SLS 14RS-272 REENGROSSED Page 1 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2014 SENATE BILL NO. 315 BY SENATOR DONAHUE PROCUREMENT CODE. Provides relative to group purchasing and cooperative purchasing provisions of certain public postsecondary education institutions. (7/1/14). AN ACT1 To enact R.S. 39:196(C) and 1554(J), relative to procurement; to provide relative to group2 purchasing and cooperative purchasing provisions by certain public postsecondary3 education institutions; to provide for an effective date; and to provide for related4 matters.5 Be it enacted by the Legislature of Louisiana:6 Section 1. R.S. 39:196(C) and 1554(J) are hereby enacted to read as follows:7 §196. Application of Part: responsibility for determining; executive director of8 information services9 * * *10 C.(1) Notwithstanding any other provision of law of this Part or any11 other law to the contrary, any public postsecondary education institution12 seeking to utilize its own group purchasing and cooperative purchasing13 procurement provisions shall submit a request for and obtain approval of its14 management board and the Board of Regents.15 (2)(a) The requesting public postsecondary education institution shall16 adopt its own group purchasing and cooperative purchasing procurement17 SB NO. 315 SLS 14RS-272 REENGROSSED Page 2 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. provisions pursuant to rules and regulations in accordance with the1 Administrative Procedure Act. Notwithstanding the provisions of R.S.2 49:968(B)(19), the rules and regulations promulgated pursuant to this3 Subsection shall be submitted to the Senate Committee on Finance and the4 House Committee on Appropriations for review.5 (b) Such rules shall include provisions for adequate public notice in the6 procurement process.7 (3) Authority of an institution to participate in its own group purchasing8 and cooperative purchasing procurement provisions shall be for an initial term9 of three years. After the initial term, the institution may be authorized to10 participate in its own procurement provisions under this Section for an11 additional term of five years upon approval of the Joint Legislative Committee12 on the Budget.13 (4) A report of all group purchasing or cooperative purchasing contracts14 by each institution authorized under these provisions shall be provided to the15 Joint Legislative Committee on the Budget no later than ninety days after the16 end of each fiscal year. Such report shall, at a minimum, include a17 measurement of the savings derived from the utilization of the group18 purchasing or cooperative purchasing process.19 * * *20 §1554. Application of this Chapter21 * * *22 J. The provisions of this Chapter relative to group purchasing and23 cooperative purchasing procurement shall not apply to any public24 postsecondary education institution if:25 (1) The public postsecondary education institution has requested its own26 group purchasing and cooperative purchasing procurement provisions and has27 been approved by its management board and the Board of Regents.28 (2)(a) The requesting public postsecondary education institution has29 SB NO. 315 SLS 14RS-272 REENGROSSED Page 3 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. adopted its own group purchasing and cooperative purchasing procurement1 provisions pursuant to rules and regulations adopted in accordance with the2 Administrative Procedure Act. Notwithstanding the provisions of R.S.3 49:968(B)(19), the rules and regulations promulgated pursuant to this4 Subsection shall be submitted to the Senate Committee on Finance and the5 House Committee on Appropriations for review.6 (b) Such rules shall include provisions for adequate public notice in the7 procurement process.8 (3) Authority of an institution to participate in its own group purchasing9 and cooperative purchasing procurement provisions shall be for an initial term10 of three years. After the initial term, the institution may be authorized to11 participate in its own procurement provisions under this Section for an12 additional term of five years upon approval of the Joint Legislative Committee13 on the Budget.14 (4) A report of all group purchasing or cooperative purchasing contracts15 by each institution authorized under these provisions shall be provided to the16 Joint Legislative Committee on the Budget no later than ninety days after the17 end of each fiscal year. Such report shall, at a minimum, include a18 measurement of the savings derived from the utilization of the group19 purchasing or cooperative purchasing process.20 Section 2. This Act shall become effective on July 1, 2014; if vetoed by the governor21 and subsequently approved by the legislature, this Act shall become effective on July 1,22 2014, or on the day following such approval by the legislature, whichever is later.23 The original instrument was prepared by Jay Lueckel. The following digest, which does not constitute a part of the legislative instrument, was prepared by Ann S. Brown. DIGEST Donahue (SB) Present law provides for the purchase, lease, and rental of all data processing equipment, related services, and software. Also provides that the state central purchasing agency shall, subject to certain provisions, have sole authority and responsibility for defining the specific data processing equipment, related services, and software to which such provisions apply. SB NO. 315 SLS 14RS-272 REENGROSSED Page 4 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Proposed law provides that notwithstanding any other provision of proposed law or any other law to the contrary, any public postsecondary education institution seeking to utilize its own group purchasing and cooperative purchasing procurement provisions shall submit a request for and obtain the approval of its management board and the Board of Regents. The requesting public postsecondary education institution shall adopt rules and regulations in accordance with the Administrative Procedure Act. Proposed law provides that notwithstanding the provisions of present law, the rules and regulations promulgated pursuant to this Subsection shall be submitted to the Senate Committee on Finance and the House Committee on Appropriations for review. Also provides that such rules shall include provisions for adequate public notice in the procurement process. Proposed law authorizes an institution to participate in its own group purchasing and cooperative purchasing procurement provisions for an initial term of three years. After the initial term, the institution may be authorized to participate in its own procurement provisions for an additional term of five years upon approval of the Joint Legislative Committee on the Budget. Proposed law requires a report of all group purchasing or cooperative purchasing contracts by each institution authorized to be provided to the Joint Legislative Committee on the Budget no later than 90 days after the end of each fiscal year. Such report shall, at a minimum, include a measurement of the savings derived from the utilization of the group purchasing or cooperative purchasing process. Present law provides for the application of the Louisiana Procurement Code that provides for the acquisition of supplies, services, leases or major repairs. Present law also provides for group purchasing and cooperative purchasing by certain entities and with certain limitations. Proposed law retains present law but further provides that the Louisiana Procurement Code provisions relative to group purchasing and cooperative purchasing shall not apply to any public postsecondary education institution if: (1)The public postsecondary education institution has requested its own group purchasing and cooperative purchasing procurement provisions and has been approved by its management board and the Board of Regents. (2)The requesting public postsecondary education institution has adopted its own group purchasing and cooperative purchasing procurement provisions pursuant to rules and regulations adopted in accordance with the Administrative Procedure Act. Proposed law provides that notwithstanding the provisions of present law, the rules and regulations promulgated pursuant to this Subsection shall be submitted to the Senate Committee on Finance and the House Committee on Appropriations for review. Also provides that such rules shall include provisions for adequate public notice in the procurement process. Proposed law authorizes an institution to participate in its own group purchasing and cooperative purchasing procurement provisions for an initial term of three years. After the initial term, the institution may be authorized to participate in its own procurement provisions for an additional term of five years upon approval of the Joint Legislative Committee on the Budget. Proposed law requires a report of all group purchasing or cooperative purchasing contracts by each institution authorized to be provided to the Joint Legislative Committee on the Budget no later than 90 days after the end of each fiscal year. Such report shall, at a minimum, include a measurement of the savings derived from the utilization of the group SB NO. 315 SLS 14RS-272 REENGROSSED Page 5 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. purchasing or cooperative purchasing process. Effective July 1, 2014. (Adds R.S. 39:196(C) and 1554(J)) Summary of Amendments Adopted by Senate Senate Floor Amendments to engrossed bill 1. Adds language regarding specific procedures for any rules and regulations promulgated pursuant to proposed law relative to group purchasing and cooperative purchasing. 2. Provides length of time for group purchasing and cooperative purchasing. 3. Requires a report be submitted to the Joint Legislative Committee on the Budget.