RÉSUMÉ DIGEST
ACT 219 (SB 157) 2020 Regular Session Womack
Prior law provided that no funds appropriated in the general appropriations act, the capital
outlay act, or other appropriation act, shall be released or provided to any recipient of an
appropriation if, when, and for as long as, the recipient fails or refuses to comply with the
provisions of prior law regarding audit requirements.
New law retains prior law and provides that the funds may be appropriated directly or
indirectly and that the source of funds may also be an award from the La. Dept. of Health
Drinking Water Revolving Loan Fund, the Dept. of Environmental Quality Clean Water
State Revolving Fund, or office of community development programs for Community
Development Block Grants, local government assistance program, disaster recovery grants,
or the Community Water Enrichment and Other Improvements Fund or similar programs.
Prior law provided that any public entity that has failed or refused to comply with the
provisions of the audit laws shall not let any public contract that utilizes any state funds. For
the purposes of prior law, the terms "public entity" and "public contract" shall be defined as
in the prior law regarding public contracts.
New law retains prior law but further provides that the term "public entity" shall include a
local auditee as defined in prior law.
Prior law prohibited public entities not in compliance with law from letting any public
contract that utilizes any state funds. Further provided that a public entity subject to prior
law may only be released from such restrictions after the following actions have been
performed:
(1)The public entity notifies the Legislative Audit Advisory Council, in writing, of their
compliance.
(2)The Legislative Audit Advisory Council confirms that the public entity is in
compliance.
New law retains prior law.
New law provides that if the public entity is in compliance with prior law regarding audits
when it enters into a public contract related to public health, welfare, or safety, and later
becomes noncompliant with those provisions, the legislative auditor may grant the public
entity an extension of time in order that the public entity may receive appropriated or
awarded State funds and shall tender the outstanding payments to contractors,
subcontractors, suppliers, and others due payment by the public entity. Further provides that
the public entity shall abide by any conditions imposed by the legislative auditor to monitor
the proper payment of funds due to contractors, subcontractors, suppliers, and others.
Effective July 1, 2020.
(Amends R.S. 39:72.1(A); adds R.S. 39:72.1(D))