2016 Regular Session ENROLLED SENATE BILL NO. 407 BY SENATOR MILKOVICH 1 AN ACT 2 To amend and reenact R.S. 39:1590 and to enact R.S. 39:1567(B)(3) and (4) and (F), relative 3 to certain contract reporting requirements; to provide for reporting certain contract 4 information on the Internet; to provide for a Report of certain contracts for Fiscal 5 Year 2015-2016 through Fiscal Year 2017-2018; to provide for the creation of the 6 Contract Services Joint Legislative Task Force; to provide for the membership of the 7 task force; to provide for the duties of the task force; to provide for an effective date; 8 and to provide for related matters. 9 Be it enacted by the Legislature of Louisiana: 10 Section 1. R.S. 39:1590 is hereby amended and reenacted and R.S. 39:1567(B)(3) 11 and (4) and (F) are hereby enacted to read as follows: 12 §1567. Reporting requirements 13 * * * 14 B. 15 * * * 16 (3) Information on all contracts and the information contained in the 17 annual report shall be published on the division of administration's website to 18 provide maximum access to the public and ease of use for searching information 19 relative to the various contracts reported. 20 (4) For purposes of Paragraph (3) of this Subsection, "information" shall 21 include but not be limited to the following: 22 (a)(i) If a legal entity, the official name and domicile address of the 23 contracting entity as reflected in documentation submitted to the secretary of 24 state's office. 25 (ii) If a natural person, the full name and physical address of the 26 contracting entity. Page 1 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 407 ENROLLED 1 (b) If a legal entity, a complete and accurate listing of the owners of the 2 contracting entity, whether in title or beneficial, unless it is a publicly traded 3 entity, and a complete and accurate listing of the board of directors or 4 equivalent governing body, if any, and officers, if any, of the contracting entity. 5 (c) A statement regarding the percentage of minority, women, veteran, 6 and Louisiana-based ownership of the contracting entity, unless it is a publicly 7 traded entity. 8 (d) A statement that all applicable federal, state, and payroll taxes owed 9 by the contracting entity have been paid and are current. 10 (e) If the contracting entity is a nonprofit organization, a statement that 11 the contracting entity has filed a current Form 990, as required by the Internal 12 Revenue Code, along with a copy of its most recent Form 990. 13 (f) A statement indicating the type or nature of the contract with the 14 state agency, including whether the contract was publicly bid, competitively bid, 15 competitively negotiated, or let through a noncompetitive process; the value of 16 the contract; and the name of each state agency which is or would be a party to 17 the contract. 18 (g) The names and addresses of all agents, registered lobbyists, and other 19 persons lobbying, as "lobbying" is defined in R.S. 24:51 or R.S. 49:72, on behalf 20 of the contracting entity relative to a contract or potential contract with the 21 state or an appropriation or grant. 22 * * * 23 F.(1) The Contract Services Joint Legislative Task Force, hereinafter 24 referred to as the "task force", is hereby created to study, review, and make 25 assessments on contracts as further provided in this Subsection. The task force 26 shall be composed of eight members of the legislature; four members of the 27 Senate, appointed by the president of the Senate and four members of the House 28 of Representatives, appointed by the speaker of the House of Representatives. 29 (2) The task force is authorized to review all contracts with an annual 30 contract amount of fifty thousand dollars or more as provided by Chapter 17 Page 2 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 407 ENROLLED 1 of Subtitle III of Title 39 of the Louisiana Revised Statutes of 1950. The task 2 force may review the processes by which these contracts are negotiated, drafted, 3 procured, and executed. Additionally, the task force may study any other 4 contracts determined to be relevant to the mission of the task force. 5 (3) The president of the Senate shall appoint a senator to chair the first 6 meeting until officers can be elected from among the task force membership at 7 the first meeting which shall take place no later than thirty days after the 8 effective date of this Subsection. A quorum of the task force membership shall 9 be required to conduct business. 10 (4) The task force shall not meet more than five calendar days in any 11 fiscal year. 12 (5) Annually, the task force shall report to the president of the Senate, 13 the speaker of the House of Representatives, and the governor no later than 14 sixty days before the regular session regarding any recommendations relative 15 to any specific contracts or contract procedures that may require administrative 16 action or may require legislative action. 17 (6) The provisions of this Subsection shall become void on June 30, 2020. 18 * * * 19 §1590. Approval Reporting of certain professional, personal, and consulting 20 services contracts for Fiscal Year 2015-2016 through Fiscal Year 21 2017-2018 22 A. In Fiscal Year 2015-2016 through 2017-2018, the commissioner of 23 administration, in consultation with the state chief procurement officer, shall report 24 each contract for professional, personal, and consulting services with a total dollar 25 amount of forty fifty thousand dollars or more per year that is funded solely with 26 state general fund (direct) or the Overcollections Fund and is for discretionary 27 purposes to the Joint Legislative Committee on the Budget and the Contract 28 Services Joint Legislative Task Force for review. and approval prior to the 29 effectiveness of the contract. 30 (1) If within thirty days of receipt of the contract, the Joint Legislative Page 3 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 407 ENROLLED 1 Committee on the Budget does not place the contract on its agenda for review and 2 approval, the contract shall be deemed to be approved. 3 (2) If within thirty days of receipt of the contract, the contract is placed on 4 the agenda for review, the Joint Legislative Committee on the Budget may take the 5 following action: 6 (a) Approve the contract. 7 (b) Reject the contract and notify the commissioner of administration that 8 such funds otherwise proposed for this purpose shall be deposited into the Higher 9 Education Financing Fund as provided in R.S. 39:100.146. 10 (c) Recommend revisions to the contract. If the Joint Legislative Committee 11 on the Budget recommends revisions to the contract, the contract shall not become 12 effective until it is revised, resubmitted to the Joint Legislative Committee on the 13 Budget, and acted upon again by the committee. If the commissioner of 14 administration, in consultation with the state chief procurement officer, does not 15 resubmit the contract to the Joint Legislative Committee on the Budget within thirty 16 days after the committee recommends revisions to the contract, the contract shall be 17 deemed to be rejected and funds otherwise proposed for this purpose shall be 18 deposited into the Higher Education Financing Fund as provided in R.S. 39:100.146. 19 B.(1) The commissioner of administration, in consultation with the state chief 20 procurement officer, shall periodically determine the amount of monies appropriated 21 for professional, personal, and consulting service contracts that are not approved by 22 the Joint Legislative Committee on the Budget and remain unexpended and 23 unencumbered as a result of implementation of this Section. Such determination 24 shall take place on the following dates in fiscal years 2015-2016, 2016-2017, and 25 2017-2018: 26 (a) September thirtieth. 27 (b) December thirty-first. 28 (c) March thirty-first. 29 (d) June thirtieth. 30 (2) Following each determination required pursuant to the provisions of this Page 4 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 407 ENROLLED 1 Subsection, the commissioner of administration shall report to the state treasurer the 2 amount of state general fund (direct) and Overcollections Fund monies appropriated 3 for professional, personal, and consulting service contracts that are expected to 4 remain unexpended and unencumbered at the end of the fiscal year as a result of 5 implementation of this Section. These monies shall be available for deposit in and 6 credit to the Higher Education Financing Fund as provided for in R.S. 39:100.146. 7 C. Notwithstanding any provision of law to the contrary, this Section shall 8 not apply to the following professional, personal, or consulting service contracts: 9 (1) Contracts of the secretary of state necessary to perform any constitutional 10 or statutory function of the office. 11 (2) All contracts to implement the programs of the Department of Health and 12 Hospitals funded pursuant to Title XIX, Title XX, and Title XXI of the Social 13 Security Act or funded fully or partially by federal funds. 14 (3) Contracts with state or local providers of indigent defender services 15 necessary to perform any constitutional or statutory function. 16 (4) Contracts of a district attorney necessary to perform any constitutional, 17 discretionary, or statutory function of the office, or to perform services under the 18 child support enforcement program administered by the Department of Children and 19 Family Services in accordance with the federal requirements of Title IV-D of the 20 Social Security Act and corresponding state laws and regulations. 21 Section 2. This Act shall become effective on July 1, 2016; if vetoed by the governor 22 and subsequently approved by the legislature, this Act shall become effective on July 1, 23 2016, or on the day following such approval by the legislature, whichever is later. PRESIDENT OF THE SENATE SPEAKER OF THE HOUSE OF REPRESENTATIVES GOVERNOR OF THE STATE OF LOUISIANA APPROVED: Page 5 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.