HLS 14RS-2798 ORIGINAL
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Regular Session, 2014
HOUSE BILL NO. 1261 (Substitute for House Bill No. 626 by Representative
Abramson)
BY REPRESENTATIVE ABRAMSON
FISCAL CONTROLS: Establishes certain requirements regarding state contracts
AN ACT1
To enact R.S. 39:9, relative to state contracts; to require contracting entities to submit certain2
information to the commissioner of administration; to provide for the duties of the3
commissioner of administration and agencies relative to such requirements; to4
require the publication of certain information; to provide for certain restrictions and5
contract prohibitions for failure to comply; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 39:9 is hereby enacted to read as follows: 8
ยง9. Contracting entities; documentation and approval; contract prohibition9
A. For purposes of this Section, the following terms shall have the following10
meanings unless the context clearly indicates otherwise:11
(1) "State agency" shall have the same meaning as "agency" as defined in12
R.S. 39:2.13
(2) "Contract" shall mean an agreement by two or more parties whereby14
obligations are created, modified, or extinguished. "Contract" shall not include a15
provider agreement with the Department of Health and Hospitals under the state16
medical assistance program or the early steps program or a provider agreement17
contract entered into with any plan providing Medicaid services to Medicaid18
recipients or with an early steps program provider.19 HLS 14RS-2798 ORIGINAL
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(3) "Contracting entity" shall mean any person that enters into a contract1
with a state agency. "Contracting entity" shall not include any public, private, or2
parochial school, college, or university.3
(4) "Governmental entity" shall mean the state or any political subdivision4
of the state.5
(5) "Person" means a natural person or legal entity other than a governmental6
entity or an agency thereof.7
B.(1) Prior to any contracting entity entering into a contract with a state8
agency, the contracting entity shall submit the following information and documents9
to the commissioner of administration:10
(a)(i) If a legal entity, the official name and domicile address of the11
contracting entity as reflected in documentation submitted to the secretary of state's12
office.13
(ii) If a natural person, the complete name and address of the contracting14
entity.15
(b) If a legal entity, a complete and accurate listing of the board of directors16
or equivalent governing body, if any, and officers, if any, of the contracting entity.17
(c) Documentation certifying that all applicable federal, state, and payroll18
taxes owed by the contracting entity have been paid and are current.19
(d) Financial statements for the most recent fiscal year of the contracting20
entity that have been certified by a certified public accountant under oath before a21
notary.22
(2) A contracting entity may redact any confidential or proprietary financial23
information from a financial statement required to be submitted pursuant to24
Paragraph (1)(d) of this Subsection.25
C. A state agency contracting with a contracting entity shall certify that the26
contracting entity is not on the non-compliance list posted on the website of the27
legislative auditor at the time the contract is executed. This certification shall be28
submitted to the commissioner of administration, in the manner determined by the29 HLS 14RS-2798 ORIGINAL
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commissioner of administration, and posted on the website established pursuant to1
R.S. 39:6 no later than three business days after the contract is executed.2
D. No state agency shall contract with or pay monies to a contracting entity3
unless the contracting entity and the state agency have complied with the4
requirements of this Section.5
E. (1) All submissions of information required of contracting entities by this6
Section shall be made in an electronic format designated by the commissioner of7
administration. The commissioner of administration shall post all requirements on8
the website established pursuant to R.S. 39:6.9
(2)(a) The commissioner of administration shall maintain the information10
submitted pursuant to this Section on the website established pursuant to R.S. 39:611
and shall provide for the ability for the public to easily obtain information regarding12
each contracting entity, including links to any relevant contract information13
maintained by the commissioner of administration pursuant to R.S. 39:6.14
(b) The commissioner of administration shall ensure that the information15
submitted pursuant to this Section is available to the public on the website16
established pursuant to R.S. 39:6 immediately upon submission.17
(3) The commissioner of administration shall provide electronic notice to the18
legislative auditor at the time information required by Subsection C of this Section19
is submitted. The notice shall contain the name of the state agency, the contracting20
entity, and identifying information regarding the contract.21
(5) The legislative auditor shall work with the commissioner of22
administration as necessary to ensure compliance with this Section.23
Section 2.(A) The requirements for contracting entities contained in Section 1of this24
Act shall become effective on January 1, 2015, and shall apply to contracts and renewals of25
contracts executed on or after January 1, 2015. The prohibitions on contracting entities and26
state agencies contained in Section 1 of this Act shall become effective on July 1, 2015. The27
commissioner of administration shall take all actions necessary to provide for the orderly28 HLS 14RS-2798 ORIGINAL
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implementation of this Act prior to January 1, 2015, including but not limited to notice of1
the requirements of this Act to each state agency. 2
(B) Except as otherwise provided in Subsection A of this Section, this Act shall3
become effective on July 1, 2014.4
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Abramson HB No. 1261
Abstract: Requires any contracting entity to submit information and documents to the
commissioner of administration prior entering into a contract with a state agency.
Requires state agencies to certify that contracting entities are not on the legislative
auditors non-compliance list. Prohibits state agencies from entering into contracts
with contracting entities unless requirements are met.
Proposed law requires each contracting entity prior to entering into a contract with a state
agency to submit the following information to the commissioner of administration:
(1)If a legal entity, the official name and domicile address of the contracting entity as
reflected in documentation submitted to the secretary of state's office; if a natural
person, the complete name and address of the contracting entity.
(2)If a legal entity, a complete and accurate listing of the board of directors, if any, and
manager, if any, of the contracting entity.
(3)Documentation certifying that all applicable federal, state, and payroll taxes have
been paid and are current.
(4)Financial statements for the most recent fiscal year certified by a CPA under oath.
(Authorizes a contracting entity to redact any confidential or proprietary financial
information).
Proposed law requires a state agency considering contracting with a contracting entity to
certify that the entity is not on the legislative auditor's non-compliance list at the time the
contract is executed and requires the certification to be submitted to and posted on the
website of the commissioner within three business days after the contract is executed.
Proposed law prohibits a state agency from contracting with or paying monies to a
contracting entity unless the contracting entity and the state agency have complied with the
requirements of proposed law.
Proposed law defines "state agency", "contract", "contracting entity", "governmental entity",
and "person" for its purposes. Specifically excludes early steps program and state medical
assistance program provider agreements and contracts from the term "contract". Specifically
excludes any public, private, or parochial school, college, or university from the term
"contracting entity", and further provides that "contracting entity" does not include
governmental entities by excluding governmental entities from the term "person".
Proposed law provides that all submissions of information required by proposed law shall
be made in an electronic format designated by the commissioner. Requires the commissioner
to post all requirements on the website established by the commissioner pursuant to present HLS 14RS-2798 ORIGINAL
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law (R.S. 39:6). Requires the commissioner to maintain the information on the website, to
provide for the immediate availability of the information, and to provide for the ability for
the public to easily obtain information regarding each contracting entity, including links to
any relevant contract information maintained by the commissioner of administration
pursuant to present law (R.S. 39:6). Requires the commissioner to provide electronic notice
containing specified information to the legislative auditor at the time the certification of a
state agency is submitted. Requires the legislative auditor to work with the commissioner
as necessary to ensure compliance with proposed law.
Effective July 1, 2014; except provides that the requirements on contracting entities
contained in proposed law shall become effective on January 1, 2015, and shall apply to
contracts and renewals of contracts executive on or after January 1, 2015; The prohibitions
on contracting entities and state agencies contained in proposed law shall become effective
on July 1, 2015. Provides the commissioner of administration shall take all actions
necessary to provide for the orderly implementation of proposed law prior to January 1,
2015.
(Adds R.S. 39:9)