SLS 19RS-405 ORIGINAL 2019 Regular Session SENATE BILL NO. 144 BY SENATOR PRICE Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. PROCUREMENT CODE. Provides for certain changes in the Louisiana Procurement Code regarding cooperative purchasing. (8/1/19) 1 AN ACT 2 To amend and reenact R.S. 39:1556(23) and 1702(A)(1), relative to the Louisiana 3 Procurement Code; to provide for cooperative purchasing agreements; to define 4 external procurement activities; and to provide for related matters. 5 Be it enacted by the Legislature of Louisiana: 6 Section 1. R.S. 39:1556(23) and 1702(A)(1) are hereby amended and reenacted to 7 read as follows: 8 §1556. Definitions 9 As used in this Chapter, the words defined in this Section shall have the 10 meanings set forth below, unless the context in which they are used clearly requires 11 a different meaning or a different definition is prescribed for a particular Part or 12 provision: 13 * * * 14 (23) "External procurement activity" means any buying organization not 15 located in this state which, if located in this state, would qualify as a public 16 procurement unit. An agency of the United States government is an external 17 procurement activity. An approved "external procurement activity" shall be a Page 1 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 144 SLS 19RS-405 ORIGINAL 1 purchasing cooperative administered by an agency of a state meeting the 2 procurement statutes of that state and not a nonprofit or a for-profit private 3 cooperative using a lead agency. 4 * * * 5 §1702. Cooperative purchasing authorized; participation in federal General Services 6 Administration vendor list 7 A.(1) Any public procurement unit may either participate in, sponsor, 8 conduct, or administer a cooperative purchasing agreement for the acquisition of any 9 supplies, services, major repairs, or construction with one or more public 10 procurement units or external procurement activities or one or more private 11 procurement units in accordance with an agreement entered into between the 12 participants. Such cooperative purchasing may include but is not limited to joint or 13 multi-party contracts between public procurement units and open-ended state public 14 procurement unit contracts which are made available to local public procurement 15 units. 16 (a) The cooperative qualifying as an "external procurement activity" 17 shall comply with its state's procurement statute that substantially complies 18 with Louisiana's state procurement statute. 19 (b) The "public procurement unit" is responsible for evaluating, and 20 documenting, the following procurement justification. The following steps are 21 necessary for a "public procurement unit" to evaluate an existing public 22 contract of an "external procurement activity": 23 (i) Does the purchasing cooperative qualify as an "external procurement 24 activity"? 25 (ii) Are the terms and conditions of the contract appropriate for use by 26 a Louisiana "public procurement unit"? 27 (iii) Is the contract in question a good fit for the "public procurement 28 unit"? Page 2 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 144 SLS 19RS-405 ORIGINAL The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Thomas L. Tyler. DIGEST SB 144 Original 2019 Regular Session Price Present law, relative to the Louisiana Procurement Code, defines an external procurement activity to mean any buying organization not located in Louisiana which, if located in this state, would qualify as a public procurement unit. An agency of the United States government is an external procurement activity. Proposed law retains these provisions but also requires that an approved "external procurement activity" be a purchasing cooperative administered by an agency of a state meeting the procurement statutes of that state and not a nonprofit or a for-profit private cooperative using a lead agency. Present law, regarding cooperative purchasing, provides that a public procurement unit may either participate in, sponsor, conduct, or administer a cooperative purchasing agreement for the acquisition of any supplies, services, major repairs, or construction with one or more public procurement units or external procurement activities or one or more private procurement units in accordance with an agreement entered into between the participants. Provides that this cooperative purchasing may include joint or multi-party contracts between public procurement units and open-ended state public procurement unit contracts which are made available to local public procurement units. Proposed law retains these provisions but adds the following items: (1)Requires that the cooperative qualifying as an "external procurement activity" comply with its state's procurement statute that substantially complies with Louisiana's state procurement statute. (2)The "public procurement unit" is responsible for evaluating and documenting the following procurement justification. The following steps are necessary for a "public procurement unit" to evaluate an existing public contract of an "external procurement activity": (a)Does the purchasing cooperative qualify as an "external procurement activity"? (b)Are the terms and conditions of the contract appropriate for use by a Louisiana "public procurement unit"? (c)Is the contract in question a good fit for the "public procurement unit"? Effective August 1, 2019. (Amends R.S. 39:1556(23) and 1702(A)(1)) Page 3 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.