ENROLLED
ACT No. 211
2017 Regular Session
HOUSE BILL NO. 307
BY REPRESENTATIVE LYONS
1 AN ACT
2 To 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.
7 Be 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 * * *
21 B. Nothing herein contained shall be construed to prevent:
22 * * *
23 (41) Upon the request of the state chief procurement officer, for purposes of
24 the requirements established under R.S. 47:1678, the secretary is authorized to
25 disclose to the central purchasing agency information concerning whether a
26 prospective contractor for a contract with the state for the procurement of personal,
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1 professional, consulting, or social services or the purchasing of food, supplies, or
2 major repairs that requires the approval of the central purchasing agency is current
3 in the filing of all applicable tax returns and reports and in the payment of all taxes,
4 interest, penalties, and fees owed to the state and collected by the Department of
5 Revenue. The information disclosed shall be used solely for the purpose of
6 determining whether the contract may be approved by the central purchasing agency.
7 The secretary shall not disclose any data from returns or reports provided by the
8 Internal Revenue Service. Any information so furnished shall be considered and held
9 as confidential and privileged by the central purchasing agency as is required under
10 Subsection A of this Section.
11 * * *
12 §1678. Tax clearances; resale certificates; certain procurement contracts
13 A. Notwithstanding any other provision of law to the contrary, no state sales
14 tax resale certificate shall be issued or renewed for any applicant unless the applicant
15 is current in filing all tax returns and in payment of all taxes, interest, penalties, and
16 fees owed to the state of Louisiana.
17 B. Notwithstanding any other provision of law to the contrary, no contract
18 that requires the review and approval of the central purchasing agency for the
19 procurement of personal, professional, consulting, or social services or the
20 purchasing of food, supplies, or major repairs shall be approved unless the chief
21 procurement officer for the central purchasing agency has received a tax clearance
22 from the Department of Revenue indicating the proposed contractor is current in
23 filing all tax returns and in payment of all taxes, interest, penalties, and fees owed
24 to the state of Louisiana. The tax clearance required by this Section shall not be
25 required for purposes of bidding on or solicitation of a procurement contract. For
26 purposes of this Section, the tax clearance shall be required for the approval of all
27 procurement contracts with this state for purposes including but not limited to the
28 following:
29 (1) Capital construction.
30 (2) Any product, good, service, or repair.
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1 (3) Supplies, services, or major repairs, including but not limited to high
2 technology acquisitions or of complex services.
3 (4) Consulting, professional, personal, and social services.
4 (5) Purchase or lease of property as authorized by law.
5 (6) Medical and laboratory supplies and medical equipment required for the
6 purpose of diagnosis or direct treatment of a patient by a health care provider in a
7 hospital or clinical setting, including procurement through a group purchasing
8 organization.
9 C. An exception to the requirements of this Section for a procurement
10 enumerated in Subsection B of this Section is authorized in either of the following
11 circumstances:
12 (1) The state chief procurement officer or his designee if the designee is
13 above the level of procurement officer may make or authorize others to approve a
14 contract for emergency procurements when there exists an imminent threat to the
15 public health, welfare, safety, or public property under emergency conditions as
16 defined in accordance with regulations.
17 (2) The state chief procurement officer or his designee if the designee is
18 above the level of procurement officer determines in writing that there is only one
19 source for the required product, service, or major repair item.
20 D. This Section shall not apply to any of the following:
21 (1) Contracts for construction, maintenance, or repair of highways and
22 streets or to contracts financed in whole or in part by contributions or loans from any
23 agency of the United States government.
24 (2) A procurement contract of an institution of higher education or other
25 agency of higher education if the state chief procurement officer has delegated
26 authority to procure the contracted services using private grant funds or federal funds
27 that are available specifically for purposes of the contract.
28 E. The state chief procurement officer shall provide the secretary a list of the
29 prospective contractors that require a tax clearance for approval of a procurement
30 contract. Such list shall be submitted to the secretary in the manner and form
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1 prescribed by the secretary. The secretary, upon receipt, shall provide the state chief
2 procurement officer with a signed tax clearance for each applicant indicating whether
3 the proposed contractor is current in filing all tax returns and in payment of all taxes,
4 interest, penalties, and fees owed to the state of Louisiana, excluding items under
5 formal appeal pursuant to applicable statutes or being paid in compliance with the
6 terms of an installment agreement. Where an assessment against a proposed
7 contractor has become final and collectible by distraint and sale, such proposed
8 contractor shall not be approved for a procurement contract until such time as the
9 proposed contractor has filed the applicable tax returns, or resolved the assessment,
10 or paid or made arrangements to pay the delinquent tax liability and the secretary
11 notifies the state chief procurement officer of the payment or arrangement to pay.
12 F. The secretary is authorized to promulgate rules and regulations in
13 accordance with the Administrative Procedure Act as may be necessary to implement
14 the provisions of this Section.
15 Section 3. The provisions of this Act shall apply to any request for issuance or
16 renewal of a resale certificate submitted to the Department of Revenue and to any approval
17 or request for approval of a contract submitted to the central purchasing agency on or after
18 October 1, 2017.
19 Section 4. This Act shall become effective upon signature of the governor or, if not
20 signed by the governor, upon expiration of the time for bills to become law without signature
21 by the governor, as provided in Article III, Section 18 of the Constitution of Louisiana. If
22 vetoed by the governor and subsequently approved by the legislature, this Act shall become
23 effective on the day following such approval.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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