HLS 17RS-520 ORIGINAL
2017 Regular Session
HOUSE BILL NO. 139
BY REPRESENTATIVE MCFARLAND
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
PUBLIC CONTRACTS: Requires prior approval of the Joint Legislative Committee on the
Budget of requests for proposals, contracts, and cooperative endeavor agreements
over a specified dollar amount
1 AN ACT
2To amend and reenact R.S. 39:366.11(A)(1)(a)(i) and (3) and to enact R.S. 39:1603.1,
3 relative to public contracts; to require prior approval of certain actions related to the
4 procurement of professional, personal, consulting, and social services; to require
5 prior approval of certain cooperative endeavor agreements; to provide for exceptions;
6 and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 39:366.11(A)(1)(a)(i) and (3) are hereby amended and reenacted and
9R.S. 39:1603.1 is hereby enacted to read as follows:
10 §366.11. Reporting Approval of and reporting on the progress and status of
11 cooperative endeavors
12 A.(1)(a)(i) Prior to the confection of any cooperative endeavor agreement
13 which would result or is expected to result in any nonpublic party to the agreement
14 generating or expending revenue of one million dollars or more per year from the
15 operation, management, or control of a state resource, the commissioner of
16 administration shall be informed by the state agency seeking confection of the
17 proposed agreement. When the commissioner has determined that the parties are
18 sufficiently far enough along in negotiations that the essential elements of the
19 proposed agreement have been worked out by the parties and can be explained to the
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HB NO. 139
1 Joint Legislative Committee on the Budget, the commissioner shall instruct the state
2 agency to inform the committee of the proposed agreement not less than thirty
3 calendar days prior to the next regular meeting of the Joint Legislative Committee
4 on the Budget. For any cooperative endeavor agreement which would result or is
5 expected to result in any nonpublic party to the agreement generating or expending
6 revenue of fifteen million dollars or more per year, or which would result in the state
7 expending or appropriating fifteen million dollars or more, the state shall not enter
8 into the agreement unless it has had a hearing and been approved by the Joint
9 Legislative Committee on the Budget. The For all other cooperative endeavor
10 agreements, the Joint Legislative Committee on the Budget may hold a hearing on
11 the agreement any time prior to the official confection of the agreement. No
12 agreement shall be officially confected prior to the expiration of the time within
13 which the Joint Legislative Committee on the Budget may hold a hearing.
14 * * *
15 (3)(a) The Joint Legislative Committee on the Budget by official action of
16 the committee communicated in writing by the chairperson of the committee to the
17 state agency may prohibit the state agency from entering into a cooperative endeavor
18 agreement for failure to provide the information required in Paragraph (2) of this
19 Subsection.
20 (b) The state shall be prohibited from entering into any cooperative endeavor
21 agreement which would result or is expected to result in any nonpublic party to the
22 agreement generating or expending revenue of more than fifteen million dollars per
23 year, or which would result in the state expending or appropriating fifteen million
24 dollars or more, unless it has been reviewed and approved by the Joint Legislative
25 Committee on the Budget. After August 1, 2017, the state shall be prohibited from
26 appropriating or expending fifteen million dollars or more pursuant to a cooperative
27 endeavor agreement unless the agreement has been reviewed and approved by the
28 Joint Legislative Committee on the Budget.
29 * * *
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HB NO. 139
1 §1603.1. Purchases of professional, personal, consulting, or social services; prior
2 approval required
3 A.(1) Except as provided in Paragraph (2) of this Subsection, no request for
4 proposals for professional, personal, consulting, or social services contracts with a
5 total maximum compensation of fifteen million dollars or more shall be advertised
6 unless the request has been reviewed and approved by the Joint Legislative
7 Committee on the Budget prior to its advertisement.
8 (2) No request for proposals for professional, personal, consulting, or social
9 services contracts with a total maximum compensation of fifteen million dollars or
10 more for which the resulting contract must be approved by the Department of Health
11 and Human Services, Centers for Medicare and Medicaid Services, shall be
12 advertised unless it has been reviewed by the Joint Legislative Committee on the
13 Budget prior to the advertisement of the request for proposals.
14 B. No professional, personal, consulting, or social services contract with a
15 total maximum compensation of fifteen million dollars or more shall be entered into
16 on or after August 1, 2017, unless it has been reviewed and approved by the Joint
17 Legislative Committee on the Budget.
18 C. No request for proposals or contracts for professional, personal,
19 consulting, or social services shall be divided or otherwise separated into multiple
20 proposals or contracts in order to circumvent the requirements of this Section.
21 Accordingly, any subsequent or amended contract entered into with the same party
22 for the same purpose as an existing contract which causes payment to the party for
23 such purpose to exceed fifteen million dollars in a one-year period, regardless of the
24 actual dollar value of the subsequent or amended contract, shall be subject to prior
25 review or prior review and approval by the Joint Legislative Committee on the
26 Budget in accordance with the requirements of this Section.
27 D. No professional, personal, consulting, or social services contract with a
28 total maximum compensation of fifteen million dollars or more shall be valid nor
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HB NO. 139
1 shall the state be bound by the contract unless all requirements of this Section have
2 been met.
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 139 Original 2017 Regular Session McFarland
Abstract: Requires prior actions of the Joint Legislative Committee on the Budget (JLCB)
for certain requests for proposals (RFPs), contracts, and cooperative endeavor
agreements over $15 million.
Proposed law requires prior review and approval of the JLCB of (RFPs) for professional,
personal, consulting, or social services contracts of more than $15 million.
Proposed law requires prior review, but not approval, by the JLCB of RFPs for professional,
personal, or consulting services contracts of more than $15 million which must be approved
by the U.S. Dept. of Health and Human Services, Centers for Medicare and Medicaid
Services (CMS).
Proposed law prohibits the entering into of any professional, personal, consulting, or social
services contract with a total maximum compensation of $15 million after Aug. 1, 2017,
unless it has been reviewed and approved by the JLCB.
Proposed law prohibits dividing or separating RFPs or contracts to circumvent the
requirements of proposed law. Requires review and approval of the JLCB of any subsequent
or amended contract with the same party for the same purpose as the existing contract which
causes payment to the party to exceed $15 million.
Present law (R.S. 39:366.11) provides for reporting to the JLCB for cooperative endeavor
agreements expected to result in any nonpublic party to the agreement generating or
expending revenue of $1 million or more.
Present law requires the agency entering into the agreement to submit certain information
to the JLCB. Further authorizes the JLCB to prohibit the state agency from entering into a
cooperative endeavor agreement for failure to provide the information required in present
law.
Proposed law retains present law and additionally requires JLCB approval for the state to
enter into any cooperative endeavor agreement expected to result in any nonpublic party to
the agreement generating or expending revenue of $15 million or more, or which would
result in the state expending or appropriating $15 million or more. Further, after Aug. 1,
2017, the state is prohibited from appropriating or expending $15 million or more for a
cooperative endeavor agreement unless it has been reviewed and approved by the JLCB.
(Amends R.S. 39:366.11(A)(1)(a)(i) and (3); Adds R.S. 39:1603.1)
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