Louisiana Senate Bill SB481 Engrossed / Bill

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Regular Session, 2014
SENATE BILL NO. 481
BY SENATOR DONAHUE 
TECHNOLOGY.  Provides with respect to technology services and technology procurement.
(7/1/14)
AN ACT1
To amend and reenact R.S. 36:4(B)(1)(e), Subpart C of Chapter 1 of Subtitle I of Title 392
of the Louisiana Revised Statutes of 1950, to be comprised of R.S. 39:15.1, 15.2,3
15.3, and Part V-A of Chapter 1 of Subtitle I of Title 39 of the Louisiana Revised4
Statutes of 1950, to be comprised of R.S. 39:196, 197, 198, 199, and 200, all relative5
to technology and technology procurement; to provide for the structure of the6
executive branch of state government; to change the office of information technology7
to the office of technology services; to provide for the state chief information officer8
to replace the chief information officer; to grant authority over procurement for9
information technology systems and services to the state chief information officer;10
to provide for additional duties and responsibilities of the office of technology11
services relative to operations, procurement, and customer service charges; to place12
the office of telecommunications management under the state chief information13
officer; to provide authority for centralized information technology procurement14
under the office of technology services and the state chief information officer; to15
provide for certain reporting requirements; to provide relative to certain multi-year16
contracts; to provide for an effective date; and to provide for related matters.17 SB NO. 481
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Be it enacted by the Legislature of Louisiana:1
2
Section 1. R.S. 36:4(B)(1)(e) is hereby amended and reenacted to read as follows:3
§4.  Structure of executive branch of state government4
*          *          *5
B. The office of the governor shall be in the executive branch of state6
government.7
(1) The following agencies and their powers, duties, functions, and8
responsibilities are hereby transferred to the office of the governor:9
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(e) The office of information technology services (R.S. 39:15.1 et seq.),11
including the Louisiana Geographic Information Systems Council (R.S. 49:1051 et12
seq.), within the division of administration.13
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Section 2. Subpart C of Chapter 1 of Subtitle I of Title 39 of the Louisiana Revised15
Statutes of 1950, comprised of R.S. 39:15.1, 15.2, 15.3, and Part V-A of Chapter 1 of16
Subtitle I of Title 39 of the Louisiana Revised Statutes of 1950, comprised of R.S. 39:196,17
197, 198, 199, and 200, are hereby amended and reenacted to read as follows:18
SUBPART C.  OFFICE OF 	INFORMATION TECHNOLOGY SERVICES19
§15.1.  Office of information technology services; scope20
The office of information technology services shall have authority over all21
information technology systems and services for agencies in the executive branch of22
state government, except for any agency of a statewide elected official. The office23
shall have no authority over the legislative or judicial branches of state government24
or agencies thereof.  However, nothing provided in this Subpart shall apply to the25
public postsecondary management boards or the Board of Regents as provided26
in Article VIII of the Constitution of Louisiana.27
§15.2.  Office of information technology services; state chief information officer28
A. The office of information technology services is established within the29 SB NO. 481
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division of administration. This office shall be headed by the state chief information1
officer, hereafter referred to in this Part as the "CIO." The CIO will serve as the2
spokesperson for all matters related to information technology and resources,3
including Geographic Information Systems (GIS), with regard to policies, standard4
setting, deployment, strategic and tactical planning, acquisition, management, and5
operations as necessary and in keeping with the industry trends of the private and6
public sectors. Rules and regulations shall be promulgated, in accordance with the7
Administrative Procedure Act, as may be necessary to carry out the provisions of this8
Subpart.9
B. The CIO shall be appointed by the governor and serve in the executive10
department of the division of administration, and shall be in the unclassified service.11
The CIO shall report to the commissioner of administration concerning his12
responsibilities to provide direction, stewardship, leadership, operation, and general13
oversight of information technology and information resources. The salary of the14
CIO shall be determined by the commissioner of administration. Support staff,15
office facilities, and operating expenses shall be provided by the division of16
administration.17
C. The CIO shall also perform all duties and functions that the commissioner18
of administration deems necessary for the proper, efficient, and economical19
administration of information technology.20
D. The CIO shall be the principal adviser to the governor and the executive21
cabinet on information technology policy, including policy on the acquisition and22
management of information technology and resources.23
E. The CIO may delegate his authority under this Subpart to such24
designees or to any agency as defined in R.S. 39:2(2) as he may deem25
appropriate within the limitations of state law and regulations.26
§15.3. Office of information technology services; offices and staff; duties27
A. The office of information technology services shall consist of executive28
offices and staff as deemed necessary for effective information technology29 SB NO. 481
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governance, acquisition and operation.1
B. The state chief information officer shall manage and direct the office of2
information technology services, with roles, duties, and activities including but not3
limited to the following:4
(1)  Establishing and coordinating all information technology systems5
and information technology services affecting the management and operations6
of the executive branch of state government. The office of technology services7
shall, subject to the provisions of this Subpart, have sole authority and8
responsibility for defining the specific information technology systems and9
information technology services to which the provisions of this Subpart shall be10
applicable. Information technology systems, including equipment and related11
services, and information technology services shall mean the equipment and12
services and means necessary to provide, including but not limited to the13
following:14
(a) Telecommunications systems and services.15
(b) Network systems and services.16
(c) Server systems and services.17
(d) Storage systems and services.18
(e) Information technology security systems and services.19
(f) Related peripheral systems and services.20
(g) Software and software application services.21
(h) Infrastructure and platform systems and services.22
(i) Desktop computing systems and services.23
(j) Geographic information systems and services.24
(k) Mobile device systems and services.25
(l) Video systems and services, except those video systems and services26
specifically reserved to the Louisiana Educational Television Authority27
pursuant to R.S. 17:2501.28
(m) Radio systems, to include but not be limited to two-way radio29 SB NO. 481
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systems; however, the operational abilities and priorities of two-way1
communications of the departments in the executive branch shall not be2
impeded.3
(n) Any and all systems and services based on emerging and future4
information technologies relating to Subparagraphs (a) through (k) of this5
Paragraph.6
(2) Overseeing and implementing a state master information technology plan7
on an annual basis.8
(2)(3) Establishing and directing the implementation of information9
technology standards, architecture, and guidelines suitable for statewide application10
for hardware, software, services, contractual arrangements, consolidation of systems11
and management of systems.12
(3)(4) Reviewing, coordinating, and standardizing information technology13
strategic business technology planning, information technology procurement,14
information technology budgeting (both executive and capital outlay), and15
information technology personnel and training.16
(4)(5) Implementing strategic information technology planning, including the17
review and approval of the planning, initiation, design, acquisition, and operation of18
information technology systems.19
(5)(6) Assessing the performance of information technology systems and20
technology operations and personnel including establishing accountability,21
performance measurement, and benchmarking policies and procedures.22
(6)(7) Overseeing and coordinating the centralization of the technology23
systems and data processing systems, including consolidation, outsourcing, and24
sharing statewide government information technology resources and services.25
(7)(8) Overseeing all telecommunication systems.26
(8)(9) Assuring compatibility and connectivity of Louisiana's information27
systems.28
(9)(10) Facilitating and fostering innovative applications of emerging29 SB NO. 481
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technologies that provide cost-effective solutions for improving government1
operations and services.2
(10)(11) Reviewing and overseeing information technology projects and3
systems for compliance with statewide strategies, policies, and standards, including4
alignment with state government's business goals, investment, and other risk5
management policies.6
(11)(12) Providing support and technical assistance to the office of state7
purchasing, the office of contractual review, the office of facility planning and8
control, and the office of planning and budget, and the Louisiana Technology9
Innovations Council.10
(12)(13) Overseeing and coordinating access to state information that is11
electronically available online from agency web sites.12
(13)(14) Facilitating a process among state agencies to identify services that13
are favorable for electronic delivery, and maintaining an electronic directory of state14
services.15
(14) Providing direction to the Louisiana Geographic Information Systems16
Council and the Louisiana Geographic Information Center (LAGIC) for coordination17
of geographic data, geographic technology, and geographic standards of the state.18
 (15) Identifying information technology applications that should be19
statewide in scope, and ensuring that these applications are not developed20
independently or duplicated by individual state agencies of the executive branch.21
 (16) Reviewing and approving the receipt by executive agencies of22
information technology goods and services and telecommunication systems and23
services from non-appropriated sources, including but not limited to grants,24
donations, and gifts.25
 (17) Preparing annual reports and plans concerning the status and result of26
the state's specific information technology plans and submitting these annual reports27
and plans to the governor and the legislature.28
 (18) Facilitating and fostering the identification of the policy and planning29 SB NO. 481
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data needs of the state.1
(19) Charging respective user agencies for the cost of the information2
technology services provided by the office of information technology systems and3
information technology services provided by the office of technology services4
and may include all or part of the cost of the operation of the office. These costs5
shall be charged in a consistent and equitable manner.6
(20) Acting as the sole centralized customer for the acquisition, billing,7
and record keeping of information technology systems or information8
technology services provided to state agencies. The ownership of such systems9
procured by the office of technology services may vest in the respective agency,10
but control of the systems shall be retained by the office of technology services.11
(21) Developing coordinated information technology systems or12
information technology services within and among all state agencies and13
require, where appropriate, cooperative utilization of information technology14
systems and information technology services by aggregating users. However,15
nothing provided in this Section shall apply to the authority for operation of the16
National Crime Information Center.17
(22) Reviewing, coordinating, approving, or disapproving requests by18
state agencies for the procurement of information technology systems or19
information technology services including information technology proposals,20
studies, and contracts.21
C. To accomplish the work of the office of information technology services,22
all agencies as defined in R.S. 39:2 shall cooperate with the office of information23
technology services and provide assistance as required. However, if the office of24
information technology and a statewide elected official cannot jointly agree on an25
information technology plan, system, or service for any agency under his26
jurisdiction, then he may implement an information technology plan, system or27
service of his own, upon finding just cause to do so and after giving notice of his28
actions and reason therefore at a meeting of the Joint Legislative Committee on the29 SB NO. 481
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Budget. Prior to implementation, any such information technology plan, system or1
service adopted by a statewide elected official shall be as compatible as is practical2
under the circumstances with the state master technology plan nothing in this3
Subpart shall apply to the authority of any statewide elected official relative to4
his authority to implement information technology plans, systems, or services5
for any agency under his jurisdiction.6
D. The information, technology, personnel, agency resources, and records of7
the Integrated Criminal Justice Information System as established by R.S. 15:12288
through 1228.8 and its components shall be excluded from the provisions of this Part9
and shall not be under the authority of the office of information technology services.10
E. Beginning October 1, 2014, the state chief information officer shall11
report quarterly to the Joint Legislative Committee on the Budget on the status12
of the consolidation of the information technology functions of the executive13
branch of state government. The report shall provide information on14
organizational changes within the division of administration, as well as15
organizational changes between the office of technology services and the other16
executive branch agencies. The report shall include information and data on17
personnel changes, changes in purchasing and procurement, and any budgetary18
changes that have occurred.19
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PART V-A. DATA PROCESSING INFORMATION TECHNOLOGY21
PROCUREMENT22
§196. Application of Part: responsibility for determining; executive director of23
information services state chief information officer24
A. The provisions of this Part shall be applicable to all state agencies in the25
executive branch, as defined in R.S. 39:2(1) 36:3(1), except for any agency of a26
statewide elected official, with respect to the purchase, lease, and rental of all data27
processing information technology equipment, related services, and software.28
B. The state central purchasing agency shall, subject to the provisions of this29 SB NO. 481
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Part, have sole authority and responsibility for defining the specific data processing1
equipment, related services, and software to which the provisions of this Part shall2
be applicable. The office of technology services shall, subject to the provisions of3
this Part, have sole authority and responsibility for defining the specific4
information technology systems and information technology services to which5
the provisions of this Part shall be applicable. Rules and regulations shall be6
promulgated as may be necessary to carry out the provisions of this Part.7
§197. Definitions8
For the purposes of this Part, the following words and phrases shall be9
defined as follows:10
(1)  "Agency" as used in this Part shall have the same meaning ascribed11
to it as provided in R.S. 36:3(1).12
(2) "Competitive sealed bidding" means a method of procurement which13
strictly follows the requirements set forth in Chapter 17 of Title 39 of the14
Louisiana Revised Statutes of 1950 except for such variations as are specifically15
established herein.16
(3) "Procurement" means the selling, buying, purchasing, renting,17
leasing, or otherwise obtaining information technology systems, information18
technology services, or its related software, as well as all activities engaged in,19
resulting in, or expected to result in the selling, buying, purchasing, renting,20
leasing, or otherwise obtaining information technology systems, information21
technology services, or its related software by the state or its agencies.22
(4) "Software" means computer programs and documentation essential23
to and necessary for an information technology system or information24
technology service to perform productive operations.25
(5) "Information technology service contract" means a contract for the26
procurement of information technology services to include but not be limited27
to software as a service, infrastructure as a service, platform as a service,28
application hosting services, or installation and configuration services.29 SB NO. 481
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(6) "Information technology systems", which shall include information1
technology equipment and related services, and "information technology2
services" are limited to the equipment and services and means to provide:3
(a) Server systems and services.4
(b) Storage systems and services.5
(c) Information technology security systems and services.6
(d) Related peripheral systems and services.7
(e) Software and software application services.8
(f) Infrastructure and platform systems and services.9
(g) Desktop computing systems and services.10
(h) Geographic information systems and services.11
(i) Mobile device systems and services.12
(j) Any and all systems and services based on emerging and future13
information technologies relating to Subparagraphs (a) through (i) of this14
Paragraph.15
(7) "Information technology systems contract" means a contract for the16
procurement of information technology systems including equipment and17
related services to include but not be limited to installation and maintenance.18
(8) "Information technology systems lease contract" means a contract19
between a supplier of information technology systems and the division of20
administration, office of technology services, or the procuring agency, through21
which information technology systems may be procured for a term which shall22
not exceed ten years. The contract may be either an operating lease, installment23
purchase, or a financed lease without a balloon payment.24
(9) "Utility" means any information technology service provided by the25
office of technology services and used in the essential operations of a state26
agency, such as system authentication, data replication, and system utilization27
and performance management.28
(10) "Related services" means and is limited to service activities affecting the29 SB NO. 481
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maintenance of data processing information technology equipment or software and1
the providing of fiscal intermediary services in processing claims of health care2
providers. Notwithstanding any other provisions of law to the contrary, "related3
services" shall also mean those consulting services ancillary to the procurement of4
data processing information technology hardware or software that would otherwise5
be governed by the provisions of professional, personal, consulting, and social6
services procurement in Chapter 16 of this Title, provided those consulting services7
are limited to the lesser of twenty percent of the procurement amount or two hundred8
fifty thousand dollars.9
(2)(11) "Direct order contract" means a contract which covers a specific class10
of data processing information technology equipment, software, or services, or a11
contract which covers a single, specific class of data processing information12
technology equipment, software, or services, and all features associated with that13
class and through which state agencies may procure the item of hardware specified14
by issuing a purchase order under the terms of the contract, without the necessity of15
further competitive bidding.16
(3)(12) "Multi-year contract" means contracts for a term of more than one17
year, not to exceed ten years and includes the following:18
(a) Contracts between a supplier of data processing equipment, information19
technology systems, information technology services, and software, and related20
services, and the state or a state agency through which data processing equipment,21
information technology systems, information technology services, and software,22
and related services except for fiscal intermediary services for the processing of23
claims of health care providers, may be leased or purchased for a term of more than24
one fiscal year, but the term shall not exceed sixty months.25
(b) Contracts for fiscal intermediary services for the processing of claims26
received from health care providers.27
(4)(13) "Rental contract" means and includes contracts between a supplier of28
data processing information technology equipment and the state, or a state agency,29 SB NO. 481
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through which data processing information technology equipment may be leased1
for a term not to exceed one fiscal year, such contracts to include the right of2
termination by the state upon notice of ninety days or less, and to be renewable, upon3
review and recommendations of the procurement support team and review and4
approval by the office of data processing information technology, with such5
renewal to be limited to one additional term not to exceed twelve months.6
(5) "Software" means computer programs and documentation essential to and7
necessary for a computer to perform productive operations.8
(6)(14) "Competitive sealed bidding" means a method of procurement which9
strictly follows the requirements set forth in Chapter 17 of Title 39 except for such10
variations as are specifically established herein.11
(7) "Procurement" means and includes the selling, buying, purchasing,12
renting, leasing, or otherwise obtaining data processing equipment, related services13
or software, as well as all activities engaged in, resulting in or expected to result in14
the selling, buying, purchasing, renting, leasing or otherwise obtaining of data15
processing equipment, related services or software by the state or its agencies.16
(8)(15) "Emergency acquisitions or rentals of data processing information17
technology" means a method of procurement utilized when there exists a threat to18
the public health, welfare, safety or public property.19
(9)(16) "Master agreement" means an agreement between the state and a20
vendor which specifies the general terms and conditions under which parties will21
routinely conduct procurement business.22
(10)(17)  "Purchase contract" means a contract that is utilized for the direct23
acquisition of certain equipment, including but not limited to data processing24
information technology, word processing, micro desktop computers, server25
systems, storage systems, mobile computing systems, peripheral systems,26
software, and related services. Such contract shall contain the terms and conditions27
pertinent to the rights and obligations of both the state and the vendor. Any purchase28
by direct acquisition under the terms of the purchase contract will require one single29 SB NO. 481
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payment, and title shall pass to the state upon the date of purchase as defined in the1
contract unless the purchase contract is amended by an installment payment contract.2
(11)(18) "Installment-payment contract" means a contract which amends and3
is incorporated into a purchase contract and is utilized to finance with the vendor the4
purchase of certain equipment, including but not limited to data processing5
information technology, word processing, micro desktop computers, server6
systems, storage systems, mobile computing systems, peripheral systems,7
software, related services, and related supplies or a contract which itself alone is8
utilized to procure such equipment from a contractor and provides therein for9
payment in a set of installments over a fixed period of time. An installment payment10
contract shall arrange for a method of financing with payment being made in a set11
of installment payments over a fixed period of time in accordance with the12
provisions of the contract and shall provide for the vendor to deliver title to the13
governmental body in accordance with such terms.14
§198. Types of contracts permitted15
A. The types of contracts permitted in the procurement of data processing16
information technology systems, information technology services, equipment,17
related services, and software are defined herein in this Part, and the provisions of18
this Part supersede, with respect to such procurements, any existing conflicting19
statutory provisions and supplement the provisions of R.S. 39:1551 through 1736.20
B. The office of technology services, through the state purchasing office,21
may, on behalf of any state agency, enter into information technology systems22
contracts in accordance with the following provisions:23
(1) Contracts of this type shall be entered into through a request for24
proposals as defined in this Part. An invitation to bid format may be utilized25
with written approval from the state chief information officer.26
(2) The term of such contracts shall not exceed five years.27
C. The office of technology services, through the state purchasing office,28
may on behalf of any state agency, enter into information technology services29 SB NO. 481
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contracts in accordance with the following provisions:1
(1) Contracts of this type shall be entered into through a request for2
proposals as defined in this Part. An invitation to bid format may be utilized3
with written approval from the state chief information officer.4
(2) The term of such contracts shall not exceed ten years.5
D. The office of technology services, through the state purchasing office,6
may on behalf of any state agency, enter into a information technology systems7
lease contract for an operating lease, installment purchase, or financed lease for8
information technology systems in accordance with the following provisions:9
(1) All contracts of this type shall be entered into through a request for10
proposals as defined in this Part.11
(2) The justification of such contracts must be approved by the office of12
technology services prior to issuance of a request for proposals. Such13
justification shall identify and consider all cost factors relevant to that contract.14
(3) The term of such contracts shall not exceed ten years, except financed15
contracts shall be for a term not to exceed the economic life of the system or ten16
years, whichever is less.17
(4) Upon the advance written approval of the office of technology18
services, state agencies may extend operating leases of information technology19
systems on a month-to-month basis for a period not to exceed one calendar year20
for the stated lease prices.21
E. Notwithstanding the provisions of R.S. 39:1615 to the contrary, the22
use of a multi-year contract for information technology systems and23
information technology services shall be in accordance with rules and24
regulations and under the following conditions:25
(1) The state chief information officer shall approve in writing the use of26
a multi-year contract over one year, not to exceed three years.27
(2) The director of the state purchasing office shall approve in writing28
the use of a multi-year contract over three years, not to exceed five years.29 SB NO. 481
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(3) The commissioner of administration, or his designee, shall approve1
in writing the use of a multi-year contract over five years.2
(4) A report of all multi-year contracts shall be provided to the Joint3
Legislative Committee on the Budget no later than ninety days after the end of4
each fiscal year.5
A F. Direct order contracts. The division of administration office of6
technology services, through the state central purchasing agency, shall, on behalf of7
all state agencies, enter into a direct order contract with a vendor of data processing8
information technology equipment for the purchase, rental, or both, of such9
equipment in accordance with the following provisions:10
(1) Specifications for direct order contracts. Specifications for direct order11
contracts shall be developed in advance and shall conform to the following12
requirements:13
(a) Specifications for direct order contracts shall cover a specific class of14
equipment and may include all features associated with that class.15
(b) Specifications in the invitation for bids for direct order contracts shall be16
developed by the office of data processing information technology.17
(c) Specifications shall be based on the projected needs of user agencies.18
(d) Specifications for direct order contracts for the purchase and/or rental of19
data processing information technology may include specifications for the20
maintenance of the equipment desired.21
(2) Procurement of direct order contracts. The initial procurement of a direct22
order contract, and procurement of equipment by using agencies under a direct order23
contract, shall be as defined herein:24
(a) Direct order contracts shall be awarded by competitive sealed bidding.25
(b) A using agency may procure required data processing information26
technology equipment available under a direct order contract through release of a27
purchase order for the required equipment to the vendor holding a direct order28
contract. However, such procurement by purchase order shall be accomplished in29 SB NO. 481
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accordance with the procedures and regulations prescribed by the state central1
purchasing agency in the Division of Administration division of administration and2
shall be subject to all other statutory requirements.3
(3) The final authority for entering into direct order contracts shall rest with4
the Division of Administration division of administration, and such contracts shall5
be executed by the purchasing office, in accordance with procedures and regulations6
defined by the Division of Administration division of administration.7
(4) Terms and conditions of direct order contracts. Direct order contracts8
shall include the following terms and conditions:9
(a) Direct order contracts for data processing information technology10
equipment are subject to the following requirements:11
(i)(a) Direct order contracts shall be valid for not more than three fiscal years.12
(ii)(b) The prices stated in such contract shall be firm for the period of the13
contract; except that, all such contracts shall include a clause granting to the state the14
benefit of any general price reductions effected by the vendor during the term of the15
contract.16
(iii)(c) Individual items of computer hardware which may be included under17
a direct order contract may not have a purchase price greater than seventy-five18
thousand dollars or a monthly rental price greater than two thousand dollars. Such19
price shall not include costs of maintenance, taxes, or transportation.20
(iv)(d) Direct order contracts shall include the annual appropriation21
dependency clause set forth in Subparagraph BG(1)(d) of this Section.22
(v)(e) Direct order contracts may be extended into one additional fiscal year23
only under the following conditions:24
(aa)(i) Such extension of a direct order contract shall be subject to the25
approval of the office of data processing information technology.26
(bb)(ii) The vendor may increase rental prices for the term of the additional27
fiscal year by an amount equal to the lesser of any increase permitted by that28
vendor's contract with the General Services Administration of the United States29 SB NO. 481
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Government for such equipment, or any increase in that vendor's published list prices1
for such equipment, during that fiscal year; provided that, such increase may not2
exceed ten percent, and the increase must have been authorized by the initial direct3
order contract.4
(vi)(f) Items covered by a direct order contract may also be acquired through5
additional competitive sealed bidding.6
B.G. Multiyear contracts other than direct order contracts and contracts for7
fiscal intermediary services in processing claims of health care providers. State8
agencies may enter into contracts for the lease or purchase of data processing9
equipment information technology systems, information technology services, or10
software when the term of such lease or purchase is greater than twelve months or11
involves more than one fiscal year in accordance with the following provisions:12
(1) General terms and conditions for multiyear contracts shall be as follows:13
(a) All contracts of this type shall be entered into through competitive sealed14
bidding.15
(b) The justification of such contracts must be presented to the state central16
purchasing agency prior to issuance of an invitation for bids. Such justification shall17
identify and consider all cost factors relevant to that contract.18
(c) The term of such contract shall not exceed sixty months.19
(d) All such contracts must contain the following annual appropriation20
dependency clause:21
"The continuation of this contract is contingent upon the continuation of an22
appropriation of funds by the legislature to fulfill the requirements of the contract.23
If the legislature fails to appropriate sufficient monies to provide for the continuation24
of a contract or if such appropriation is reduced by the veto of the governor or by any25
means provided in the Appropriation Act or Title 39 of the Louisiana Revised26
Statutes of 1950 to prevent the total appropriations for the year from exceeding27
revenues for that year or for any other lawful purpose and the effect of such28
reduction is to provide insufficient monies for the continuation of the contract, the29 SB NO. 481
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contract shall terminate on the date of the beginning of the first fiscal year for which1
funds are not appropriated."2
(e) The state central purchasing agency in the Division of Administration3
division of administration shall maintain a list of all multi-year contracts. This list4
must show at a minimum the name of the vendor, the annual cost of each contract,5
and the term of the contract.6
(f) All such contracts for lease must contain a clause granting to the state the7
benefit of any general price reduction effected by the vendor during the term of the8
contract.9
(g) With respect to all such contracts for purchase, there shall be no10
provisions for a penalty to the state for the early payment of the contract.11
(2) Provisions relating to multi-year contracts for software:12
(a) Contracts for software which extend for periods greater than twelve13
months or which cover all or a portion of more than one fiscal year, but which14
require only a single payment by the state to the vendor, may be entered into by any15
state agency, without regard to the specific requirements of Paragraph (1) of this16
Subsection.17
(3) Provisions relating to multi-year contracts for the installment payment of18
financing for certain equipment, including but not limited to data processing, word19
processing, micro desktop computers, server systems, storage systems, mobile20
computing systems, peripheral systems, software, and related services are as21
follows:22
(a) Installment-payment contracts will be entered into with vendors of the23
defined equipment by the Division of Administration division of administration24
through the state central purchasing agency on behalf of all state agencies in25
accordance with rules and regulations adopted by the director of central purchasing.26
(b) Installment-payment contracts may serve as amendments to and be27
incorporated into the vendor purchase contracts.28
(c) The installment-payment contract may serve as a financing agreement and29 SB NO. 481
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may contain only those provisions pertinent to the payment obligation, including but1
not limited to payment schedule and rate, provisions of default, assignment of2
payment stream, early payment, passage of title, and insurance coverage.3
(d) Each contract shall contain an annual dependency clause, as defined in4
R.S. 39:198(B)(G)(1)(d).5
(e) Installment-payment contracts utilized in procuring microcomputer6
equipment, word processing, software, and maintenance through brand name7
contracts shall contain a fixed interest for the term, which will generally be defined8
as one fiscal year, of the brand name contract. The interest rate is to be bid by the9
vendor, accepted by central purchasing, and approved by the State Bond10
Commission.11
(f) Interest rates for individual procurements of equipment either through the12
competitive sealed bid process or under the terms of the applicable brand name13
contract shall be fixed for the term of the multi-year contract specific to that14
individual procurement.15
(g) The term of an installment-payment contract utilized for the equipment16
defined herein shall not exceed sixty months.17
(4) Provisions relating to the procurement of information technology18
consulting services through the office of technology services shall be conducted19
in accordance with the provisions of R.S. 39:1481 through 1526.20
C.H. Rental Contracts. Upon the advance written approval of the state central21
purchasing agency, state agencies may enter into contracts for the rental of data22
processing information technology equipment and related services on a month to23
month basis for a period not to extend beyond the end of the fiscal year in which the24
contract is made. All such contracts shall be entered into only as a result of25
competitive sealed bidding procedures.26
(1) Equipment currently installed, or installed at the beginning of a fiscal year27
under a valid rental contract, may be retained at the end of the fiscal year by28
renewing or extending the existing rental contract for one additional term, not to29 SB NO. 481
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exceed twelve months, without competitive sealed bidding procedures, subject to the1
following provisions:2
(a) All prices under a fiscal year rental contract shall be no greater than the3
supplier's established catalogue price and shall be firm for the fiscal year in which4
the contract is made, with the exception that the state shall be entitled to any general5
price reductions effected by the supplier during the term of the contract.6
(b) All rental contracts shall have a notice of termination provision in favor7
of the state not to exceed ninety days and shall allow termination of the contract as8
it applies to specific equipment or services without termination of the entire contract.9
(c) Renewal of a rental contract shall be subject to the advance review and10
recommendation of the procurement support team and to the advance written11
approval of the state central purchasing agency and shall only be permitted only if12
any proposed price increases do not exceed the supplier's current published list13
prices.14
(2) Termination of a rental contract may be effected, in addition to any other15
legal reasons, by the state central purchasing agency, which shall have authority to16
direct a user agency to terminate, with adequate notice, a rental contract for the17
failure of any party to comply with the provisions herein, and to initiate competitive18
sealed bidding procedures in order to retain or replace the equipment affected by19
termination.20
D. I. Contracts for fiscal intermediary services in processing claims of health21
care providers. State agencies may enter into contracts for fiscal intermediary22
services in processing claims of health care providers. The term of such a contract23
shall be one hundred twenty months. In the event special circumstances, as provided24
in Paragraph (9) of this Subsection, necessitate, additional one-year extensions of25
the contract may be granted. The award process and final contract shall include the26
following:27
(1) Contracts for fiscal intermediary services in processing claims of health28
care providers shall be awarded by a competitive selection process which shall list29 SB NO. 481
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in the solicitation for proposals the method by which the contract shall be awarded1
and include all criteria to be used and the weights assigned to each criterion. The2
procedure for issuance of the solicitation for proposals shall be in accordance with3
guidelines published by the state central purchasing agency. The selection of the4
contractor shall be made by the head of the using agency only in accordance with the5
method and criteria as set forth in the solicitation for proposals and in accordance6
with the recommendation of the procurement support team.7
(2) Justification for the contract shall be submitted to the state central8
purchasing agency and shall be submitted to the House and Senate committees on9
health and welfare at least forty-five days prior to the issuance of a solicitation for10
proposals. Within thirty days of receipt of the justification by the House and Senate11
committees on health and welfare, either committee may convene a meeting12
separately or jointly for the purpose of conducting a public hearing on the13
justification which was submitted. Such justification shall include identification and14
consideration of all factors, including costs, relevant to the solicitation for proposals15
and the final contract.16
(3) The one-hundred-twenty-month term of such contract shall be divided17
into one period of between thirty-six months and sixty months, immediately followed18
by successive twelve-month periods. The state shall have an option to renew such19
contract for each of the twelve-month periods. If the state does not exercise its option20
to renew, the contract shall be terminated. In the event special circumstances occur,21
as provided in Paragraph (9) of this Subsection, additional twelve-month extensions22
of the contract may be granted.23
(4) In addition to other provisions as required by law or in the best interests24
of the state, such contract shall contain provisions setting forth, (a) the amount and25
requirements of the contractor's performance bond, (b) penalty and enforcement26
provisions for the failure of the contractor to perform in accordance with the contract27
documents, (c) conditions for optional renewal of the contract by the state in28
accordance with the provisions of this Subsection, and (d) requirements for29 SB NO. 481
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termination of the contract by the state at any time, or for cause, or upon the refusal1
of the state to exercise an option to renew such contract.2
(5) Issuance of specifications for a solicitation for proposals on a contract for3
fiscal intermediary services in processing claims of health care providers shall be4
made at least twelve months prior to the termination date of an existing contract,5
unless the contract termination is for cause or due to the refusal of the state to6
exercise an option to renew.7
(6) No award of the contract shall be made until the House and Senate8
committees on Health and Welfare health and welfare, meeting jointly or a joint9
subcommittee thereof has conducted a public hearing concerning such award.10
(7) No award of the contract shall be made later than eight months prior to11
the termination date of an existing contract, unless the contract termination is for12
cause or due to the refusal of the state to exercise an option to renew.13
(8) No option to renew such contract shall be exercised by the state until the14
following criteria have been satisfied:15
(a) The Department of Health and Hospitals has conducted a public hearing16
concerning such renewal.17
(b) The Department of Health and Hospitals submits to the House and Senate18
committees on health and welfare a notice of intention by the Department of Health19
and Hospitals to exercise the option to renew such contract and a copy of any public20
testimony which was taken at the public hearing held by the Department of Health21
and Hospitals. The House and Senate committees on health and welfare, meeting22
separately or jointly, may hold a public hearing concerning such renewal within23
thirty days following the receipt of a notice of intention by the Department of Health24
and Hospitals to exercise the option to renew such contract.25
(c) The House and Senate committees on health and welfare, meeting26
separately or jointly, have conducted a public hearing concerning such renewal or27
thirty days have elapsed from the date the Department of Health and Hospitals28
submitted a notice of intention to renew such contract to the House and Senate29 SB NO. 481
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committees on health and welfare and neither committee has posted a public notice1
of meeting concerning the renewal of such contract.2
(9) In the event the Department of Health and Hospitals and/or the United3
States Department of Health and Human Services, Health Care Financing4
Administration propose substantial changes in the operations of the Medicaid5
program that would materially impact the services performed by the fiscal6
intermediary, the Department of Health and Hospitals may, subject to the approval7
of the House and Senate committees on health and welfare, approve additional8
extensions of the contract until such time as it is practical to prepare a solicitation for9
proposals describing the revised services that would be performed by the fiscal10
intermediary. During the time frame covered by any extension beyond the original11
one-hundred-twenty-month period, the fiscal intermediary may be required to12
perform additional functions to assist in preparing the Department of Health and13
Hospitals in the transition to the new program. Such functions shall include existing14
fiscal intermediary services as well as efforts to control fraud and abuse, program15
reports, beneficiary enrollment and program information services, encounter data,16
and annual managed care negotiation data.17
E.J. Master Agreements. The state director of purchasing may enter into18
master agreements with vendors with which the state conducts substantial business19
over a period of time.20
(1) Such agreements shall set forth those terms and conditions of specific21
legal import which relate to the basic provisions according to which procurement22
activity will be conducted, and shall meet the following requirements:23
(a) Such agreements may be for any term up to sixty months.24
(b) All agreements must contain a clause providing that any changes25
mandated by state or federal law, whether legislative or judicial, will be26
incorporated; however, if such a change is not acceptable to either party, the affected27
term or terms of the contract shall be renegotiated and, if agreement cannot be28
reached, shall be stricken from the contract.29 SB NO. 481
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(c) A specific provision of any such agreement may be waived or changed1
only once during the term of the agreement, by mutual consent, expressed in writing.2
(d) Each master agreement must be negotiated by a procurement support3
team and executed on behalf of the state by the state director of purchasing.4
(2) Vendors may refer to the master agreement on file with the state director5
of purchasing when responding to invitations for bids for specific items of data6
processing information technology equipment, related services, or software. Such7
bid responses must include a proposed schedule incorporating the terms of the master8
agreement and further detailing the items and prices bid. The selected vendor and the9
procuring agency shall sign the schedule and submit it to the state central purchasing10
agency for approval.11
(3) The state director of purchasing, subject to the approval of commissioner12
of administration, shall have authority for determining when and if master13
agreements may be used. Notwithstanding any other provisions of this Part, master14
agreements shall not be used to circumvent the competitive bid process otherwise15
required by law.16
F.K. The Department of Public Safety and Corrections may enter into a17
multiyear contract not to exceed ten years when contracting for the Video Gaming18
Monitoring System for the purposes described in R.S. 27:302(A)(5)(o) R.S.19
27:405(B)(1). This contract may be awarded by the competitive request for proposal20
procedures set forth in R.S. 39:1593(C).21
G.L. The Department of Wildlife and Fisheries may enter into a multiyear22
contract not to exceed ten years when contracting for the issuance of hunting and23
fishing licenses through an electronic issuance system as authorized by R.S. 56:30.1.24
This contract may be awarded by the competitive request for proposal procedures set25
forth in R.S. 39:1593(C).26
M. Any contract entered into for a period of more than three years as27
authorized by this Section shall be subject to prior approval of the Joint28
Legislative Committee on the Budget.29 SB NO. 481
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§199. Methods of procurement1
A. The only methods of procurement permitted for the acquisition of data2
processing equipment, related services, or software are those defined in this Section.3
Except as provided in Subsection B, all procurement of computer hardware shall be4
by competitive sealed bidding.  The office of technology services, through the5
state purchasing office, may procure information technology systems and6
information technology services by a request for proposals to conform with the7
following requirements:8
(1) Public notice of the request for proposals shall be the same as for an9
invitation to bid as provided in R.S. 39:1594(C).10
(2)(a) The request for proposals shall indicate the relative importance of11
all evaluation factors and shall clearly define the work, service, or solution to12
be provided under the contract, the functional specifications, the criteria to be13
used in evaluating the proposals, and the time frames within which the work14
must be completed or the service provided.15
(b) For information systems lease contracts, the request for proposals16
shall require that proposals contain a declaration as to the maximum price for17
which the system may be purchased following the termination of the lease18
contract. No other basis of evaluation shall be used except that set out in the19
request for proposals.20
(3) The office of technology services shall evaluate all proposals to21
determine the proposal most advantageous to the state, taking into22
consideration all evaluation criteria set forth in the request for proposals, and23
shall make a recommendation of award to the state purchasing office.24
(4) The office of technology services may request that the state25
purchasing office reject all proposals when it is deemed that such action is in the26
best interest of the state.27
B. Other methods. Other methods of procurement permitted for acquisitions28
hereunder are small purchases in accordance with rules and regulations promulgated29 SB NO. 481
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by the state central purchasing agency and emergency acquisitions or rentals of data1
processing equipment if such procurement is conducted under applicable laws and2
rules and regulations specified by the state central purchasing agency. The office of3
technology services may procure information technology systems and4
information technology services in accordance with the law or regulations, or5
both, which govern the state purchasing office, the division of administration.6
C. Method for procuring maintenance services. Notwithstanding any other7
provisions of this Part, any agency may procure maintenance services for data8
processing information technology equipment without the need for competitive9
bidding. Such procurement must have the written advance approval of the state10
central purchasing agency and shall not be for a price greater than the vendor's11
published price. The procurement support team shall develop and deliver to the12
office of state purchasing and the office of information technology proposed rules13
establishing guidelines for procurement activities under this Part. Upon approval of14
the office of information technology, the office of state purchasing shall promulgate15
rules in accordance with the Administrative Procedure Act.16
D. Method for procuring software and software maintenance and support17
services. Notwithstanding any other provisions of this Part, any agency may procure18
data processing software, software maintenance, and support services without the19
need for competitive bidding. Such procurement must have the written advance20
approval of the state central purchasing agency and shall not be for a price greater21
than the vendor's published price. The procurement support team shall develop and22
deliver to the office of state purchasing and the office of information technology23
proposed rules establishing guidelines for procurement activities under this Part.24
Upon approval of the office of information technology, the office of state purchasing25
shall promulgate rules in accordance with the Administrative Procedure Act.26
E. Method for procuring microcomputer equipment, word processing27
equipment, software, and maintenance services. Notwithstanding any other28
provisions of this Part, any agency may procure by purchase, rental, or lease29 SB NO. 481
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microcomputer equipment, word processing equipment, software, and maintenance1
services through name brand contracts awarded by the state central purchasing2
agency in accordance with the provisions of R.S. 39:1551 through 1736. Such3
procurement must have the written advance approval of the state central purchasing4
agency. The terms and conditions of such name brand contracts may be amended by5
the central purchasing office.6
F. Method for procuring data processing information technology equipment,7
software, and maintenance services for public colleges and universities.8
Notwithstanding any other provisions of this Part, any public college or university9
may procure, through its purchasing officer, data processing information10
technology equipment, software, and maintenance services without the advance11
approval of the state central purchasing agency when a single expenditure for such12
materials or combined materials and services does not exceed one hundred thousand13
dollars.14
G.F.(1) The commissioner of administration shall for each fiscal year15
designate a goal for awarding to small businesses a portion of anticipated total state16
procurement of data processing information technology equipment and software.17
For purposes of this Subsection, "small businesses" shall be defined as an employer18
with fifty or fewer employees. The commissioner may divide the procurements so19
designated into contract award units of economically feasible production runs in20
order to facilitate offers or bids from small businesses. In making his annual21
designation of goals for small business procurements, the commissioner shall attempt22
to vary the included procurements so that a variety of data processing information23
technology equipment and software produced by different small businesses shall be24
a goal each year. The failure of the commissioner to establish a goal for particular25
procurements shall not be deemed to prohibit or discourage small businesses from26
seeking the procurement award through the normal solicitation and bidding27
processes. The commissioner of administration shall report to the Joint Legislative28
Committee on the Budget and to the House Committee on Commerce and the Senate29 SB NO. 481
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Committee on Commerce, Consumer Protection, and International Affairs on the1
program established in this Subsection each year prior to the submission of the2
executive budget. Such report shall include the goals and awards from the previous3
year, a list of unsuccessful awards as described in Paragraph (4) of this Subsection,4
and the goals for the upcoming year.5
(2) Contract procedure. The commissioner shall establish a contract6
procedure in accordance with law, for the awarding of a procurement contract under7
the goals established in this Subsection. Surety bonds guaranteed by the federal8
Small Business Administration shall be acceptable security for an award under this9
Subsection.10
(3) Responsibility of bidder or offeror. Before making a goal award, the11
commissioner shall evaluate whether the small business scheduled to receive the12
award is able to perform the set-aside contract. This determination shall include13
consideration of production and financial capacity and technical competence.14
(4) Award of contracts after unsuccessful goal procedures. In the event that15
the provisions of this Subsection do not operate to extend a contract award to a small16
business, the award shall be placed pursuant to the existing solicitation and award17
provisions established by law. The commissioner shall thereupon designate a goal18
for small businesses' additional state procurements of data processing information19
technology equipment and software corresponding in approximate value to the20
contract unable to be awarded pursuant to the provisions of this Subsection.21
(5) Conflict with other code provisions. All laws and rules pertaining to22
solicitations, bid evaluations, contract awards, and other procurement matters not23
inconsistent with the provisions of this Subsection shall apply to procurements set-24
aside for small businesses. In the event of conflict with other rules, the provisions of25
this Subsection shall govern.26
§200. General provisions27
The following general provisions shall apply to all procurements under this28
Part:29 SB NO. 481
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A. Used equipment. Used data processing information technology1
equipment is defined to include all equipment which cannot be certified as new by2
the vendor. Used equipment may be acquired through rental or purchase when the3
vendor and/or manufacturer certify that:4
(1) The equipment has been properly maintained and used.5
(2) Maintenance acceptable to the state is available by contract at a cost6
which shall not increase the total cost to the state to that level which would exist7
should the state acquire the same equipment new.8
(3) The equipment is warranted by the manufacturer or vendor under the9
same terms and conditions as those offered by the manufacturer for that equipment10
when new.11
B. Purchase of equipment being leased or rented. Equipment being leased or12
rented by a state agency may be purchased without the need for competitive sealed13
bidding. When the contract under which the equipment is being leased or rented14
provides for any credit of rental or lease payments toward purchase, the leasing or15
renting vendor shall be required to deduct such credits from the purchase price. A16
written analysis of the contract must be made by the using agency and filed with the17
state central purchasing agency. Such analysis shall at a minimum include the current18
market value of the equipment, the total amount paid to the vendor as lease or rental19
payments credited to the purchase price, the total time the equipment was leased or20
rented, and the amount of and contractor for related prior and subsequent contracts,21
including but not limited to maintenance contracts. Such purchases shall have the22
written advance approval of the state central purchasing agency, and the legislature23
shall have provided a specific appropriation for such purchase.24
C. Disposition of data processing information technology equipment no25
longer required by state agencies. The state central purchasing agency shall have the26
authority to dispose of data processing information technology equipment no longer27
required by a state agency in accordance with regulations which shall be developed28
and published by the state central purchasing agency. Such dispositions may be29 SB NO. 481
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through trade-in, assignment to another state agency, or sale. Dispositions other than1
by assignment to another agency shall be on a competitive basis.2
D. Effective date of contracts. Any contracts entered into under the3
provisions of this Part may have an effective starting date at any point during a fiscal4
year. No contract entered into hereunder shall have an initial effective date earlier5
than the date on which such contract receives the final statutorily required approval.6
However, with the approval of the state central purchasing agency, a state agency7
shall make payments to a vendor in those circumstances where it has utilized the8
data processing information technology equipment to be contracted prior to the9
actual receipt of the final statutorily required approval. The state central purchasing10
agency shall determine the size of the payments in accordance with the number of11
such days of utilization.12
E. Contract amendments. All changes, modifications, and amendments to any13
contract hereunder shall be approved in advance by the state central purchasing14
agency, in addition to any other statutorily required approvals. This Subsection shall15
not apply to contracts for maintenance or software, but amendments to such contracts16
may not increase the rates specified in such contracts to a figure greater than the17
vendor's published standard rates.18
F. Contract form. No contracts entered into hereunder shall be on preprinted19
contract forms supplied by a vendor, unless otherwise approved by the director of20
state purchasing.21
G. Proposal or bid incorporated into contract. Where written proposals or22
bids are submitted by vendors, the proposal or bid of the successful vendor shall be23
incorporated into the final contract consummated with that vendor.24
H. Letters of intent. Letters of intent may be issued by an agency to a vendor25
solely for the purpose of obtaining a delivery schedule with that vendor. All such26
letters must be clearly identified as such, and must be filed on issuance with the27
office of data processing information technology and the attorney general.28
I. Procurement support. All contracts covered under the provisions of this29 SB NO. 481
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Chapter, in an amount greater than one hundred thousand dollars, whether for1
purchase or rental payments or fiscal intermediary services in processing claims of2
health care providers, or master agreements, but excluding taxes, transportation, and3
other related services, shall be entered into with the assistance of a procurement4
support team as provided in Paragraph (2) below of this Subsection and in5
accordance with guidelines to be published by the state central purchasing agency.6
(1) Procurement support team participation must include, as a minimum,7
assistance in evaluation of bids and negotiation of contracts.8
(2) A procurement support team shall consist of a person chosen jointly by9
the speaker of the House of Representatives and the president of the Senate from10
among the attorneys on the legislative services staff of the House of Representatives11
or the staff of the Senate and one or more representatives from each of the following:12
the Division of Administration, central purchasing agency; the using agency13
initiating the procurement action; and the Legislative Fiscal Office. At least two14
members of the team shall have received formal training in computer contract15
negotiations. At least four members, one from each office or agency designated,16
must be present to constitute a quorum.17
J. Contract specifications. (1) A specification may be drafted which describes18
a product which is proprietary to one company only where when no other kind of19
specification is reasonably available for the state to describe its requirements; or20
where there is a requirement for specifying a particular design or make of product21
due to factors of compatibility, standardization, or maintainability; and, where when22
such specification includes language which specifically permits an equivalent to be23
supplied. Such specification shall include a description of the essential characteristics24
of the product.25
(2) Whenever proprietary specifications are used, the specifications shall26
clearly state that the proprietary characteristics are used only to denote the quality27
standard of the equipment desired and that such specifications do not restrict vendors28
to the specific brand, make, or manufacture; that they are used only to set forth and29 SB NO. 481
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convey to prospective bidders the general style, type, character, and quality of1
equipment desired; and that equivalents will be acceptable.2
(3) The specifications in an invitation for bids shall contain a list of the3
factors to be considered in evaluating the responses to the invitation, and any weights4
assigned to those factors. No other basis of evaluation shall be used with respect to5
bids received. When relevant, the following factors shall be included in the6
specifications: cost of transportation, installation, and conversion of operations;7
taxes; or cost of conversion to different equipment architecture.8
K. The provisions of this Part shall, with respect to the procurement of9
information technology systems or information technology services, supersede10
specifications of any contradictory or conflicting provisions of the following11
statutes: R.S. 38:2211 et seq. with respect to awarding of public contracts and12
R.S. 39:1551 through 1736, but all other provisions in Chapter 17 of Title 3913
apply to all procurements under this Part. The provisions of this Part do not14
relate to the procurement of services covered by R.S. 39:1481 through 152615
except as provided in R.S. 39:198. The Louisiana Lease of Movables Act, R.S.16
9:3301 through 3342, shall not apply to the provisions of this Part.17
L. Volume discounts. The state director of purchasing, on behalf of one or18
more state agencies, may enter into non-binding agreements with vendors for the19
purpose of establishing volume discounts. Such agreements shall be based on the20
estimated usage and requirements of state agencies. In addition to specific21
authorizations contained in this Part, and pursuant to R.S. 39:15.2(C), the state22
chief information officer, with the approval of the commissioner of23
administration or his designee, shall have the power and authority to make24
necessary and reasonable regulations and orders to carry out the provisions of25
this Part in accordance with the provisions of the Administrative Procedure26
Act.27
M. Other laws. The provisions of this Part shall, with respect to the28
procurement of data processing equipment, related services, and software, supersede29 SB NO. 481
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words in boldface type and underscored are additions.
specifications of any contradictory or conflicting provisions of the following statutes:1
R.S. 39:330 with respect to the disposition of equipment; R.S. 38:2211 et seq. with2
respect to the awarding of public contracts; and Chapter 17 of Title 39. The3
provisions of this Part do not relate to the procurement of services covered by R.S.4
39:1481 through R.S. 39:1526.5
Section 3. The Louisiana State Law Institute is hereby authorized and requested to6
review all statutes which contain the name of the office of information technology, changed7
in this Act, and in all locations it deems appropriate change said references to the office of8
technology services.9
Section 4. This Act shall become effective on July 1, 2014; if vetoed by the governor10
and subsequently approved by the legislature, this Act shall become effective on July 1,11
2014, or on the day following such approval by the legislature, whichever is later.12
The original instrument was prepared by Jay R. Lueckel. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Cathy Wells.
DIGEST
Donahue (SB 481)
Present law provides for the office of information technology. 
Proposed law recreates this office as the office of technology services. Provides for the
office of technology services within the executive branch of state government.
Present law provides for the chief information officer who is referred to as the "CIO".
Provides that the CIO shall be appointed by the governor and report to the commissioner of
administration concerning the direction, stewardship, leadership, and oversight of
information technology and information resources.
Proposed law provides that nothing in these provisions shall apply to the public
postsecondary management boards or the Board of Regents as provided in Article VIII of
the Constitution of Louisiana. Exempts elected officials from the authority of the office of
technology services and the state chief information officer.
Present law provides relative to elected officials that to accomplish the work of the office
of information technology services, all agencies as defined shall cooperate with the office
and provide assistance as required. However, if the office and a statewide elected official
cannot jointly agree on an information technology plan, system, or service for any agency
under his jurisdiction, then he may implement an information technology plan, system or
service of his own, upon finding just cause to do so and after giving notice of his actions and
reason therefore at a meeting of the Joint Legislative Committee on the Budget. Prior to
implementation, any such information technology plan, system or service adopted by a
statewide elected official shall be as compatible as is practical under the circumstances with
the state master technology plan. SB NO. 481
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words in boldface type and underscored are additions.
Proposed law provides that nothing in these provisions shall apply to the authority of any
statewide elected officials relative to the authority to implement information technology
plans, systems, or services for any agency under their jurisdiction.
Proposed law provides that beginning  Oct. 1, 2014, the CIO shall report quarterly to the
Joint Legislative Committee on the Budget on the status of the consolidation of the
information technology functions of the executive branch of state government.  Proposed
law requires the report to provide information on organizational changes within the division
of administration, as well as organizational changes between the office of technology
services and the other executive branch agencies.  Proposed law further requires the report
to include information and data on personnel changes, changes in purchasing and
procurement, and any budgetary changes that have occurred
Proposed law renames this position as state chief information officer and adds authority for
the CIO to oversee operation of information technology and information resources.
Proposed law provides for additional duties and responsibilities including being responsible
for establishing and coordinating all information technology systems across the executive
branch of state government. Such coordination shall include telecommunications systems
and services; network systems and services; server systems and services; storage systems
and services; information technology security systems and services; related peripheral
systems and services; software and software application services; infrastructure and platform
systems and services; desktop computing systems and services; geographic information
systems and services; mobile device systems and services; video systems and services
(except those specifically reserved to the Louisiana Educational Television Authority); radio
systems, provided the operational abilities and priorities of two-way communications of the
departments in the executive branch are not impeded; and emerging and future information
technologies.
Proposed law further details the responsibilities and duties of the CIO and the office of
technology services, including acting as the sole centralized customer for the acquisition,
billing, and recordkeeping of information technology systems or services provided to state
agencies; developing coordinated information technology systems or services within and
among state agencies; and reviewing, coordinating, approving, or disapproving requests by
state agencies for information technology procurement.
Present law provides for data processing procurement.
Proposed law changes "data processing procurement" to "information technology
procurement" and provides that the CIO and the office of technology services shall have
authority for defining the specific information technology systems and services which shall
be applicable under information technology procurement.  	Proposed law provides updated
definitions for information technology procurement. 
Present law provides for the types of contracts permitted under data processing procurement.
Proposed law changes "data processing" to "information technology" and further provides
for the types and terms of contracts permitted under information technology procurement.
Present law provides for methods of procurement. Relative to multiyear contracts, requires
all multiyear information system technology contracts be reported to the Joint Legislative
Committee on the Budget within ninety days after the end of each fiscal year.
Proposed law requires prior approval of the Joint Legislative Committee on the Budget on
all contracts let for more than three years. 
Proposed law further specifies methods of procurement relative to information technology
and information services to encompass requests for proposal, laws and regulations governing SB NO. 481
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words in boldface type and underscored are additions.
the state purchasing office, and other methods.
Present law provides for general procurement provisions. Provides for the establishment of
master purchase contracts for equipment provided by individual manufacturers. 
Proposed law removes authority for establishing noncompetitive master price agreements
although such competitively priced agreements shall be retained.
Proposed law clarifies the applicability of the Lease of Movable Act with respect to the
leasing of information technology equipment.
Proposed law retains present law, but changes "data processing" specifications to
"information technology".
Proposed law clarifies the applicability of the Lease of Movables Act with respect to the
leasing of information technology equipment under the Information Technology
procurement code.
Proposed law authorizes the CIO to make necessary and reasonable regulations to carry out
the provisions of proposed law in accordance with the APA.
Directs the La. Law Institute to review all statutes which contain the name of the office of
information technology and make all changes it deems necessary to such references.
Effective July 1, 2014. 
(Amends R.S. 36:4(B)(1)(e), R.S. 39:15.1, 15.2, 15.3, 196, 197, 198, 199, and 200)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the original
bill
1. Exempts elected officials from the authority of the office of technology
services and the state chief information officer.
2. Provides for the office of technology services within the executive branch of
state government.
3. Requires that all multiyear information system technology contracts be
reported to the Joint Legislative Committee on the Budget within ninety days
after the end of each fiscal year.
4. Directs the La. Law Institute to review all statutes which contain the name
of the office of information technology and make all changes it deems
necessary to such references.
Senate Floor Amendments to engrossed bill
1. Makes technical changes.
2. Requires quarterly reporting by the chief information officer (CIO) to the
Joint Legislative Committee on the Budget on the status of the consolidation
efforts and provides for the content of such report. SB NO. 481
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words in boldface type and underscored are additions.
3. Requires prior approval of the Joint Legislative Committee on the Budget on
all contracts entered into for more than three years. 
4. Requires the regulations to be adopted accordance with the provisions of the
APA.