HLS 14RS-1274 ORIGINAL
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Regular Session, 2014
HOUSE BILL NO. 705
BY REPRESENTATIVE FANNIN
PUBLIC CONTRACTS: Authorizes the state to enter into consulting service contracts with
licensed insurance producers for the procurement of insurance for risk management
AN ACT1
To amend and reenact R.S. 39:1484(A)(4)(b) and 1540, relative to consulting service2
contracts; to authorize the office of risk management to enter into consulting service3
contracts with one or more licensed insurance producers; to provide for the definition4
of consulting services; to provide for approvals of such contracts; to provide for5
reporting; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 39:1484(A)(4)(b) and 1540 are hereby amended and reenacted to8
read as follows: 9
§1484. Definitions and objectives10
A. When used in this Chapter, the words defined in this Section shall have11
the meanings set forth below unless the context in which they are used clearly12
requires a different meaning or a different definition is prescribed for a particular13
Part or provision:14
* * *15
(4)(a) 16
* * *17
(b) The term "consulting service" includes the procurement of supplies and18
services by a contractor without the necessity of complying with provisions of the19
Louisiana Procurement Code when such supplies and services are either for20 HLS 14RS-1274 ORIGINAL
HB NO. 705
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insurance procured directly by a licensed insurance producer pursuant to R.S.1
39:1540(B) or, are merely ancillary to the provision of consulting services under a2
contingency fee arrangement, even though the procurement of such supplies or3
services directly by a governmental body would require compliance with the4
Louisiana Procurement Code. Supplies or services ancillary to the provision of5
consulting services are those supplies or services which assist the contractor in6
fulfilling the objective of his contract when the cost for such supplies and services7
is less than the cost of providing consulting services, as determined by the using8
agency.9
* * *10
§1540. Competition11
A. Every contract entered into by the state for the purchase of insurance or12
for obtaining services relating to the operation of the insurance program shall be13
awarded by either competitive sealed bidding or competitive negotiation.14
Competitive negotiation shall be initiated by the issuance of a request for proposals15
containing a description of the coverage required and the factors to be used in16
evaluating the proposals. Where there is more than one offeror, written or oral17
discussions shall be conducted with at least the three, or two if there are only two,18
highest qualified offerors who submit proposals determined in writing to be19
reasonably susceptible of being selected for award. The contract shall be awarded20
with reasonable promptness by written notice to the responsible offeror whose21
proposal meets the requirements and criteria set forth in the request for proposals and22
whose proposal is most beneficial to the state, considering the price and the23
evaluation factors set forth in the request for proposal. Public notice of the request24
for proposals shall be provided in the same manner as established in Part V of25
Chapter 1 of Title 39
1
of the Louisiana Revised Statutes R.S. 39:1503.26
B.(1) The office of risk management, under the direction of the27
commissioner of administration, is authorized to contract for consulting services28
with one or more licensed insurance producers upon a finding by the commissioner29 HLS 14RS-1274 ORIGINAL
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that the contract is in the best interest of the state. The contract authorized pursuant1
to the provisions of this Subsection may authorize one or more producers to advise2
the office of risk management regarding the office's insurance programs and to3
directly procure insurance.4
(2) No contract executed for consulting services under the provisions of this5
Subsection shall be effective until is has been approved by the Joint Legislative6
Committee on the Budget.7
(3) The division of administration shall report annually on the savings8
achieved due to contracts entered into under this Subsection to the Joint Legislative9
Committee on the Budget.10
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)]
Fannin HB No. 705
Abstract: Authorizes the office of risk management to contract with licensed insurance
producers to advise the office regarding the office's programs and to directly procure
insurance. Requires the Joint Legislative Committee on the Budget (JLCB) to
approve the contract and for annual reporting to the JLCB of cost savings achieved
by the contract.
Present law relative to the procurement of consulting services contracts, provides that
consulting services includes the procurement of supplies and services without compliance
with the La. Procurement Code if services are ancillary to contract.
Proposed law retains present law but adds the procurement of the insurance by a licensed
producer to the consulting services exempt from compliance with the La. Procurement Code.
Proposed law authorizes the office of risk management, under the direction of the
commissioner of administration, to contract for consulting services with insurance producers
if the commissioner finds that such contract is in the best interest of the state. Such contracts
may allow one or more producers to advise the office of risk management regarding the
office's insurance programs and to directly procure insurance.
Proposed law specifies that no contract executed shall be effective until approved by the
JLCB.
Proposed law requires the division of administration to report annually to JLCB on the
savings achieved under the contract.
(Amends R.S. 39:1484(A)(4)(b) and 1540)