GREEN SHEET REDIGEST
HB 1160 2016 Regular Session Davis
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
HIGHER EDUCATION: Provides relative to construction projects undertaken by
nonprofit corporations that support the Louisiana Community and Technical College
System.
DIGEST
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
education, 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
associated with a project.
(2)Provides that the president of the LCTCS or his designee shall be provided
reasonable notice of and all materials relating to and be allowed to attend and
participate in all meetings of the corporation's board of directors, and any committee
thereof charged with the procurement, management, or oversight for any project.
(3)(a)Requires disclosure of specified information by corporation board members and his
family members to the Bd. of Ethics of any thing of economic value received directly
through a transaction or indirectly through a person with an interest in any contract,
subcontract, or any transaction under the supervision or jurisdiction of the
corporation.
(b)Requires the corporation to adopt and maintain a policy on conflicts of interest that
shall include provisions requiring the corporation's board of directors and committee
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Prepared by James Benton. 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 in excess of $50k of total installed cost and requires
the corporation to consider public input.
(5)Requires the corporation to issue a request for qualifications or request for proposals
to select contractors for any project in excess of $50k of installed cost that it
undertakes; requires the procedures for issuing such requests be consistent with
procurement through competitive sealed bid or competitive negotiation; requires the
corporation to provide a request for qualifications or request for proposals 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 any thing
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 shall evaluate and grade all responses to the
request for qualifications or proposals. 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.
(10)Authorizes maintaining records that are public records pursuant to proposed law in
an electronic format.
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))
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Prepared by James Benton. Summary of Amendments Adopted by House
The House Floor Amendments to the engrossed bill:
1. Remove subcontracts from records that must be made public.
2. Add request for proposals as an alternative to request for qualifications in the
process of soliciting contractors; add requirement that process for solicitation be
consistent with procurement through competitive sealed bid or competitive
negotiation.
3. Rather than providing that the president of the LCTCS or his designee serves as
a nonvoting member of the board of the corporation, provide that the president
or his designee shall have information on and be able to participate in meetings
of the board.
4. Remove requirement that the corporation comply with the Code of Government
Ethics; require instead disclosure of things of value received by board members
and their families pursuant to a contract or from a person involved in a contract.
5. Add provision that records that are public pursuant to proposed law may be
maintained in electronic format.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs
to the reengrossed bill
1. Makes technical changes.
2 Provides that projects in excess of $50k of installed costs shall be subject to a
public meeting in accordance with open meetings law. Further provides that
projects in excess of $50k of installed costs shall be subject to a request for
qualifications or request for proposals to select contractors.
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Prepared by James Benton.