House Bill No. [insert bill number] establishes the Louisiana State Contract Minority Business Opportunity Act, aimed at increasing participation by minority-owned and disadvantaged business enterprises (MBE/DBE) in state contracting. The bill outlines definitions for key terms and sets specific participation goals, including a minimum of 30% of the total annual dollar value of state contracts to be awarded to certified MBE/DBEs by Fiscal Year 2031-2032. It mandates that state agencies designate compliance officers, maintain databases of certified MBE/DBEs, and conduct outreach to these businesses for contracts exceeding $50,000. Additionally, prime contractors are required to submit utilization plans and report on their participation rates.

The bill also introduces sanctions for noncompliance, including corrective action plans and mandatory training for agencies that fail to meet participation goals for two consecutive fiscal years. Prime contractors that do not adhere to their MBE/DBE utilization plans may face penalties such as withholding of payments and disqualification from future contracts. Furthermore, the division of administration is tasked with commissioning an independent disparity study every five years to assess MBE/DBE participation and recommend adjustments to participation goals based on the findings. Annual reports detailing contract awards and participation rates will be submitted to the legislature to ensure transparency and accountability.