HLS 14RS-304 ORIGINAL
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are additions.
Regular Session, 2014
HOUSE BILL NO. 626
BY REPRESENTATIVE ABRAMSON
APPROPRIATIONS: Requires certain quasi public and nongovernmental entities to submit
information to the legislative auditor and be approved by the Joint Legislative
Committee on the Budget prior to receiving state monies or assistance
AN ACT1
To enact R.S. 24:524 and R.S. 39:51.2, relative to appropriations to certain nongovernmental2
entities; to require certain quasi public and nongovernmental entities to submit3
certain information to the legislative auditor under certain circumstances; to provide4
for definitions; to provide for requirements and restrictions; to authorize the5
establishment and publication of guidelines; to require the submission and6
publication of certain lists; to provide for an effective date; and to provide for related7
matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 24:524 is hereby enacted to read as follows: 10
§524. Quasi public agencies or bodies and nongovernmental entities requesting or11
receiving state monies; submission of information and documentation to the12
legislative auditor; approval by the Joint Legislative Committee on the13
Budget14
A. Any quasi public agency or body, including any not-for-profit15
organization and nongovernmental entity which is neither a budget unit nor a16
political subdivision of the state, requesting or receiving state monies or assistance17
through the General Appropriation Bill, capital outlay bill, or any supplemental18 HLS 14RS-304 ORIGINAL
HB NO. 626
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appropriation bill in any fiscal year shall submit information and documents to the1
legislative auditor in accordance with the provisions of this Section and be approved2
by the Joint Legislative Committee on the Budget prior to state monies or assistance3
being appropriated or paid to such agency or body.4
B. For purposes of this Section, the following words shall have the following5
meanings unless the context clearly indicates otherwise:6
(1) "Continuing entity" shall mean a quasi public agency or body which7
received state monies or assistance in Fiscal Year 2015-2016 and which has reported8
to the legislative auditor's office in the twelve months prior to receiving state monies9
or assistance.10
(2) "New entity" shall mean a quasi public agency or body which has not11
requested or received state monies or assistance prior to Fiscal Year 2015-2016 or12
which has not reported to the legislative auditor's office in the twelve months prior13
to requesting or receiving state monies or assistance. After the first year of14
compliance with the provisions of this Section, a "new entity" shall be considered a15
"continuing entity" if the entity has received state monies or assistance and has16
reported to the legislative auditor's office during its first year of operation.17
(3) "Quasi public agency or body" shall mean and include any not-for-profit18
organization, for-profit organization, and nongovernmental entity requesting or19
receiving state monies or assistance in any fiscal year. The term shall also include20
a quasi public agency or body as defined in R.S. 24:513(A)(1)(b).21
(4) "State monies or assistance" shall mean and include grants, loans,22
transfers of property, awards, direct line-item appropriations of state public funds,23
and federal funds which pass through the state before being appropriated to the quasi24
public agency or body. The term shall not include guarantees, membership dues,25
vendor contracts for goods and services related to administrative support for a state26
assistance program, assistance to private or parochial schools, assistance to private27
colleges and universities, or benefits to individuals.28 HLS 14RS-304 ORIGINAL
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C. New entity requesting or receiving state monies or assistance for the first-1
time. Beginning in Fiscal Year 2015-2016 and each fiscal year thereafter, in order2
for a quasi public agency or body to be eligible to request or receive state monies or3
assistance, the quasi public agency or body shall submit the information and4
documents required pursuant to the provisions of this Subsection to the legislative5
auditor's office and shall be approved by the Joint Legislative Committee on the6
Budget. The information and documents required to be submitted to the legislative7
auditor shall include all of the following:8
(1) The official name of the new entity as reflected in documentation9
submitted to the secretary of state's office.10
(2) A complete and accurate listing of the board of directors of the new11
entity.12
(3) Documentation certifying that all payroll taxes have been paid and are13
current.14
(4) Financial statements for the new entity's most recent fiscal year.15
(5) Documentation indicating that the new entity has contracted with a16
certified public accountant who is on the legislative auditor's approved list of17
certified public accountants. The documentation shall include certification that the18
documents and information submitted to the legislative auditor have been compiled19
by and attested to by the certified public accountant.20
(6) Any additional information the legislative auditor may, in his discretion,21
deem necessary in order to ensure that the new entity meets minimum qualifications22
for requesting or receiving state monies or assistance.23
D.(1) Continuing entity which received state monies or assistance in Fiscal24
Year 2015-2016 or thereafter. In order for a quasi public agency or body to be25
eligible to continue to receive state monies or assistance, the continuing entity shall26
submit all reports required pursuant to the provisions of R.S. 24:513(J)(1)(c)(i)27
through (iv) to the legislative auditor. The information and documents submitted to28
the legislative auditor shall also include any additional information the legislative29 HLS 14RS-304 ORIGINAL
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auditor may, in his discretion, deem necessary in order to ensure that the continuing1
entity remains in good standing and continues to meet minimum qualifications for2
receipt of state monies or assistance.3
(2) In order to determine that a continuing entity continues to remain in good4
standing, the legislative auditor may establish a system to rank or grade reports or5
audits submitted by continuing entities.6
E.(1) The legislative auditor shall prepare a list containing new entities and7
continuing entities which have submitted information and documentation and which8
have met the requirements of this Section. The list shall be submitted to the Joint9
Legislative Committee on the Budget at least quarterly for approval and shall be10
posted on the legislative auditor's website. The chairman of the Joint Legislative11
Committee on the Budget shall compile a list of the entities approved by the12
committee within five working days of the date an entity is approved and shall13
submit the list to the legislative auditor. Upon receipt of the list from the chairman14
of the Joint Legislative Committee on the Budget, the legislative auditor shall post15
the list of approved entities on its website.16
(2) Once a new or continuing entity is approved by the Joint Legislative17
Committee on the Budget, the entity shall be eligible to request or receive state18
monies or assistance. Any entity that fails to submit information or documentation19
to the legislative auditor in accordance with the requirements of this Section or fails20
to be approved by the Joint Legislative Committee on the Budget shall be ineligible21
to request or receive state monies or assistance in the fiscal year for which the entity22
fails to comply with the requirements of this Section.23
(3) All entities requesting or receiving state monies or assistance shall24
comply with the provisions of R.S. 39:625
(4) No state agency shall contract with or pay monies to a quasi public entity26
or body which fails to meet the provisions of this Section.27
F. The legislative auditor shall establish guidelines and procedures in order28
to implement the provisions of this Section. The guidelines and procedures shall29 HLS 14RS-304 ORIGINAL
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include but not be limited to additional information required to be submitted by new1
or continuing entities, deadlines for submission of information or documentation,2
and the establishment of a ranking or grading system for reports or audits. The3
guidelines and procedures shall be established with input from the Louisiana4
Association of Nonprofit Organizations and the Society of Louisiana Certified Public5
Accountants and shall be posted on the legislative auditor's website for no less than6
thirty days. The legislative auditor shall also submit the guidelines and procedures7
to the Legislative Audit Advisory Council in order to receive public comment and8
testimony prior to the procedures and guidelines becoming final.9
Section 2. R.S. 39:51.2 is hereby enacted to read as follows:10
§51.2. Quasi public agencies or bodies and nongovernmental entities requesting or11
receiving state monies; submission of information and documentation to the12
legislative auditor; approval by the Joint Legislative Committee on the13
Budget14
Any quasi public agency or body, including any not-for-profit organization15
and nongovernmental entity which is neither a budget unit nor a political subdivision16
of the state, requesting or receiving state monies or assistance through the General17
Appropriation Bill, capital outlay bill, or any supplemental appropriation bill in any18
fiscal year shall submit information and documents to the legislative auditor in19
accordance with the provisions of R.S. 24:524 and be approved by the Joint20
Legislative Committee on the Budget prior to state monies or assistance being21
appropriated or transferred to such agency or body.22
Section 3. This Act shall become effective upon signature by the governor or, if not23
signed by the governor, upon expiration of the time for bills to become law without signature24
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If25
vetoed by the governor and subsequently approved by the legislature, this Act shall become26
effective on the day following such approval.27 HLS 14RS-304 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)]
Abramson HB No. 626
Abstract: Requires quasi public agencies or bodies and nongovernmental entities to submit
information and documentation to the legislative auditor and be approved by the
Joint Legislative Committee on the Budget prior to receiving state monies or
assistance.
Present law requires nongovernmental entities which are neither a budget unit nor a political
subdivision of the state, that are receiving state money through appropriation bills to transmit
certain information relative to the proposal to the House committees on appropriations and
ways and means and the Senate committees on finance and revenue and fiscal affairs no later
than Nov. 1st each year.
Proposed law retains present law but requires such entities as well as quasi public agencies
or bodies to submit information to the legislative auditor, hereinafter "auditor", and be
approved by the Joint Legislative Committee on the Budget (JLCB) in accordance with the
provisions of proposed law prior to requesting or receiving state monies or assistance.
Proposed law defines a "quasi public agency or body" as a not-for-profit organization, for-
profit organization, and nongovernmental entity applying for state monies or assistance in
any fiscal year. The term shall also include a quasi public agency or body as defined in
present law.
Proposed law defines a "continuing entity" as a quasi public agency or body which received
state monies or assistance in FY 2015-2016 and which has reported to the auditor's office
in the 12 months prior to receiving state monies or assistance. Further defines a "new entity"
as a quasi public agency or body which has not requested or received state monies or
assistance prior to FY 2015-2016 or which has not reported to the auditor's office in the 12
months prior to requesting or receiving state monies or assistance. After the first year of
compliance with proposed law a "new entity" shall be considered a "continuing entity" if the
entity has received state monies or assistance and has reported to the auditor's office during
its first year of operation.
Proposed law defines "state monies or assistance" as grants, loans, transfers of property,
awards, direct line-item appropriations of state public funds, and federal funds which pass
through the state before being appropriated to the quasi public agency or body.
Proposed law requires new entities requesting or receiving state monies or assistance for the
first time, beginning in FY 2015-2016 and each fiscal year thereafter, to submit information
and documents to the legislative auditor's office and to be approved by the JLCB prior to
requesting or receiving state monies or assistance. The information and documents required
to be submitted to the auditor shall include all of the following:
(1)The official name of the new entity.
(2)A complete and accurate listing of the board of directors.
(3)Documentation certifying that all payroll taxes have been paid and are current.
(4)Financial statements for the most recent fiscal year. HLS 14RS-304 ORIGINAL
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(5)Documentation that the new entity has contracted with an approved certified public
accountant, including certification that the information submitted to the auditor has
been compiled by and attested to by the certified public accountant.
(6)Additional information the auditor deems necessary in order to ensure that the new
entity meets minimum qualifications for requesting or receiving state monies or
assistance.
Proposed law requires a continuing entity which received state monies or assistance in FY
2015-2016 or thereafter to submit all audit information required pursuant to the provisions
present law including any additional information the auditor deems necessary in order to
ensure that the continuing entity remains in good standing and continues to meet minimum
qualifications for receipt of state monies or assistance.
Proposed law authorizes the auditor to establish a system to rank or grade reports or audits
submitted by continuing entities.
Proposed law requires the auditor to prepare and submit a list containing new entities and
continuing entities which have met the requirements of proposed law to the JLCB at least
quarterly for approval. Additionally requires the legislative auditor to post the list on his
website.
Proposed law requires the chairman of the JLCB to compile and submit a list of the entities
approved by the committee within five working days of the date of approval to the auditor.
Further requires the auditor to post the list of approved entities on its website.
Proposed law prohibits any entity that fails to submit information or documentation to the
legislative auditor in accordance with proposed law or fails to be approved by the JLCB
from being eligible to request or receive state monies or assistance in the fiscal year for
which the entity fails to comply with the requirements of proposed law.
Proposed law prohibits a state agency from contracting with or paying monies to a quasi
public entity or body which fails to meet the provisions of proposed law.
Proposed law requires the auditor to establish guidelines and procedures in order to
implement proposed law. Further requires the guidelines to be posted on the auditor's
website for no less than 30 and to submit the guidelines to the Legislative Audit Advisory
Council in order to receive public comment prior to the procedures and guidelines becoming
final.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 24:524 and R.S. 39:51.2)