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 Reengrossed 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 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.
Floor Amendments to the engrossed bill
1. Makes legislative bureau technical corrections.