La. Admin. Code tit. 13 § I-1725

Current through Register Vol. 50, No. 11, November 20, 2024

Section I-1725 - Economically Disadvantaged Business Set-Aside

A. Any establishment, and its contractors, applying for an exemption or state-sponsored subsidy shall designate and set-aside for awarding to economically disadvantaged businesses an amount not less than ten percent of the value of the anticipated total procurement of goods and services including construction for the exempted project, without added expense; provided such economically disadvantaged businesses are majority-owned by Louisiana residents, operated by Louisiana residents and are competent to deliver the required products and services in a timely manner and perform the required work in a timely manner during construction and operation of the project.

B. The applicant should contact the Division of Community Outreach Services (the "division") for assistance in identifying qualified, economically disadvantaged businesses.

C. Each affected applicant establishment shall submit to the division, at the time of submitting an application for industry assistance to the Office of Business Development Services, and annually thereafter, its plan for compliance.

D. The Set-Aside Plan for Compliance

1. The set-aside plan for compliance prepared by each establishment shall include the following:

a. an affirmation that the establishment is committed to compliance with the intent of the economically disadvantaged business set-aside statutes and rules;

b. the methods it will use to:

i. encourage economically disadvantaged business participation;

ii. keep records of economically disadvantaged business participation;

iii. require compliance by its bidders, contractors, and subcontractors for their contracts with economically disadvantaged businesses;

c. on forms provided by the division, the annual anticipated expenditures for construction, machinery and equipment, cost of goods used in manufacturing, operating expenditures, and all other expenditures;

d. on the same forms, those products and services which the establishment believes:

i. cannot be purchased from an economically disadvantaged business without added expense, or can only be purchased from an out-of-state source, or which must be purchased from a sole-source provider;

ii. cannot be delivered by an economically disadvantaged business in a timely manner; or

iii. cannot be performed by an economically disadvantaged business in a timely manner.

2. All exceptions must be separately listed on an attachment with a brief explanation of why each is considered an exclusion.

E. The establishment will submit annually a report on its compliance for the previous year, within 90 days following the end of its operating year, or within 90 days of the anniversary date on which the contract became effective. The annual compliance report, on forms provided by the division, shall contain the actual expenditures and exceptions for which previous projections were reported under Paragraph D.3 and 4 of this Rule.

F. On an annual basis and within 12 months of the end of the establishment's operating year or contract anniversary date, the division shall report to the secretary of Economic Development, regarding the status of the establishment's compliance efforts.

G. Within 12 months of the end of the establishment's operating year or contract anniversary date, if it is determined that an establishment has not given preference and priority to Louisiana businesses and/or is not in compliance with the economically disadvantaged business set-aside statutes and Rules, the secretary of Economic Development may recommend to the Board of Commerce and Industry that a proportionate reduction of the next annual exemption amount be made.

H. Documents and other materials submitted by Louisiana businesses for purposes of compliance with the economically disadvantaged business set-aside statutes and Rules shall be held in confidence and shall not be made public record, if the company determines that such records are trade or business secrets, and shall be maintained in a secured environment by the division.

La. Admin. Code tit. 13, § I-1725

Promulgated by the Department of Economic Development, Office of Commerce and Industry, LR 15:1049 (December 1989), amended by the Department of Economic Development, Office of Business Development Services, LR 37:3499 (December 2011).

AUTHORITY NOTE: Promulgated in accordance with R.S. 47:4306; R.S. 39:1956.