Louisiana 2018 2018 Regular Session

Louisiana Senate Bill SB474 Comm Sub / Analysis

                    The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Martha Hess.
DIGEST
SB 474 Reengrossed 2018 Regular Session	Colomb
Present law authorizes minor repairs, renovations, or construction of buildings or other facilities may
be undertaken by an agency without being included in the capital outlay budget, provided that the
expenditures for a fiscal year for these undertakings do not exceed $150,000 cumulatively per agency
and the expenditures are first approved by the commissioner of administration and the Joint
Legislative Committee on the Budget. Provides that the term "cost" shall not be construed to include
design fees or movable equipment.
Proposed law retains present law but increases the authorization to allow state agencies to purchase
land, buildings, or other facilities outside of the capital outlay process.  Proposed law defines
"exemption threshold" and increases the threshold from $150,000 to $300,000, adjusted annually in
accordance with the U.S. Bureau of Labor Statistic's consumer price index for all urban consumers
as published in January of each year.  Proposed law provides that the construction to be undertaken
by a state agency shall be on property owned by the state, provided the undertakings do not exceed
$300,000.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 39:128(C))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs to
the original bill
1. Changes the exemption threshold from $1,000,000 to $500,000 for minor repairs,
renovations, or construction of buildings or other facilities by a state agency on state
property.
2. Changes the threshold on allowed undertakings for purposes of benefitting from
proposed law from $1,000,000 to $500,000.
3. Deletes provisions related to professional service contracts where the estimated
construction cost exceeded $1,000,000.
Committee Amendments Proposed by Senate Committee on Finance to the engrossed bill
1. Changes the exemption threshold from $500,000 to $300,000 for minor repairs, renovations, or construction of buildings or other facilities by a state agency on state
property.
2. Defines "threshold amount" for purposes of proposed law.