DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 698 Original 2020 Regular Session Freeman
Abstract: Creates a procedure for designating goods manufactured or services performed by
individuals with disabilities as mandatory-use items and requires procurement of such item
or service by an agency, board, commission, department, or other instrumentality of the state
in certain situations if the good or services has been so designated.
Present law establishes rules and regulations for the procurement of supplies by state agencies and
requirements for public contracts. Proposed law retains present law.
Present law establishes a procurement preference for goods manufactured or services performed by
individuals with disabilities when provided through a supported employment provider. Defines
"supported employment provider" as a nonprofit organization, program or entity which provides
gainful employment, training, and rehabilitation services for individuals with disabilities. Defines
"individuals with disabilities" as individuals with a physical, behavioral, developmental, intellectual,
sensory, mental, or addictive disorder which constitutes a substantial obstacle to their employment.
Further defines "goods manufactured and services performed by individuals with disabilities" to
mean goods and services for which not less than 40% of the direct man-hours required for
manufacture or performance are provided by individuals with disabilities. Proposed law retains
present law.
Present law establishes the State Use Council for the Purchase of Goods and Services Provided by
Individuals with Disabilities (hereinafter "Council") to facilitate present law preference provisions.
Proposed law retains present law. Present law requires the secretary of the La. Dept. of Health to
determine the membership of the council. Proposed law repeals this authority. Proposed law further
requires the Council to meet at least four times per year.
Proposed law establishes a procedure by which goods manufactured or services rendered by persons
with disabilities through a supported employment provider may be designated as "mandatory-use."
Such a designation would require agencies, boards, commissions, departments, or other
instrumentalities of the state to procure the good or service from the supported employment provider
or an authorized distributor unless an exemption provided in proposed law applies to that procuring
entity.
The procedure for designating a good or service as "mandatory-use" pursuant to proposed law is:
(1)The supported employment provider must prepare an application for each good or service
and submit it to the central nonprofit agency designated by the Council (pursuant to present law).
(2)The central nonprofit agency must review the application and ensure the accuracy of the
information. The agency must then route the application with its recommendations and
comments to the office of state procurement.
(3)The office of state procurement must review the application and recommendations received,
ensure the information is accurate, and that inclusion of the good or service as a qualified
mandatory-use offering would advance the best interests of the state. The office of state
procurement must then route the application with its recommendation to the Council.
(4)The Council must review the application and recommendations and make a final
determination whether to designate the good or service as a qualified mandatory-use offering.
Pursuant to proposed law, a good or service may only be designated as mandatory-use if the
supported employment provider, central nonporoft agency, office of state procurement and Council
all agree that its designation is advisable and in accordance with proposed law.
Proposed law sets for certain exemptions that would allow a procuring agency, board, commission,
department or instrumentality of the state to not purchase a qualified mandatory-use good or service.
Those exemptions include, but are not limited to, procurement during emergency conditions,
specifications inconsistent with the procuring entity's needs, use restrictions on funds being used for
the procurement, and if the chief procurement officer of the procuring entity determines in writing
that the best interest of the state would be advanced by granting an exemption.
Present law authorizes the La. Dept. of Health to promulgate rules to enforce and implement the
preference provided for in present law. Proposed law retains present law and further authorizes the
Division of Administration to promulgate such rules.
Effective July 1, 2021.
(Amends R.S. 38:2261 and R.S. 39:1604.4)