEY,
CONNICK, DOVE, DOWNS, EDWARDS, FOI L, GREENE, GUILLORY,
HARDY, HARRISON, HOFFMANN, HUTTER, KATZ, LIGI, LITTLE, LOPINTO,
LORUSSO, NOWLIN, PEARSON, PONTI, PUGH, RICHARD, RICHARDSON,
SCHRODER, SEABAUGH, SMILEY, GARY SMITH, JANE SMITH, ST.
GERMAIN, TALBOT, TEMPLET, THIBAUT, AND WILLIAMS AND
SENATORS NEVERS AND THOMPSON
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
AN ACT1
To amend and reenact R.S. 17:3139(B), (C)(3)(a) and (5)(introductory paragraph) and (i),2
(D), (F)(introductory paragraph), (4), (5), and (6), and (G)(1), (2)(introductory3
paragraph) and (iii), and (3)(introductory paragraph), and 3386(E), and to enact R.S.4
17:3139(C)(1)(e) and (5)(j) and (k), and (G)(4), relative to the Louisiana Granting5
Resources and Autonomy for Diplomas Act; to provide for additional operational6
autonomies to be granted to public postsecondary education institutions, including7
but not limited to authority and exemptions relative to budgetary management,8
capital outlay, risk management, and procurement; to provide relative to legislative9
review and approval of the granting of certain autonomies; to provide relative to10
required reporting by public postsecondary education institutions and certain cost11
data to be included in such reports; to provide relative to renewal periods of12
institutions' performance agreements by the Board of Regents; to provide relative to13
the termination of autonomies in certain circumstances; to require achievement of14
certain standards for retention of first-year students; to require the Board of Regents15
to report on the standardization of student tracking and records systems and the16
performance of institutions relative thereto; to provide relative to the retention of17
certain unused funds by certain institutions; to direct the Louisiana State Law18 ENROLLEDHB NO. 549
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Institute to redesignate certain statutory provisions; to provide for applicability; to1
provide for an effective date; and to provide for related matters.2
Be it enacted by the Legislature of Louisiana:3
Section 1. R.S. 17:3139(B), (C)(3)(a) and (5)(introductory paragraph) and (i), (D),4
(F)(introductory paragraph), (4), (5), and (6), and (G)(1), (2)(introductory paragraph) and5
(iii), and (3)(introductory paragraph), and 3386(E) are hereby amended and reenacted and6
R.S. 17:3139(C)(1)(e) and (5)(j) and (k), and (G)(4) are hereby enacted to read as follows:7
§3139. Louisiana Granting Resources and Autonomy for Diplomas Act; purpose;8
agreements; monitoring and renewal; reporting9
* * *10
B. Purpose. The purpose of this Section is to support the state's public11
postsecondary education institutions in remaining competitive and increasing their12
overall effectiveness and efficiency by providing requiring that the institutions13
achieve specific, measurable performance objectives aimed at improving college14
completion and at meeting the state's current and future workforce and economic15
development needs, by improving the quality and type of data available on these16
objectives and institutions' respective progress towards them, and by granting the17
institutions limited operational autonomy and flexibility in exchange for achieving18
such objectives.19
C. Performance agreements; objectives. Effective beginning with the 201120
Fiscal Year, any public postsecondary education institution, including professional21
schools, may enter into an initial performance agreement with the Board of Regents22
in order to be granted limited operational autonomy and flexibility as provided in23
Subsection F of this Section in exchange for committing to meet established targets24
for the following performance objectives as applicable to the institution as25
determined by the Board of Regents:26
(1)27
* * *28
(e) For the purposes of this Section, successful attainment of the student29
success objectives shall be required for determination by the Board of Regents that30 ENROLLEDHB NO. 549
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an institution has met the short-term targets of the performance agreement as1
provided in this Subsection. An institution which has failed to meet its2
same-institution graduation rate, program completer, and retention rate targets, as3
appropriate for the mission of the institution, shall not be deemed by the Board of4
Regents to have met the requirements of its performance agreement for the year.5
* * *6
(3) Workforce and economic development. (a) Eliminate academic program7
offerings that have low student completer rates as identified by the Board of Regents8
or are not aligned with current or strategic workforce needs of the state, region, or9
both as identified by the Louisiana Workforce Commission and Louisiana Economic10
Development. 11
* * *12
(5) Submit a report to the Board of Regents, the legislative auditor, and the13
legislature containing certain organizational data, including but not limited to the14
following: Each institution annually shall submit a report to the Board of Regents,15
which shall publish the report on its website, the legislative auditor, the legislature,16
and the division of administration containing certain organizational data, including17
but not limited to the following:18
* * *19
(i) A cost performance analysis to include by institution: 20
(i) Total operating budget by function, amount, and percent of total, reported21
in a manner consistent with the National Association of College and University22
Business Officers guidelines.23
(ii) Average yearly cost of attendance as reported to the United States24
Department of Education.25
(iii) Average time to degree for completion of academic programs at all26
levels.27
(iv) Average cost per degree awarded by degree level.28
(v) Average cost per non-completer by degree program entered.29
(j) All expenditures of the institution for that year.30 ENROLLEDHB NO. 549
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(k) Any additional data requested by the speaker of the House of1
Representatives or the president of the Senate. 2
* * *3
D. Annual review; revocation; modifications. (1) The initial performance4
agreement and each subsequent agreement shall be a six-year agreement and shall5
be reviewed annually by the Board of Regents. The Board of Regents may revoke6
an agreement at any time if it determines that an institution has failed to abide by the7
terms of the agreement.8
(2) The Board of Regents may modify lower the established targets for9
performance objectives contained in an institution's performance agreement only in10
the event extraordinary circumstances prevent the institution from meeting such11
targets. Such modifications shall be subject to approval by the Joint Legislative12
Committee on the Budget. The Board of Regents, in consultation with the institution13
and its management board, may raise, at the time of the annual review, the14
established targets for performance objectives contained in an institution's15
performance agreement to continue institutional progress and shall notify the House16
Committee on Education and the Senate Committee on Education, in writing, of any17
such increases.18
* * *19
F. Autonomies granted. Each Notwithstanding any other provision of law to20
the contrary, each institution that enters into a performance agreement as provided21
in this Section shall be granted the following: shall be granted the authorities and22
autonomies as provided in this Subsection. However, nothing herein shall suspend23
the requirements of R.S. 39:1593.1.24
* * *25
(4) A base level of operational autonomy as determined by the Board of26
Regents subject to the approval by the division of administration which, at a27
minimum, shall include greater flexibility in:28
(a) Carrying forward unexpended and unobligated funds from one fiscal year29
to the next.30 ENROLLEDHB NO. 549
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(b) Procuring information technology products and services.1
(c) Adhering to state travel regulations.2
(5) The Board of Regents, in collaboration with the division of3
administration, shall identify additional operational autonomies, including but not4
limited to exceptions from procurement and construction regulations. However, no5
exception from any provision of the Louisiana Procurement Code or from Chapter6
10 of Title 38 of the Louisiana Revised Statutes of 1950 shall be granted, and, unless7
specifically authorized by the legislature, no design-build contract shall be8
authorized pursuant to this Paragraph. The Board of Regents may grant such9
autonomies to an institution during the initial agreement period if all of the following10
are met:11
(a) After three years, the institution has achieved a sufficient number of the12
performance objectives provided in Subsection C of this Section as determined by13
the Board of Regents.14
(b) The institution has demonstrated the ability to successfully operate with15
the base levels of autonomies granted by this Section as determined by the Board of16
Regents.17
(6) (4) Each postsecondary education management board shall establish18
criteria for waiving any tuition or mandatory fee increase as authorized in this19
Subsection in cases of financial hardship. Information relative to such waivers and20
the criteria and procedures for obtaining a waiver shall be made available to all21
prospective students in a timely manner such that each student is informed of the22
availability of a waiver prior to the student making a final decision concerning23
attendance at any public institution of postsecondary education.24
(5) Operational autonomies. (a) Base level. Notwithstanding any provision25
of law to the contrary, any institution that is determined by the Board of Regents to26
have met the short-term targets established in the performance agreement may be27
granted the autonomies as provided in this Subparagraph; however, no institution28
shall be granted such an autonomy until after the division of administration29
determines that for the following year the institution possesses the capacity relevant30 ENROLLEDHB NO. 549
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to the autonomy including, at a minimum, a review of the most recent fiscal audit by1
the legislative auditor.2
(i) Authority to retain any funds which remain unexpended and unobligated3
at the end of the fiscal year for use at the institution's discretion pursuant to R.S.4
17:3386, and subject to the prior review and approval of the Joint Legislative5
Committee on the Budget.6
(ii) Authority to execute contracts up to a value of forty-nine thousand nine7
hundred ninety-nine dollars within a twelve-month period in accordance with the8
delegation of authority by the office of contractual review pursuant to R.S. 39:1488.9
(iii) Authority to identify and dispose of obsolete equipment, excluding10
vehicles and items deemed by federal law to be of a dangerous nature, up to an11
original acquisition value of five thousand dollars.12
(iv) Authority to be excluded from oversight or review by the office of13
information technology, as provided in R.S. 39:15.3, for purchases with an academic14
research or classroom instructional purpose.15
(v) Authority to exclude from its table of organization any position that is16
fully funded by nonappropriated funds.17
(b) Intermediate level. Notwithstanding any provision of law to the contrary18
and in addition to the base level autonomies granted pursuant to Subparagraph (a)19
of this Paragraph, any institution that is determined by the Board of Regents to have20
met the short-term targets established in the performance agreement may be granted21
the autonomies as provided in this Subparagraph; however, no institution shall be22
granted such an autonomy until after the division of administration determines that23
for the following year the institution possesses the capacity relevant to the autonomy24
including, at a minimum, a review of the most recent fiscal audit by the legislative25
auditor, and the institution has met the Board of Regents' requirements for26
significantly streamlining its academic service delivery to students to meet regional27
workforce needs as provided in Item (vi) of this Subparagraph. Any autonomy28
granted pursuant to this Subparagraph shall be subject to the prior review and29
approval of the Joint Legislative Committee on the Budget.30 ENROLLEDHB NO. 549
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(i) Notwithstanding the provisions of R.S. 39:1702, authority to procure1
materials, supplies, equipment, and services through any purchasing agreements2
established by a not-for-profit cooperative buying organization located in the United3
States, if such purchasing agreements have been established pursuant to a4
competitive bid proposal process. Prior to joining a not-for-profit cooperative5
buying organization, the institution shall publish a notice of intent to join such not-6
for-profit cooperative buying organization in the official journal of the state and of7
the parish in which the institution is located. Prior to entering any purchasing8
agreement with a not-for-profit cooperative buying organization, the institution shall9
publish a notice of intent to enter such purchasing agreement through a centralized,10
electronic, interactive environment administered by the division of administration11
as provided in R.S. 39:1593 and on the institution's website and shall allow fifteen12
days for interested vendors to submit proposals for the materials, supplies,13
equipment, or services. The proposals submitted by interested vendors shall adhere14
to the request for proposal or solicitation issued by the cooperative buying15
organization. The institution shall review the proposals submitted by interested16
vendors and compare the proposals to the cooperative buying organization agreement17
to determine the lowest responsive and responsible vendor. The institution shall18
utilize the lowest responsive and responsible vendor for the procurement. For19
purposes of this Item, lowest responsive and responsible bidder shall be defined as20
set forth in R.S. 39:1591.21
(ii) Authority to directly administer minor facility capital outlay projects22
without oversight or control by the office of facility planning and control. For23
purposes of this Item, minor facilities projects shall mean, in addition to the authority24
provided in R.S. 39:128, those that do not require the use of and coordination25
between more than two trades or that do not require the use of the professional26
services of an architect or engineer pursuant to the provisions of R.S. 39:1482 and27
1484.28
(iii) Authority to join an existing cooperative purchasing agreement in29
accordance with R.S. 39:1702 and Item (i) of this Subparagraph. Prior to joining a30 ENROLLEDHB NO. 549
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not-for-profit cooperative buying organization, the institution shall publish a notice1
of intent to join such not-for-profit cooperative buying organization in the official2
journal of the state and of the parish in which the institution is located. Prior to3
entering any purchasing agreement with a not-for-profit cooperative buying4
organization, the institution shall publish a notice of intent to enter such purchasing5
agreement through a centralized, electronic, interactive environment administered6
by the division of administration as provided in R.S. 39:1593 and on the institution's7
website and shall allow fifteen days for interested vendors to submit proposals for8
the materials, supplies, equipment, or services. The proposals submitted by9
interested vendors shall adhere to the request for proposal or solicitation issued by10
the cooperative buying organization. The institution shall review the proposals11
submitted by interested vendors and compare the proposals to the cooperative buying12
organization agreement to determine the lowest responsive and responsible vendor.13
The institution shall utilize the lowest responsive and responsible vendor for the14
procurement. For purposes of this Item, lowest responsive and responsible bidder15
shall be defined as set forth in R.S. 39:1591.16
(iv) Authority to use reverse auctions. For purposes of this Item, reverse17
auction means a competitive online solicitation process on the Internet for products,18
supplies, services, and other materials in which vendors compete against each other19
in real time in an open and interactive environment.20
(v) Authority for the director of purchasing at a college or university to make21
a determination to use a competitive request for proposal process as provided in R.S.22
39:1593(C) without the approval of the commissioner of administration or the23
director of state purchasing. 24
(vi) For purposes of this Subparagraph, for an institution to meet the25
requirement of significantly streamlining academic service delivery, the institution26
shall have acted on at least two items from a list approved by the Board of Regents,27
which shall include the following:28
(aa) The review of all of its programs and academic offerings and29
appropriate action to improve those programs and academic offerings through30 ENROLLEDHB NO. 549
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modification, consolidation, or elimination, including consideration of online1
delivery of academic offerings to meet workforce needs and maximize resources.2
(bb) The review and streamlining of all course offerings to align with3
program requirements and facilitate on-time graduation.4
(cc) If a two-year institution, the review of nonacademic programs and5
degrees and appropriate action to improve such programs and degrees through6
modification, consolidation, or elimination, including consideration of online7
delivery of academic offerings.8
(dd) If a four-year institution, raised the minimum composite score on the9
American College Test required for admission to at least two points higher than the10
Board of Regents baseline appropriate for its type of institution. This requirement11
shall be notwithstanding a student's grade point average. Opting not to participate12
in this requirement shall not preclude an institution from implementing minimum13
admission standards in accordance with Board of Regents policy. 14
(c) High level. Notwithstanding any provision of law to the contrary and in15
addition to the base level and intermediate level autonomies granted pursuant to16
Subparagraphs (a) and (b) of this Paragraph, any institution that is determined by the17
Board of Regents to have met the short-term targets established in the performance18
agreement may be granted the autonomies as provided in this Subparagraph;19
however, no institution shall be granted such an autonomy until after the division of20
administration determines that for the following year the institution possesses the21
capacity relevant to the autonomy including, at a minimum, a review of the most22
recent fiscal audit by the legislative auditor and has a one hundred fifty percent of23
normal-time Integrated Postsecondary Education Data System graduation rate within24
five percent of the average graduation rate for its classification according to the25
Southern Regional Education Board.26
(i) Authority to participate in a pilot procurement code as established by the27
initial qualifying institution to be in place for an initial period of three years and28
approved by the division of administration. The initial qualifying institution shall29
establish any pilot procurement code pursuant to rules and regulations adopted in30 ENROLLEDHB NO. 549
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accordance with the Administrative Procedure Act. An institution granted this1
autonomy may use this pilot procurement code in lieu of the Louisiana Procurement2
Code as provided in R.S. 39:15.3, 196 through 200, 1481 through 1526, and 15513
through 1755, subject to the prior review and approval of the Joint Legislative4
Committee on the Budget.5
(ii)(aa) Exemption from participation in the state's risk management program6
established by R.S. 39:1527 et seq. and administered by the office of risk7
management, pursuant to a phased-in plan of implementation as determined by the8
institution in collaboration with the attorney general and the division of9
administration, subject to the prior review and approval of the Joint Legislative10
Committee on the Budget. This exemption shall not include the coverage provided11
by the state's risk management program pursuant to R.S. 40:1299.39. 12
(bb) Nothing in this exemption shall abrogate, amend, or alter the authority13
of the attorney general or the Department of Justice under Article IV, Sections 1 and14
8 of the Constitution of Louisiana or any other provision of law to represent the state15
and all departments and agencies of state government in all litigation arising out of16
or involving tort or contract. Any institution that is granted an exemption under this17
Item shall enter into an interagency agreement with the attorney general and pay the18
attorney general reasonable attorney fees and expenses incurred in representing the19
institution.20
(cc) Nothing in this Item shall be construed as creating any independent or21
separate cause of action against the state. The state shall continue to be sued only22
through the exempt institution's management board and cannot be sued in addition23
to or separately from the exempt institution's management board in any cause of24
action asserted against the exempt institution. Neither the state nor the office of risk25
management shall be responsible for payment of any judgment against the exempt26
institution's management board. The state's obligation to indemnify a covered27
individual as provided in R.S. 13:5108.1 shall not be performed by the office of risk28
management.29 ENROLLEDHB NO. 549
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(dd) Any contract between the exempt institution's management board and1
its insurer shall name the state as an additional insured. Any provision in any2
contract between the exempt institution's management board and its insurer that3
conflicts with the provisions of this Section shall be deemed null and void.4
(ee) Nothing in this Item shall be construed to adversely affect any of the5
substantive and procedural provisions and limitations applicable to actions against6
the state, including but not limited to the provisions of R.S. 13:5106, 5107, 5108.1,7
and 5112, and R.S. 9:2800 which would continue to apply equally to any exempted8
institution. Those provisions that will not apply are those that are specifically9
excluded in this Section. Upon transfer of each line of coverage to the exempted10
institution under this Section, the provisions of R.S. 39:1527 et seq., as well as the11
provisions of R.S. 13:5106(B)(3)(c), shall not apply to the line of coverage so12
transferred, nor to any claims asserted against the exempted institution within the13
transferred line of coverage.14
(iii) Notwithstanding the provisions of R.S. 39:113, authority to administer15
all facilities projects funded with self-generated revenue, federal funds, donations,16
grants, or revenue bonds, including all projects falling under R.S. 39:128; however,17
excluding those projects falling under R.S. 39:128, these projects shall not be18
exempted from the capital outlay budget or any requirements as pertains thereto.19
(iv) Authority to invest funds as defined by R.S. 49:327(C), in addition to20
those instruments laid out in R.S. 49:327(B)(1), in tax exempt bonds and other21
taxable governmental bonds issued by any state or a political subdivision or public22
corporation of any state, provided that such bonds are rated by a nationally23
recognized rating agency as investment grade. The investment policy governing24
such investment as defined by R.S. 49:327(C)(1)(b) shall define the allocation of25
funds among instruments and the term of maturity of the instruments, subject to the26
prior review and approval of the investment advisory committee. If an institution27
pursuant to the Board of Regents' annual review is either no longer meeting its28
short-term targets or is determined by the division of administration to no longer29
possess the capacity relevant to this autonomy, or both, authority to invest additional30 ENROLLEDHB NO. 549
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funds shall be limited to those instruments defined by R.S. 49:327(B)(1) and (C), and1
shall exclude further investments in tax exempt bonds and other taxable government2
bonds issued by any state or a political subdivision or public corporation of any state.3
(6)(a) Any operational autonomies granted to an institution pursuant to this4
Subsection shall terminate immediately upon revocation of the institution's six-year5
performance agreement by the Board of Regents. The Board of Regents shall notify6
the Joint Legislative Committee on the Budget of any such revocation of a7
performance agreement.8
(b) Any operational autonomy granted to an institution pursuant to this9
Subsection shall terminate immediately upon determination by the division of10
administration that an institution has failed to maintain the operational capacity11
relevant to that autonomy. The division of administration shall notify the Joint12
Legislative Committee on the Budget of any institution's failure to maintain the13
operational capacity relevant to any previously granted operational autonomy.14
G. Monitoring; reporting; renewal. (1) The Board of Regents annually shall15
monitor and report to the legislature and the governor on each participating16
institution's progress in meeting the established targets for performance objectives17
as specified in Subsection C of this Section. At the end of the initial agreement18
period first six years and each subsequent agreement six-year period, the Board of19
Regents shall determine whether to recommend renewal of an institution's20
performance agreement subject to the approval of the Joint Legislative Committee21
on the Budget. Such determination shall be based on the recommendations of a22
review panel established by the Board of Regents to conduct a comprehensive review23
and evaluation of the institution's progress in meeting the performance objectives.24
The composition of the review panel shall be the same as is provided in R.S.25
17:3138(C) with the addition of two representatives from the business community,26
who each possess a postsecondary degree, one recommended by the speaker of the27
House of Representatives and one recommended by the president of the Senate.28 ENROLLEDHB NO. 549
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(2) If an institution's initial performance agreement is renewed for a second1
six-year period, after six years, the institution in exchange shall:2
* * *3
(iii) A graduation rate of at least fifty percent for any institution classified4
as a "Four-Year 3", "Four-Year 4", or "Four-Year 5", or "Four-Year 6" institution by5
the Southern Regional Education Board.6
* * *7
(3) If an institution's performance agreement is renewed for subsequent8
periods following the first renewal period, after six years, the institution in exchange9
shall:10
* * *11
(4) The Board of Regents shall inventory all institutional student records12
systems and recommend a plan to standardize and integrate such systems to include13
student transcript analysis and degree auditing components. This system shall14
include all undergraduate students and at a minimum and by student, the number of15
course credits earned, the number of course credits needed for degree completion,16
a time line for successful degree completion that shows if the student is behind, on17
track, or ahead, and course credits needed as determined by the student's declared18
area of concentration. The Board of Regents shall report on the progress of such19
standardization to the legislature and the division of administration sixty days prior20
to the 2012 Regular Session of the Legislature of Louisiana and annually thereafter21
on the performance of qualifying institutions at achieving on-time graduation based22
on the student tracking and records system. The report shall be posted on the Board23
of Regents' website and shall be made easily accessible to the public.24
* * *25
§3386. Surplus funds; retention; use; exceptions26
* * *27
E. The provisions of this Section requiring at least fifty percent of retained28
funds to be maintained in a reserve fund and used only for preventative maintenance29
purposes and prohibiting more than two percent of certain state general fund30 ENROLLEDHB NO. 549
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appropriations or allocations from being carried forward shall not apply to any public1
postsecondary education institution entering into a Notwithstanding any provision2
of law to the contrary, an institution that is determined by the Board of Regents to3
have met the short-term targets established in the performance agreement entered4
into pursuant to R.S. 17:3139 if the agreement so provides. may retain any funds5
appropriated or allocated to such college, university, or consortium thereof,6
excluding those as specified in Subsection C of this Section, which remain7
unexpended and unobligated at the end of the fiscal year, in accordance with R.S.8
17:3139(F)(5)(a)(i) and such funds shall be used at the institution's discretion.9
Section 2. The Louisiana State Law Institute is hereby directed to designate Sections10
3121 through 3138 of Chapter 24 of Title 17 of the Louisiana Revised Statutes of 1950 as11
"Part I. General Provisions" and Section 3139 of Chapter 24 of Title 17 of the Louisiana12
Revised Statutes of 1950 as "Part II. Louisiana Granting Resources and Autonomy for13
Diplomas Act". The institute generally shall designate each Subsection in R.S. 17:3139 as14
a Section in Part II of Chapter 24 and make appropriate adjustments to designations and15
citations throughout.16
Section 3. This Act shall become effective upon signature by the governor or, if not17
signed by the governor, upon expiration of the time for bills to become law without signature18
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If19
vetoed by the governor and subsequently approved by the legislature, this Act shall become20
effective on the day following such approval.21
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: