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Regular Session, 2011
SENATE BILL NO. 238
BY SENATOR PETERSON
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
FUNDS/FUNDING. Requires legislative approval of certain contracts and action plans
related to hurricane recovery. (7/1/11)
AN ACT1
To enact R. S. 39:136, relative to the deposit and expenditure of federal funds; to provide2
for legislative approval and allow legislative modification of any Action Plan or3
Proposed Action Plan Amendment relative hurricane recovery; to require legislative4
approval of certain contracts executed pursuant to an Action Plan or Action Plan5
Amendment; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 39:136 is hereby enacted to read as follows: 8
ยง136. Federal funds related to disaster recovery; legislative approval9
As used in this Section:10
(1) "CDBG" shall mean Community Development Block Grant.11
(2) "LRA" shall mean the Louisiana Recovery Authority.12
(3) "OCD" shall mean the office of community development within the13
division of administration.14
(4) "Plan" shall mean an Action Plan, a Partial Action Plan, an15
amendment or amendments to an Action Plan or a Partial Action Plan, or any16
other method utilized for the allocation of dollars for the use of CDBG funds or17 SB NO. 238
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any other funds provided for the recovery.1
(5) "Recovery" shall mean all of the efforts and activities of the state to2
rebuild and redevelop from Hurricanes Katrina, Rita, Gustav, and Ike and3
their aftermaths.4
B.(1) No contract for recovery services funded by CDBG funds in excess5
of two hundred thousand dollars shall be executed after September 1, 2011, and6
no CDBG funds shall be expended pursuant to such contract, unless a contract7
proposal is first approved by the Joint Legislative Committee on the Budget.8
(2) No contract for recovery services entered into by LRA or OCD in9
excess of fifty thousand dollars shall be amended after September 1, 2011,10
unless the proposed contract amendment is first approved by the Joint11
Legislative Committee on the Budget.12
C.(1)(a) OCD shall also develop proposals and plans related to the13
recovery. After developing and approving a proposal or plan, OCD shall send14
it to the governor for approval. If the governor approves the proposal or plan,15
it shall be submitted to the Joint Legislative Committee on the Budget for16
review, and approval or approval with modification.17
(b) Whenever any proposal or plan amounts to ten million dollars or18
more and is approved by the Joint Legislative Committee on the Budget, it shall19
be submitted for approval of a majority of the elected members of each house20
of the legislature. If the legislature is in session, the approval shall be by21
resolution or Act. If the legislature is not in session, approval shall be obtained22
using the same mail ballot procedure used to obtain approval of an action by the23
interim emergency board.24
(c) Only if a proposal or plan is approved as provided by Subparagraphs25
(a) and (b) of this Paragraph, shall the governor submit the proposal to the26
United States Department of Housing and Urban Development or other27
appropriate federal authority for approval. In the event that the United States28
Department of Housing and Urban Development or other appropriate federal29 SB NO. 238
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authority does not approve such amended plan authorizing the use of funds,1
those provisions shall be without effect.2
(2) If the appropriate federal approval has been obtained, the OCD shall3
request the approval of the Joint Legislative Committee on the Budget for a4
budget adjustment in the amount of the approved funding in accordance with5
the procedures set forth in the General Appropriation Act and Title 39 of the6
Louisiana Revised Statutes of 1950.7
(3) In the development of proposals related to the recovery, the OCD8
shall give due consideration to the nonprofit organizations which are involved9
in the recovery, especially those which are licensed in Louisiana as residential10
contractors. Additionally, the office in the development of proposals shall11
provide for maximum practical opportunities for the participation by the12
broadest number of minority-owned businesses to the extent allowable by law.13
D.(1) For proposals or plans that require legislative approval as14
provided in Paragraph C(1) of this Section, OCD shall provide to each member15
of the legislature ten calendar days in advance of the meeting or voting deadline16
accurate detailed information explaining the following about the proposal or17
plan:18
(a) For each type of proposed expenditure set forth in the proposal,19
detailed information showing how the total amount of expenditure was derived20
or estimated, including the types of goods, services, or contract work expected21
to be purchased with such expenditures.22
(b) If the amounts of the proposed expenditures are estimates, which23
amounts or other information were such estimates based upon and a specific24
designation of the sources of that information.25
(c) A listing of the governmental and nongovernmental, public and26
private beneficiaries of the proposed expenditures.27
(2) Such information shall include any work papers or other documents28
related to estimated expenditures received by LRA or OCD from any task force,29 SB NO. 238
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subcommittee, consultant, or state department or agency utilized by LRA or1
OCD in preparation of the proposal or plan.2
(3) Any legislative instrument submitted for approval by the legislature3
shall contain a reference to such information provided to members of the4
legislature pursuant to this Subsection which shall become a part of such5
instrument and proposal by reference.6
E.(1) OCD shall submit a copy of the quarterly Disaster Recovery Grant7
Report to the Joint Legislative Committee on the Budget and shall make such8
report available via the Internet at the same time the initial quarterly report is9
submitted to the United States Department of Housing and Urban Development.10
(2) For contracts for recovery services in excess of two hundred11
thousand dollars and funded by CDBG funds, OCD shall submit a copy of12
reports pursuant to the monitoring plan for such contracts or any evaluations13
of such contracts to the members of the Joint Legislative Committee on the14
Budget within ten days of receipt of the monitoring report or evaluation.15
Section 2. This Act shall become effective on July 1, 2011; if vetoed by the governor16
and subsequently approved by the legislature, this Act shall become effective on July 1,17
2011, or on the day following such approval by the legislature, whichever is later.18
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Dawn Romero Watson.
DIGEST
Present law requires the LRA to develop proposals related to the recovery from Hurricane
Katrina and its aftermath and Hurricane Rita and its aftermath, including CDBG proposals.
Such proposals shall be sent to the governor for approval. If approved by the governor, the
proposal shall be submitted to the Joint Legislative Committee on Budget, (the JLCB), and
upon approval of same, the proposal shall be submitted by the governor to the U.S. Dept. of
Housing and Urban Development or other appropriate federal agency. Further requires
approval of the JLCB for incorporation of any monies associated with such a proposal into
the budget.
Proposed law provides authority and responsibility for the development of proposals and
requirements for legislative approval contained in present law to the division of
administration, office of community development (OCD). Expands the provisions to the
recovery from Hurricane Gustav and its aftermath and Hurricane Ike and its aftermath.
Proposed law establishes similar requirements for proposals related to Hurricanes Katrina,
Rita, Gustav, and Ike for OCD. SB NO. 238
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Proposed law prohibits the awarding or execution of any contract after July 1, 2011, for
recovery services funded by CDBG funds in excess of $200,000 without recommendation
of the commissioner of administration and approval of the JLCB. Further prohibits the
amendment of any contract for recovery services after July 1, 2011, funded by CDBG funds
in excess of $200,000 entered into by either LRA or OCD without recommendation of the
commissioner of administration and approval of the JLCB.
Present law requires that proposals related to the recovery which provide for expenditures
in excess of $10 million will require approval by a majority of both houses of the legislature.
Upon approval of same by the JLCB, the LRA shall submit the proposal for full legislative
approval. Provides that if the legislature is in session, such approval shall be by resolution
or Act; if not, then by an Interim Emergency Board-type (IEB-type) mail ballot. Prior to the
actual expenditure of any federal monies, the LRA must receive approval by the JLCB.
Proposed law establishes similar requirements for submissions of proposals in excess of $10
million by OCD.
Present law requires that the LRA submit certain information to the legislature seven days
prior to approval of any proposal in excess of $10 million including.
(1)Information showing the estimate was derived, including the basis of such estimates
were derived.
(2)A listing of the governmental and nongovernmental, public and private beneficiaries
of the proposed expenditures.
(3)Any work papers or other documents related to estimated expenditures received from
any task force, subcommittee, consultant, or state department or agency utilized by
the authority in preparation of the proposal.
Proposed law establishes similar requirements for submissions of proposals in excess of $10
million by OCR, except requires the information be submitted 10-days in advance of a JLCB
meeting or voting deadline on an IEB-type vote.
Proposed law adds a requirement that OCD submit to the JLCB and make available online
the quarterly Disaster Recovery Grant Report at the same time the initial quarterly report is
submitted to the U.S. Dept. of Housing and Urban Development. Also, regarding CDBG
contracts in excess of $200,000 adds a requirement that OCD submit a copy of any
monitoring reports or evaluations of such contracts to the members of JLCB.
Effective on July 1, 2011.
(Adds R.S. 39:136)