§ 39:89.3 — Nongovernmental entities; requirements; prohibitions

Louisiana § 39:89.3

• Jurisdiction: Louisiana
• Title 39: Procurement and Contract

Text

§89.3. Nongovernmental entities; requirements; prohibitions
A.(1) Each nongovernmental entity that receives a legislative appropriation or an
appropriation as part of a departmental or agency budget, including any federal funding
sources, shall submit to the state agency distributing the appropriation or administering the
contract or cooperative endeavor agreement the following information prior to the
disbursement of funds:
(a) An itemized report of the nongovernmental entity's administrative expenses
associated with the distribution and utilization of state appropriated funds.
(b)(i) The nongovernmental entity's most recent financial report in accordance with
R.S. 24:513. The report shall be a sworn financial statement, compilation, review, or audit,
as required based on the total revenues and other funding sources received by the entity in
any one fiscal year, pursuant to R.S. 24:513(J).
(ii) If the financial report is required to be prepared by a licensed certified public
accountant, the engagement of the accountant shall be pre-approved by the legislative auditor
through the submission of an engagement letter in accordance with R.S. 24:513(A)(5)(a)(i).
(iii) The completed financial report shall also be submitted to and formally accepted
by the legislative auditor in order to be deemed compliant for purposes of eligibility to
receive appropriated funds.
(iv) For nongovernmental entities subject to audit requirements pursuant to R.S.
24:513, the audit report shall include an auditor's unqualified opinion and a certification that
there are no unresolved audit findings, or that the nongovernmental entity is actively working
with the appropriate governmental authority to resolve them.
(v) All financial reports submitted pursuant to this Subparagraph shall be reviewed
and accepted by the legislative auditor pursuant to the provisions of R.S. 24:513. No report
shall be deemed compliant without such acceptance.
(2) The state agency may require the nongovernmental entity to submit a corrective
action plan to address noncompliance with the provisions of this Subsection or any
outstanding audit issues or findings.
(3) Any nongovernmental entity that fails to comply with the provisions of this
Subsection shall be ineligible to receive disbursement of an appropriation for a period of
three years or until the entity has achieved compliance as determined by the state agency.
B.(1)(a) No public official, public employee, or immediate family member thereof
shall receive anything of economic value or any form of compensation, whether direct or
indirect, from a nongovernmental entity or contract with a nongovernmental entity receiving
appropriated funds.
(b) The provisions of this Paragraph shall not apply if the nongovernmental entity
is contracted with the Department of Education or with a city, parish, or other local public
school system to provide standards-based educational services.
(2) The provisions of this Subsection shall not preclude a public official or public
employee from accepting a thing of economic value, gift, or complimentary admission,
lodging, and reasonable transportation in compliance with the provisions of R.S. 42:1115,
1115.1, and 1115.2.
C. Nongovernmental entities that receive appropriated funds shall refrain from
political activities, including endorsement of any political party or candidate for public
office, or the use of machinery, equipment, postage, stationary, or personnel on behalf of any
political party or candidate.
D. Nongovernmental entities shall not use appropriated funds for the following
purposes:
(1) Lobbying the legislature or a state or local government agency, including funding
for employee hours spent lobbying.
(2) Making contributions, directly or indirectly, to political action committees,
political parties, or candidates for public office.
E. For purposes of this Subpart, a nongovernmental entity shall not include any
school governing authority required to post fiscal information through the School
Transparency Project Portal pursuant to R.S. 17:88.1.

Legislative History

Acts 2025, No. 467, §1, eff. June 30, 2025.