Louisiana House Bill HB262

Louisiana 2018 Regular Session

• Introduced: 2/28/18
• Refer: 2/28/18
• Refer: 3/12/18

Caption

Requires prior approval of the Joint Legislative Committee on the Budget of request for proposals, contracts, and cooperative endeavor agreements over a specified dollar amount (OR SEE FISC NOTE GF EX)

Impact

If passed, HB 262 would impose stricter controls on the approval of contracts, fundamentally changing the landscape of state procurement practices. This change is intended to increase transparency and accountability in how state funds are allocated, particularly in high-value contracts that could significantly affect public services. Importantly, the bill prohibits the fragmentation of contracts into smaller amounts to evade the review process, promoting adherence to the oversight protocol requested by the state legislature.

Summary

House Bill 262, introduced by Representative McFarland during the 2018 Regular Session, mandates prior approval by the Joint Legislative Committee on the Budget (JLCB) for certain state contracts, particularly those exceeding $50 million. This legislation aims to ensure more rigorous oversight of significant financial agreements involving professional, personal, consulting, or social services. The bill seeks to prevent the state from entering into hospital operation agreements without JLCB review, which aligns with goals to improve accountability in the expenditure of public funds.

Sentiment

The reception of HB 262 appears mixed among stakeholders. Proponents of the bill argue that it is a necessary measure to safeguard taxpayer dollars and ensure that significant agreements are adequately vetted. Critics, however, may view these additional layers of oversight as potential hindrances to efficient state operation, potentially slowing down essential healthcare agreements, particularly in the context of hospital operations managed by the Louisiana State University Health Sciences Center.

Contention

Notably, there are concerns regarding the implications of HB 262 on the state's ability to respond swiftly to urgent healthcare needs through timely contracts. By requiring JLCB oversight on high-stakes contracts, some legislators worry it may complicate and delay the procurement process, especially in situations requiring immediate action. This contention highlights an ongoing tension between the need for financial oversight and the necessity for efficiency in government operations.