Louisiana Senate Bill SB331

Louisiana 2016 Regular Session

• Introduced: 3/4/16
• Refer: 3/4/16
• Refer: 3/14/16

Caption

Requires the assignment of anti-trust claims of state vendors or contractors. (8/1/16)

Impact

The implementation of SB 331 is poised to significantly alter state laws regarding procurement and contract compliance. By enforcing the assignment of anti-trust claims to the state, the bill aims to protect state interests in instances where vendor misrepresentation or other anti-competitive behaviors may occur. The law stipulates that any public works or projects must contain an anti-trust assignment provision, thus preemptively securing the state's ability to address potential violations. This could lead to greater responsibility on the part of contractors and vendors to maintain transparency and uphold the law in dealings with the state.

Summary

Senate Bill 331, introduced by Senator Peacock during the 2016 Regular Session, aims to enhance the state's control over anti-trust claims related to state vendors or contractors. The bill mandates that all contractual agreements and requests for proposals involving state purchases or reimbursements include a provision that assigns any anti-trust claims to the state. This includes claims that vendors or contractors may have against any violations of anti-trust laws concerning products or services provided under these contracts. The intent behind this legislation is to bolster the state's position in enforcing anti-trust laws and ensuring that state interests are safeguarded in contracts.

Sentiment

The sentiment surrounding SB 331 appears generally supportive among lawmakers concerned with state fiscal integrity and anti-trust enforcement. Proponents of the bill argue that it will provide necessary oversight and protection for the state against potential fraud or anti-competitive conduct by contractors. However, there are underlying tensions regarding the balance of power between the state and private vendors, with critics potentially arguing that the stringent requirements could pose a barrier to participation in state contracts and thus dissuade smaller contractors.

Contention

Notable points of contention mainly revolve around the implications of the bill on the relationships between the state and its contractors. Some stakeholders may view the mandatory anti-trust assignments as overly burdensome or a deterrent for vendors who might fear the expanded liability associated with potential claims. Moreover, questions arise about the practical enforcement of these provisions and whether they could lead to an escalation in disputes between the state and contractors. Understanding the ramifications of such requirements will be critical for stakeholders moving forward.