HLS 16RS-275 ENGROSSED
2016 Regular Session
HOUSE BILL NO. 74
BY REPRESENTATIVES RICHARD, TERRY BROWN, AND HOWARD
PUBLIC CONTRACTS: Provides for a reduction of all state professional, personal, and
consulting service contracts
1 AN ACT
2To enact Subpart G of Part II of Chapter 17 of Subtitle III of Title 39 of the Louisiana
3 Revised Statutes of 1950, to be comprised of R.S. 39:1591, and 1624(C), relative to
4 professional, personal, and consulting services procurement; to require a reduction
5 in the dollar amount of certain professional, personal, and consulting service
6 contracts; to provide for the submission of periodic reports; to provide for
7 exceptions; to provide for certain conditions of contract approval; to provide for an
8 effective date; and to provide for related matters.
9Be it enacted by the Legislature of Louisiana:
10 Section 1. Subpart G of Part II of Chapter 17 of Subtitle III of Title 39 of the
11Louisiana Revised Statutes of 1950, to be comprised of R.S. 39:1591, and 1624(C) are
12hereby enacted to read as follows:
13 SUBPART G. REDUCTION OF CONTRACTS FOR FISCAL YEAR 2016-2017
14 §1591. Reduction of contracts for Fiscal Year 2016-2017
15 A.(1) The total state general fund (direct) amount for professional, personal,
16 and consulting service contracts under the jurisdiction of the office of state
17 procurement for Fiscal Year 2016-2017 shall be one hundred eighty-three million
18 two hundred thousand dollars less than the state general fund (direct) amount for
19 such contracts for Fiscal Year 2015-2016.
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HB NO. 74
1 (2) The office of state procurement shall submit reports on the status of the
2 implementation of this Section to the Joint Legislative Committee on the Budget on
3 October 1, 2016, January 1, 2017, April 1, 2017, and July 1, 2017.
4 B. The office of state procurement shall not approve any contract if such
5 approval would increase the total dollar amount of contracts above the amount
6 required under Subsection A of this Section, unless such contract meets all of the
7 following criteria:
8 (1) Either no employee of the contracting department or agency is both
9 competent and available to perform the services called for by the proposed contract
10 or the services called for are not the type readily susceptible to being performed by
11 persons who are employed by the state on a continuing basis.
12 (2) The services are not available as a product of a prior or existing contract.
13 (3) The contracting department or agency has submitted to the office of state
14 procurement a written plan to monitor and evaluate the performance called for in the
15 proposed contract.
16 (4) It is more cost effective to obtain the proposed services through the
17 contract than to have the services provided by the contracting department or agency
18 if the department or agency can provide the services or by agreement with another
19 state department or agency.
20 (5) The commissioner of administration determines that the proposed
21 contract represents a priority expenditure for Louisiana state government.
22 C. Notwithstanding any provision of law to the contrary, this Section shall
23 not apply to any professional, personal, or consulting service contract of the secretary
24 of state or the attorney general necessary to perform any constitutional or statutory
25 function of their respective offices.
26 * * *
27 §1624. Approval of contract; penalties
28 * * *
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HB NO. 74
1 C. A contract for professional, personal, or consulting services shall not be
2 awarded to any entity for which an appropriation was enacted through a line item
3 appropriation in the General Appropriations Act for the fiscal year in which the
4 contract is proposed, and was subsequently vetoed by the governor, for such amount
5 or services as contained in the appropriation without prior approval of the Joint
6 Legislative Committee on the Budget.
7 Section 2. This Act shall become effective on July 1, 2016; if vetoed by the governor
8and subsequently approved by the legislature, this Act shall become effective on July 1,
92016, or on the day following such approval by the legislature, whichever is later.
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 74 Engrossed 2016 Regular Session Richard
Abstract: Requires a reduction in the state general fund amount for professional, personal,
and consulting service contracts under the jurisdiction of the office of state
procurement for Fiscal Year (FY) 2016-2017.
Proposed law requires the state general fund dollar amount for professional, personal, and
consulting service contracts under the jurisdiction of the office of state procurement for FY
2016-2017 to be $183.2 million less than the amount in the prior fiscal year.
Proposed law requires the office of state procurement to submit reports on the status of the
implementation of proposed law to the Joint Legislative Committee on the Budget.
Proposed law prohibits the office of state procurement from approving any contract if such
approval would increase the total dollar amount of contracts above the amount required in
proposed law, unless such contract meets all of the following criteria:
(1)Either no employee of the contracting department or agency is both competent and
available to perform the services or the services are not the type readily susceptible
to being performed by persons employed by the state on a continuing basis.
(2)The services are not available as a product of a prior or existing contract.
(3)The contracting department or agency has submitted a written plan to monitor and
evaluate the performance called for in the proposed contract.
(4)It is more cost effective to obtain the services through the contract than to have the
services provided by the contracting department or agency if the department or
agency can provide the services or by agreement with another state department or
agency.
(5)The contract represents a priority expenditure for state government.
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HB NO. 74
Proposed law does not apply to any professional, personal, or consulting service contract of
the secretary of state or the attorney general necessary to perform any constitutional or
statutory function of their respective office.
Present law provides for certain determinations by the state chief procurement officer prior
to the approval of proposed contracts.
Proposed law retains present law and further provides that a contract shall not be awarded
to any entity for which an appropriation was enacted through a line item appropriation in the
General Appropriations Act for the fiscal year in which the contract is proposed, and
subsequently vetoed by the governor, for such amount or services as contained in the
appropriation without prior approval of the Joint Legislative Committee on the Budget.
Effective July 1, 2016.
(Adds R.S. 39:1591 and 1624(C))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the
original bill:
1. Change the contract reduction from 15% of the total amount to $183.2 million
of the state general fund amount.
2. Exclude contracts of the attorney general necessary to perform any constitutional
or statutory functions of the office from the required reductions.
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