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2025 Regular Session
SENATE BILL NO. 184
BY SENATOR CLOUD
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
FISCAL CONTROLS. Creates the "Transparent Responsible Use of State Tax-dollars
(T.R.U.S.T.) Act" to provide for appropriation requirements for nongovernmental entities.
(2/3-CA7s2.1(A)) (gov sig)
1 AN ACT
2 To amend and reenact R.S. 39:51.1(B)(7) and (8), to enact R.S. 39:51.1(I) and (J) and 51.2,
3 and to repeal R.S. 39:51.1(B)(10) and (11), relative to nongovernmental entities; to
4 provide for appropriation requirements for nongovernmental entities; to provide for
5 nongovernmental entity funding request form information; to provide for reporting
6 requirements; to require the state treasurer to create a database of nongovernmental
7 entities; to provide for audit requirements; to provide for criminal and civil penalties;
8 to provide for definitions; to provide for an effective date; and to provide for related
9 matters.
10 Be it enacted by the Legislature of Louisiana:
11 Section 1. R.S. 39:51.1(B)(7) and (8) are hereby amended and reenacted and R.S.
12 39:51.1(I) and (J) and 51.2 are hereby enacted to read as follows:
13 §51.1. General Appropriation Bill and other appropriation bills; nongovernmental
14 entity funding request form; exemptions
15 * * *
16 B. Such information shall include, at a minimum, the following information:
17 * * *
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1 (7) The entity's most recent financial audit conducted by a certified
2 public accountant which is approved by the legislative auditor. The legislative
3 auditor may require that additional information be submitted with the audit.
4 The audit shall contain an unqualified opinion and A certification that the entity
5 has no outstanding audit issues or findings or that the entity is working with
6 appropriate governmental agencies to resolve those issues or findings.
7 (8) The entity's sworn statement of public purpose sought to be achieved
8 through the use of state monies and the goals and objectives to achieve such purpose.
9 The sworn statement shall include:
10 (a) A clearly stated mission or purpose that aligns with the rights,
11 requirements, and restrictions of the Constitution of Louisiana and Louisiana
12 laws.
13 (b) Evidence that the entity performs a specific and critical governmental
14 function that state or local governments are unable to perform.
15 * * *
16 I. Any nongovernmental entity that is requesting an appropriation
17 pursuant to this Section shall comply with the requirements of R.S. 39:51.2.
18 Certificates of compliance shall be submitted prior to the release of any funds
19 which may be appropriated.
20 J. Knowingly submitting false or misleading information in any required
21 report or certification shall constitute a violation of R.S. 14:133 and may result
22 in civil penalties, clawback of funds, and disqualification from future
23 appropriations for five years.
24 §51.2. Nongovernmental entities; legislative findings; purpose; requirements
25 A. (1) The legislature hereby finds that nongovernmental entities play a
26 vital role in strengthening communities and addressing critical needs and
27 acknowledges the positive impact of entities that operate with integrity,
28 transparency, and a genuine commitment to the public good. The legislature
29 further finds that the relationship between a nongovernmental entity and the
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1 state reflects a collaborative effort in pursuit of shared goals such as providing
2 humanitarian relief, educational programming, workforce training, healthcare
3 access, or faith-based support.
4 (2) The purpose of this Section is not intended to hinder or burden those
5 who serve with honor, but rather to establish clear expectations and ensure that
6 all nongovernmental entities are held to consistent and accountable standards.
7 B.(1) Each nongovernmental entity that receives a state appropriation
8 shall certify compliance with the following requirements:
9 (a) The entity shall maintain a primary physical office in Louisiana, be
10 registered as a nonprofit with the secretary of state, and have continuously
11 operated in the state for at least twelve months prior to applying for state funds.
12 (b) The entity's administrative expenses do not exceed fifteen percent of
13 its total expenditures.
14 (c) The entity is in compliance with all reporting requirements and
15 information requests from the state treasurer, the division of administration,
16 the legislative auditor, and the office of the state inspector general.
17 (2) Each nongovernmental entity shall submit a certificate verifying
18 compliance with the provisions of this Subsection prior to the release of any
19 funds.
20 C.(1) For the purposes of this Subsection, the following definitions shall
21 apply:
22 (a) "Report" shall mean any documentation mandated by any provision
23 of law or cooperative endeavor agreement that provides information on the use
24 of appropriated funds, including but not limited to explanation of expenditures,
25 program implementation status, performance metrics, and outcome
26 assessments.
27 (b) "Measurable outcomes" shall mean specific, quantifiable results
28 directly tied to the purpose of the appropriation, demonstrating the impact or
29 effectiveness of the funded activity or program. Measurable outcomes shall
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1 include data points such as the number of individuals served, services delivered,
2 benchmarks achieved, performance goals met, and the regional impact to the
3 communities and parishes served, as defined in the original cooperative
4 endeavor agreement.
5 (2) Each nongovernmental entity shall submit a report containing
6 measurable outcomes and benchmarks of funding objectives to the legislature
7 within six months after the close of the fiscal year in which appropriated funds
8 have been expended and prior to the release of future state funding.
9 (3) Any nongovernmental entity that fails to submit a report required
10 pursuant to this Subsection shall be ineligible to receive any appropriation or
11 state funding for a period of five years.
12 (4) Knowingly submitting false or misleading information in any
13 required report or certification shall constitute a violation of R.S. 14:133
14 and may result in civil penalties, clawback of funds, and disqualification
15 from future appropriations for five years.
16 D. No public official, public employee, or immediate family member shall
17 serve in a decision-making or compensated role in an entity receiving
18 appropriated funds. All potential conflicts shall be disclosed in writing as part
19 of the funding request.
20 E. Nongovernmental entities shall not use state funds, directly or
21 indirectly, for lobbying, including employee time funded by the state,
22 contracting with third-party lobbyists, or making contributions, directly or
23 indirectly, to political action committees, political parties, or candidates for
24 public office.
25 F.(1) Any nongovernmental entity that receives a state appropriation
26 shall be audited by the legislative auditor pursuant to the provisions of R.S.
27 24:513.
28 (2) The nongovernmental entity shall fully comply with any requests for
29 information from the legislative auditor. Failure to comply with the provisions
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1 of this Subsection shall result in an audit finding of noncompliance pursuant to
2 R.S. 24:513.
3 G.(1) The state treasurer shall report annually to the legislature, the
4 Joint Legislative Committee on the Budget, and the division of administration
5 on or before January 1 of each fiscal year on nongovernmental organizations
6 that have been appropriated state monies beginning in Fiscal Year 2025–2026
7 and each fiscal year thereafter, specifically whether the cooperative endeavor
8 agreements were completed in the original time frame contemplated in the
9 agreement.
10 (2) The treasurer shall create and maintain an online, searchable
11 database of each nongovernmental entity that has been appropriated state
12 monies which includes the name of the entity, the entity's physical location, the
13 amount it was appropriated, the stated purpose of the appropriation, the date
14 when the entity originally signed a cooperative endeavor agreement with the
15 state, the current status of the funding, and whether or not the entity completed
16 the purposes of the agreement.
17 (3) All reports and audits submitted pursuant to this Section shall be
18 made publicly available through the state treasurer's online, searchable
19 database within thirty days of receipt.
20 H. No nongovernmental entity shall receive state appropriations for
21 more than three consecutive fiscal years without undergoing a
22 performance-based reapplication and review process.
23 I. All state agencies that distribute, appropriate, or award grants to
24 nongovernmental entities shall comply with the requirements set forth in this
25 Section and shall submit all reports and documentation as prescribed herein.
26 Section 2. R.S. 39:51.1(B)(10) and (11) are hereby repealed.
27 Section 3. This Act shall be known as the "Transparent Responsible Use of State
28 Tax-dollars Act" or "T.R.U.S.T. Act".
29 Section 4. This Act shall become effective upon signature by the governor or, if not
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1 signed by the governor, upon expiration of the time for bills to become law without signature
2 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
3 vetoed by the governor and subsequently approved by the legislature, this Act shall become
4 effective on the day following such approval.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Senate Legislative Services.
The keyword, summary, 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)]
DIGEST
SB 184 Original 2025 Regular Session Cloud
Present law provides that any nongovernmental entity which is neither a budget unit nor a
political subdivision of the state that is requesting funding from the state shall transmit
certain information to the legislature in an online, searchable database.
Proposed law retains present law and adds further requirements that entities provide their
most recent financial audit, a sworn statement of public purpose that includes a clearly stated
mission that aligns with the state constitution and laws, and evidence that they perform a
specific and critical government function that state or local governments are unable to
perform.
Proposed law also requires that entities submit certificates of compliance prior to the release
of any funds.
Proposed law further provides for requirements necessary for a certificate of compliance,
which include the entity to maintain a physical office in Louisiana, register as a nonprofit
with the secretary of state, and operate continuously for 12 months prior to applying for state
funds; that the entity's administrative costs do not exceed 15% of total expenditures; and that
the entity complies with all reporting requirements and information requests of the state
treasurer, the division of administration, the legislative auditor, and the office of the state
inspector general.
Proposed law provides for definitions of "report" and "measurable outcomes".
Proposed law requires each entity to submit a report to the legislature containing measurable
outcomes and benchmarks of funding objectives within six months after the close of the
fiscal year in which appropriated funds have been expended and prior to receiving any other
appropriations.
Proposed law states that any entity domiciled in a judicial district that is not in compliance
with provisions relative to Children and Youth Services Advisory Boards shall not be
eligible to apply for or receive state funding.
Proposed law states that any entity receiving state funding for truancy, mental health, or
diversion shall also submit its report to the Children and Youth Services Advisory Board
located in its domicile no later than December 31 of the year in which funding was received;
and that such boards shall compile the information into a report and submit it to the
Children's Cabinet no later than February 1 of each calendar year.
Proposed law provides that any entity that fails to submit any required report shall be
ineligible to receive any appropriation or state funding for five years.
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SLS 25RS-349 ORIGINAL
Present law provides requirements for disclosure if elected officials or immediate family
members who received compensation from or held ownership of any entity that was
requesting to receive funding or if the entity with elected officials and immediate family
members had an existing contract with the state or other governmental agency.
Proposed law repeals present law and prohibits any public official, public employee, or
immediate family member from serving in a decision-making or compensated role in an
entity receiving appropriated funds. All potential conflicts shall be disclosed in writing as
part of the funding request.
Proposed law prohibits a nongovernmental entity from using state funds, directly or
indirectly, for lobbying, including employee time funded by the state, or contracting with
third-party lobbyists.
Proposed law provides that knowingly submitting false or misleading information in any
required report or certification shall constitute a criminal violation of present law and may
result in civil penalties, clawback of funds, and disqualification from future appropriations
for five years.
Proposed law requires any entity that receives an appropriation to be audited by the
legislative auditor; further requires the entity to comply with any information requests from
the legislative auditor; and provides that failure to comply shall result in an audit finding of
noncompliance.
Proposed law provides that beginning in FY 2025-2026 and each fiscal year thereafter, the
state treasurer shall report annually to the legislature on entities that have been appropriated
state monies on whether the cooperative endeavor agreements were completed in the original
time frame contemplated in the agreement.
Proposed law requires the treasurer to create an online, searchable database of each
nongovernmental entity that has been appropriated state monies which includes the name
of the entity, the entity's physical location, the amount it was appropriated, the stated purpose
of the appropriation, the date when the entity originally signed a cooperative endeavor
agreement with the state, the current status of the funding, and whether or not the entity
completed the purposes of the agreement.
Proposed law requires that all reports and audits submitted pursuant to proposed law shall
be made publicly available through the state treasurer's online, searchable database within
30 days of receipt.
Proposed law prohibits a nongovernmental entity from receiving state appropriations for
more than three consecutive fiscal years without undergoing a performance-based
reapplication and review process.
Proposed law provides that all state agencies that distribute, appropriate, or award grants to
nongovernmental entities shall comply with the requirements set forth in proposed law and
shall submit all reports and documentation as prescribed herein.
Proposed law provides that this Act shall be known as the "Transparent Responsible Use of
State Tax-dollars Act" or "T.R.U.S.T. Act".
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 39:51.1(B)(7) and (8); adds R.S. 39:51.1(I) and (J) and 51.2; repeals R.S.
39:51.1(B)(10) and (11))
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