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Regular Session, 2011 ENROLLED
SENATE BILL NO. 242
BY SENATOR APPEL
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
AN ACT1
To amend and reenact R.S. 14:141 and R.S. 39:1767 and R.S. 48:251.8, to enact R.S.2
38:2192 and 2222 and R.S. 39:1557.1, and to repeal R.S. 38:2196.1, R.S. 39:200(N)3
and 1493.1, and Part X of Chapter 17 of Subtitle III of Title 39 of the Louisiana4
Revised Statutes of 1950, consisting of R.S. 39:1758, relative to public contracts; to5
provide for prohibited splitting of profits, fees, and commissions; to provide with6
respect to recordation of certain change orders, amendments, or other revisions to7
public contracts; and to provide for related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 14:141 is hereby amended and reenacted to read as follows: 10
§141. Prohibited splitting of profits, fees or commissions; exceptions 11
A. For the purposes of this section Section, "splitting of profits, fees or12
commissions" means the giving, offering to give, receiving or offering to receive,13
directly or indirectly, anything of apparent present or prospective value by or to a14
public officer or public employee or to any fund or fiduciary existing for the benefit15
of or use by such public officer or employee, when such value is derived from any16
agreement or contract to which the state or any political subdivision thereof is a17
party.18
B. There shall be no splitting of profits, fees or commissions, past or present,19
derived from the sale of any commodity, goods, services, insurance, or anything of20
value to the state or any political subdivision thereof from which a public officer21
official or public employee, representing the state or a political subdivision, as the22
case may be, in his official capacity in the contract negotiations, receives or offers23
to receive a portion of the profits, fees and/or commissions, unless the amount24
thereof and the conditions therefor are included in detail in the contract of sale or the25
insurance contract and said contract is filed by the public official or employee26 SB NO. 242 ENROLLED
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hereinabove described with the secretary of state at least ten days prior to execution1
of said contract. The ten-day filing period shall be waived in the event of an2
emergency in which such filing is not reasonable. Upon filing thereof, the secretary3
of state shall immediately release to the news media the details of such contract and,4
upon written request, furnish a copy of such contract to the news media. The5
contract shall be a public record.6
C. Whoever commits the crime of failure to report the splitting of receiving7
or offering to receive a portion of the profits, fees or commissions, and to contain8
such fee arrangement in the contract of sale or in the insurance contract as provided9
by this act Section shall upon conviction be fined not more than one ten thousand10
dollars or shall be imprisoned, with or without hard labor, for not more than two ten11
years, or both.12
Section 2. R.S. 38:2192 and 2222 are hereby enacted to read as follows:13
§2192. Certain contract amendments and revisions; recordation14
Each amendment or other revision to any service or insurance contract15
which adds an amount of ten percent or more of the original contract amount16
and which additional amount is at least ten thousand dollars or all amendments17
and other revisions to any service or insurance contract aggregating to an18
amount of twenty percent or more of the original contract amount and which19
additional amount is at least ten thousand dollars shall be recorded by the20
public entity which entered into the contract in the office of the recorder of21
mortgages in the parish where the public entity is domiciled not later than22
thirty days after the date of the amendment or other revision which requires23
that the recordation take place. In addition, the original contract shall be24
recorded together with the amendments or other revisions if not previously25
recorded.26
* * *27
§2222. Change orders; recordation28
Each change order to a public works contract or to a contract for29
materials and supplies which adds an amount of ten percent or more of the30 SB NO. 242 ENROLLED
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original contract amount and which additional amount is at least ten thousand1
dollars or all change orders to a contract aggregating to an amount of twenty2
percent or more of the original contract amount and which additional amount3
is at least ten thousand dollars shall be recorded by the public entity which4
entered into the contract in the office of the recorder of mortgages in the parish5
where the work is to be done or, if not a public work, where the entity is6
domiciled not later than thirty days after the date of the change order which7
requires that the recordation take place. In addition, the original contract shall8
be recorded together with the change orders if not previously recorded. The9
provisions of this Section shall not apply to the office of facility planning and10
control, and the office of state purchasing.11
Section 3. R.S. 39:1767 is hereby amended and reenacted and R.S. 39:1557.1 is12
hereby enacted to read as follows:13
§1557.1. Change orders; recordation14
Each change order to a contract which adds an amount of ten percent or15
more of the original contract amount and which additional amount is at least16
ten thousand dollars or all change orders to a contract aggregating to an17
amount of twenty percent or more of the original contract amount and which18
additional amount is at least ten thousand dollars shall be recorded by the19
governmental body which entered into the contract in the office of the recorder20
of mortgages in the parish where the work is to be done or where the entity is21
domiciled not later than thirty days after the date of the change order which 22
requires that the recordation take place. In addition, the original contract shall23
be recorded together with the amendments or other revisions if not previously24
recorded. The provisions of this Section shall not apply to the office of facility25
planning and control, and the office of state purchasing. 26
* * *27
§1767. Appropriation dependency; requirement for affidavit of notice of fee28
disposition29
A. All lease-purchase contracts entered into pursuant to this Chapter shall30 SB NO. 242 ENROLLED
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contain an annual appropriation dependency requirement to the effect that renewal1
and continuation of such contract is contingent upon the appropriation of funds to2
fulfill the requirements of the contract and if the legislature, after a diligent and good3
faith effort, fails to appropriate sufficient monies to provide for the continuation of4
a contract, or if such appropriation can not be effected, the contract shall terminate5
in accordance with the terms of the lease on the last day of the last fiscal year for6
which funds were appropriated, provided the equipment is returned to the nonprofit7
lessor or his agent, as provided in the equipment-lease-purchase contract and such8
contract shall not be a long-term debt of the state or the applicable purchasing9
agency. In addition, in such equipment-lease-purchase contracts, the nonprofit lessor10
shall covenant and agree to indemnify and hold the lessee harmless against any loss,11
damage, liability, cost, penalty, or expense, including attorney fees, which is not12
otherwise agreed to by the lessee in the equipment-lease-purchase contract and13
which is incurred and arises upon a failure of the legislature to appropriate funds in14
the manner described above for a continuation of the contract or the exercise of the15
option to purchase the selected equipment.16
B. Notwithstanding any limitation of the applicability of this Part or Chapter17
in any other provision of law, contracts shall be subject to the provisions of R.S.18
38:2196.1 regarding the requirement for an affidavit of notice of fee disposition, if19
applicable.20
Section 4. R.S. 48:251.8 is hereby amended and reenacted to read as follows:21
§251.8. Public contracts; certain provisions invalid; requirement for affidavit of22
notice of fee disposition23
A. The legislature hereby declares null and void and unenforceable as against24
public policy any provision in a department contract which requires either of the25
following:26
(1) That a suit or arbitration proceeding must be brought in a forum or27
jurisdiction outside of this state, instead of being pursued in accordance with the laws28
of this state governing such actions.29
(2) That the agreement must be interpreted according to the laws of another30 SB NO. 242 ENROLLED
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jurisdiction.1
B. Notwithstanding any limitation of the applicability of this Part or Chapter2
in any other provision of law, contracts shall be subject to the provisions of R.S.3
38:2196.1 regarding the requirement for an affidavit of notice of fee disposition, if4
applicable.5
Section 5. R.S. 38:2196.1, R.S. 39:200(N) and 1493.1, and Part X of Chapter 17 of6
Subtitle III of Title 39 of the Louisiana Revised Statutes of 1950, consisting of R.S. 39:1758,7
are hereby repealed in their entirety.8
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: