LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 157 SLS 20RS 342
Bill Text Version: REENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 13, 2020 1:26 PM Author: WOMACK
Dept./Agy.: Statewide
Subject: Provides relative to audit requirements Analyst: Alan M. Boxberger
FISCAL CONTROLS RE SEE FISC NOTE LF RV See Note Page 1 of 2
Provides relative to audit requirements for recipients of state funds. (7/1/20)
Present law provides that no funds appropriated in the general appropriations act, the capital outlay act, or other
appropriation act, shall be released or provided to any recipient of an appropriation if, when, and for as long as the recipient
fails or refuses to comply with the provisions of present law regarding audit requirements; provides that any public entity
that has failed or refused to comply with the provisions of the audit laws shall not let any public contract that utilizes any
state funds; provides that a public entity may only be released from such restrictions after the entity notifies the Legislative
Audit Advisory Council of their compliance and that the Council confirms that the entity is in compliance. Proposed law
retains present law and provides that the funds may be appropriated directly or indirectly and that the source of funds may
also be an award from the La Department of Health Drinking Water Revolving Loan Fund, the La Department of
Environmental Quality Clean Water State Revolving Fund, or from Office of Community Development programs for
SEE SUMMARY CONTINUED ON PAGE TWO
EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
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 SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Annual Total
REVENUES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
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 SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Annual Total
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure. The impacted state
entities report that the Office of Statewide Reporting and Accounting is automatically notified if a vendor and/or public entity
is not in compliance with La R.S. 24:513. Under present law, all payments and/or contracts are put on hold until the audit
issue has been resolved. Proposed law provides that if a public entity is in compliance regarding audits at the time the entity
enters into a public contract, and later becomes noncompliant, the legislative auditor may grant the entity an extension of
time in order that the public entity may receive appropriated or awarded state funds and shall tender outstanding payments
to contractors, subcontractors, suppliers, and others due payment by the public entity related solely to contracts that will
inure to the benefit of public health, welfare, or safety. The public entity shall abide by any conditions imposed by the
legislative auditor to monitor the proper payment of funds due to contracts, subcontractors, suppliers and others. In
practice, this will permit the public entity to pay contractors for work completed and accepted to ensure additional payments
owed to contractors do not accrue.
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure. Proposed law will
impact entities receiving awards from the La Department of Health Drinking Water Revolving Loan Fund, the La Department
of Environmental Quality Clean Water State Revolving Fund, or from Office of Community Development programs for
Community Development Block Grants, Louisiana Community Development Block Grants, Local Government Assistance
Program, Disaster Recovery grants, the Community Water Enrichment Fund, or similar programs. Under present law, these
entities can no longer receive a transfer of funds if they fall into noncompliance with La R.S. 24:513. Proposed law will allow
the release of any appropriated monies due to a contractor from the public entity with authorization from the legislative
auditor, if such entity falls into noncompliance.
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}
Evan Brasseaux
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 157 SLS 20RS 342
Bill Text Version: REENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 13, 2020 1:26 PM Author: WOMACK
Dept./Agy.: Statewide
Subject: Provides relative to audit requirements Analyst: Alan M. Boxberger
CONTINUED EXPLANATION from page one: Page 2 of 2
SUMMARY CONTINUED FROM PAGE ONE
Community Development Block Grants, Louisiana Community Development Block Grants, Local Government Assistance
Program, Disaster Recovery grants, the Community Water Enrichment Fund, or similar programs; provides that the term
“public entity” also apply to a local auditee; and provides that if the public entity is in compliance regarding audits at the
time the entity enters into a public contract related to public health, welfare or safety, and later becomes noncompliant, the
legislative auditor may grant the entity an extension of time in order that the public entity may receive appropriated or
awarded state funds and shall tender outstanding payments to contractors, subcontractors, suppliers, and others due
payment by the public entity related solely to contracts that will inure to the benefit of public health, welfare, or safety. The
public entity shall abide by any conditions imposed by the legislative auditor to monitor the proper payment of funds due to
contracts, subcontractors, suppliers and others.
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}
Evan Brasseaux
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director


Statutes affected:
SB157 Original: 39:1(A)
SB157 Engrossed: 39:1(A)
SB157 Reengrossed: 39:1(A)
SB157 Enrolled: 39:1(A)