Louisiana 2012 Regular Session

Louisiana Senate Bill SB464 Latest Draft

Bill / Engrossed Version

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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2012
SENATE BILL NO. 464
BY SENATOR CORTEZ 
PUBLIC CONTRACTS.  Prohibits awards or procurements with individuals convicted of
certain felony crimes. (7/1/12)
AN ACT1
To enact R.S. 39:2183 and to repeal Chapter 25 of Subtitle III of Title 39 of the Louisiana2
Revised Statutes of 1950, comprised of R.S. 39:2191 and 2192, relative to3
procurement; to allow for the prohibition of certain convicted felons from4
participating in the contract and procurement process; to provide for technical5
corrections to certain Louisiana Revised Statute provisions; and to provide for6
related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1.  R.S. 39:2183 is hereby enacted to read as follows: 9
§2192 §2183. Right to prohibit awards or procurement with individuals convicted10
of certain felony crimes11
A. In awarding contracts, any public entity is authorized to reject the lowest12
bid from, or not award the contract to, a business in which any individual with an13
ownership interest of five percent or more has been convicted of, or has entered a14
plea of guilty or nolo contendere to any state felony crime or equivalent federal15
felony crime committed in the solicitation or execution of a contract or bid awarded16
under the laws governing public contracts under the provisions of Chapter 10 of Title17 SB NO. 464
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Coding: Words which are struck through are deletions from existing law;
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38 of the Louisiana Revised Statutes of 1950, professional, personal, consulting, and1
social services procurement under the provisions of Chapter 16 of this Title, or the2
Louisiana Procurement Code under the provisions of Chapter 17 of this Title.3
B. Nothing in this Section shall impose a duty, responsibility, or requirement4
on a public entity to perform criminal background checks on contractors, vendors,5
or subcontractors. It shall be the responsibility of any person, company, or entity6
making an allegation of prior convictions on the part of any individual with an7
ownership interest of five percent or more in any bidder to present prima facie8
evidence to the public entity supporting their claim.9
C. If evidence is submitted substantiating that any individual with an10
ownership interest of five percent or more in the lowest bidder has been convicted11
of, or has entered a plea of guilty or nolo contendere to any state felony crime or12
equivalent federal felony crime committed in the solicitation or execution of a13
contract or bid awarded under the laws listed in Subsection A of this Section and the14
public entity rejects the lowest bid, the company whose bid is rejected shall be15
responsible to the public entity for the costs of rebidding, the increased costs of16
awarding to the second low bidder, or forfeiture of the bid bond, whichever is higher.17
Section 2. Chapter 25 of Subtitle III of Title 39 of the Louisiana Revised Statutes18
of 1950, comprised of R.S. 39:2191 and 2192, is hereby repealed.19
Section 3.  This Act shall become effective on July 1, 2012.20
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Martha S. Hess.
DIGEST
Cortez (SB 464)
Present law defines "public entity" for purposes of present law.
Present law provides that in awarding contracts, any public entity is authorized to reject the
lowest bid from, or not award the contract to, a business in which any individual with an
ownership interest of 5% or more has been convicted of, or has entered a plea of guilty or
nolo contendere to any state felony crime or equivalent federal felony crime committed in
the solicitation or execution of a contract or bid awarded under the laws governing public
contracts under the provisions of Chapter 10 of Title 38 of the La. R.S. of 1950, professional,
personal, consulting and social services procurement under the provisions of Chapter 16 of
Title 39 of the La. R.S. of 1950, or the Louisiana Procurement Code under the provisions of
Chapter 17 of Title 39 of the Louisiana Revised Statutes of 1950. SB NO. 464
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Present law provides that a public entity does not have a duty, responsibility, or requirement
to perform criminal background checks on contractors, vendors, or subcontractors.  Present
law further provides that it shall be the responsibility of any person, company, or entity
making an allegation of prior convictions on the part of any individual with an ownership
interest of 5% of more in any bidder to present prima facie evidence to the public entity
supporting their claim.
Present law provides that if evidence is submitted substantiating that any individual with an
ownership interest of 5% of more in the lowest bidder has been convicted of, or has entered
a plea of guilty or nolo contendere to any state felony crime or equivalent federal felony
crime pursuant to present law and the public entity rejects the lowest bid, the company
whose bid is rejected will be responsible to the public entity for the costs of rebidding, the
increased costs of awarding to the second low bidder, or forfeiture of the bid bond,
whichever is higher.
Proposed law consolidates the statutory provisions on prohibited contracts contained in
present law.  Proposed law also changes the section number of present law pertaining to the
right to prohibit awards or procurement with individuals convicted of certain felony crimes.
Proposed law repeals duplicate section of present law.
Effective July 1, 2012.
(Adds R.S. 39:2183; repeals R.S. 39:2191-2192)