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: Page 1 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 15RS-336 ORIGINAL 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 Page 2 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 15RS-336 ORIGINAL 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 Page 3 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 15RS-336 ORIGINAL HB NO. 30 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 Page 4 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 15RS-336 ORIGINAL HB NO. 30 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 Page 5 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 15RS-336 ORIGINAL HB NO. 30 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. Page 6 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 15RS-336 ORIGINAL 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. Page 7 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 15RS-336 ORIGINAL HB NO. 30 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) Page 8 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions.