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 1160 Engrossed 2016 Regular Session Davis
Abstract: Provides relative to specified capital projects for the Board of Supervisors of Community
and Technical Colleges undertaken by a nonprofit corporation.
Present law provides that a nonprofit corporation that has as its principal purpose the support of
public institutions of higher education, including a corporation to finance, design, construct,
renovate, or equip facilities to be leased to such public institutions of higher learning, and that meets
the following criteria is a private entity and not a public or quasi public corporation or an
administrative unit, public servant, employee, or agent of any institution of higher education:
(1)The majority of the voting members of the corporation's board of directors are not members
or employees of a higher education management board.
(2)The corporation is under the management and control of a board of directors elected by the
members or shareholders of the corporation.
(3)The corporation reimburses the cost of any housing, personnel, and other support furnished
to the corporation by any institution of higher education.
Present law authorizes the Bd. of Supervisors of Community and Technical Colleges (LCTCS bd.),
operating through a nonprofit corporation established for the purpose, to incur debt to finance
specific capital projects at specified amounts. Provides that such financing may be excluded from
the state's comprehensive capital outlay budget. Provides relative to the financing of such projects
through direct state appropriation.
Present law requires that the construction projects provided for in present law be managed and
administered by a nonprofit corporation established for such purposes, regardless of the source of
revenues used to fund the projects. Proposed law retains present law and provides as follows with
respect to projects managed and administered by the nonprofit corporation:
(1)Requires that the corporation disclose the following information on the LCTCS bd.'s website
and in response to any public records request: its property interest and that of all other
contracting parties in a project, its responsibilities and those of all other contracting parties
in the development of a project, its responsibilities and those of all other contracting parties
with respect to financing of a project, and the contracts and subcontracts associated with a
project. (2)Provides that the president of the LCTCS or his designee shall serve as a nonvoting member
of the corporation's board of directors, and any committee thereof charged with the
procurement, management or oversight for any project.
(3)Requires the corporation to comply with the Code of Governmental Ethics and adopt and
maintain a policy on conflicts of interest that shall include provisions requiring the
corporation's board of directors and committee members to make appropriate disclosures of
any actual or potential conflicts of interest and, following disclosure of a conflict, requiring
the disclosing member, physically leave any meetings for the duration of any discussions
concerning the matter disclosed, abstain from voting on any issues relating to the matter
disclosed, and refrain from any discussion with any person designed to influence or
otherwise participating in any decision-making process relating to the matter disclosed.
(4)Requires a public meeting in accordance with present law relative to open meetings prior to
beginning any project and requires the corporation to consider public input.
(5)Requires the corporation to issue a request for qualifications to select contractors for any
project it undertakes; requires the corporation to provide a request for qualifications package
to any contractor who submits a letter of interest.
(6)Requires interested contractors to include the following in their responses to the request for
qualifications package: financial disclosure statements by which a contractor or his
immediate family who derives anything of economic value, directly, through any transaction
involving the board or the corporation or who derives anything of economic value of which
he may be reasonably expected to know through a person which has bid on or entered into
or is in any way financially interested in any contract, subcontract, or any transaction
involving the board or the corporation shall disclose the following: the amount of income
or value of anything of economic value derived; the nature of the business activity the name
and address, and relationship to the contractor, if applicable; and the name and business
address of the legal entity, if applicable.
(7)Provides that the corporation or an advisory committee authorized by a cooperative endeavor
agreement with the state of La. shall evaluate and grade all responses to the request for
qualifications. In selecting contractors, requires the corporation to develop and make public
its selection criteria. Provides relative to factors used as part of the selection. Provides that
cost may be a factor, but the corporation is not required to select the lowest cost submission.
(8)Provides for notification to successful and unsuccessful bidders. Requires the corporation
to make available for inspection by any proposing party any scoring sheets or other materials
utilized in selecting the contractor. Provides further for the availability of proposals and
contracts for public inspection but allows for protection of specified information from
disclosure.
(9)Requires the corporation to review and monitor the ongoing status and contractor
performance of any project that the corporation undertakes. Requires annual reports on status of projects and contractor performance.
Proposed law is applicable to projects that are administered by the nonprofit corporation and that
commence on or after July 1, 2016.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 17:3394.3(A)(4))