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 559 Original 2015 Regular Session Jay Morris
Abstract: Requires a contracting entity to submit information and documents to the legislative
auditor prior to entering into a contract with a state agency. Prohibits contracting entities
from receiving monies and prohibits state agencies paying monies to or entering into
contracts with contracting entities unless requirements are met.
Proposed law requires each contracting entity prior to entering into a contract with a state agency to
submit the following information to the legislative auditor in an electronic format designated by
legislative auditor:
(1)If a legal entity, the official name and domicile address of the contracting entity as reflected
in documentation submitted to the secretary of state's office or if a natural person, the full
name and address of the contracting entity.
(2)If a legal entity, a complete and accurate listing of the board of directors or equivalent
governing body, if any, and officers, if any, of the contracting entity.
(3)Documentation certifying that all applicable federal, state, and payroll taxes owed by the
contracting entity have been paid and are current.
(4)Documentation certifying that the contracting entity has a financial statement for its most
recent, completed fiscal year that has been compiled by or attested to by a certified public
accountant, or if the contracting entity is a nonprofit organization, documentation certifying
that the contracting entity has filed a current Form 990 as required by the Internal Revenue
Code along with a copy of the financial statement or Form 990.
(5)Information indicating the type or nature of the contract with the state agency and the name
the state agency which is a party to the contract.
(6)If the contracting entity is currently subject to the audit requirements of present law (R.S.
24:513) documentation certifying the contracting entity has submitted the required reports
to the legislative auditor.
(7)The names and addresses of all agents and registered lobbyists lobbying (as defined pursuant
to the present law regarding executive branch and legislative branch lobbying) on behalf of
the contracting entity relative to a contract with the state or an appropriation or grant. (8)Any additional information required to determine compliance with the minimum
qualifications to contract with a state agency or receive state monies (established by the
Legislative Audit Advisory Council).
Proposed law requires the legislative auditor to establish a system to evaluate information submitted
subject to the approval of the Legislative Audit Advisory Council and to evaluate and make a
determination if the information submitted by a contracting entity is complete and accurate. Provides
that if it is, he shall immediately place the name of the entity on the list of approved contracting
entities and shall post and keep an updated list on his website. Proposed law further requires the
legislative auditor to establish criteria to remove a contracting entity from the list of approved
contracting entities, subject to the approval of the Legislative Audit Advisory Council.
Proposed law provides that a contracting entity which appears on the list of approved contracting
entities on the legislative auditor's website shall be eligible to request and receive state monies and
any entity which is not on the list is ineligible. Proposed law prohibits an agency from paying
monies to a contracting entity unless the contracting entity is on the list of approved contracting
entities on the legislative auditor's website. Further prohibits an agency from contracting with a
contracting entity, unless the entity is on the list of approved contracting entities on the legislative
auditor's website (provides a limited exception for certain contracts with the Dept. of Economic
Development).
Proposed law defines "state agency", "contract", "contracting entity", "governmental entity", and
"person" for its purposes. Specifically excludes governmental entities and any public, private, or
parochial school, college, or university from the term "contracting entity". Specifically excludes
from the term "contract" specified contracts entered into by the Dept. of Revenue and the Dept. of
Economic Development.
Proposed law requires the legislative auditor to maintain the information submitted pursuant to
proposed law on his website and to provide for the ability for the public to easily obtain information
regarding each contracting entity, including links to any relevant appropriation or capital outlay
information and relevant contract information maintained by the commissioner of administration's
website pursuant to present law (R.S. 39:6). Further requires the legislative auditor to work with the
commissioner of administration as necessary to ensure compliance with proposed law.
Effective July 1, 2015; except provides that the requirements on contracting entities contained in
proposed law shall become effective on January 1, 2016, and shall apply to contracts and renewals
of contracts executed on or after January 1, 2016; The prohibitions on contracting entities and state
agencies contained in proposed law shall become effective on July 1, 2016. Provides that the
legislative auditor, Legislative Audit Advisory Council, and the commissioner of administration shall
take all actions necessary to provide for the orderly implementation of proposed law prior to January
1, 2016.
(Adds R.S. 24:525 and R.S. 39:366.7)