ENROLLED 2018 Regular Session HOUSE BILL NO. 754 BY REPRESENTATIVES FOIL, ARMES, STEVE CARTER, COX, CREWS, GAINES, GISCLAIR, HAZEL, HOWARD, TERRY LANDRY, AND PIERRE AND SENATORS ALARIO, APPEL, BARROW, BISHOP, CARTER, CHABERT, CORTEZ, DONAHUE, ERDEY, FANNIN, GATTI, JOHNS, LAFLEUR, LONG, LUNEAU, MILKOVICH, MILLS, MIZELL, MORRELL, PEACOCK, PERRY, PETERSON, RISER, GARY SMITH, JOHN SMITH, TARVER, THOMPSON, WALSWORTH, WARD, AND WHITE 1 AN ACT 2 To amend and reenact R.S. 39:2002(3) and (7), 2005(2), (5), and (6), 2007(D)(1), 2171(B), 3 2172(3) and (7), 2173, 2175(2), (5), and (6), 2176(A)(4), and 2177(D), relative to 4 entrepreneurships of the Hudson Initiative and the Veteran Initiative; to provide 5 relative to maximum gross receipts thresholds for such entrepreneurships; to provide 6 relative to the percent of evaluation points awarded to certain veterans in requests for 7 proposals; to provide relative to competitive source selection; to provide for 8 definitions; to provide for effectiveness; and to provide for related matters. 9 Be it enacted by the Legislature of Louisiana: 10 Section 1. R.S. 39:2002(3) and (7), 2005(2), (5), and (6), 2007(D)(1), 2171(B), 11 2172(3) and (7), 2173, 2175(2), (5), and (6), 2176(A)(4), and 2177(D) are hereby amended 12 and reenacted to read as follows: 13 §2002. Definitions 14 As used in this Chapter, the following words and phrases shall have the 15 meanings ascribed to them in this Section, unless the context clearly indicates 16 otherwise: 17 * * * 18 (3) "Contract" or "public contract" means all types of state agreements, 19 regardless of what they may be called, for personal services, professional services, 20 consulting services, or social services, or the purchase of materials, supplies, 21 services, or major repairs, or for the making of any public works. It includes awards Page 1 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 754 ENROLLED 1 and notices of award; contracts of a fixed-price, cost, cost-plus-a-fixed-fee, or 2 incentive type; contracts providing for the issuance of job or task orders; leases; 3 letter contracts; and purchase orders. It also includes supplemental agreements with 4 respect to any of the foregoing. 5 * * * 6 (7) "Procurement" means the buying, purchasing, renting, leasing, or 7 otherwise obtaining any materials, supplies, services, or major repairs, personal 8 services, professional services, consulting services, or social services. It also 9 includes all functions that pertain to the obtaining of any public procurement, 10 including description of requirements, selection and solicitation of sources, 11 preparation and award of contract, and all phases of contract administration. 12 * * * 13 §2005. Competitive source selection 14 Methods of source selection which may be utilized by an agency to satisfy 15 a state goal for contracting with small entrepreneurships shall include but not be 16 limited to: 17 * * * 18 (2) The purchase of goods, operating services, major repairs, personnel 19 personal services, professional services, consulting services, social services, and 20 public works directly from a certified small entrepreneurship under an agency's 21 discretionary purchasing authority. 22 * * * 23 (5) An allowance for at least No more than ten percent of the total evaluation 24 points in a request for proposal shall be awarded to an offeror demonstrating a good 25 faith effort to use small entrepreneurships as subcontractors. 26 (6) An allowance for ten Ten percent of the total evaluation points in a 27 request for proposal shall be awarded to an offeror who is a certified small business 28 entrepreneurship. 29 * * * Page 2 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 754 ENROLLED 1 §2007. Responsibilities of the commissioner of administration; training; reporting 2 * * * 3 D.(1) The commissioner shall conduct a training program at least 4 semiannually to acquaint small entrepreneurships with state procurement and public 5 contract proposal and bidding practices. This shall include all state procurements 6 which are governed by Chapter 10 of Title 38, Chapters 16 and Chapter 17 of this 7 Title, and Parts XIII and XIII-A of Chapter 1 of Title 48 of the Louisiana Revised 8 Statutes of 1950. The commissioner shall also secure the assistance of staff from 9 either the Department of Transportation and Development, Department of Natural 10 Resources, or Department of Environmental Quality who are knowledgeable about 11 state procurements undertaken pursuant to Chapter 10 of Title 38 and Parts XIII and 12 XIII-A of Chapter 1 of Title 48 of the Louisiana Revised Statutes of 1950, for the 13 purpose of providing practical advice to small entrepreneurships relative to 14 procurements and public contracts governed by such law. 15 * * * 16 §2171. Louisiana Initiative for Veteran and Service-Connected Disabled Veteran- 17 Owned Small Entrepreneurships; intent 18 * * * 19 B. The provisions of this Chapter are intended to encourage business 20 opportunities for veteran and service-connected disabled veteran-owned small 21 entrepreneurships. The criteria for certification as a veteran and service-connected 22 disabled veteran-owned small entrepreneurship for the purposes of the initiative shall 23 be as established in R.S. 39:2006 39:2176, and as may be additionally refined by 24 administrative rule. 25 * * * 26 §2172. Definitions 27 As used in this Chapter, the following words and phrases shall have the 28 meanings ascribed to them in this Section, unless the context clearly indicates 29 otherwise: 30 * * * Page 3 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 754 ENROLLED 1 (3) "Contract" or "public contract" means all types of state agreements, 2 regardless of what they may be called, for personal services, professional services, 3 consulting services, or social services, or the purchase of materials, supplies, 4 services, or major repairs, or for the making of any public works. It includes awards 5 and notices of award; contracts of a fixed-price, cost, cost-plus a fixed-fee, or 6 incentive type; contracts providing for the issuance of job or task orders; leases; 7 letter contracts; and purchase orders. It also includes supplemental agreements with 8 respect to any of the foregoing. 9 * * * 10 (7) "Procurement" means the buying, purchasing, renting, leasing, or 11 otherwise obtaining any materials, supplies, services, or major repairs, or personal 12 services, professional services, consulting services, or social services. It also 13 includes all functions that pertain to the obtaining of any public procurement, 14 including description of requirements, selection and solicitation of sources, 15 preparation and award of contract, and all phases of contract administration. 16 * * * 17 §2173. Application of Chapter 18 Notwithstanding any other provision of law to the contrary, the provisions of 19 this Chapter apply to procurements and public contracts which are governed by 20 Chapter 10 of Title 38, Chapters 16 and Chapter 17 of this Title, and Parts XIII and 21 XIII-A of Chapter 1 of Title 48 of the Louisiana Revised Statutes of 1950. This 22 Chapter shall not apply to agency expenditures for amortization of debt, debt service, 23 depreciation, employee benefits, per diem, relocation expenses, salaries, postage, and 24 transfers of charges. This Chapter shall not apply to contracts for sole-source items, 25 contracts with other governmental entities, and those contracts that are prohibited by 26 federal law from inclusion in this Chapter. 27 * * * Page 4 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 754 ENROLLED 1 §2175. Competitive source selection 2 Methods of source selection which may be utilized by an agency to satisfy 3 a state goal for contracting with veteran and service-connected disabled 4 veteran-owned small entrepreneurships shall include but not be limited to: 5 * * * 6 (2) The purchase of goods, operating services, major repairs, personnel 7 personal services, professional services, consulting services, social services, and 8 public works directly from a certified veteran and service-connected disabled 9 veteran-owned small entrepreneurship under an agency's discretionary purchasing 10 authority. 11 * * * 12 (5) An allowance for at least ten No more than twelve percent of the total 13 evaluation points in a request for proposal shall be awarded to an offeror 14 demonstrating a good faith effort to use veteran and service-connected disabled 15 veteran-owned small entrepreneurships as subcontractors. 16 (6) Ten Twelve percent of the total evaluation points in a request for 17 proposal shall be awarded to an offeror who is a certified veteran and or 18 service-connected disabled veteran-owned small business entrepreneurship. The 19 mandatory award of evaluation points required by this Paragraph shall be included 20 in all requests for proposals, unless the inclusion jeopardizes funding for the 21 procurement or violates any other provision of law. Any request for an exemption 22 from the requirements of this Paragraph shall be submitted in writing to the 23 commissioner of administration who shall either deny or approve the request. The 24 provisions of this Paragraph shall not apply to design-build or construction manager 25 at risk methods of construction. 26 §2176. Certification of businesses by Department of Economic Development; 27 listing of veteran and service-connected disabled veteran-owned small 28 entrepreneurships; reporting 29 A. The secretary of the Department of Economic Development, hereinafter 30 referred to in this Section as the "department", shall certify businesses as veteran and Page 5 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 754 ENROLLED 1 service-connected disabled veteran-owned small entrepreneurships for the purposes 2 of this Chapter. "Veteran-owned small entrepreneurship" and "service-connected 3 disabled veteran-owned small entrepreneurship" means any corporation, partnership, 4 individual, sole proprietorship, joint stock company, joint venture, or any other legal 5 entity which meets all of the following criteria: 6 * * * 7 (4) Together with any of its affiliate entities, has fewer than fifty full-time 8 employees with average annual gross receipts not exceeding ten million dollars per 9 year for construction operations and five six million dollars per year for 10 nonconstruction operations, for each of the previous three tax years. 11 * * * 12 §2177. Responsibilities of the commissioner of administration; training; reporting 13 * * * 14 D. The commissioner shall conduct a training program at least semiannually 15 to acquaint veteran and service-connected disabled veteran-owned small 16 entrepreneurships with state procurement and public contract proposal and bidding 17 practices. This shall include all state procurements which are governed by Chapter 18 10 of Title 38, Chapters 16 and Chapter 17 of this Title, and Parts XIII and XIII-A 19 of Chapter 1 of Title 48 of the Louisiana Revised Statutes of 1950. The 20 commissioner shall also secure the assistance of staff from the Louisiana Department 21 of Veterans Affairs for veteran-specific information and data, and either the 22 Department of Transportation and Development, Department of Natural Resources, 23 or Department of Environmental Quality who are knowledgeable about state 24 procurements undertaken pursuant to Chapter 10 of Title 38 and Parts XIII and XIII- 25 A of Chapter 1 of Title 48 of the Louisiana Revised Statutes of 1950, for the purpose 26 of providing practical advice to veteran and service-connected disabled veteran- 27 owned small entrepreneurships relative to procurements and public contracts 28 governed by such law. 29 * * * Page 6 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 754 ENROLLED 1 Section 2. This Act shall become effective upon signature by the governor or, if not 2 signed by the governor, upon expiration of the time for bills to become law without signature 3 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If 4 vetoed by the governor and subsequently approved by the legislature, this Act shall become effective on the day following such approval. SPEAKER OF THE HOUSE OF REPRESENTATIVES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED: Page 7 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions.