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New Law Requires Public Works Contract Bidders to Certify They Have Not Pleaded Guilty to Certain Crimes

By Lisa A. Easterling

A law passed by the Legislature and signed by Governor Bobby Jindal (Act 945) requires all bidders for public works contracts to certify that they have not entered a plea of either guilty or nolo contendre to certain crimes. Each bidder for public works contracts must certify in writing that they have not pleaded guilty or nolo contendre to: (1) public bribery (La. Rev. Stat. 14:118); (2) corrupt influencing (La. Rev. Stat. 14:120); (3) extortion (La. Rev. Stat. 14:66); or (4) money laundering (La. Rev. Stat. 14:230).

Additionally, a conviction of or a plea of either guilty or nolo contendre to the following state crimes or their federal counterparts bars any person or bidding entity from bidding on public projects for 5 years from the date of conviction or the date they entered the guilty or nolo plea: theft; identity theft; theft of a business record; false accounting; issuing worthless checks; bank fraud; forgery; contractors/misapplication of payments; or malfeasance in office. This 5-year prohibition applies only when the crime was committed during solicitation or execution of a contract or bid awarded under the public contractions provisions of Louisiana Revised Statutes.

If evidence substantiates that a false attestation has been made and the project must be readvertised or the contract cancelled, the awarded entity making the false attestation shall be responsible to the public entity for the costs of rebidding, additional costs due to increased costs of bids, and any and all delay costs due to the rebid or cancellation of the contract.
 

Full post as published by Louisiana Law Blog on July 19, 2010 (boomark / email).