Louisiana 2015 2015 Regular Session

Louisiana House Bill HB30 Introduced / Bill

                    HLS 15RS-336	ORIGINAL
2015 Regular Session
HOUSE BILL NO. 30
BY REPRESENTATIVE RICHARD
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
PUBLIC CONTRACTS:  Provides for the Joint Legislative Committee on the Budget to
review and take action on certain state professional, personal, and consulting service
contracts and provides for deposit of certain funding from the contracts into the
Higher Education Financing Fund
1	AN ACT
2To amend and reenact R.S. 39:82(A) and 352 and to enact Subpart S of Part II-A of Chapter
3 1 of Subtitle I of Title 39 of the Louisiana Revised Statutes of 1950, to be comprised
4 of R.S. 39:100.146, R.S. 39:1567(E), and Subpart F of Part I of Chapter 16 of
5 Subtitle III of Title 39 of the Louisiana Revised Statutes of 1950, to be comprised of
6 R.S. 39:1590, relative to professional, personal, and consulting services procurement;
7 to require consideration by the Joint Legislative Committee on the Budget of certain
8 professional, personal, and consulting service contracts; to provide for the
9 submission of periodic reports; to provide for exceptions; to establish the Higher
10 Education Financing Fund; to provide for the deposit, use, and investment of monies
11 in the fund; to provide for an effective date; and to provide for related matters.
12Be it enacted by the Legislature of Louisiana:
13 Section 1.  R.S. 39:82(A) and 352 are hereby amended and reenacted and Subpart S
14of Part II-A of Chapter 1 of Subtitle I of Title 39 of the Louisiana Revised Statutes of 1950,
15comprised of R.S. 39:100.146, R.S. 39:1567(E), and Subpart F of Part I of Chapter 16 of
16Subtitle III of Title 39 of the Louisiana Revised Statutes of 1950, comprised of R.S. 39:1590,
17are hereby enacted to read as follows: 
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HB NO. 30
1 §82.  Remission of cash balances to the state treasurer; authorized withdrawals of
2	state monies after the close of the fiscal year
3	A.  All cash balances occurring from appropriations made by legislative act
4 or by the Interim Emergency Board regardless of date of passage to any state agency
5 for which no bona fide liability exists on the last day of each fiscal year shall be
6 remitted to the state treasurer by the fifteenth day following the last day of the fiscal
7 year.  Any appropriations including those made by the Interim Emergency Board of
8 the preceding fiscal year remaining at the end of the fiscal year against which bona
9 fide liabilities existed as of the last day of the fiscal year may be withdrawn from the
10 state treasury during the forty-five day period after the last day of the fiscal year only
11 as such liabilities come due for payment.  Prior to placing monies associated with
12 such unexpended appropriations into the state general fund, the state treasurer shall 
13 transfer all cash balances identified and reported by the commissioner of
14 administration as being from unexpended and unencumbered state general fund
15 (direct) and Overcollections Fund appropriations for professional, personal, and
16 consulting service contracts not approved by the Joint Legislative Committee on the
17 Budget as provided in R.S. 39:1590 and remaining at the end of each fiscal year for
18 deposit in and credit to the Higher Education Financing Fund as are necessary to
19 satisfy the requirements of R.S. 39:100.146, and then shall make deposits to the
20 Payments Towards the UAL Fund as are necessary to satisfy the requirements of
21 R.S. 39:100.11.
22	*          *          *
23	SUBPART S.  HIGHER EDUCATION FINANCING FUND
24 §100.146. Higher Education Financing Fund
25	A.  There is hereby established in the state treasury, as a special fund, the
26 Higher Education Financing Fund, hereinafter referred to as the "the fund".
27	B.(1)  The state treasurer is directed to deposit into the fund an amount equal
28 to cash balances identified and reported by the commissioner of administration as
29 being from unexpended and unencumbered state general fund (direct) and
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HB NO. 30
1 Overcollections Fund appropriations for contracts not approved by the Joint
2 Legislative Committee on the Budget for professional, personal, and consulting
3 services under the jurisdiction of the office of state procurement available at the end
4 of each fiscal year as are necessary to satisfy the requirements of R.S. 39:1590.  The
5 commissioner of administration, in consultation with the state chief procurement
6 officer, shall periodically determine the amount of monies appropriated for
7 professional, personal, and consulting service contracts that remain unexpended and
8 unencumbered as a result of implementation of R.S. 39:1590.  Such determination
9 shall take place on the following dates in fiscal years 2015-2016, 2016-2017, and
10 2017-2018:
11	(a) September 30.
12	(b) December 31.
13	(c) March 31.
14	(d) June 30.
15	(2)  All unexpended and unencumbered monies in the fund at the end of the
16 fiscal year shall remain in the fund.  The monies in the fund shall be invested by the
17 state treasurer in the same manner as monies in the state general fund, and interest
18 earned on the investment of monies shall be credited to the fund.
19	C.  Monies in the fund shall be appropriated and used solely for public
20 postsecondary education institutions.
21	*          *          *
22 §352.  Cancellation of unexpended portions of appropriations; exceptions
23	Whenever any specific appropriation is made to meet any item of expenditure
24 which occurs annually by provision of law or for contingent expense, and any
25 portion of it remains unexpended at the end of the year for which the specific
26 appropriation was made, after all legal claims against it for the year have been paid,
27 the commissioner of administration shall cancel any balance of the appropriation,
28 and each succeeding year he shall open a new account for the appropriation which
29 may be made for that particular year, without carrying forward any unexpended
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1 balance of appropriation made for any previous year.  This provision shall not apply
2 to appropriations made to pay the debt of the state, principal and interest.  Prior to
3 placing monies associated with such unexpended appropriations into the state general
4 fund, the state treasurer shall transfer all cash balances identified and reported by the
5 commissioner of administration as being from unexpended and unencumbered state
6 general fund (direct) and Overcollections Fund appropriations for professional,
7 personal, and consulting service contracts not approved by the Joint Legislative
8 Committee on the Budget as provided in R.S. 39:1590 remaining at the end of each
9 fiscal year for deposit in and credit to the Higher Education Financing Fund as is
10 necessary to satisfy the requirements of R.S. 39:100.146 and then shall make
11 deposits to the Payments Towards the UAL Fund as are necessary to satisfy the
12 requirements of R.S. 39:100.11.
13	*          *          *
14 §1567.  Reporting requirements
15	*          *          *
16	E.  The state chief procurement officer shall submit a report at the end of each
17 month to the Joint Legislative Committee on the Budget summarizing each contract,
18 including the dollar value of each contract awarded that month over which the office
19 of state procurement has power and authority.  The report shall also indicate if each
20 contract is for discretionary purposes or if it is for nondiscretionary purposes.
21	*          *          *
22 SUBPART F.  APPROVAL OF CERTAIN PROFESSIONAL,
23 PERSONAL, AND CONSULTING SERVICES CONTRACTS
24 FOR FISCAL YEAR  2015-2016 THROUGH FISCAL YEAR 2017-2018
25 §1590.  Approval of Certain Professional, Personal, and Consulting Services
26	Contracts for Fiscal Year 2015-2016 Through Fiscal Year 2017-2018
27	A. In Fiscal Year 2015-2016 through 2017-2018, the commissioner of
28 administration, in consultation with the state chief procurement officer, shall report
29 each contract for professional, personal, and consulting services with a total dollar
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1 amount of forty thousand dollars or more per year that is funded solely with state
2 general fund (direct) or the Overcollections Fund and is for discretionary purposes
3 to the Joint Legislative Committee on the Budget for review and approval prior to
4 the effectiveness of the contract.
5	(1) If within thirty days of receipt of the contract, the Joint Legislative
6 Committee on the Budget does not place the contract on its agenda for review and
7 approval, the contract shall be deemed to be approved.
8	(2)  If within thirty days of receipt of the contract, the contract is placed on
9 the agenda for review, the Joint Legislative Committee on the Budget may take the
10 following action:
11	(a) Approve the contract.
12	(b) Reject the contract and notify the commissioner of administration that
13 such funds otherwise proposed for this purpose shall be deposited into the Higher
14 Education Financing Fund as provided in R.S. 39:100.146.
15	(c)  Recommend revisions to the contract.   If the Joint Legislative Committee
16 on the Budget recommends revisions to the contract, the contract shall not become
17 effective until it is revised, resubmitted to the Joint Legislative Committee on the
18 Budget, and acted upon again by the committee. If the commissioner of
19 administration, in consultation with the state chief procurement officer, does not
20 resubmit the contract to the Joint Legislative Committee on the Budget within thirty
21 days after the committee recommends revisions to the contract, the contract shall be
22 deemed to be rejected and funds otherwise proposed for this purpose shall be
23 deposited into the Higher Education Financing Fund as provided in R.S. 39:100.146.
24	B.(1)  The commissioner of administration, in consultation with the state
25 chief procurement officer, shall periodically determine the amount of monies
26 appropriated for professional, personal, and consulting service contracts that  are not
27 approved by the Joint Legislative Committee on the Budget and remain unexpended
28 and unencumbered as a result of implementation of this Section.  Such determination
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1 shall take place on the following dates in fiscal years 2015-2016, 2016-2017, and
2 2017-2018:
3	(a)  September 30.
4	(b)  December 31.
5	(c)  March 31.
6	(d)  30.
7	(2)  Following each determination required pursuant to the provisions of this
8 Subsection, the commissioner of administration shall report to the state treasurer the
9 amount of state general fund (direct) and Overcollections Fund monies appropriated
10 for professional, personal, and consulting service contracts that are expected to
11 remain unexpended and unencumbered at the end of the fiscal year as a result of
12 implementation of this Section.  These monies shall be available for deposit in and
13 credit to the Higher Education Financing Fund as provided for in R.S. 39:100.146.
14	C.  Notwithstanding any provision of law to the contrary, this Section shall
15 not apply to the following professional, personal, or consulting service contracts:
16	(1)  Contracts of the secretary of state necessary to perform any constitutional
17 or statutory function of the office.
18	(2)  All contracts to implement the programs of the Department of Health and
19 Hospitals funded pursuant to Title XIX, Title XX and Title XXI of the Social
20 Security Act or funded fully or partially by federal funds.
21	(3)  Contracts with state or local providers of indigent defender services
22 necessary to perform any constitutional or statutory function.
23	(4)  Contracts of a district attorney necessary to perform any constitutional,
24 discretionary, or statutory function of the office, or to perform services under the
25 child support enforcement program administered by the Department of Children and
26 Family Services in accordance with the federal requirements of Title IV-D of the
27 Social Security Act and corresponding state laws and regulations.
28 Section 2.  The provisions of Section 1 of this Act shall become null, void, and of no
29effect on July 1, 2018.
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HB NO. 30
1 Section 3.  This Act shall become effective on July 1, 2015; if vetoed by the governor
2and subsequently approved by the legislature, this Act shall become effective on July 1,
32015, or on the day following such approval by the legislature, whichever is later.
DIGEST
The digest printed below was prepared by House Legislative Services.  It constitutes no part
of the legislative instrument.  The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent.  [R.S. 1:13(B) and 24:177(E)]
HB 30 Original 2015 Regular Session	Richard
Abstract:  Provides for reporting, review, and approval by the Joint Legislative Committee
on the Budget (JLCB) of all contracts for professional, personal, and consulting
services totaling $40,000 or more per year which are funded solely with state general
fund (direct) or Overcollections Fund. 
Proposed law creates the Higher Education Financing Fund and deposits into the fund all
cash balances identified and reported by the commissioner of administration on a quarterly
basis as being from unexpended and unencumbered state general fund (direct) or
Overcollections Fund  appropriations for contracts for professional, personal, and consulting
services under the jurisdiction of the office of contractual review not approved by the JLCB
at the end of each fiscal year to satisfy the requirements of proposed law.  Monies in the fund
shall be appropriated and used solely for public postsecondary education institutions.
Present law requires all cash balances from appropriations to state agencies for which no
bona fide obligation exists at the end of the fiscal year to be remitted to the state treasury by
the 15th day following the last day of the fiscal year.  Present law further provides that prior
to depositing the unexpended appropriations into the state general fund, the treasurer shall
make deposits into the Payments Towards the UAL Fund as is necessary to satisfy present
law.
Proposed law requires the treasurer to transfer all cash balances identified and reported by
the commissioner of administration as being from unexpended and unencumbered state
general fund (direct) or Overcollections Fund appropriations for professional, personal, and
consulting service contracts not approved by the JLCB at the end of each fiscal year into the
Higher Education Financing Fund as are necessary to satisfy the requirements of proposed
law and then make deposits into the Payments Towards the UAL Fund as required by present
law.
Present law provides that if any portion of an appropriation for an annual expenditure
required by present law or for a contingent expense remains unexpended at the end of the
fiscal year in which the appropriation was made, the commissioner of administration shall
cancel the balance of the appropriation, and in each succeeding year shall open a new
account for the appropriation without carrying forward any unexpended balance from the
previous fiscal year.  Present law further provides that prior to depositing the unexpended
appropriations into the state general fund, the treasurer shall make deposits into the
Payments Towards the UAL Fund as are necessary to satisfy present law.
Proposed law requires the treasurer to transfer all cash balances identified and reported by
the commissioner of administration as being from unexpended and unencumbered state
general fund (Direct) or Overcollections Fund appropriations for professional, personal, and
consulting service contracts at the end of each fiscal year into the Higher Education
Financing Fund as are necessary to satisfy the requirements of proposed law and then make
the deposits into the Payments Towards the UAL Fund as required by present law.
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Proposed law for FY 14-15 through FY 16-17, establishes a process that all contracts for
professional, personal, and consulting services totaling $40,000 or more per year which are
funded solely with the state general fund (direct) or the Overcollections Fund and are for
discretionary purposes are reported, reviewed, and approved by the JLCB.  
Proposed law provides that if within 30 days of receipt of the contract, the JLCB does not
place the contract on its agenda for review and approval, the contract shall be deemed to be
approved.  If the contract is placed on the agenda for review and approval within 30 days of
receipt, the JLCB may either approve the contract, recommend revisions to the contract, or
reject the contract and notify the commissioner of administration that such funds shall be
deposited into the Higher Education Financing Fund.
Proposed law provides that if the JLCB recommends revisions to the contract, the contract
shall not become effective until it is revised, resubmitted to the JLCB, and acted upon by the
committee. If the contract is not resubmitted within 30 days after the committee recommends
revisions, the contract shall be deemed to be rejected.
Proposed law exempts the following professional, personal, or consulting service contracts
from the provisions of proposed law:
(1)Contracts of the secretary of state necessary to perform any constitutional or
statutory function of the office. 
(2)Contracts to implement programs of the Dept. of Health and Hospitals that are
funded pursuant to Titles 19, 20, and 21 of the Social Security Act or funded fully
or partially by federal funds.
(3)Contracts with state or local providers of indigent defender services necessary to
perform any constitutional or statutory function.
(4)  Contracts of a district attorney necessary to perform any constitutional, discretionary,
or statutory function of the office, or to perform services under the child support
enforcement program administered by the Department of Children and Family
Services.
The provisions of proposed law shall become null, void, and of no effect on July 1, 2018.
Effective July 1, 2015.
(Amends R.S. 39:82(A) and 352; Adds R.S. 39:100.146, 1567(E), and 1590)
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