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Regular Session, 2014
SENATE BILL NO. 522
BY SENATOR WARD
PUBLIC CONTRACTS. Authorizes the state to enter into consulting services contracts with
licensed insurance producers for the procurement of insurance for risk management. (8/1/14)
AN ACT1
To amend and reenact R.S. 39:1484(A)(4)(b) and 1540, relative to consulting service2
contracts; to authorize the office of risk management to enter into consulting service3
contracts with one or more licensed insurance producers; to provide for the definition4
of consulting services; to provide for approvals of such contracts; and to provide for5
related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 39:1484(A)(4)(b) and 1540 are hereby amended and reenacted to8
read as follows: 9
§1484. Definitions and objectives10
A. When used in this Chapter, the words defined in this Section shall have11
the meanings set forth below unless the context in which they are used clearly12
requires a different meaning or a different definition is prescribed for a particular13
Part or provision:14
* * *15
(4) * * *16
(b) The term "consulting service" includes the procurement of supplies and17 SB NO. 522
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services by a contractor without the necessity of complying with provisions of the1
Louisiana Procurement Code when such supplies and services are either for2
insurance procured directly by a licensed insurance producer pursuant to R.S.3
39:1540(B) or, are merely ancillary to the provision of consulting services under a4
contingency fee arrangement, even though the procurement of such supplies or5
services directly by a governmental body would require compliance with the6
Louisiana Procurement Code. Supplies or services ancillary to the provision of7
consulting services are those supplies or services which assist the contractor in8
fulfilling the objective of his contract when the cost for such supplies and services9
is less than the cost of providing consulting services, as determined by the using10
agency.11
* * *12
§1540. Competition13
A. Every contract entered into by the state for the purchase of insurance or14
for obtaining services relating to the operation of the insurance program shall be15
awarded by either competitive sealed bidding or competitive negotiation.16
Competitive negotiation shall be initiated by the issuance of a request for proposals17
containing a description of the coverage required and the factors to be used in18
evaluating the proposals. Where there is more than one offeror, written or oral19
discussions shall be conducted with at least the three, or two if there are only two,20
highest qualified offerors who submit proposals determined in writing to be21
reasonably susceptible of being selected for award. The contract shall be awarded22
with reasonable promptness by written notice to the responsible offeror whose23
proposal meets the requirements and criteria set forth in the request for proposals and24
whose proposal is most beneficial to the state, considering the price and the25
evaluation factors set forth in the request for proposal. Public notice of the request26
for proposals shall be provided in the same manner as established in Part V of27
Chapter 1 of Title 39 of the Louisiana Revised Statutes R.S. 39:1551, et seq.28
B.(1) The office of risk management, under the direction of the29 SB NO. 522
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commissioner of administration, is authorized to contract for consulting services1
with one or more licensed insurance producers upon a finding by the2
commissioner that the contract is in the best interest of the state. The contract3
authorized pursuant to the provisions of this Subsection may authorize one or4
more producers to advise the office of risk management regarding the office's5
insurance programs and to directly procure insurance.6
(2) No contract executed for consulting services under the provisions of7
this Subsection shall be effective until it has been approved by the Joint8
Legislative Committee on the Budget.9
(3) The division of administration shall provide a financial analysis and10
shall report annually on contracts and lines of insurance coverage secured11
under this Subsection to the Joint Legislative Committee on the Budget.12
Additionally, the commissioner of administration shall report to the Joint13
Legislative Committee on the Budget any contract award and all associated14
proposals received for consulting services under these provisions in response to15
each request for proposals.16
The original instrument was prepared by Jerry Guillot. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Jay Lueckel.
DIGEST
Ward (SB 522)
Present law, relative to procurement of consulting services contracts, provides that
"consulting services" includes the procurement of supplies and services without complying
with the La. Procurement Code if such services are merely ancillary to such contract.
Proposed law provides that consulting services include the procurement of insurance without
complying with the La. Procurement Code if such services are ancillary to such contract.
Otherwise retains present law.
Proposed law authorizes the office of risk management, under the direction of the
commissioner of administration, to contract for consulting services with one or more
licensed insurance producers if the commissioner finds that the contract is in the best interest
of the state. Provides that the contract may allow one or more producers to advise the office
of risk management regarding the office's insurance programs and to directly procure
insurance.
Proposed law provides that no contract executed under proposed law is effective until it has
been approved by the Joint Legislative Committee on the Budget (JLCB). SB NO. 522
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Proposed law requires that the commissioner of administration provide an annual submission
of a financial analysis and report on contracts and lines of insurance coverage secured to the
Joint Legislative Committee on the Budget. Additionally, requires reporting of any contract
award and all associated proposals for consulting services in response to each request for
proposals.
Effective August 1, 2014.
(Amends R.S. 39:1484(A)(4)(b) and 1540)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the original
bill
1. Requires annual submission of a financial analysis and report on contracts
and lines of insurance coverage secured to the Joint Legislative Committee
on the Budget.
2. Requires the commissioner of administration to report any contract award
and all associated proposals for consulting services in response to each
request for proposals.