OPINION NUMBER 87-576 August 18, 1987 Mr. Frank H. Perez Deputy General Counsel Department of Health and Human Resources P. O. Box 3836 Baton Rouge, Louisiana 70821-3836 Dear Mr. Perez: You have requested the opinion of this office on the following issue: What is the effective date of a contract between the State of Louisiana, DHHR, Office of Human Development and a private provider? Specifically, is the effective date the beginning of the term set forth in the contract, or is it the date upon which all requisite approvals are obtained? The statute which deals with social services procurement, 39:1481-1526, is silent on this issue, as is the Procurement Code, 39:1551-1755, which deals with procurement of general services. R.S. R.S. However, the rules and regulations promulgated by the Office of Contractual Review of the Division of Administration, which office must approve the contracts which you inquire about, make reference to this issue. La. Adm. Code 34:V.121A reads as follows: 121. Contractual Review Process A. Contracts arriving in the Office of Contractual Review will be date stamped and logged in. Contracts should be submitted prior to their effective dates and no contract shall be approved which has been submitted 60 days after its effective date, Mr. Frank H. Perez OPINION NUMBER 87-576 August 18, 1987 Page -2- unless written justification is provided by the using agency and approval granted by the director of contractual review or his designee. All submittals will be required to have a cover letter attached thereto in conformity with Appendix D. This rule reflects the common, apparently inevitable, reality that contracts will often be submitted for approval with inadequate time for review before the effective date of such contracts. Indeed, the state budget process makes such situations virtually inevitable. We concur in your office's interpretation that contracts become effective only when they receive all required approvals, but that the effectiveness is retroactive to the beginning of the term for the contract specified in the contract itself. This view simply confirms what has been a long-term, wide spread and indispensable practice in state government. I trust that this answers your inquiry. be of any further assistance on this matter. Please let me know if I can Sincerely, WILLIAM J. GUSTE, JR. Attorney General BY GLENN R. DUCOTE Assistant Attorney General GRD:rjl