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 814 Original 2016 Regular Session Jay Morris
Abstract: Requires certain nonprofit corporations to meet specified corporate governance
requirements.
Present law provides for the "Accountability for State Resources Act", which has the following
purposes and goal:
(1) Purposes: To ensure that the elected leaders of state government are informed and
accountable for the use made of state resources that are obligated, dedicated, or otherwise
committed to the operation, management, or control of or are necessary to the confection of
agreements with nonpublic persons that are entered into pursuant to a public purpose or to
ensure the protection of the interests of the state.
(2)Goal: To establish a process by which such information can be provided, accountability can
be ensured, and the best interests of the state are protected.
Proposed law retains proposed law and provides the following prohibitions:
(1)Prohibits a contracting entity from receiving or having transferred to it any monies pursuant
to a contract from any agency unless the contracting entity meets the corporate governance
requirements of proposed law.
(2) Prohibits an agency from entering into a contract with or paying monies pursuant to a
contract to a contracting entity unless the contracting entity meets the corporate governance
requirements of proposed law.
Proposed law, in specifying such corporate governance requirements, provides that to be eligible to
receive monies pursuant to a contract with an agency, a contracting entity shall meet all of the
following requirements:
(1) Its governing board shall include one member appointed by the following with any specific
members otherwise required by law:
(a) Legislative auditor
(b) Governor, subject to La. Senate confirmation
(c) Lt. governor, subject to La. Senate confirmation
(d) Society of La. Certified Public Accountants (e) La. State Law Institute
(2) Its governing board members shall not receive anything of economic value from the
corporation or the corporation's contractors, agents, subcontractors, or sub-agents or anything
of economic value derived from projects undertaken or funded by the corporation, except
compensation or reimbursement specifically authorized by law.
(3) All board meetings at which discussions of or decisions regarding the receipt, investment,
or expenditure of public funds shall be held in accordance with the Open Meetings Law.
(4) All members of the governing board of the contracting entity file personal financial
disclosure forms in accordance with present law applicable to boards and commissions.
Proposed law provides the following definitions:
(1) "Agency": Same meaning as "agency" as defined in present law (R.S. 39:2), which is any
state office, department, board, commission, institution, division, officer or other person, or
functional group, heretofore existing or hereafter created, that is authorized to exercise, or
that does exercise, any functions of the government of the state in the executive branch, but
not any governing body or officer of any local government or subdivision of the state, or any
parochial officer who exercises functions coterminous with the municipality in which he
performs those functions.
(2)"Contracting entity": A nonprofit corporation that executes responsibilities of a state agency
with respect to the design, construction, renovation or equipping of facilities and that
receives more than ten percent of its income from public sources including funds derived
from the sale of bonds approved by the State Bond Commission; includes any facilities
corporation or similar entity.
(Adds R.S. 39:366.7)