ENROLLED
ACT No. 511
2016 Regular Session
HOUSE BILL NO. 1160 (Substitute for House Bill No. 921 by Representative Davis)
BY REPRESENTATIVES DAVIS, FRANKLIN, IVEY, NANCY LANDRY, JAY
MORRIS, PIERRE, AND STOKES AND SENATORS THOMPSON AND
WALSWORTH
1 AN ACT
2 To amend and reenact R.S. 17:3394.3(A)(4), relative to corporations that support public
3 postsecondary education; to provide relative to capital projects undertaken by a
4 nonprofit corporation on behalf of the Board of Supervisors of Community and
5 Technical Colleges; to provide procedures for soliciting and evaluating proposals
6 from contractors; to provide that certain records of the corporation be made available
7 to the public; to require monitoring and status reports on projects; to provide relative
8 to the board of directors of such corporation; and to provide for related matters.
9 Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 17:3394.3(A)(4) is hereby amended and reenacted to read as follows:
11 ยง3394.3. Authority of board to execute agreements related to the finance of capital
12 improvements and enhancements; nonprofit corporation; administration and
13 management of projects
14 A.
15 * * *
16 (4) Construction projects contained in this Section shall be managed and
17 administered by a nonprofit a corporation established for such purposes, regardless
18 of the source of revenues used to fund such construction projects. Notwithstanding
19 any provision of this Chapter to the contrary, the corporation shall adhere to the
20 following requirements with respect to any project it undertakes pursuant to this
21 Section:
22 (a) The corporation shall disclose on the board's internet homepage and make
23 available consistent with the Public Records Law its property interest and that of any
24 party contracting with the corporation in connection with a project.
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1 (b) The corporation shall disclose on the board's internet homepage and
2 make available consistent with the Public Records Law its responsibilities and those
3 of any party contracting with the corporation in the development of a project.
4 (c) The corporation shall disclose on the board's internet homepage and make
5 available consistent with the Public Records Law its responsibilities and those of any
6 party contracting with the corporation with respect to the financing of a project.
7 (d) The corporation shall disclose the contracts it enters into in connection
8 with a project on the board's internet homepage and make the contracts available
9 consistent with the Public Records Law.
10 (e) The president of the Louisiana Community and Technical College
11 System or his designee shall be provided reasonable notice of and all materials
12 relating to and be allowed to attend and participate in all meetings of the
13 corporation's board of directors and of any committee thereof charged with the
14 procurement, management, or oversight of a project.
15 (f)(i) Each board member of the corporation and each member of his
16 immediate family who derives any thing of economic value directly, through any
17 transaction involving the corporation or who derives any thing of economic value of
18 which he may be reasonably expected to know through a person which has bid on or
19 entered into or is in any way financially interested in any contract, subcontract, or
20 any transaction under the supervision or jurisdiction of the corporation shall disclose
21 the following substantially in accordance with the Code of Governmental Ethics: the
22 amount of income or value of any thing of economic value derived; the nature of the
23 business activity; the name and address of filer and name of and relationship to the
24 board member, if applicable; and the name and business address of the legal entity,
25 if applicable.
26 (ii) The corporation shall adopt and maintain a policy on conflicts of interest,
27 which shall include provisions requiring the corporation's board of directors and
28 committee members to make appropriate disclosures of any actual or potential
29 conflicts of interest and requiring, following disclosure of a conflict, the member
30 who discloses such a conflict to physically leave any meetings for the duration of any
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1 discussion concerning the matter disclosed, to abstain from voting on any issues
2 relating to the matter disclosed, and to refrain from any discussion designed to
3 influence or otherwise participating in any decision-making process relating to the
4 matter disclosed.
5 (g) Prior to beginning construction or management of any project in excess
6 of fifty thousand dollars of total installed costs, the corporation or the board shall
7 hold a public meeting in accordance with the Open Meetings Law. The corporation
8 or the board shall consider any public input provided at such public meeting prior to
9 beginning construction or selecting any contractor. The minutes of all meetings of
10 the corporation shall be published on the board's internet homepage and made
11 available consistent with the Public Records Law.
12 (h) For any project in excess of fifty thousand dollars of total installed costs,
13 the corporation shall issue a request for qualifications or request for proposals to
14 select contractors for any project. The procedures for issuing such a request shall be
15 consistent with procurement through competitive sealed bid or competitive
16 negotiation and include the following provisions:
17 (i) The corporation shall establish and use public announcement procedures
18 for solicitation of letters of interest from qualified contractors. Such public
19 announcement procedures shall include a requirement for advertisement on the
20 board's internet home page and in a newspaper of general circulation in the parish
21 or municipality where the project is situated. The corporation shall include a
22 deadline for submission of letters of interest within any such public announcement.
23 All such notices shall be posted no less than twenty days prior to selecting a
24 contractor for a project.
25 (ii) The corporation shall provide a request for qualifications package or
26 request for proposals package to any contractor who submits a letter of interest. All
27 required information shall be identified in the package and in the standard response
28 forms.
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1 (i) The corporation shall require interested contractors to include the
2 following items in their responses to the request for qualifications package or request
3 for proposals package:
4 (i) Financial disclosure statements, substantially in accordance with La. R.S.
5 42:1114, by which a contractor or his immediate family who derives any thing of
6 economic value, directly, through any transaction involving the board or the
7 corporation or who derives any thing of economic value of which he may be
8 reasonably expected to know through a person which has bid on or entered into or
9 is in any way financially interested in any contract, subcontract, or any transaction
10 involving the board or the corporation shall disclose the following: the amount of
11 income or value of any thing of economic value derived; the nature of the business
12 activity; the name and address, and relationship to the contractor, if applicable; and
13 the name and business address of the legal entity, if applicable.
14 (ii) Proposed responsibilities of interested contractors in the development of
15 the project.
16 (iii) Proposed responsibilities with respect to the financing of the project.
17 (iv) Statements of qualification concerning the experience and resources of
18 the prospective contractor.
19 (j) The corporation shall evaluate and grade all responses. Alternatively, an
20 advisory committee authorized by a cooperative endeavor agreement with the state
21 of Louisiana may evaluate and grade all responses. The corporation shall develop
22 and make public its selection criteria for selecting a contractor on a project. The
23 corporation shall consider the following nonexclusive list of factors as part of its
24 selection process:
25 (i) Professional training and experience of key personnel in general and as
26 related to the project described in the request for qualifications.
27 (ii) Capacity for timely completion of the work.
28 (iii) Past performance on projects of a similar nature to the project described
29 in the request for qualifications.
30 (iv) Any criteria that apply to project-specific needs.
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1 (v) Cost of services. The corporation is not required to select the lowest cost
2 submission, but it shall consider the cost of services as one of the various factors in
3 evaluating the responses.
4 (k) After reviewing all submissions made in response to the request for
5 qualifications or request for proposals, selecting a qualified contractor, and obtaining
6 approval in writing for the letting of the contract from the board, the corporation
7 shall submit letters to the selected proposing parties notifying them of their selection
8 and begin contract negotiations. The corporation shall also submit letters with a
9 statement identifying the selected proposing party to all parties who submitted
10 responses but were not selected. The corporation shall make available for
11 inspection, by any party who submitted a response, scoring sheets or other materials
12 utilized in selecting the selected proposing parties, which sheets or materials shall
13 include the criteria outlined in Subparagraph (j) of this Paragraph, subject to
14 protections of information provided in Subparagraph (l) of this Paragraph.
15 (l) The corporation shall make at least one copy of each response to its
16 request for qualifications or proposals available consistent with the Public Records
17 Law. All documents submitted to the corporation that are made available to the
18 public shall be provided in a form that protects against the disclosure of any of the
19 following that have been marked "CONFIDENTIAL" by the submitting party:
20 (i) Proprietary or trade secret information of a submitting party pertaining
21 to any code, pattern, formula, design, device, method, or process.
22 (ii) Financial records of a submitting party.
23 (iii) Specific cost estimates produced and submitted by a submitting party.
24 (m) Information protected from disclosure by Subparagraph (l) of this
25 Paragraph may be disclosed as agreed to by the submitting party and the corporation.
26 (n) The corporation shall continuously review and monitor the status of and
27 contractor performance for each project that the corporation undertakes. The
28 corporation shall make available on the board's internet homepage and consistent
29 with the Public Records Law annual reports explaining contractor performance for
30 each project that it has undertaken or completed during the previous year, listing
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1 those projects that are expected to be solicited for bid within the next year, listing
2 those projects that are in progress, listing those projects removed from consideration
3 during the prior year, identifying all contractors for each project completed or in
4 progress, and accounting for all funds expended on each project. Each annual report
5 shall be completed, made available for public inspection, and submitted to the Joint
6 Legislative Committee on the Budget by April thirtieth in the calendar year
7 following the calendar year that is the subject of the annual report. Each annual
8 report and all books and records of the corporation directly pertaining to the
9 expenditure of project funds, including but not limited to all design and construction
10 contracts, change orders, and pay applications, shall be maintained for a minimum
11 of three years following final completion of the project and shall be subject to audit
12 by internal or external auditors selected by the board.
13 (o) All records that are public records pursuant to this Paragraph may be
14 maintained in an electronic format.
15 * * *
16 Section 2. The provisions of R.S. 17:3394.3(A)(4) as amended and reenacted by this
17 Act shall apply to any project that is specified in R.S. 17:3394.3, that is administered by the
18 corporation as defined by R.S. 17:3394.2, and that commences on or after July 1, 2016.
19 Section 3. This Act shall become effective upon signature by the governor or, if not
20 signed by the governor, upon expiration of the time for bills to become law without signature
21 by the governor, as provided in Article III, Section 18 of the Constitution of Louisiana. If
22 vetoed by the governor and subsequently approved by the legislature, this Act shall become
23 effective on the day following such approval.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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