HLS 18RS-798 ORIGINAL
2018 Regular Session
HOUSE BILL NO. 262
BY REPRESENTATIVE MCFARLAND
PUBLIC CONTRACTS: Requires prior approval of the Joint Legislative Committee on the
Budget of request for proposals, contracts, and cooperative endeavor agreements
over a specified dollar amount
1 AN ACT
2To enact R.S. 39:366.12 and 1603.1, relative to public contracts; to require prior approval
3 of certain actions related to the procurement of professional, personal, consulting,
4 and social services; to require prior approval of agreements relating to the lease or
5 operation of certain hospitals; to provide for exceptions; to provide for effectiveness;
6 and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 39:366.12 and 1603.1 are hereby enacted to read as follows:
9 §366.12. Approval of agreements to operate Louisiana State University Health
10 Sciences Center hospitals
11 The state is prohibited from entering into or extending any cooperative
12 endeavor agreement, memorandum of understanding, contract, or any other type of
13 agreement with any person or entity to lease or operate a hospital for which a
14 Louisiana State University Health Sciences Center is responsible pursuant to R.S.
15 17:1519.2(B), unless the agreement or extension has been reviewed and approved
16 by the Joint Legislative Committee on the Budget.
17 * * *
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 18RS-798 ORIGINAL
HB NO. 262
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 fifty 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 fifty 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 fifty million dollars or more shall be entered into
16 on or after August 1, 2018, 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 fifty 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 fifty million dollars or more shall be valid nor shall
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 18RS-798 ORIGINAL
HB NO. 262
1 the state be bound by the contract unless all requirements of this Section have been
2 met.
3 Section 2. This Act shall become effective upon signature by the governor or, if not
4signed by the governor, upon expiration of the time for bills to become law without signature
5by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
6vetoed by the governor and subsequently approved by the legislature, this Act shall become
7effective 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 262 Original 2018 Regular Session McFarland
Abstract: Requires prior actions of the Joint Legislative Committee on the Budget (JLCB)
for certain requests for proposals (RFPs) and contracts over $50 million. Prohibits
the state from entering into agreements for the operation of hospitals under the
responsibility of La. State University Health Sciences Center unless the agreement
is approved by the JLCB.
Proposed law requires prior review and approval of the JLCB of RFPs for professional,
personal, consulting, or social services contracts of more than $50 million.
Proposed law requires prior review, but not approval, by the JLCB of RFPs for professional,
personal, or consulting services contracts of more than $50 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 $50 million after Aug. 1, 2018,
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 $50 million.
Proposed law prohibits the state from entering into or extending any cooperative endeavor
agreement, memorandum of understanding, contract, or any other type of agreement with
any person or entity to lease or operate a hospital for which a La. State University Health
Sciences Center is responsible pursuant to present law, unless the agreement or extension
has been reviewed and approved by the JLCB.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 39:366.12 and 1603.1)
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.