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Last modified
7/12/2021 11:03:37 AM
Creation date
1/23/2017 3:53:04 PM
Metadata
2016-1273
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Opinion Item
Opinion Type
Advisory Opinion
Docket Number
2016-1273
Requesting Party
Julius P. Hebert, Jr.
Decision Date
1/20/2017
Caption
Advisory opinion that an elected member of the Terrebonne Parish Council would be prohibited by the Louisiana Code of Governmental Ethics from voting on matters in which South Louisiana Bank or its wholly owned company, South Louisiana Financial Services, LLC, has a substantial economic interest, as a time when the councilman has a collateralized loan obligation with South Louisiana Bank. However, the councilman may participate in discussion and debate concerning matters involving South Louisiana Financial Services, LLC, provided that he discloses his conflict of interest or potential conflict on the record of the Council prior to his participation in the discussion or debate and prior to the vote that is the subject of discussion or debate.
Ethics Subject Matters
Participation
Recusal
Prohibited Sources
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the proposals at the Committee meeting. Additionally, he refrained from participating in <br /> any discussion by the Committee regarding the proposals. Three other members of the <br /> Council also recused for this and other reasons. Ultimately, South Louisiana Financial <br /> Services, LLC, was not chosen by the Committee as the Parish's agent of record for <br /> group health insurance coverage, and an ordinance was offered to appoint another <br /> agent. When the minutes of the Committee meeting came up for adoption at the meeting <br /> of the full Council on November 16, 2016, Mr. Guidry, again, disclosed his potential <br /> conflict, refrained from discussion, and recused himself from voting to adopt the minutes <br /> of the Committee meeting in which the agent of record ordinance was offered. <br /> The following provisions of the Code of Governmental Ethics are pertinent to the issues <br /> raised by your question: <br /> La. R.S. 42:1112B(5) prohibits a public servant, except as provided in La. R.S. 42:1120, <br /> from participating in a transaction involving the governmental entity in which, to his <br /> actual knowledge, any person who is a party to an existing contract with such public <br /> servant, or with any legal entity in which the public servant exercises control or owns an <br /> interest in excess of twenty-five percent, or who owes any thing of economic value to <br /> such public servant, or to any legal entity in which the public servant exercises control or <br /> owns an interest in excess of twenty-five percent, and who by reason thereof is in a <br /> position to affect directly the economic interests of such public servant has a substantial <br /> economic interest. <br /> La. R.S. 42:1102(21) provides that "substantial economic interest" means an economic <br /> interest which is of greater benefit to the public servant or other person than to a general <br /> class or group of persons, except: <br /> (a) The interest that the public servant has in his position, office, rank, salary, per <br /> diem, or other matter arising solely from his public employment or office. <br /> (b) The interest that an elected official who is elected to a house, body, or <br /> authority has in a position or office of such house, body, or authority which is <br /> required to be filled by a member of such house, body, or authority by law, <br /> legislative rule, or home rule charter. <br /> (c) The interest that a person has as a member of the general public. <br /> La. R.S. 42:1120 provides that if any elected official, in the discharge of a duty or <br /> responsibility of his office or position, would be required to vote on a matter which vote <br /> would be a violation of La. R.S. 42:1112, he shall recuse himself from voting. An <br /> elected official who recuses himself from voting pursuant to this Section shall not be <br /> prohibited from participating in discussion and debate concerning the matter, provided <br /> that he makes the disclosure of his conflict or potential conflict a part of the record of his <br /> agency prior to his participation in the discussion or debate and prior to the vote that is <br /> the subject of discussion or debate. <br />
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