SLS 20RS-412 ENGROSSED
2020 Regular Session
SENATE BILL NO. 132
BY SENATOR HENRY
CONTRACTS. Provides for reporting to and approval of all state contracts valued at
twenty-five million dollars or more annually by the Joint Legislative Committee on the
Budget. (7/1/20)
1 AN ACT
2 To enact R.S. 39:1624(C), relative to the approval of contracts; to provide for the approval
3 of any contract with a value greater than or equal to twenty-five million dollars
4 annually by the Joint Legislative Committee on the Budget; to provide for the
5 reporting to the Joint Legislative Committee on the Budget by state agencies prior
6 to the issuance of any request for proposals that could result in expenditures of
7 twenty-five million dollars or more annually; to provide for an effective date; and to
8 provide for related matters.
9 Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 39:1624(C) is hereby enacted to read as follows:
11 ยง1624. Approval of contract; penalties
12 * * *
13 C. Prior to the state chief procurement officer or an assistant approving
14 any contract with a value greater than or equal to twenty-five million dollars
15 annually, the state chief procurement officer or an assistant shall verify that the
16 following has occurred:
17 (1) The state agency entering into the contract with a value greater than
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 132
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1 or equal to twenty-five million dollars annually has received the approval of the
2 Joint Legislative Committee on the Budget to enter into the contract.
3 (2) If the request for proposal process was used in the procurement
4 process for a contract with a value greater than or equal to twenty-five million
5 dollars annually, the state agency using the request for proposal process notified
6 the Joint Legislative Committee on the Budget of the potential cost of such
7 contract prior to the issuance of the request for proposals, provided that such
8 cost was reasonably anticipated at the time of issuance.
9 Section 2. This Act shall become effective upon July 1, 2020. If vetoed by the
10 governor and subsequently approved by the legislature, this Act shall become effective on
11 July 1, 2020.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Martha S. Hess.
DIGEST
SB 132 Engrossed 2020 Regular Session Henry
Present law provides for the conditions that shall be satisfied prior to the state procurement
officer or an assistant approving professional, personal, consulting, or social services
contracts:
(1)All provisions of R.S. 39:1623 have been complied with.
(2)The using agency has statutory authority to enter into the proposed contract.
(3)The contract will not establish an employer/employee relationship between the state
or the using agency and any prospective contractor.
(4)No current state employee will engage in the performance of the proposed contract
except as provided for in R.S. 39:1626.
(5)No using agency has previously performed or contracted for the performance of tasks
which would be substantially duplicated under the proposed contract without
appropriate written justification.
(6)There has been appropriated or otherwise lawfully made available and ready for
expenditure sufficient monies for payment of the services called for in the contract,
at least for the applicable fiscal year.
(7)The contracting using agency has specified the purpose, duration, specific goals and
objectives, measures of performance, and a plan for monitoring the services to be
provided under the contract.
(8)The using agency has a written plan for the monitoring of the contract and such
monitoring plan has been submitted in accordance with rules and regulations adopted
by the office of state procurement.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 132
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(9)The provisions of R.S. 12:25(E) have been complied with, if the contract is with a
business corporation, the provisions of R.S. 12:205(E) have been complied with, if
the contract is with a nonprofit corporation, or the provisions of R.S. 12:304(A)(11)
have been complied with, if the contract is with a foreign corporation.
(10)The prospective contractor is current in the filing of all applicable tax returns and
reports, and in payment of all taxes, interest, penalties, and fees owed to the state and
collected by the Department of Revenue in accordance with R.S. 47:1678.
Proposed law retains present law and provides that, prior to the state chief procurement
officer or an assistant approving any contract with a value greater than or equal to $25
million annually, the state chief procurement officer or an assistant shall verify that the
following has occurred:
(1)The state agency entering into contract with a value greater than or equal to $25
million annually has received the approval of the Joint Legislative Committee on the
Budget (JLCB) to enter into the contract.
(2)If the request for proposal process was utilized in the procurement process for a
contract with a value greater than or equal to $25 million dollars annually, the state
agency notified the JLCB of the potential cost of such contract prior to the issuance
of the request for proposals, provided that such cost was reasonably anticipated at the
time of issuance.
Effective July 1, 2020.
(Adds R.S. 39:1624(C))
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.