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Prepared by Margaret M. Corley.
Richard HB No. 142
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
PUBLIC CONTRACTS. Provides for certain fiscal years for Joint Legislative
Committee on the Budget approval of all professional, personal, and consulting services
contracts with total dollar amount of $40,000 or more funded by State General Fund
(Direct) or Overcollections Fund and which are for a discretionary purpose.
__________________________________________________________________________
DIGEST
Proposed law creates the Higher Education Financing Fund and deposits into the fund all
cash balances identified and reported by the commissioner of administration on a quarterly
basis as being from unexpended and unencumbered State General Fund (Direct) or
Overcollections Fund appropriations for contracts for professional, personal, and consulting
services not approved by the Joint Legislative Committee on the Budget under the
jurisdiction of the office of contractual review at the end of each fiscal year to satisfy the
requirements of proposed law. Proposed law further provides that monies in the fund shall
be appropriated and used solely for public postsecondary education institutions.
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 fifteenth 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 is 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 State
General Fund (Direct) or Overcollections Fund appropriations for professional, personal, and
consulting service contracts not approved by the Joint Legislative Committee on the Budget
at the end of each fiscal year 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 State
General Fund (Direct) or Overcollections Fund appropriations for professional, personal, and
consulting service contracts at the end of each fiscal year 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.
Proposed law provides that in FY 2014-2015 through 2016-2017, all contracts for
professional, personal, and consulting services with a total dollar amount of forty thousand
dollars or more per year which are funded solely with the State General Fund (Direct) or the
Overcollections Fund and are for discretionary purposes shall be reported to the Joint
Legislative Committee on the Budget for review and approval. If within thirty days of
receipt of the contract, the Joint Legislative Committee on the Budget does not place the
contract on its agenda for review and approval, the contract shall be deemed to be approved. Page 2 of 3
Prepared by Margaret M. Corley.
Proposed law further provides that if within thirty days of receipt of the contract, the contract
is placed on the agenda for review and approval, it shall require the approval of the Joint
Legislative Committee on the Budget in a vote of the committee in open meeting. The Joint
Legislative Committee on the Budget may either approve the contract, reject the contract and
notify the commissioner of administration that such funds otherwise proposed for this
purpose be deposited into the Higher Education Financing Fund, or the Joint Legislative
Committee on the Budget may recommend revisions to the contract.
Proposed law provides that if the Joint Legislative Committee on the Budget recommends
revisions to the contract, the contract shall not become effective until it is revised,
resubmitted to the Joint Legislative Committee on the Budget, and acted upon by the
committee. If the contract is not resubmitted to the Joint Legislative Committee on the
Budget within thirty days after the committee recommends revisions to the contract, the
contract shall be deemed to be rejected.
Proposed law requires the commissioner of administration, in consultation with the director
of the office of contractual review, to periodically determine the amount of monies
appropriated for professional, personal, and consulting service contracts that are not
approved by the Joint Legislative Committee on the Budget as a result of implementation of
proposed law. Further provides that such determination shall take place quarterly in FY
2014-2015, 2015-2016, and 2016-2017.
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 which are necessary to perform any constitutional or statutory function of the office
and all contracts to implement the programs of DHH that are funded pursuant to Titles XIX,
XX, and XXI of the Social Security Act or funded fully or partially by federal funds from the
provisions of proposed law.
Present law requires the director of the office of contractual review to prepare an annual
report on January 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 Joint Legislative Committee on the Budget summarizing each contract, including the
dollar value of each contract awarded that month over which the office of contractual review
has power and authority. Proposed law requires the report to indicate for each contract if is
for a discretionary purpose or if it is for a non-discretionary purpose.
Provisions of Act become null, void, and of no effect on July 1, 2017.
Effective July 1, 2014.
(Amends R.S. 39:82(A), 352, and 1489; Adds R.S. 39:100.146, and 1493.11)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Appropriations to the
original bill.
1. Provided an exception from the contract reduction requirements for Medicaid
provider contracts. Page 3 of 3
Prepared by Margaret M. Corley.
House Floor Amendments to the engrossed bill.
1. Technical amendments.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the reengrossed
bill
1. Requires approval of the Joint Legislative Committee on the Budget of all
contracts for professional, personal, and consulting services with a total dollar
amount of $40,000 or more per year which are funded solely with State General
Fund (Direct) or Overcollections Fund and are for discretionary purposes.
2. Provides that funding for contracts not approved by the Joint Legislative
Committee on the Budget shall be deposited into the Higher Education Financing
Fund.
3. Changes recipient of director of contractual review's monthly report from House
Committee on Appropriations to Joint Legislative Committee on the Budget.
4. Extends period Act is effective from FY 2014-2015 to FY 2014-2015 through
2016-2017 and changes references to such time period.
5. Removes provisions regarding reduction by at least ten percent of total dollar
amount of professional, personal, and consulting contracts in FY 2014-2015.
6. Removes provisions prohibiting the office of contractual review from approving
contracts which increase the total dollar amount of contracts above the reduced
amount unless the contract meets certain criteria.
7. Revises provision regarding exception from Act for Medicaid contracts.
8. Provides Act is no longer effective on July 1, 2017.