HLS 14RS-1092 ORIGINAL Page 1 of 2 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2014 HOUSE BILL NO. 846 BY REPRESENTATIVE HENRY PUBLIC CONTRACTS: Requires contracts over a certain amount and extensions of such contracts to be approved by the Joint Legislative Committee on the Budget AN ACT1 To enact R.S. 39:1498.3 and 1596.1, relative to public contracts; to require prior approval2 of certain contracts; to require prior approval of extensions of certain contracts; and3 to provide for related matters.4 Be it enacted by the Legislature of Louisiana:5 Section 1. R.S. 39:1498.3 and 1596.1 are hereby enacted to read as follows:6 §1498.3. Large professional, personal, consulting, or social services contracts; prior7 approval required8 A. No professional, personal, consulting, or social service contract with a9 total maximum compensation of twenty-five million dollars or more shall be entered10 into on or after August 1, 2014, unless it has been reviewed and approved by the11 Joint Legislative Committee on the Budget.12 B. No extension of a professional, personal, consulting, or social service13 contract with a total maximum compensation of twenty-five million dollars or more14 shall be entered into on or after August 1, 2014, unless such extension has been15 reviewed and approved by the Joint Legislative Committee on the Budget.16 C. No professional, personal, consulting, or social service contract with a17 total maximum compensation of twenty-five million dollars or more shall be valid18 nor shall the state be bound by the contract unless all requirements of this Section19 have been met.20 * * *21 HLS 14RS-1092 ORIGINAL HB NO. 846 Page 2 of 2 CODING: Words in struck through type are deletions from existing law; words underscored are additions. §1596.1. Large procurement contracts; prior authorization required1 A. No contract with a total maximum compensation of twenty-five million2 dollars or more shall be entered into on or after August 1, 2014, unless it has been3 reviewed and approved by the Joint Legislative Committee on the Budget.4 B. No extension of a contract with a total maximum compensation of twenty-5 five million dollars or more shall be entered into on or after August 1, 2014, unless6 such extension has been reviewed and approved by the Joint Legislative Committee7 on the Budget.8 C. No contract with a total maximum compensation of twenty-five million9 dollars or more shall be valid nor shall the state be bound by the contract unless all10 requirements of this Section have been met.11 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)] Henry HB No. 846 Abstract: Requires prior approval of the Joint Legislative Committee on the Budget (JLCB) of certain contracts in excess of $25 million and of extensions to such contracts. Proposed law prohibits entering into professional, personal, consulting, or social service contracts of $25 million or more on or after August 1, 2014, unless the contract has been reviewed and approved by the JLCB. Further prohibits entering into an extension of a professional, personal, consulting, or social service contract of $25 million or more on or after August 1, 2014, unless the extension has been reviewed and approved by the JLCB. Proposed law prohibits entering into a contract under the La. Procurement Code of $25 million or more on or after August 1, 2014, unless the contract has been reviewed and approved by the JLCB. Further prohibits entering into an extension of a contract under the La. Procurement Code of $25 million or more on or After August 1, 2014, unless the extension has been reviewed and approved by the JLCB. Proposed law invalidates any contract over $25 million unless the requirements of proposed law are met. (Adds R.S. 39:1498.3 and 1596.1)