LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 845 HLS 24RS 1454
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 2, 2024 5:33 PM Author: DESHOTEL
Dept./Agy.: Statewide
Subject: Procurement of Information Technology Analyst: Chris Henry
PROCUREMENT EN NO IMPACT See Note Page 1 of 1
Provides relative to procurement of information technology
Proposed law creates the Invitation to negotiate as a method of procurement and adds it to the list of source selections in law. Provides
criteria under which an invitation to negotiate may be utilized for procurement. Expands the list of allowed procurement methods when
entering into contracts for information technology (IT) systems or services to include IT-related professional services and consulting
services contracts (”covered procurements”). Provides that a report of all multiyear contracts for the covered procurements shall be
provided to the Joint Legislative Committee on Technology and Cybersecurity (JLCTC) within 90 days of the end of each fiscal year.
Requires JLCTC to approve IT contracts entered into for a period of more than three years and with a cost of more than $10 M. Proposed
law provides that the JLCTC shall review all contracts for covered procurements which are obtained through an invitation to negotiate.
Additionally provides that contracts for electronic benefits issuance system services may be entered into for periods of up to ten years
consisting of any initial term of six years with the state having options for up to two, two-year extensions. Proposed legislation authorizes
the JLCTC to review and approve specific agency budgets, expenditures, or procurement requests for technology or cybersecurity.
Changes procedures for the procurement of fiscal intermediary services contracts to include JLCTC.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure. Proposed law allows
the use of certain additional procurement methods currently listed in the procurement code (competitive sealed bids,
competitive sealed proposals, reverse auction, and cooperative purchasing) as well as the newly created invitation to
negotiate when entering into contracts for the covered procurements. The proposed law defines “invitation to negotiate” as a
written or electronically posted solicitation for competitive sealed replies to select one or more vendors with which to
commence negotiations for the procurement of information technology systems, services, software, professional services, or
consulting services. This method can only be used once others have been determined to be impracticable.
Proposed law provides that no award of any contract for the covered procurements which is entered into for a period of more
than three years and with a cost greater than $10 M, or any extension thereof, shall be made until reviewed and approved
by JLCTC. Extensions of these contracts which increase the total cost by more than 5% must be approved by JLCTC prior to
execution. To the extent this new requirement increases the frequency with which JLCTC meets, there will be increased costs
for per diem and travel allowances for committee members. Any contract not approved by JLCTC within 30 days of agency
submission will be automatically referred to the Joint Legislative Committee on the Budget (JLCB) for review and approval.
Proposed law changes the processes by which fiscal intermediary services (FIS) contracts may be procured and shifts much
of the legislative review to the JLCTC, however, JLCB approval remains a requirement. Current law allows these contracts to
be awarded by competitive sealed proposals or cooperative purchasing; the proposed law would allow the invitation to
negotiate method to be utilized as well. Contracts must be awarded according to the applicable laws related to each
respective method. Allows extensions of FIS contracts for up to three years that are entered into via competitive sealed
proposals. For these FIS contracts to be renewed, a notice of intent must be submitted by the Department of Health (LDH)
to JLCTC, which has 30 days to conduct a hearing on the renewal. To extend the contract due to changes initiated by the
Centers for Medicare and Medicaid Services (CMS), LDH must have the approval of the JLCTC.
The Office of State Procurement is required to adopt and promulgate rules for the implementation of the proposed measure.
This additional workload can be achieved within the agency’s existing budget.
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Patrice Thomas
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer


Statutes affected:
HB845 Original: 24:673(A), 39:198(A), 39:198(G)(4), 39:200(I)
HB845 Engrossed: 24:673(A), 39:198(A), 39:198(G)(4), 39:200(I)
HB845 Reengrossed: 24:673(A), 39:198(A), 39:198(G)(4), 39:200(I)
HB845 Enrolled: 24:673(A), 39:197(13), 39:198(A), 39:198(G)(4), 39:200(I)
HB845 Act 734: 24:673(A), 39:197(13), 39:198(A), 39:198(G)(4), 39:200(I)