SLS 19RS-226 ENGROSSED 2019 Regular Session SENATE BILL NO. 233 BY SENATOR GARY SMITH PUBLIC WORKS. Increases "contract limit" that requires public bid for public work related to drainage projects done by regular maintenance employees in St. Charles Parish. (8/1/19) 1 AN ACT 2 To amend and reenact R.S. 38:2212(C)(1) and to enact R.S. 38:2212(C)(4), relative to public 3 works projects let by St. Charles Parish; to raise the threshold dollar amount that 4 requires a public bid; and to provide for related matters. 5 Notice of intention to introduce this Act has been published. 6 Be it enacted by the Legislature of Louisiana: 7 Section 1. R.S. 38:2212(C)(1) is hereby amended and reenacted and R.S. 8 38:2212(C)(4) is hereby enacted to read as follows: 9 §2212. Advertisement and letting to lowest responsible and responsive bidder; 10 public work; electronic bidding; participation in mentor-protégé 11 program; exemptions 12 * * * 13 C.(1) Except as provided in Paragraphs (2), and (3), and (4) of this 14 Subsection, the term "contract limit" as used herein shall be equal to the sum of one 15 hundred fifty thousand dollars per project, including labor, materials, and equipment 16 as per the rates in the latest edition of the Associated Equipment Dealers Rental Rate 17 Book and administrative overhead not to exceed fifteen percent, provided that 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. 233 SLS 19RS-226 ENGROSSED 1 beginning February 1, 2015, and annually on February first of each subsequent year, 2 the office of facility planning and control within the division of administration shall 3 adjust the "contract limit" by an amount not to exceed the annual percentage increase 4 in the Consumer Price Index in the preceding year. The office of facility planning 5 and control within the division of administration shall publish the new contract limit 6 for public works contracts in the Louisiana Register in January of each year. 7 * * * 8 (4) For public work related to drainage projects to be done by the 9 regular maintenance employees of the St. Charles Parish governing authority, 10 the term "contract limit" as used herein shall be equal to the sum of two 11 hundred fifty thousand dollars per project, including labor, materials, and 12 equipment as per the rates in the latest edition of the Associated Equipment 13 Dealers Rental Rate Book and administrative overhead not to exceed fifteen 14 percent, provided that beginning February 1, 2021, and annually on February 15 first of each subsequent year, the office of facility planning and control within 16 the division of administration shall adjust the "contract limit" by an amount 17 not to exceed the annual percentage increase in the Consumer Price Index in the 18 preceding year. The office of facility planning and control within the division 19 of administration shall publish the new contract limit for public works contracts 20 let by the St. Charles Parish governing authority in the Louisiana Register in 21 January of each year beginning in January 2021. The provisions of this 22 Paragraph shall terminate on June 30, 2020. 23 * * * The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Dawn Romero Watson. DIGEST SB 233 Engrossed 2019 Regular Session Gary Smith Present law provides that all public work exceeding the contract limit, including labor and materials, to be done by a public entity shall be advertised and let by contract to the lowest responsible and responsive bidder who bid according to the bidding documents as advertised, and that no such public work shall be done except as provided in present law. 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. 233 SLS 19RS-226 ENGROSSED Present law provides, with certain exceptions, that the term "contract limit" shall be equal to the sum of $150,000 per project, including labor, materials, and equipment as per the rates in the latest edition of the Associated Equipment Dealers Rental Rate Book and administrative overhead not to exceed 15%. Provides that beginning February 1, 2015, and annually on February 1st of each subsequent year, the office of facility planning and control within the division of administration shall adjust the "contract limit" by an amount not to exceed the annual percentage increase in the Consumer Price Index in the preceding year. The contract limit published in the Louisiana Register in the January 2019 edition is $157,700. Proposed law provides an exception to the "contract limit" definition for public work related to drainage projects to be done by regular maintenance employees of the St. Charles Parish governing authority. Provides that the term "contract limit" shall be equal to the sum of $250,000 per project, including labor, materials, and equipment as per the rates in the latest edition of the Associated Equipment Dealers Rental Rate Book and administrative overhead not to exceed 15%. Provides that beginning February 1, 2021, and annually on February 1st of each subsequent year, the office of facility planning and control within the division of administration shall adjust the "contract limit" by an amount not to exceed the annual percentage increase in the Consumer Price Index in the preceding year. The office of facility planning and control within the division of administration shall publish the new contract limit for public works contracts let by the St. Charles Parish governing authority in the Louisiana Register in January of each year. Proposed law sunsets "contract limit" exception for St. Charles Parish on June 30, 2020. Effective August 1, 2019. (Amends R.S. 38:2212(C)(1); adds R.S. 38:2212(C)(4)) Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Transportation, Highways, and Public Works to the original bill 1. Adds that "contract limit" exception of $250,000 applies to public work related to drainage projects to be done by the regular maintenance employees of the St. Charles Parish governing authority. 2. Sunsets "contract limit"exception for St. Charles Parish drainage projects on June 30, 2020. 3. Removes and retains present law provisions that allow public entities to use regular maintenance employees for labor in the maintenance, construction, or extension of publicly owned and operated utilities. Page 3 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.