Louisiana 2019 2019 Regular Session

Louisiana Senate Bill SB233 Comm Sub / Analysis

                    The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Dawn Romero Watson.
DIGEST
SB 233 Original	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.
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 to be done by
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.
Present law provides that present law shall not prevent public entities from using their regular
maintenance employees for labor necessary in the maintenance, construction, or extension of
publicly owned and operated electric public utilities. With respect to the construction or extension
of all other public utilities, provides that the provisions of present law shall not prevent public
entities from using their regular maintenance employees when the cost of the work per project does
not exceed $150,000, including labor and materials. Requires all purchases of materials or supplies
exceeding the contract limit provided for in present law to be let by public bid.
Proposed law makes an exception from present law for St. Charles Parish owned publicly utilities
and raises the threshold to $250,000. 
Effective August 1, 2019. (Amends R.S. 38:2212(C)(1) and (S); adds R.S. 38:2212(C)(4))