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Regular Session, 2012
SENATE BILL NO. 541
BY SENATOR MILLS
PUBLIC CONTRACTS. Provides for certain bid evaluation criteria relative to the
procurement of certain medical products and services. (7/1/12)
AN ACT1
To amend and reenact R.S. 33:5151(A) and R.S. 39:1503(B) and to enact R.S. 38:2212(T),2
R.S. 39:1594(E)(3), and R.S. 42:802(B)(8)(b)(iii), all relative to procurement; to3
provide for certain bid evaluation criteria or documentation relative to the4
procurement of certain medical products and services; to provide for an effective5
date; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 33:5151(A) is hereby amended and reenacted to read as follows: 8
§5151. Power to contract for group insurance; premiums 9
A.(1) Any municipality or political subdivision of the state may make10
contracts of insurance with any insurance company legally authorized to do business11
in this state insuring their employees and officials under policies of group insurance12
covering hospitalization, and retirement, for such employees and officials, and may13
agree to match the payments of the employees and officials for the premiums or14
charges for any such contracts payable out of the funds of such municipality or15
political subdivision, respectively.16
(2) In making contracts of insurance under policies of group insurance17 SB NO. 541
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words in boldface type and underscored are additions.
covering medical care and hospitalization, municipalities and other political1
subdivisions may require, as an evaluation criteria in the selection process, that2
providers show good faith that Louisiana companies have been given an3
opportunity to participate in such health care or insurance provider networks.4
* * *5
Section 2. R.S. 38:2212(T) is hereby enacted to read as follows:6
§2212. Advertisement and letting to lowest responsible bidder; public work;7
electronic bidding; participation in mentor-protégé program;8
exemptions9
* * *10
(T) In the bid selection process for any contract for purchases of medical11
equipment and supplies, including pharmaceuticals, exceeding the sum of12
fifteen thousand dollars to be paid out of public funds under the provisions of13
this Chapter, each public entity shall document the efforts and show the extent14
to which Louisiana contractors have been given an opportunity to participate15
in such procurement for medical equipment and supplies.16
Section 3. R.S. 39:1503(B) is hereby amended and reenacted and R.S.17
39:1594(E)(3) is hereby enacted to read as follows:18
§1503. Requests for proposals19
B.(1) The Request for Proposals shall indicate the relative importance of20
price and other evaluation factors, shall clearly define the tasks to be performed21
under the contract, the criteria to be used in evaluating the proposals and the time22
frames within which the work must be completed.23
(2) For proposals for health care providers, including but not limited to24
health maintenance organizations, group purchasers, preferred provider25
organizations as provided in R.S. 42:802(B)(8)(a), the solicitation shall require,26
as an evaluation criteria, that providers show good faith that Louisiana27
companies have been given an opportunity to participate in any such health28
care or provider network contracts which are being proposed.29 SB NO. 541
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* * *1
§1594. Competitive sealed bidding2
3
* * *4
E. Bid evaluation.5
* * *6
(3) In the bid selection process for any contract for purchases of medical7
equipment and supplies, including pharmaceuticals, to be paid out of public8
funds under the provisions of this Chapter, each public entity shall document9
the efforts and show the extent to which Louisiana contractors have been given10
an opportunity to participate in such procurement for medical equipment and11
supplies.12
* * *13
Section 4. R.S. 42:802(B)(8)(b)(iii) is hereby enacted to read as follows:14
§802. Powers and duties; Office of Group Benefits15
In addition, the office shall have the following powers and duties:16
* * *17
B.18
* * *19
(8)20
* * *21
(b) The office is specifically authorized to negotiate and contract directly for22
the following:23
* * *24
(iii) For provision of basic health care services and other health care25
services to the program's covered persons under this Section, including but not26
limited to health maintenance organizations, group purchasers, delivery system,27
benefits program, insurance, preferred provider organizations, or any other28
plan or program that may be authorized by law, the office shall require that29 SB NO. 541
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
providers show good faith that Louisiana companies have been given an1
opportunity to participate in any such health care or provider network for2
which such services are being negotiated and contracted.3
* * *4
Section 5. This Act shall become effective on July 1, 2012; if vetoed by the governor5
and subsequently approved by the legislature, this Act shall become effective on July 1,6
2012, or on the day following such approval by the legislature, whichever is later.7
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Jay R. Lueckel.
DIGEST
Present law provides that any municipality or political subdivision of the state may make
contracts of insurance with any insurance company legally authorized to do business in this
state insuring their employees and officials under policies of group insurance covering
hospitalization.
Proposed law retains present law and additionally provides that in making such contracts
of insurance under policies of group insurance, municipalities and other political
subdivisions may require, as an evaluation criteria in the selection process, that providers
show good faith that Louisiana companies have been given an opportunity to participate in
such health care or insurance provider networks.
Present law provides relative to the advertisement and letting of contracts to the lowest
responsible bidder by public entities.
Proposed law provides that in the bid selection process for any contract for purchases of
medical equipment and supplies, including pharmaceuticals, exceeding the sum of $15,000
to be paid out of public funds under these provisions, each public entity shall document the
efforts and show the extent to which Louisiana contractors have been given an opportunity
to participate in such procurement for medical equipment and supplies.
Present law provides relative to the provisions of contracting for professional, personal,
consulting, and social services procurement. Present law provides for the procedures and
thresholds for the utilization for requests for proposals relative to such services.
Proposed law retains present law and further provides that in utilizing a request for proposals
for health care providers, including but not limited to health maintenance organizations,
group purchasers, preferred provider organizations, the solicitation shall require, as an
evaluation criteria, that providers show good faith that Louisiana companies have been given
an opportunity to participate in any such health care or provider network contracts which are
being proposed.
Present law provides for the procurement of materials, supplies, equipment, and certain
contractual services through competitive sealed bidding, known as the La. Procurement
Code.
Proposed law adds a provision in the bid selection process for any contract for purchases of
medical equipment and supplies, including pharmaceuticals, to be paid out of public funds
under these provisions that each public entity shall document the efforts and show the extent SB NO. 541
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
to which Louisiana contractors have been given an opportunity to participate in such
procurement for medical equipment and supplies.
Present law relative to the office of group benefits, authorizes the office to directly negotiate
and contract for certain health care services and other health care services to the program's
covered persons.
Proposed law adds a requirement that providers show good faith that Louisiana companies
have been given an opportunity to participate in any such health care or provider network
for which such services are being negotiated and contracted.
Effective July 1, 2012.
(Amends R.S. 33:5151(A) and R.S. 39:1503(B); adds R.S. 38:2212(T); R.S. 39:1594(E)(3);
and R.S. 42:802(B)(8)(b)(iii))