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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. 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 to enact R.S. 38:2212(T) and R.S.2
42:802(B)(8)(b)(iii) and (iv), relative to procurement; to provide for certain bid3
evaluation criteria or documentation relative to the procurement of certain medical4
products and services; to provide for an effective date; and to provide for related5
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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Coding: Words which are struck through are deletions from existing law;
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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 healthcare 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.(1) In the bid selection process for any contract for purchases of11
medical equipment and supplies, including pharmaceuticals, exceeding the sum12
of fifteen thousand dollars to be paid out of public funds under the provisions13
of this Chapter, each public entity shall document the efforts and show the14
extent to which Louisiana contractors have been given an opportunity to15
participate in such procurement for medical equipment and supplies.16
(2) For the purposes of this Section, "Louisiana companies" means any17
legal entity which has been certified as a small entrepreneurship, veteran-owned18
small entrepreneurship, or service-connected disabled veteran-owned small19
entrepreneurship by the Louisiana Department of Economic Development.20
Section 3. R.S. 42:802(B)(8)(b)(iii) and (iv) are hereby enacted to read as follows:21
§802. Powers and duties; Office of Group Benefits22
* * *23
B. In addition, the office shall have the following powers and duties:24
* * *25
(8)26
* * *27
(b) The office is specifically authorized to negotiate and contract directly for28
the following:29 SB NO. 541
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* * *1
(iii) For provision of basic healthcare services and other healthcare2
services to the program's covered persons under this Section, including but not3
limited to health maintenance organizations, group purchasers, delivery system,4
benefits program, insurance, preferred provider organizations, or any other5
plan or program that may be authorized by law, the office shall require that6
providers show good faith that Louisiana companies have been given an7
opportunity to participate in any such health care or provider network for8
which such services are being negotiated and contracted.9
(iv) For the purposes of this Subparagraph, "Louisiana companies"10
means any legal entity which has been certified as a small entrepreneurship,11
veteran-owned small entrepreneurship, or service-connected disabled veteran-12
owned small entrepreneurship by the Louisiana Department of Economic13
Development.14
* * *15
Section 4. This Act shall become effective on July 1, 2012; if vetoed by the governor16
and subsequently approved by the legislature, this Act shall become effective on July 1,17
2012, or on the day following such approval by the legislature, whichever is later.18
The original instrument was prepared by Jay Lueckel. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Christopher D. Adams.
DIGEST
Mills (SB 541)
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. 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.
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. Proposed law
defines "Louisiana companies" as any legal entity which has been certified as a small
entrepreneurship, veteran-owned small entrepreneurship, or service-connected disabled
veteran-owned small entrepreneurship by the Louisiana Department of Economic
Development.
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. Proposed law defines
"Louisiana companies" as any legal entity which has been certified as a small
entrepreneurship, veteran-owned small entrepreneurship, or service-connected disabled
veteran-owned small entrepreneurship by the Louisiana Department of Economic
Development.
Effective July 1, 2012.
(Amends R.S. 33:5151(A); adds R.S. 38:2212(T); and R.S. 42:802(B)(8)(b)(iii) and (iv))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Health and Welfare to
the original bill
1. Removes the provisions related to request for proposals and competitive
sealed bidding.
2. Defines Louisiana companies for purposes of proposed law.
3. Technical amendments.