Rep. Malloran’s bill would expand procurement preference to nonprofits that employ people with disabilities and veterans

On April 7, 2026, the Louisiana House Appropriations Committee advanced House Bill 773, sponsored by Representative Malloran, to expand procurement preferences so state and participating local governments first consider prison enterprises and then certain nonprofits — including organizations that employ people who are blind or severely disabled and veteran workshops — when buying goods and services.

Malloran told the committee the measure builds on an existing state use law and aims to create more employment opportunities for people with disabilities and veterans. “We are the people who cut paper here,” said the president and CEO of the Louisiana Association for the Blind, who testified that the group ships paper and non‑skid products nationwide and employs a high share of blind and visually impaired workers. He told the committee the organization produces 7,000 tons of paper a year and could compete for state contracts if given the same opportunities as prison enterprises.

Opponents and some members pressed the sponsor on competition and cost. “I’m worried about preferential treatment and locking other people out,” Representative Tarver said, asking whether the bill would exclude private businesses and how local governments would be affected. Malloran and witnesses repeatedly said the bill does not force purchases that fail to meet form, function and utility; one staff member explained the order of preference in the bill: “You first go to prison enterprises. If they don’t offer it, then you go down this chain.”

The bill removes language that would have allowed purchases up to 15% above fair market value and replaces it with a requirement tied to “fair market value,” Malloran said, after committing to clarify language and work with members on floor amendments. Malloran said the change was intended to avoid an arbitrary cap and instead require agencies to seek a fair market benchmark and give the qualifying providers an opportunity to match commercial quotes.

The committee recorded no roll‑call objections and reported HB 773 favorable. The bill’s sponsor said he will work with members on precise drafting before the bill moves to the full House.

Why it matters: If enacted, the law would direct state purchasing offices to consider designated suppliers before buying externally, potentially shifting some state procurement toward small nonprofits and workshops that employ people with disabilities or veterans. Members emphasized the need for clearer definitions of eligible providers, the mechanics of fair market valuation, and the interaction with local procurement rules.

The measure drew repeated exchanges between the sponsor, advocates for disability employment and skeptical members; the committee advanced the bill to the House floor for further consideration.