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Regular Session, 2014 ENROLLED
SENATE BILL NO. 522
BY SENATOR WARD
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
services by a contractor without the necessity of complying with provisions of the18
Louisiana Procurement Code when such supplies and services are either for19
insurance procured directly by a licensed insurance producer pursuant to R.S.20
39:1540(B), or are merely ancillary to the provision of consulting services under a21
contingency fee arrangement, even though the procurement of such supplies or22
services directly by a governmental body would require compliance with the23
Louisiana Procurement Code. Supplies or services ancillary to the provision of24
consulting services are those supplies or services which assist the contractor in25
fulfilling the objective of his contract when the cost for such supplies and services26
ACT No. 715 SB NO. 522 ENROLLED
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is less than the cost of providing consulting services, as determined by the using1
agency.2
* * *3
§1540. Competition4
A. Every contract entered into by the state for the purchase of insurance or5
for obtaining services relating to the operation of the insurance program shall be6
awarded by either competitive sealed bidding or competitive negotiation.7
Competitive negotiation shall be initiated by the issuance of a request for proposals8
containing a description of the coverage required and the factors to be used in9
evaluating the proposals. Where there is more than one offeror, written or oral10
discussions shall be conducted with at least the three, or two if there are only two,11
highest qualified offerors who submit proposals determined in writing to be12
reasonably susceptible of being selected for award. The contract shall be awarded13
with reasonable promptness by written notice to the responsible offeror whose14
proposal meets the requirements and criteria set forth in the request for proposals and15
whose proposal is most beneficial to the state, considering the price and the16
evaluation factors set forth in the request for proposal. Public notice of the request17
for proposals shall be provided in the same manner as established in Part V of18
Chapter 1 of Title 39 of the Louisiana Revised Statutes R.S. 39:1551, et seq.19
B.(1) The office of risk management, under the direction of the20
commissioner of administration, is authorized to contract for consulting services21
with one or more licensed insurance producers upon a finding by the22
commissioner that the contract is in the best interest of the state. The contract23
authorized pursuant to the provisions of this Subsection may authorize one or24
more producers to advise the office of risk management regarding the office's25
insurance programs and to directly procure insurance.26
(2) No contract executed for consulting services under the provisions of27
this Subsection shall be effective until it has been approved by the Joint28
Legislative Committee on the Budget.29
(3) The division of administration shall provide a financial analysis and30 SB NO. 522 ENROLLED
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shall report annually on contracts and lines of insurance coverage secured1
under this Subsection to the Joint Legislative Committee on the Budget.2
Additionally, the commissioner of administration shall report to the Joint3
Legislative Committee on the Budget any contract award and all associated4
proposals received for consulting services under these provisions in response to5
each request for proposals.6
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: