HLS 17RS-56 ORIGINAL
2017 Regular Session
HOUSE BILL NO. 570
BY REPRESENTATIVE RICHARD
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
PUBLIC CONTRACTS: Provides for a 15% reduction of all state professional, personal,
and consulting service contracts and for deposit of the reductions into the TOPS
Fund
1 AN ACT
2To amend and reenact R.S. 39:82(A), 98.3(D), and 352 and to enact R.S. 39:98.1(D)(4),
3 Subpart G of Part II of Chapter 17 of Subtitle III of Title 39 of the Louisiana Revised
4 Statutes of 1950, to be comprised of R.S. 39:1591, and 1624(C), relative to
5 professional, personal, and consulting services procurement; to require a reduction
6 in the dollar amount of certain professional, personal, and consulting service
7 contracts; to provide for the submission of periodic reports; to provide for
8 exceptions; to provide for deposit into the TOPS Fund; to provide for certain
9 conditions of contract approval; to provide for an effective date; and to provide for
10 related matters.
11Be it enacted by the Legislature of Louisiana:
12 Section 1. R.S. 39:82(A), 98.3(D), and 352 are hereby amended and reenacted and
13R.S. 39:98.1(D)(4), Subpart G of Part II of Chapter 17 of Subtitle III of Title 39 of the
14Louisiana Revised Statutes of 1950, to be comprised of R.S. 39:1591, and 1624(C) are
15hereby enacted to read as follows:
16 §82. Remission of cash balances to the state treasurer; authorized withdrawals of
17 state monies after the close of the fiscal year
18 A. All cash balances occurring from appropriations made by legislative act
19 or by the Interim Emergency Board regardless of date of passage to any state agency
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HB NO. 570
1 for which no bona fide liability exists on the last day of each fiscal year shall be
2 remitted to the state treasurer by the fifteenth day following the last day of the fiscal
3 year. Any appropriations including those made by the Interim Emergency Board of
4 the preceding fiscal year remaining at the end of the fiscal year against which bona
5 fide liabilities existed as of the last day of the fiscal year may be withdrawn from the
6 state treasury during the forty-five day period after the last day of the fiscal year only
7 as such liabilities come due for payment. Prior to placing monies associated with
8 such unexpended appropriations into the state general fund, the state treasurer shall
9 transfer all cash balances identified and reported by the commissioner of
10 administration as being from unexpended and unencumbered state general fund
11 (direct) and Overcollections Fund appropriations for professional, personal, and
12 consulting service contracts not approved by the Joint Legislative Committee on the
13 Budget as provided in R.S. 39:1590 and remaining at the end of each fiscal year for
14 deposit in and credit to the Higher Education Financing Fund as are necessary to
15 satisfy the requirements of R.S. 39:100.146, and then shall make deposits to the
16 Payments Towards the UAL Fund as are necessary to satisfy the requirements of
17 R.S. 39:100.11 state general fund (direct) from reductions to professional, personal,
18 and consulting services contracts as provided in R.S. 39:1591 and remaining at the
19 end of each fiscal year for deposit in and credit to the TOPS Fund as required by R.S.
20 39:98.1(D).
21 * * *
22 §98.1. Creation of Funds
23 * * *
24 D.
25 * * *
26 (4) The state treasurer is directed to deposit into the fund an amount equal
27 to any money identified and reported by the commissioner of administration as being
28 from state general fund (direct) appropriations from reductions to contracts for
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HB NO. 570
1 professional, personal, and consulting services under the jurisdiction of the office of
2 state procurement required by R.S. 39:1591.
3 * * *
4 §98.3. Appropriations from the Health Excellence Fund, the Education Excellence
5 Fund, and the TOPS Fund
6 * * *
7 D. Appropriations from the TOPS Fund shall be restricted to support of the
8 state's program for financial assistance for students attending Louisiana institutions
9 of postsecondary education as established in Chapter 20-G Chapter 50 of Title 17 of
10 the Louisiana Revised Statutes of 1950.
11 * * *
12 §352. Cancellation of unexpended portions of appropriations; exceptions
13 Whenever any specific appropriation is made to meet any item of expenditure
14 which occurs annually by provision of law or for contingent expense, and any
15 portion of it remains unexpended at the end of the year for which the specific
16 appropriation was made, after all legal claims against it for the year have been paid,
17 the commissioner of administration shall cancel any balance of the appropriation,
18 and each succeeding year he shall open a new account for the appropriation which
19 may be made for that particular year, without carrying forward any unexpended
20 balance of appropriation made for any previous year. This provision shall not apply
21 to appropriations made to pay the debt of the state, principal and interest. Prior to
22 placing monies associated with such unexpended appropriations into the state general
23 fund, the state treasurer shall transfer all cash balances identified and reported by the
24 commissioner of administration as being from unexpended and unencumbered state
25 general fund (direct) and Overcollections Fund appropriations for professional,
26 personal, and consulting service contracts not approved by the Joint Legislative
27 Committee on the Budget as provided in R.S. 39:1590 remaining at the end of each
28 fiscal year for deposit in and credit to the Higher Education Financing Fund as is
29 necessary to satisfy the requirements of R.S. 39:100.146 and then shall make
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HB NO. 570
1 deposits to the Payments Towards the UAL Fund as are necessary to satisfy the
2 requirements of R.S. 39:100.11 state general fund (direct) from reductions to
3 professional, personal, and consulting services contracts as provided in R.S. 39:1591
4 and remaining at the end of each fiscal year for deposit in and credit to the TOPS
5 Fund as required by R.S. 39:98.1(D).
6 * * *
7 SUBPART G. REDUCTION OF CONTRACTS FOR FISCAL YEAR 2017-2018
8 §1591. Reduction of contracts for Fiscal Year 2017-2018
9 A.(1) The total dollar amount for professional, personal, and consulting
10 service contracts under the jurisdiction of the office of state procurement for Fiscal
11 Year 2017-2018 shall be fifteen percent less than the total dollar amount for such
12 contracts for Fiscal Year 2016-2017.
13 (2) The commissioner of administration, in consultation with the office of
14 state procurement, shall periodically determine the amount of monies reduced from
15 contracts as a result of this Section. Such determination shall take place on
16 September 30, 2017, December 31, 2017, March 31, 2018, and June 30, 2018.
17 (3) Following each determination required pursuant to the provisions of this
18 Subsection, the commissioner of administration shall report to the state treasurer the
19 amount of state general fund (direct) monies appropriated for professional, personal,
20 and consulting service contracts that is reduced as a result of implementation of this
21 Section. These monies shall be available for deposit in and credit to the TOPS Fund
22 as provided for in R.S. 39:98.1.
23 B. The office of state procurement shall not approve any contract if such
24 approval would increase the total dollar amount of contracts above the limit
25 established in Subsection A of this Section, unless such contract meets all of the
26 following criteria:
27 (1) Either no employee of the contracting department or agency is both
28 competent and available to perform the services called for by the proposed contract
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HB NO. 570
1 or the services called for are not the type readily susceptible to being performed by
2 persons who are employed by the state on a continuing basis.
3 (2) The services are not available as a product of a prior or existing contract.
4 (3) The contracting department or agency has submitted to the office of state
5 procurement a written plan to monitor and evaluate the performance called for in the
6 proposed contract.
7 (4) It is more cost effective to obtain the proposed services through the
8 contract than to have the services provided by the contracting department or agency
9 if the department or agency can provide the services or by agreement with another
10 state department or agency.
11 (5) The commissioner of administration determines that the proposed
12 contract represents a priority expenditure for Louisiana state government.
13 C. Notwithstanding any provision of law to the contrary, this Section shall
14 not apply to any professional, personal, or consulting service contract of the secretary
15 of state necessary to perform any constitutional or statutory function of the office.
16 * * *
17 §1624. Approval of contract; penalties
18 * * *
19 C. A contract for professional, personal, or consulting services shall not be
20 awarded to any entity for which an appropriation was enacted through a line item
21 appropriation in the General Appropriations Act for the fiscal year in which the
22 contract is proposed, and was subsequently vetoed by the governor, for such amount
23 or services as contained in the appropriation without prior approval of the Joint
24 Legislative Committee on the Budget.
25 Section 2. This Act shall become effective on July 1, 2017; if vetoed by the governor
26and subsequently approved by the legislature, this Act shall become effective on July 1,
272017, or on the day following such approval by the legislature, whichever is later.
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HB NO. 570
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 570 Original 2017 Regular Session Richard
Abstract: Requires a 15% reduction in the total dollar amount for professional, personal,
and consulting service contracts under the jurisdiction of the office of state
procurement for Fiscal Year (FY) 2017-2018 and provides for the deposit of any
reductions of state general fund (direct) into the TOPS Fund.
Proposed law requires the total dollar amount for professional, personal, and consulting
service contracts under the jurisdiction of the office of state procurement for FY 2017-2018
to be 15% less than the amount in the prior fiscal year.
Proposed law requires the commissioner of administration, in consultation with the office
of state procurement, to periodically determine the amount of monies reduced from contracts
as a result of proposed law.
Proposed law further requires, that following each determination, the commissioner of
administration shall report to the state treasurer the amount of state general fund (direct)
monies that are reduced as a result of implementation of proposed law and requires that these
monies are deposited in and credited to the TOPS Fund.
Present law establishes the TOPS Fund in the state treasury as a special fund within the
Millennium Trust. Appropriations from the TOPS Fund are restricted to the Louisiana
Taylor Opportunity Program for Students (TOPS) financial assistance program.
Present law requires all cash balances from appropriations to state agencies for which no
bona fide obligation exists at the end of the fiscal year to be remitted to the state treasury by
the 15th day following the last day of the fiscal year.
Proposed law requires the treasurer to transfer all cash balances identified and reported by
the commissioner of administration as being from unexpended and unencumbered state
general fund (direct) for reductions to professional, personal, and consulting service
contracts into the TOPS Fund as necessary to satisfy the requirements of proposed law.
Present law provides that if any portion of an appropriation for an annual expenditure
required by present law or for a contingent expense remains unexpended at the end of the
fiscal year in which the appropriation was made, the commissioner of administration shall
cancel the balance of the appropriation, and in each succeeding year shall open a new
account for the appropriation without carrying forward any unexpended balance from the
previous fiscal year.
Proposed law requires the treasurer to transfer all cash balances identified and reported by
the commissioner of administration as being from unexpended and unencumbered state
general fund (direct) for reductions to professional, personal, and consulting service
contracts at the end of each fiscal year into the TOPS Fund as necessary to satisfy the
requirements of proposed law.
Proposed law prohibits the office of state procurement from approving any contract if such
approval would increase the total dollar amount of contracts above the amount required in
proposed law, unless such contract meets all of the following criteria:
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HB NO. 570
(1)Either no employee of the contracting department or agency is both competent and
available to perform the services or the services are not the type readily susceptible
to being performed by persons employed by the state on a continuing basis.
(2)The services are not available as a product of a prior or existing contract.
(3)The contracting department or agency has submitted a written plan to monitor and
evaluate the performance called for in the proposed contract.
(4)It is more cost effective to obtain the services through the contract than to have the
services provided by the contracting department or agency if the department or
agency can provide the services or by agreement with another state department or
agency.
(5)The contract represents a priority expenditure for state government.
Proposed law does not apply to any professional, personal, or consulting service contract of
the secretary of state necessary to perform any constitutional or statutory function of the
office.
Present law provides for certain determinations by the state chief procurement officer prior
to the approval of proposed contracts.
Proposed law retains present law and further provides that a contract shall not be awarded
to any entity for which an appropriation was enacted through a line item appropriation in the
General Appropriations Act for the fiscal year in which the contract is proposed, and
subsequently vetoed by the governor, for such amount or services as contained in the
appropriation without prior approval of the Joint Legislative Committee on the Budget.
Effective July 1, 2017.
(Amends R.S. 39:82(A), 98.3(D), and 352; Adds R.S. 39:98.1(D)(4), 1591 and 1624(C))
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