HLS 17RS-892 REENGROSSED
2017 Regular Session
HOUSE BILL NO. 307
BY REPRESENTATIVE LYONS
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TAX RETURN: Requires a tax clearance from the Dept. of Revenue for certain licenses,
permits, tax resale certificates, and state contracts
1 AN ACT
2To enact R.S. 39:1624(A)(10) and R.S. 47:1508(B)(41) and 1678, relative to tax clearances
3 from the Department of Revenue; to require a tax clearance for the issuance or
4 renewal of a sales tax resale certificate; to require a tax clearance for approval of
5 certain state contracts; to provide for exceptions; to provide for an effective date; and
6 to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 39:1624(A)(10) is hereby enacted to read as follows:
9 §1624. Approval of contract; penalties
10 A. Before approving a proposed contract for professional, personal,
11 consulting, or social services, the state chief procurement officer or an assistant shall
12 have determined that:
13 * * *
14 (10) The prospective contractor is current in the filing of all applicable tax
15 returns and reports, and in payment of all taxes, interest, penalties, and fees owed to
16 the state and collected by the Department of Revenue in accordance with R.S.
17 47:1678.
18 Section 2. R.S. 47:1508(B)(41) and 1678 are hereby enacted to read as follows:
19 §1508. Confidential character of tax records
20 * * *
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1 B. Nothing herein contained shall be construed to prevent:
2 * * *
3 (41) Upon the request of the state chief procurement officer, for purposes of
4 the requirements established under R.S. 47:1678, the secretary is authorized to
5 disclose to the central purchasing agency information concerning whether a
6 prospective contractor for a contract with the state for the procurement of personal,
7 professional, consulting, or social services or the purchasing of food, supplies, or
8 major repairs that requires the approval of the central purchasing agency is current
9 in the filing of all applicable tax returns and reports and in the payment of all taxes,
10 interest, penalties, and fees owed to the state and collected by the Department of
11 Revenue. The information disclosed shall be used solely for the purpose of
12 determining whether the contract may be approved by the central purchasing agency.
13 The secretary shall not disclose any data from returns or reports provided by the
14 Internal Revenue Service. Any information so furnished shall be considered and held
15 as confidential and privileged by the central purchasing agency as is required under
16 Subsection A of this Section.
17 * * *
18 §1678. Tax clearances; resale certificates; certain procurement contracts
19 A. Notwithstanding any other provision of law to the contrary, no state sales
20 tax resale certificate shall be issued or renewed for any applicant unless the applicant
21 is current in filing all tax returns and in payment of all taxes, interest, penalties, and
22 fees owed to the state of Louisiana.
23 B. Notwithstanding any other provision of law to the contrary, no contract
24 that requires the review and approval of the central purchasing agency for the
25 procurement of personal, professional, consulting, or social services or the
26 purchasing of food, supplies, or major repairs shall be approved unless the chief
27 procurement officer for the central purchasing agency has received a tax clearance
28 from the Department of Revenue indicating the proposed contractor is current in
29 filing all tax returns and in payment of all taxes, interest, penalties, and fees owed
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1 to the state of Louisiana. The tax clearance required by this Section shall not be
2 required for purposes of bidding on or solicitation of a procurement contract. For
3 purposes of this Section, the tax clearance shall be required for the approval of all
4 procurement contracts with this state for purposes including but not limited to the
5 following:
6 (1) Capital construction.
7 (2) Any product, good, service, or repair.
8 (3) Supplies, services, or major repairs, including but not limited to high
9 technology acquisitions or of complex services.
10 (4) Consulting, professional, personal, and social services.
11 (5) Purchase or lease of property as authorized by law.
12 (6) Medical and laboratory supplies and medical equipment required for the
13 purpose of diagnosis or direct treatment of a patient by a health care provider in a
14 hospital or clinical setting, including procurement through a group purchasing
15 organization.
16 C. An exception to the requirements of this Section for a procurement
17 enumerated in Subsection B of this Section is authorized in either of the following
18 circumstances:
19 (1) The state chief procurement officer or his designee if the designee is
20 above the level of procurement officer may make or authorize others to approve a
21 contract for emergency procurements when there exists an imminent threat to the
22 public health, welfare, safety, or public property under emergency conditions as
23 defined in accordance with regulations.
24 (2) The state chief procurement officer or his designee if the designee is
25 above the level of procurement officer determines in writing that there is only one
26 source for the required product, service, or major repair item.
27 D. This Section shall not apply to any of the following:
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1 (1) Contracts for construction, maintenance, or repair of highways and
2 streets or to contracts financed in whole or in part by contributions or loans from any
3 agency of the United States government.
4 (2) A procurement contract of an institution of higher education or other
5 agency of higher education if the state chief procurement officer has delegated
6 authority to procure the contracted services using private grant funds or federal funds
7 that are available specifically for purposes of the contract.
8 E. The state chief procurement officer shall provide the secretary a list of the
9 prospective contractors that require a tax clearance for approval of a procurement
10 contract. Such list shall be submitted to the secretary in the manner and form
11 prescribed by the secretary. The secretary, upon receipt, shall provide the state chief
12 procurement officer with a signed tax clearance for each applicant indicating whether
13 the proposed contractor is current in filing all tax returns and in payment of all taxes,
14 interest, penalties, and fees owed to the state of Louisiana, excluding items under
15 formal appeal pursuant to applicable statutes or being paid in compliance with the
16 terms of an installment agreement. Where an assessment against a proposed
17 contractor has become final and collectible by distraint and sale, such proposed
18 contractor shall not be approved for a procurement contract until such time as the
19 proposed contractor has filed the applicable tax returns, or resolved the assessment,
20 or paid or made arrangements to pay the delinquent tax liability and the secretary
21 notifies the state chief procurement officer of the payment or arrangement to pay.
22 F. The secretary is authorized to promulgate rules and regulations in
23 accordance with the Administrative Procedure Act as may be necessary to implement
24 the provisions of this Section.
25 Section 3. The provisions of this Act shall apply to any request for issuance or
26renewal of a resale certificate submitted to the Department of Revenue and to any approval
27or request for approval of a contract submitted to the central purchasing agency on or after
28October 1, 2017.
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1 Section 4. This Act shall become effective upon signature of the governor or, if not
2signed by the governor, upon expiration of the time for bills to become law without signature
3by the governor, as provided in Article III, Section 18 of the Constitution of Louisiana. If
4vetoed by the governor and subsequently approved by the legislature, this Act shall become
5effective on the day following such approval.
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 307 Reengrossed 2017 Regular Session Lyons
Abstract: Requires a tax clearance from the Dept. of Revenue for the issuance or renewal
of a tax resale certificate and the approval of certain state procurement contracts.
Proposed law provides that in order for a person to receive a sales tax resale certificate from
the Dept. of Revenue, a tax clearance certificate shall be required to confirm that the
applicant is current in the filing of all applicable tax returns and reports, and in payment of
all taxes, interest, penalties, and fees owed to the state and collected by the Dept. of
Revenue.
Present law establishes requirements for the approval of procurement contracts by the state's
central purchasing agency, the office of state procurement.
Proposed law changes present law by adding a requirement that before the central
purchasing agency can approve a contract for professional, consulting, or social services, or
for the purchase of food, supplies, or major repairs, a tax clearance certificate shall be
required to confirm that the proposed contractor is current in the filing of all applicable tax
returns and reports, and in payment of all taxes, interest, penalties, and fees owed to the state
and collected by the Dept. of Revenue.
Proposed law provides that a tax clearance certificate shall not be required for purposes of
bidding or the solicitation of a procurement contract.
Proposed law requires that the state chief procurement officer provide the secretary of the
Dept. of Revenue (secretary) a list of the prospective contractors that require a tax clearance
for approval of a procurement contract. The secretary is then required to provide the state
chief procurement officer with a signed tax clearance for each applicant indicating whether
the proposed contractor is current in filing all tax returns and in payment of all taxes,
interest, penalties, and fees owed to the state of La., excluding items either under formal
appeal pursuant to present law or being paid in compliance with the terms of an installment
agreement.
Proposed law provides that in instances where an assessment against a proposed contractor
has become final and collectible by distraint and sale, such proposed contractor shall not be
approved for a procurement contract until such time as the proposed contractor has filed the
applicable tax returns and paid or made arrangements to pay the delinquent tax liability and
the secretary notifies the state chief procurement officer of the payment or arrangement to
pay.
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Present law provides for the circumstances under which the secretary may disclose certain
taxpayer information to other state agencies.
Proposed law changes present law by adding an exception for a request made by the state
chief procurement officer, for purpose of the proposed law, specifically concerning whether
a prospective contractor is, as required by proposed law, current in the filing of all applicable
tax returns and reports and in the payment of all taxes, interest, penalties, and fees owed to
the state and collected by the Dept. of Revenue. The information disclosed shall be used
solely for the purpose of determining whether the contract may be approved by the Office
of State Procurement.
Proposed law exempts from the requirements of proposed law procurements in the following
circumstances:
(1)A contract approved by the central purchasing agency that involves an emergency
or a sole source procurement.
(2)A contract for construction, maintenance, or repair of highways, or a contract
financed by the U.S. government.
(3)A contract for an institution of higher education or other agency of higher education
if the state chief procurement officer has delegated authority to procure contracted
services using private grant funds or federal funds.
Proposed law authorizes the secretary to promulgate rules and regulations in accordance with
the Administrative Procedure Act as may be necessary to implement the provisions of
proposed law.
Proposed law applies prospectively only.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 39:1624(A)(10) and R.S. 47:1508(B)(41) and 1678)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Restrict applicability of proposed law to applications for sales tax resale
certificates and certain state procurement contracts which require the approval
of the Office of State Procurement.
2. Add an exception to the confidentiality provisions of present law concerning the
disclosure of certain taxpayer information by the secretary of the Dept. of
Revenue to the chief procurement officer for purposes of proposed law.
3. Establish the procedure for the exchange of information between the chief
procurement officer and the secretary of the Dept. of Revenue regarding
proposed contractors and tax clearance certificates.
4. Provide that a tax clearance certificate shall not be required for purposes of
bidding or solicitation of a procurement contract.
5. Authorize rulemaking.
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HB NO. 307
The House Floor Amendments to the engrossed bill:
1. Change references from the office of state procurement to the central purchasing
agency.
2. Specify that the chief procurement officer is the state chief procurement officer.
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