ENROLLED
2019 Regular Session
HOUSE BILL NO. 333
BY REPRESENTATIVES CONNICK AND LEGER
1 AN ACT
2 To amend and reenact R.S. 15:711(B) and 1111(B), R.S. 38:2261, R.S. 39:1594(J)(1) and
3 1604.4, and R.S. 47:34(C)(2)(d)(i), 287.749(C)(2)(d)(i), 302(BB)(95), 305.38,
4 321(P)(95), 321.1(I)(95), 331(V)(95), and 337.9(D)(17) and to repeal R.S. 23:3024
5 and 3025 and R.S. 39:1554(D)(1)(b), relative to the preference for goods
6 manufactured or services performed; to provide for employment of individuals with
7 disabilities; to provide for the creation of a council; to provide for certain definitions;
8 to provide for the exemption of competitive bidding requirements; to provide for tax
9 credits; to provide for an effective date; and to provide for related matters.
10 Be it enacted by the Legislature of Louisiana:
11 Section 1. R.S. 15:711(B) and 1111(B) are hereby amended and reenacted to read
12 as follows:
13 §711. Work release program
14 * * *
15 B. Each sheriff shall establish written rules for the administration of the work
16 release program and shall determine those inmates who may participate in the release
17 program, except that no inmate may participate in the program if his sentence so
18 stipulates. Inmates sentenced to the Department of Corrections who are in the
19 custody of the sheriff shall not be eligible for work release unless such inmates are
20 in compliance with standards for work release within the department and written
21 approval of the secretary of the department is obtained. If any inmate violates the
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1 conditions prescribed by the sheriff, his work release privileges may be withdrawn.
2 Failure to report to or return from the planned employment shall be considered an
3 escape under the provisions of R.S. 14:110. The sheriff may approve as work release
4 privileges, placement in universities, colleges, technical, vocational or trade schools
5 or in sheltered workshops or supported employment providers as defined in R.S.
6 39:1604.4, or in training programs designed to improve the skills and abilities of the
7 inmate.
8 * * *
9 §1111. Work release program
10 * * *
11 B. The department shall establish rules for the administration of the work
12 release program and shall determine those inmates who may participate in the release
13 program. Any inmate sentenced to imprisonment at hard labor shall be eligible at
14 any time during his sentence to participate in the work release program, subject to
15 the provisions of this Part. If any inmate violates the conditions prescribed by the
16 department, his work release privileges may be withdrawn. Failure to report to or
17 return from the planned employment shall be considered an escape under the
18 provisions of R.S. 14:110. The department may approve as work release privileges,
19 placement in universities, colleges, technical, vocational or trade schools, or in
20 sheltered workshops or supported employment providers as defined in R.S.
21 39:1604.4, or in training programs designed to improve the skills and abilities of the
22 inmate.
23 * * *
24 Section 2. R.S. 38:2261 is hereby amended and reenacted to read as follows:
25 §2261. Preference for goods manufactured, or services performed, by sheltered
26 workshops by individuals with disabilities through supported employment
27 providers; non-applicability of competitive bidding requirements;
28 coordinating council
29 A. Every agency, board, commission, department, or other instrumentality
30 of the state as defined in R.S. 39:1556 shall give a preference in its purchasing
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1 practices to goods manufactured and services performed by individuals with severe
2 disabilities in state-operated and state-supported sheltered workshops through
3 supported employment providers.
4 B. The requirements for competitive bidding contained in Part II of this
5 Chapter shall be inapplicable to cases in which an agency, board, commission,
6 department, or other instrumentality of the state can utilize as defined in R.S.
7 39:1556 uses goods manufactured, or services performed, by individuals with severe
8 disabilities in state-operated and state-supported sheltered workshops through
9 supported employment providers, provided the goods manufactured or services
10 performed are equal in quality and reasonable in the rate charged based upon those
11 goods and services available from other providers.
12 C. The provisions of this Section shall not be construed to limit or otherwise
13 affect the provisions of R.S. 23:3024 and 23:3025 regarding the sheltered industries
14 program for individuals who are blind.
15 D. C. There is created within the Louisiana Department of Health a council
16 whose function shall be to The State Use Council for the Purchase of Goods and
17 Services Provided by Individuals with Disabilities established pursuant to R.S.
18 39:1604.4(B) shall coordinate and facilitate the carrying out of the provisions of this
19 Section. The membership of this council shall be determined by the secretary of the
20 Louisiana Department of Health.
21 E. D. For the purposes of this Section, the following terms are defined as
22 follows:
23 (1) "Direct labor" means all labor involved in the manufacture of goods or
24 the performance of services except for supervision, instruction, administration, and
25 shipping "Goods manufactured and services performed by individuals with
26 disabilities" shall have the meaning as defined in R.S. 39:1604.4(D).
27 (2) "Goods manufactured and services performed by individuals with severe
28 disabilities" means goods and services for which not less than seventy-five percent
29 of the man-hours of direct labor required for manufacture or performance is provided
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1 by individuals with severe disabilities "Individuals with disabilities" shall have the
2 meaning as defined in R.S. 39:1604.4(D).
3 (3) "Individuals with severe disabilities" means individuals with a physical,
4 mental, or substance abuse disability which constitutes a substantial obstacle to their
5 employment and is of such a nature as to prevent an individual from engaging in
6 normal competitive employment "Supported employment provider" shall have the
7 meaning as defined in R.S. 39:1604.4(D).
8 (4) "Qualified nonprofit agency for individuals with severe disabilities"
9 means an agency that:
10 (a) Is incorporated under the Louisiana Nonprofit Corporation Law and
11 operated in the interests of individuals with severe disabilities, and the income of
12 which does not inure in whole or in part to the benefit of any shareholder or other
13 private individual.
14 (b) Complies with any applicable occupational health and safety standards
15 provided by the statutes or regulations of this state or of the United States.
16 (5) "Sheltered workshop" means a facility designed to provide gainful
17 employment for individuals with severe disabilities who cannot be absorbed into the
18 competitive labor market or to provide interim employment for such individuals
19 when employment opportunities for them in the competitive labor market do not
20 exist.
21 (6) "State-operated sheltered workshop" means a sheltered workshop staffed
22 by state agency personnel.
23 (7) "State-supported sheltered workshop" means a sheltered workshop
24 funded in whole or in part by the state and staffed by personnel from a qualified
25 nonprofit agency for individuals with severe disabilities.
26 Section 3. R.S. 39:1594(J)(1) and 1604.4 are hereby amended and reenacted to read
27 as follows:
28 §1594. Competitive sealed bids
29 * * *
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1 J. Exemption.
2 (1) Purchases of goods manufactured by or services performed by
3 individuals with severe disabilities in state-operated and state-supported sheltered
4 workshops through supported employment providers as defined in R.S. 39:1604.4
5 shall be exempt from the provisions of this Section. This exemption shall also apply
6 to goods and services procured by purchase order directly from a central nonprofit
7 agency contracting under R.S. 39:1604.4 to assist qualified sheltered workshops; any
8 purchase order shall be issued directly to the central nonprofit agency for all goods
9 and services within the exemption provided under this Subsection supported
10 employment providers.
11 * * *
12 §1604.4. Preference for goods manufactured, or services performed, by sheltered
13 workshops by individuals with disabilities through supported employment
14 providers; definitions; coordinating council
15 A. Every governmental body agency shall give a preference in its purchasing
16 practices to goods manufactured and services performed by individuals with severe
17 disabilities in state-operated and state-supported sheltered workshops through
18 supported employment providers, provided such goods manufactured or services
19 performed are equal in quality and reasonable in the rate charged based upon those
20 goods and services available from other providers.
21 B. The provisions of this Section shall not be construed to limit or otherwise
22 affect the provisions of R.S. 23:3024 and 3025 regarding the sheltered industries
23 program for individuals who are blind.
24 C. B. There is hereby created within the Louisiana Department of Health, a
25 council the "State Use Council for the Purchase of Goods and Services Provided by
26 Individuals with Disabilities", hereinafter referred to as "council", whose function
27 shall be to coordinate and facilitate the carrying out of the provisions of this Section
28 and the provisions of R.S. 38:2261. The membership of this council shall be
29 determined by the secretary of the Louisiana Department of Health. It shall have
30 authority to designate and contract with a central nonprofit agency to assist sheltered
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1 workshops in submitting applications for the selection of suitable goods and services,
2 to facilitate the allocation of orders among qualified sheltered workshops, and
3 otherwise to assist the council in performing its functions.
4 (1) The membership of the council shall be determined by the secretary of the
5 Louisiana Department of Health.
6 (2) The council shall have authority to designate and contract with a central
7 nonprofit agency to assist supported employment providers in submitting
8 applications for the selection of suitable goods and services, to facilitate the
9 allocation of orders among qualified supported employment providers, and otherwise
10 to assist the council in performing its functions.
11 (3) The council shall solicit and evaluate competitive sealed proposals
12 pursuant to R.S. 39:1595 at least every five years to designate and contract with a
13 central nonprofit agency.
14 D. C. The Louisiana Department of Health may adopt, promulgate, and
15 enforce such rules and regulations as are necessary and appropriate to implement the
16 provisions of this Section and the provisions of R.S. 38:2261. The regulations shall
17 be promulgated in accordance with the Administrative Procedure Act, R.S. 49:950
18 et seq.
19 E. D. For the purposes of this Section, the following terms are defined as
20 follows:
21 (1) "Central nonprofit agency for individuals with disabilities" means an
22 agency that:
23 (a) Is incorporated under the Louisiana Nonprofit Corporation Law and
24 operated in the interests of individuals with disabilities, and the income of which
25 does not inure in whole or in part to the benefit of any shareholder or other private
26 individual.
27 (b) Complies with any applicable occupational health and safety standards
28 provided by the statutes or regulations of this state and of the United States.
29 (2) "Client" means an individual with a disability who is employed by a
30 supported employment provider.
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1 (3) "Direct labor" means all labor involved in the manufacture of goods or
2 the performance of services except for supervision, instruction, administration, and
3 shipping.
4 (2)(4) "Goods manufactured and services performed by individuals with
5 severe disabilities" means goods and services for which not less than seventy-five
6 forty percent of the man-hours of direct labor required for manufacture or
7 performance is provided by individuals with severe disabilities.
8 (3) "Qualified nonprofit agency for individuals with severe disabilities"
9 means an agency that:
10 (a) Is incorporated under the Louisiana Nonprofit Corporation Law and
11 operated in the interests of individuals with severe disabilities, and the income of
12 which does not inure in whole or in part to the benefit of any shareholder or other
13 private individual.
14 (b) Complies with any applicable occupational health and safety standards
15 provided by the statutes or regulations of this state or of the United States.
16 (4)(5) "Individuals with severe disabilities" means individuals with a
17 physical, behavioral, developmental, intellectual, sensory, mental, or substance abuse
18 disability addictive disorder which constitutes a substantial obstacle to their
19 employment and is of such a nature as to prevent an individual from engaging in
20 normal competitive employment.
21 (5)(6) "Sheltered workshop" means a facility designed to provide gainful
22 employment for individuals with severe disabilities who cannot be absorbed into the
23 competitive labor market or to provide interim employment for such individuals
24 when employment opportunities for them in the competitive labor market do not
25 exist. "Supported employment provider" means a nonprofit organization, program,
26 or entity as defined by R.S. 12:201 et seq., which provides gainful, competitive,
27 integrated employment, training, and rehabilitation services for individuals with
28 disabilities in compliance with a central nonprofit agency for individuals with
29 disabilities. In Fiscal Years 2019-2020 and 2020-2021, "supported employment
30 provider" shall also include any sheltered workshop transitioning to a model of
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1 gainful, competitive, integrated employment, training, and rehabilitation services for
2 individuals with disabilities.
3 (6) "State-operated sheltered workshop" means a sheltered workshop staffed
4 by state agency personnel.
5 (7) "State-supported sheltered workshop" means a sheltered workshop
6 funded in whole or in part by the state and staffed by personnel from a qualified
7 nonprofit agency for individuals with severe disabilities.
8 Section 4. R.S. 47:34(C)(2)(d)(i), 287.749(C)(2)(d)(i), 302(BB)(95), 305.38,
9 321(P)(95), 321.1(I)(95), 331(V)(95), and 337.9(D)(17) are hereby amended and reenacted
10 to read as follows:
11 §34. Corporation tax credit
12 * * *
13 C. Eligible employees are defined as follows:
14 * * *
15 (2) A "new economically disadvantaged employee" is a new employee who
16 is any of the following:
17 * * *
18 (d) where such status presents significant barriers to employment:
19 (i) a client of a sheltered workshop or a supported employment provider as
20 defined in R.S. 39:1604.4;
21 * * *
22 §287.749. Jobs credit
23 * * *
24 C. Eligible employees are defined as follows:
25 * * *
26 (2) A "new economically disadvantaged employee" means a new employee
27 who is any of the following:
28 * * *
29 (d) where such status presents significant barriers to employment:
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1 (i) a client of a sheltered workshop or a supported employment provider as
2 defined in R.S. 39:1604.4;
3 * * *
4 §302. Imposition of tax
5 * * *
6 BB. Notwithstanding any other provision of law to the contrary, including
7 but not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
8 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
9 levied pursuant to the provisions of this Section, except for the retail sale, use,
10 consumption, distribution, or storage for use or consumption of the following:
11 * * *
12 (95) Sales or purchases by sheltered workshops or supported employment
13 providers as defined in R.S. 39:1604.4, as provided in R.S. 47:305.38.
14 * * *
15 §305.38. Exclusions and exemptions; sheltered workshop or supported employment
16 provider for persons with intellectual disabilities
17 The sale at retail, the use, the consumption, the distribution, and the storage
18 for use or consumption in this state of each item or article of tangible personal
19 property by a sheltered workshop or a supported employment provider as defined in
20 R.S. 39:1604.4 for persons with intellectual disabilities licensed by the Department
21 of Children and Family Services as a day developmental training center for persons
22 with intellectual disabilities shall not be subject to the sales and use taxes levied by
23 the state or by any political subdivision thereof.
24 * * *
25 §321. Imposition of tax
26 * * *
27 P. Notwithstanding any other provision of law to the contrary, including but
28 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
29 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
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1 levied pursuant to the provisions of this Section, except for the retail sale, use,
2 consumption, distribution, or storage for use or consumption of the following:
3 * * *
4 (95) Sales or purchases by sheltered workshops or supported employment
5 providers as defined in R.S. 39:1604.4, as provided in R.S. 47:305.38.
6 * * *
7 §321.1. Imposition of tax
8 * * *
9 I. Notwithstanding any other provision of law to the contrary, including but
10 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
11 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
12 levied pursuant to the provisions of this Section, except for the retail sale, use,
13 consumption, distribution, or storage for use or consumption of the following:
14 * * *
15 (95) Sales or purchases by sheltered workshops or supported employment
16 providers as defined in R.S. 39:1604.4, as provided in R.S. 47:305.38.
17 * * *
18 §331. Imposition of tax
19 * * *
20 V. Notwithstanding any other provision of law to the contrary, including but
21 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
22 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
23 levied pursuant to the provisions of this Section, except for the retail sale, use,
24 consumption, distribution, or storage for use or consumption of the following:
25 * * *
26 (95) Sales or purchases by sheltered workshops or supported employment
27 providers as defined in R.S. 39:1604.4, as provided in R.S. 47:305.38.
28 * * *
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1 §337.9. Exemptions applicable to local tax in Chapters 2, 2-A, and 2-B; other
2 exemptions applicable
3 * * *
4 D.
5 * * *
6 (17) R.S. 47:305.38, "key words": sheltered workshops or supported
7 employment providers as defined in R.S. 39:1604.4, for persons with intellectual
8 disabilities.
9 * * *
10 Section 5. R.S. 23:3024 and 3025 and R.S. 39:1554(D)(1)(b) are hereby repealed in
11 their entirety.
12 Section 6. This Act shall become effective on July 1, 2019; if vetoed by the governor
13 and subsequently approved by the legislature, this Act shall become effective on July 1,
14 2019, or on the day following such approval by the legislature, whichever is later.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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