PUBLIC CONTRACT/BIDS: Provides relative to a contract limit for hospital service districts (EN NO IMPACT See Note)

Plain English Breakdown

The official source material does not provide details about the consequences for failing to notify state committees as required by the act.

Hospital Service District Contract Limits

This act changes the contract limit for hospital service districts, requiring them to use Construction Management at Risk (CMAR) only if projects cost more than one million dollars and notifying state committees about any proposed CMAR projects costing less than fifteen million dollars.

What This Bill Does

• Changes the minimum project cost from five million dollars to one million dollars for hospital service districts when using Construction Management at Risk (CMAR).
• Requires hospital service districts to notify state transportation, highways, and public works committees about any proposed CMAR projects costing less than fifteen million dollars, at least sixty days before starting.

Who It Names or Affects

• Hospital service districts in Louisiana
• State transportation, highways, and public works committees

Terms To Know

Construction Management at Risk (CMAR)

A project delivery method where the construction manager is selected early in the design phase to manage the risks of cost, schedule, and quality.

Hospital Service District

An area designated by law for providing hospital services to its residents.

Limits and Unknowns

• The act only applies to hospital service districts in Louisiana.
• It does not specify what happens if a district fails to notify the committees as required.
• The changes take effect on August 1, 2026.

Official Summary Text

PUBLIC CONTRACT/BIDS: Provides relative to a contract limit for hospital service districts (EN NO IMPACT See Note)

Current Bill Text

ENROLLED
ACT No. 7182026 Regular Session
HOUSE BILL NO. 1233 (Substitute for House Bill No. 839 by Representative Coates)
BY REPRESENTATIVE COATES
1 AN ACT
2 To amend and reenact R.S. 38:2225.2.4(A)(3), relative to the contract limit for hospital
3 service districts; to provide for a decreased contract limit for hospital service
4 districts; and to provide for related matters.
5 Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 38:2225.2.4(A)(3) is hereby amended and reenacted to read as
7 follows:
8 §2225.2.4. Construction management at risk; public entity
9 A.
10 * * *
11 (3) CMAR shall not be used for any project that is estimated to cost less than
12 five million dollars, exclusive of a hospital service district as defined by R.S.
13 46:1072(2)(a) that may not use CMAR for any project estimated to cost less than two
14 one million dollars. At least sixty days prior to proceeding to use CMAR for any
15 project that is estimated to cost less than fifteen million dollars, a public entity shall
16 deliver written notification of the proposed CMAR project by name and description
17 of the project, together with the reason to use CMAR, to the House and Senate
18 transportation, highways, and public works committees for review and approval.
19 * * *
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.