HB 692 — PUBLIC CONTRACTS: Provides relative to local government subdivisions entering into an agreement with group purchasing organizations

HLSENROLLED 26RS-1173 ENGROSSED Regular Session HOUSE BILL NO.

692 BY REPRESENTATIVE BROUSSARD PUBLICAN CONTRACTS:ACT To enactR.S.

Provides38:2212.1(Q) and (R), relative to local governmentgovernmental subdivisionssubdivision enteringagreements into an agreement with qualified group purchasing organizationsorganizations; AN ACT To enact R.S.

38:2212.1(Q), relative to local governmental subdivision agreements with qualified group purchasing organizations;

to authorize local governmental subdivisions to purchase materials, equipment, orsupplies,orservicesthroughqualifiedgrouppurchasingorganizationsundercertain suppliescircumstances;to throughprovideforsolesourceprocurementpurchases;andto qualifiedprovidefor grouprelated purchasingmatters. organizations under certain circumstances;

and to provide for related matters.

38:2212.1(Q) isand hereby(R) enactedare herebyenacted to read as follows:

exemptions * * * Q.(1) Notwithstanding any provision of law contained in this Part to the contrary, any local government subdivision, as defined in Article VI, Section 44(1) of the Constitution of Louisiana, may enter into an agreement with one or more qualified group purchasing organizations for the purchaseprocurement of materials, equipment, supplies, or supplies,services, including anyrelatedinstallation.any related installation.

AnysuchagreementshallAny requirethesuch qualifiedagreementshallrequirethequalifiedgrouppurchasingorganizationtosubmitaprice groupPage purchasing1 organizationof to3 submitCODING: a price list for materials, equipment, or supplies that it offers.

The prices quoted on the list shall remain in effect for not less than three months.

Any such price list shall be considered to be Page 1 of 3 CODING:

HLS 26RS-1173 ENGROSSED HB NO.

692 aENROLLED validlist andfor bindingmaterials, bidequipment, bysupplies, theor qualifiedservices groupthat purchasingit organizationoffers. during the effective period of the agreement, and no additional bid by the qualified group purchasing organization is necessary.

(2) The priceprices listquoted submittedon bythe alist qualifiedshall groupremain purchasingin organizationeffect isfor not aless publicthan recordthree andmonths. shall not be available for public inspection.

TheAny agreementsuch establishing the price list andshall itsbe effectiveconsidered dateto is,be however,aa publicvalid record,andand thatbinding portionofthepricelistestablishingthepriceofthematerials,equipment,orsuppliesbid beingpurchasedshallby becomeathe publicqualified recordgroup atpurchasing theorganization timeduring ofthe openingofeffective bidsperiod orof upon the executionagreement, ofand ano contractadditional forbid by the purchasequalified ofgroup materials,purchasing equipment,organization oris supplies.necessary.

(3)(2) AsThe usedprice inlist thissubmitted Subsection,bya "qualifiedqualified group purchasing organization"organization meansis annot organization,a whetherforpublic profitrecord or not-for-profit, of which two or more of thelocalgovernmentalsubdivisionsasdescribedinParagraph(1)ofthisSubsection, areparticipatingorvotingmembersthereofandwhichsolicitproposalsorbidsfrom vendors of materials, equipment, or supplies of the type and natureshall asnot may be purchasedavailable byfor anypublic suchinspection. department, agency, or nonprofit corporation.

AThe "qualifiedagreement grouppurchasingorganization"includesanexternalprocurementactivityasdefinedestablishing inthe R.S.price list and its effectivedate is, however, a public record,and that portion of the price list establishing the price of the materials, equipment, supplies, or services being procured shall become a public record at the time of opening of bidsorupontheexecutionofacontractfortheprocurementofmaterials,equipment, supplies, or services.

(3) As used in this Subsection, "qualified group purchasing organization" means an organization, whether for profit or not-for-profit, of which two or more of thelocalgovernmentalsubdivisionsasdescribedinParagraph(1)ofthisSubsection, areparticipatingorvotingmembersthereofandwhichsolicitproposalsorbidsfrom vendors of materials, equipment, supplies, or services of the type and nature as may be procured by any such department, agency, or nonprofit corporation.

A qualified group purchasing organization includes an external procurement activityas defined in R.S.

(4) Furthermore,Furthermore,anylocalgovernmentalsubdivisionmayprocurematerials, any local governmental subdivision may purchase materials, equipment, supplies, or suppliesservices directly from or through a qualified group purchasing organization if either the price is less than that for the same or substantiallysimilarmaterials,equipment,orsuppliesonthestatecontractorbidlistsubstantiallysimilar orifthesameorsubstantiallysimilarmaterials,equipment,orsuppliesarenotundermaterials,equipment,supplies, stateorservicesonthestatecontract contractor bid list or onif the statesame bidor list.substantially similar materials, equipment, supplies, or servicesarenotunderstatecontractoronthestatebidlist.

NothingNothingcontainedinthis contained in this Subsection shall be construed to authorize a local governmental subdivision to purchase materials, equipment, supplies, or suppliesservices from or through an entity or vendor other than a qualified group purchasing organization as defined in this Subsection without using a procurement process otherwise provided bystate law.

HLS 26RS-1173 ENGROSSED HB NO.

692 DIGESTENROLLED ThedigestprintedbelowwaspreparedbyHouseLegislativeR. Services.

ItAcontractmaybeawardedforarequiredsupply,service,ormajorrepair constituteswithout nopartcompetition when, under regulations, the chief procurement officer or his designee above the level of procurement officer determines, in writing, that there is only one source for the legislativerequired instrument.supply, service, or major repair item.

TheSPEAKER keyword,OF one-liner,THE abstract,HOUSE andOF digestREPRESENTATIVES doPRESIDENT notOF constituteTHE partSENATE ofGOVERNOR theOF lawTHE orSTATE proofOF orLOUISIANA indiciaAPPROVED: of legislative intent.

[R.S.

1:13(B) and 24:177(E)] HB 692 Engrossed 2026 Regular Session Broussard Abstract:

Authorizes local governmental subdivisions to purchase materials, equipment, orsuppliesthroughqualifiedgrouppurchasingorganizationsusingbindingpricelists with limited public disclosure.

Requires group purchasing organizations to submit price lists valid for a specified period and deems such lists as binding bids with limited confidentiality until incorporated into a contract and made public.

Proposed law authorizes local governments to use group purchasing organizations (GPOs) for materials, equipment, or supplies, or associated installations.

Requires the GPO to submit a price list and maintain those prices for at least three months and for those prices to be deemed a valid and binding bid.

Proposedlawprohibitsthepricelistsfrombeingconsideredpublicrecords,butprovidesthat the portion of the price list incorporated into a contract becomes a public record upon bid opening or contract execution.

Proposedlawdefines“qualifiedgrouppurchasingorganization”asanorganizationofwhich twoormoreofthelocalgovernmentalsubdivisionsareparticipatingorvotingmembersand whichsolicitproposalsorbidsfromvendorsofmaterials,equipment,orsuppliesofthetype and nature as may be purchased by any such department, agency, or nonprofit corporation.

Includes an external procurement activityas defined in present law (R.S.

39:1556).

Proposed law authorizes local governments to purchase through a qualified GPO when the price is lower than state contract pricing or when the item is not available on the state bid list.Prohibitspurchasesthroughnon-qualifiedentitieswithoutusingotherstateprocurement processes.

(Adds R.S.

38:2212.1(Q)) Summary of Amendments Adopted by House The Committee Amendments Proposed by House Committee on Transportation, Highways and Public Works to the original bill:

1.

Make technical changes.