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 Engrossed 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.
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)