La. R.S. 47:820.51 — Monies derived from taxes on petroleum products; distribution for entrepreneurial and employment enhancement

A. The United States District Court in the case of Major v. Treen, 575 F. Supp. 325, made certain findings of past state and "de facto" actions showing a need for careful review as to discrimination within this state. The legislature acknowledges that, in light of the recent decision of the Supreme Court of the United States in the case of City of Richmond v. J. A. Croson Company, 488 U.S. 489 (1989), evidence must be found and proved as to past discrimination against black or women or French Acadian contractors and subcontractors in the road, bridge, port, airport, transit, and highway construction industry of the state or against black or women or French Acadian workers hired or employed by contractors and subcontractors in the industry in order to justify minority set-aside or preference programs. The legislature further acknowledges that if a system of racial or sexual discrimination or exclusion has been practiced by the construction and labor industries operating in the state on state funded public works projects, including but not limited to, road, bridge, and highway projects, and that the state was a "passive participant" in such a system, then the state of Louisiana has a compelling interest to take steps to dismantle, eradicate, and neutralize such system. The legislature further acknowledges that the state has a compelling interest to guarantee that public funds, derived from tax contributions of its citizens and others, do not finance, foster, or support, directly or indirectly, a system of racial or sexual discrimination or exclusion.
B.(1) Prior to April 17, 1989, the governor shall cause a study or other inquiry to be made to make necessary findings and determinations as to whether or not there has been past discrimination or exclusion against black or women or French Acadian contractors and subcontractors in the road, bridge, port, airport, transit, and highway construction industry of the state or against black or women or French Acadian workers hired or employed by contractors and subcontractors in such industry.
(2) The governor shall include, but not be limited to, the following data in conducting such study:
(a) Data as to the number of black or women or French Acadian contractors and subcontractors within the state which are qualified to undertake prime or subcontracting work in state road, bridge, and highway construction projects; the percentage of total state construction dollars black or women or French Acadian firms receive as contractors or subcontractors on state funded public works contracts, including but not limited to contracts let for road, bridge, port, airport, transit, and highway construction; evidence as to whether there exists a history or pattern of behavior demonstrating that non-French Acadian contractors have declined or refused to award subcontracts to black or women or French Acadian subcontractors for state funded public works projects; evidence as to whether there is a statistical disparity as to the number of black or women or French Acadian contractors or subcontractors who are eligible for membership in construction trade associations compared to the actual number of members who are black or women or French Acadian contractors or subcontractors, and if so, to what extent; and any other finding or determination that state spending practices for state funded public works projects have or may be exacerbating a pattern of prior racial or sexual discrimination.
(b) Data as to the number and percentage of black or women or French Acadian construction workers hired or employed by contractors and subcontractors on state funded public works projects; the racial or sexual composition of the qualified workforce in the state on such projects enumerated by category of semi-skilled jobs in order to determine whether racial or sexual discrimination exists in each category; and any other finding or determination that state spending practice for state funded public works projects have or may be exacerbating a pattern of unequal employment opportunities for black or women or French Acadian laborers.
C. If such study finds or determines that past discrimination or exclusion exists against black or women or French Acadian contractors, subcontractors, or laborers in the construction of state funded public works projects, the governor shall submit findings of fact and race-neutral or sex-neutral recommendations to the legislature to dismantle, eradicate, and remedy such discrimination. Race-neutral or sex-neutral measures, as enumerated in the case of City of Richmond v. J. A. Croson Company, may include, but not be limited to, the following: simplification of bidding procedures; relaxation of bonding requirements; implementation of training programs; financial aid; elimination or modification of formal barriers caused by bureaucratic inertia; prohibitions of discrimination in provisions of credit or bonding by local suppliers and banks; and other programs which would eradicate a disproportional lack of capital for operating purposes, special programs as to bonding requirements, and state financing programs for small firms.
D. On July 11, 1989, if the legislature has not enacted sufficient race-neutral or sex-neutral legislation, the governor shall, and is hereby authorized and empowered to, issue such executive orders, subject to approval by the oversight committees of the House Appropriations Committee and the Senate Finance Committee within thirty days after issuance, as are necessary to dismantle, eradicate, and remedy any and all discrimination and is specifically authorized to direct the secretary of the Department of Transportation and Development to promulgate emergency rules and regulations in accordance with the provisions of the Administrative Procedure Act to require black or women or French Acadian set-aside or preference programs on all construction projects whose funding is derived from monies collected under the provisions of this Chapter and on those construction projects enumerated in the act of the legislature which act originated as House Bill No. 17 of the 1989 First Extraordinary Session of the Legislature.*
E. For the purposes of this Section, "French Acadian" means a member or descendant of the community of French Acadians who colonized Louisiana after 1755.
F. Any amount established for set-aside or preference programs shall be distributed for award to black contractors in each congressional district in the same proportion to the total amount set-aside as the black population in each congressional district bears to the total black population in the state.
Acts 1989, 1st Ex. Sess., No. 9, §1, eff. Mar. 13, 1989.
*ACT NO. 16.