HLS 14RS-588 ORIGINAL
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Regular Session, 2014
HOUSE BILL NO. 142
BY REPRESENTATIVE RICHARD
PUBLIC CONTRACTS: Provides for a 10% reduction of all state professional, personal,
and consulting service contracts and provides for deposit of the savings into the
Higher Education Financing Fund
AN ACT1
To amend and reenact R.S. 39:82(A), 352, and 1489 and to enact Subpart S of Part II-A of2
Chapter 1 of Subtitle I of Title 39 of the Louisiana Revised Statutes of 1950, to be3
comprised of R.S. 39:100.146, Subpart G of Part I of Chapter 16 of Subtitle III of4
Title 39 of the Louisiana Revised Statutes of 1950, to be comprised of R.S.5
39:1493.11, and R.S. 39:1498(A)(10), relative to professional, personal, and6
consulting services procurement; to require a reduction in the dollar amount of7
certain professional, personal, and consulting service contracts; to provide for the8
submission of periodic reports; to provide for exceptions; to provide for certain9
determinations before contract approval; to establish the Higher Education Financing10
Fund; to provide for the deposit, use, and investment of monies in the fund; to11
prohibit expenditure of savings from contract reductions; to provide for an effective12
date; and to provide for related matters.13
Be it enacted by the Legislature of Louisiana:14
Section 1. R.S. 39:82(A), 352, and 1489 are hereby amended and reenacted and15
Subpart S of Part II-A of Chapter 1 of Subtitle I of Title 39 of the Louisiana Revised Statutes16
of 1950, comprised of R.S. 39:100.146, Subpart G of Part I of Chapter 16 of Subtitle III of17
Title 39 of the Louisiana Revised Statutes of 1950, comprised of R.S. 39:1493.11, and R.S.18
39:1498(A)(10) are hereby enacted to read as follows: 19 HLS 14RS-588 ORIGINAL
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§82. Remission of cash balances to the state treasurer; authorized withdrawals of1
state monies after the close of the fiscal year2
A. All cash balances occurring from appropriations made by legislative act3
or by the Interim Emergency Board regardless of date of passage to any state agency4
for which no bona fide liability exists on the last day of each fiscal year shall be5
remitted to the state treasurer by the fifteenth day following the last day of the fiscal6
year. Any appropriations including those made by the Interim Emergency Board of7
the preceding fiscal year remaining at the end of the fiscal year against which bona8
fide liabilities existed as of the last day of the fiscal year may be withdrawn from the9
state treasury during the forty-five day period after the last day of the fiscal year only10
as such liabilities come due for payment. Prior to placing monies associated with11
such unexpended appropriations into the state general fund, the state treasurer shall12
transfer all cash balances identified and reported by the commissioner of13
administration as being from unexpended and unencumbered direct state general14
fund appropriations for professional, personal, and consulting service contracts15
remaining at the end of Fiscal Year 2014-2015 for deposit in and credit to the Higher16
Education Financing Fund as are necessary to satisfy the requirements of R.S.17
39:100.146 and then shall make deposits to the Payments Towards the UAL Fund18
as are necessary to satisfy the requirements of R.S. 39:100.11.19
* * *20
SUBPART S. HIGHER EDUCATION FINANCING FUND21
§100.146. Higher Education Financing Fund22
A. There is hereby established in the state treasury, as a special fund, the23
Higher Education Financing Fund, hereinafter referred to as the "the fund".24
B.(1) The treasurer is directed to deposit into the fund an amount equal to25
cash balances identified and reported by the commissioner of administration as being26
from unexpended and unencumbered direct state general fund appropriations for27
contracts for professional, personal, and consulting services under the jurisdiction28
of the office of contractual review available at the end of Fiscal Year 2014-2015 as29 HLS 14RS-588 ORIGINAL
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are necessary to satisfy the requirements of R.S. 39:1493.11. The commissioner of1
administration, in consultation with the director of the office of contractual review,2
shall periodically determine the amount of monies appropriated for professional,3
personal, and consulting service contracts that remain unexpended and4
unencumbered as a result of implementation of R.S. 39:1493.11. Such determination5
shall take place on September 30, 2014, December 31, 2014, March 31, 2015, and6
June 30, 2015.7
(2) All unexpended and unencumbered monies in the fund at the end of the8
fiscal year shall remain in the fund. The monies in the fund shall be invested by the9
state treasurer in the same manner as monies in the state general fund, and interest10
earned on the investment of monies shall be credited to the fund.11
C. Monies in the fund shall be appropriated and used solely for public12
institutions of higher education.13
* * *14
§352. Cancellation of unexpended portions of appropriations; exceptions15
Whenever any specific appropriation is made to meet any item of expenditure16
which occurs annually by provision of law or for contingent expense, and any17
portion of it remains unexpended at the end of the year for which the specific18
appropriation was made, after all legal claims against it for the year have been paid,19
the commissioner of administration shall cancel any balance of the appropriation,20
and each succeeding year he shall open a new account for the appropriation which21
may be made for that particular year, without carrying forward any unexpended22
balance of appropriation made for any previous year. This provision shall not apply23
to appropriations made to pay the debt of the state, principal and interest. Prior to24
placing monies associated with such unexpended appropriations into the state general25
fund, the state treasurer shall transfer all cash balances identified and reported by the26
commissioner of administration as being from unexpended and unencumbered direct27
state general fund appropriations for professional, personal, and consulting service28
contracts remaining at the end of Fiscal Year 2014-2015 for deposit in and credit to29 HLS 14RS-588 ORIGINAL
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the Higher Education Financing Fund as are necessary to satisfy the requirements of1
R.S. 39:100.146 and then shall make deposits to the Payments Towards the UAL2
Fund as are necessary to satisfy the requirements of R.S. 39:100.11.3
* * *4
§1489. Reporting requirements; annual report5
A. The director shall prepare such reports as he finds necessary for the6
proper conduct of his duties, to include an annual report of all professional, personal,7
consulting, social services, and other contracts over which the office of contractual8
review has power and authority under the provisions of this Chapter or through9
administrative rules and regulations. The annual report shall be compiled on a fiscal10
year basis and consist, at a minimum, of summary descriptive and statistical data11
regarding the number and amounts of such contracts by type of service. The annual12
report shall be submitted to the president of the Senate and speaker of the House of13
Representatives not later than January first of the year following the end of the fiscal14
year for which the report is prepared.15
B. The director shall submit a report at the end of each month to the House16
Committee on Appropriations summarizing each contract, including the dollar value17
of each such contract awarded that month over which the office of contractual review18
has power and authority.19
* * *20
SUBPART G. REDUCTION OF CONTRACTS FOR FISCAL YEAR 2014-201521
§1493.11. Reduction of contracts for Fiscal Year 2014-201522
A.(1) The total dollar amount for professional, personal, and consulting23
service contracts under the jurisdiction of the office of contractual review for Fiscal24
Year 2014-2015 shall be reduced by no less than ten percent of the total dollar25
amount for such contracts for Fiscal Year 2013-2014.26
(2) The office of contractual review shall submit reports on the status of the27
implementation of this Section to the Joint Legislative Committee on the Budget on28
October 1, 2014, January 1, 2015, April 1, 2015, and July 1, 2015.29 HLS 14RS-588 ORIGINAL
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B. The office of contractual review shall not approve any contract if such1
approval increases the total dollar amount of contracts above the reduced amount2
required under Subsection A of this Section, unless such contract meets all of the3
following criteria:4
(1) Either no employee of the contracting agency is both competent and5
available to perform the services called for by the proposed contract, or the services6
called for are of a nature not readily susceptible to being performed by persons7
employed by the state on a continuing basis.8
(2) The services are not available as a product of a prior or existing contract.9
(3) The contracting agency has submitted to the office of contractual review10
a written plan to monitor and evaluate the performance required in the proposed11
contract.12
(4) It is more cost-effective to obtain the proposed services through the13
contract rather than to have the services provided by the contracting agency if the14
agency can provide the services or by agreement with another agency.15
(5) The commissioner of administration determines that the proposed16
contract represents a priority expenditure for Louisiana state government.17
C. Agencies shall not spend any money appropriated for professional,18
personal, and consulting service contracts for any other purpose. 19
D.(1) The commissioner of administration, in consultation with the director20
of the office of contractual review, shall periodically determine the amount of21
monies appropriated for professional, personal, and consulting service contracts that22
remain unexpended and unencumbered as a result of implementation of this Section.23
Such determination shall take place on September 30, 2014, December 31, 2014,24
March 31, 2015, and June 30, 2015.25
(2) Following each determination required pursuant to the provisions of this26
Subsection, the commissioner of administration shall report to the treasurer the27
amount of direct state general fund monies appropriated for professional, personal,28
and consulting service contracts that are expected to remain unexpended and29 HLS 14RS-588 ORIGINAL
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unencumbered at the end of the fiscal year as a result of implementation of this1
Section. These monies shall be available for deposit in and credit to the Higher2
Education Financing Fund as provided for in R.S. 39:100.146.3
E. Notwithstanding any provision of law to the contrary, this Section shall4
not apply to any professional, personal, or consulting service contract of the secretary5
of state necessary to perform any constitutional or statutory function of the office.6
* * *7
§1498. Approval of contract; penalties8
A. Before approving a proposed contract for professional, personal,9
consulting, or social services, the director of the office of contractual review or an10
assistant shall have determined that:11
* * *12
(10) A contract for professional, personal, or consulting services is not13
awarded to any entity for which an appropriation was enacted through a line item14
appropriation in the General Appropriations Act for the fiscal year in which the15
contract is proposed, and was subsequently vetoed by the governor, for such amount16
or services as contained in the appropriation. If the office of contractual review17
determines that a proposed contract is for the same amount and for the same services18
as a vetoed appropriation, the office shall submit the proposed contract to the Joint19
Legislative Committee on the Budget. After approval by the Joint Legislative20
Committee on the Budget, the office may approve the contract.21
* * *22
Section 2. This Act shall become effective on July 1, 2014; if vetoed by the governor23
and subsequently approved by the legislature, this Act shall become effective on July 1,24
2014, or on the day following such approval by the legislature, whichever is later.25 HLS 14RS-588 ORIGINAL
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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)]
Richard HB No. 142
Abstract: Requires a 10% reduction in the total dollar amount of professional, personal,
and consulting service contracts under the jurisdiction of the office of contractual
review for FY 2014-2015. Requires deposit of the unexpended and unencumbered
direct general fund appropriations for such contracts at the end of FY 2014-2015 to
be deposited into the Higher Education Financing Fund. Additionally requires the
office of contractual review to submit a monthly report to the House Committee on
Appropriations on contracts awarded the prior month.
Proposed law creates the Higher Education Financing Fund and deposits into the fund all
cash balances identified and reported by the commissioner of administration as being from
unexpended and unencumbered direct state general fund appropriations for contracts for
professional, personal, and consulting services under the jurisdiction of the office of
contractual review at the end of FY 2014-2015 to satisfy the requirements of proposed law.
Proposed law further provides that monies in the fund shall be appropriated and used solely
for public institutions of higher education.
Present law requires that all cash balances from appropriations to state agencies for which
no bona fide obligation exists at the end of the fiscal year be remitted to the state treasury
by the 15
th
day following the last day of the fiscal year. Present law further provides that
prior to depositing the unexpended appropriations into the state general fund, the treasurer
shall make deposits into the Payments Towards the UAL Fund as are necessary to satisfy
present law.
Proposed law requires the treasurer to transfer all cash balances identified and reported by
the commissioner of administration as being from unexpended and unencumbered direct
state general fund appropriations for professional, personal, and consulting service contracts
at the end of FY 2014-2015 into the Higher Education Financing Fund as are necessary to
satisfy the requirements of proposed law and then make deposits into the Payments Towards
the UAL Fund as required by present law.
Present law provides that if any portion of an appropriation for an item of expenditure that
occurs annually by provision of law or for contingent expense remains unexpended at the
end of the fiscal year in which the appropriation was made, the commissioner of
administration is required to cancel any balance of the appropriation, and in each succeeding
year shall open a new account for the appropriation for that particular year without carrying
forward any unexpended balance of appropriation for the previous fiscal year. Present law
further provides that prior to depositing the unexpended appropriations into the state general
fund, the treasurer shall make deposits into the Payments Towards the UAL Fund as are
necessary to satisfy present law.
Proposed law requires the treasurer to transfer all cash balances identified and reported by
the commissioner of administration as being from unexpended and unencumbered direct
state general fund appropriations for professional, personal, and consulting service contracts
at the end of FY 2014-2015 into the Higher Education Financing Fund as are necessary to
satisfy the requirements of proposed law and then make the deposits into the Payments
Towards the UAL Fund as required by present law. HLS 14RS-588 ORIGINAL
HB NO. 142
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are additions.
Proposed law requires a 10% reduction in the total dollar amount for professional, personal,
and consulting service contracts under the jurisdiction of the office of contractual review for
FY 2014-2015.
Proposed law requires the office of contractual review to submit reports on the status of the
implementation of proposed law to the Joint Legislative Committee on the Budget on Oct.
1, 2014, Jan. 1, 2015, April 1, 2015, and July 1, 2015.
Proposed law prohibits the office of contractual review from approving any contract if such
approval increases the total dollar amount of contracts above the reduction required in
proposed law, unless such contract meets all of the following criteria:
(1)Either no employee of the contracting agency is both competent and available to
perform the services called for by the proposed contract or the services called for are
not the type readily susceptible to being performed by persons employed by the state
on a continuing basis.
(2)The services are not available as a product of a prior or existing contract.
(3)The contracting agency has submitted a written plan to monitor and evaluate the
performance called for in the proposed contract.
(4)It is more cost-effective to obtain the proposed services through the contract than to
have the services provided by the contracting agency if the agency can provide the
services or by agreement with another state agency.
(5)The commissioner of administration determines that the proposed contract represents
a priority expenditure for state government.
Proposed law prohibits an agency from spending money appropriated for professional,
personal, and consulting service contracts for any other purpose.
Proposed law requires the commissioner of administration, in consultation with the director
of contractual review, to periodically determine the amount of monies appropriated for
professional, personal, and consulting service contracts that remain unexpended and
unencumbered as a result of implementation of proposed law. Further provides that such
determination shall take place on Sept. 30, 2014, Dec. 31, 2014, March 31, 2015, and June
30, 2015.
Proposed law provides that following each determination, the commissioner of
administration shall report to the treasurer on the amount of direct state general fund monies
appropriated for professional, personal, and consulting service contracts expected to remain
unexpended and unencumbered at the end of the fiscal year as a result of implementation of
proposed law. These monies shall be deposited into and credited to the Higher Education
Financing Fund as provided for in proposed law.
Proposed law exempts professional, personal, or consulting service contracts of the secretary
of state from the provisions of proposed law which are necessary to perform any
constitutional or statutory function of the office.
Present law provides for certain determinations by the director of contractual review prior
to the approval of proposed contracts.
Proposed law retains present law and further provides that before approval, the director of
contractual review shall determine that a contract for professional, personal, or consulting
services is not awarded to any entity for which a line item appropriation in the General
Appropriations Act for the fiscal year in which the contract is proposed was vetoed by the
governor. Proposed law further provides that if the office of contractual review determines HLS 14RS-588 ORIGINAL
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that a contract in the amount and for such services as were contained in the vetoed
appropriation is proposed, the office shall submit the proposal to the Joint Legislative
Committee on the Budget (JLCB). After approval of the JLCB, the office may approve the
contract.
Present law requires the director of contractual review to prepare an annual report on Jan.
first of each year on all professional, personal, consulting, social services, and other
contracts over which the office of contractual review has power and authority. The annual
report shall be compiled on a fiscal year basis and consist of summary descriptive and
statistical data regarding the number and amounts of such contracts by type of service.
Proposed law adds a requirement that the director submit a report at the end of each month
to the House Committee on Appropriations summarizing each contract, including the dollar
value of each contract awarded that month over which the office of contractual review has
power and authority.
Effective July 1, 2014.
(Amends R.S. 39:82(A), 352, and 1489; Adds R.S. 39:100.146, 1493.11, and 1498(A)(10))