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Last modified
7/12/2021 9:52:23 AM
Creation date
3/9/2020 9:53:16 AM
Metadata
2020-058
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Opinion Item
Opinion Type
Advisory Opinion
Docket Number
2020-058
Requesting Party
Michael Echols
Decision Date
3/6/2020
Law
La. R.S. 42:1113C
La. R.S. 42:1113D
La. R.S. 42:1111C(2)(d)
La. R.S. 42:1112
Caption
Advisory Opinion whereby the Code of Governmental Ethics would not prohibit Vantage health Plan from entering into a contract with the Office of Group Benefits while State Representative Michael Echols and his wife own less than 25% of Vantage Holdings, Inc.
Ethics Subject Matters
Prohibited Contracts
Prohibited Transactions
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did not require approval by the Joint Legislative Committee on the Budget since it was under the <br /> $1 Million threshold. <br /> Your duties as Director of Business Development include no involvement, control, or authority <br /> regarding any aspect of the contract with OGB. You stated that you are paid a salary and that you <br /> receive no direct financial benefit, such as a commission, as a result of the Vantage contract with <br /> OGB. Further, your father-in-law, Dr. Patrick Jones, has stated that his compensation is unaffected <br /> by the OGB contract. Finally, Mike Breard, Executive Vice President with Vantage Health Plan <br /> will handle all aspects of the OGB contract in the future. <br /> You ask if there are any provisions of the Code that would prohibit your actions as a legislator in <br /> light of your employment with Vantage Health Plan and its contract with OGB. <br /> VANTAGE HEALTH PLAN CONTRACT <br /> La. R.S. 42:1113C provides that no legislator, member of his immediate family, or legal entity in <br /> which he has a controlling interest shall bid on or enter into or be in any way interested in any <br /> contract, subcontract, or other transaction involving the legislator's agency. La. R.S. 42:1102(13) <br /> defines"immediate family"member to include a public servant's spouse and his parents. La. R.S. <br /> 42:1102(8) defines "controlling interest to mean any ownership in any legal entity held by or on <br /> behalf of an individual or a member of his immediate family, either individually or collectively, <br /> which exceeds twenty-five percent (25%) of that legal entity. <br /> The Board concluded, and instructed me to inform you that Section 1113C would not prohibit <br /> Vantage Health Plan from entering into the OGB contract, since neither yourself, nor your father- <br /> in-law, are in any way interested in the OGB contract. The Board cautions that neither yourself, <br /> nor your father-in-law, can be responsible for signing the Vantage Health Plan contract with OGB. <br /> La. R.S. 42:1113D provides that no legislator,his spouse, nor any legal entity of person shall enter <br /> into any contract with state government. La. R.S. 42:1113D defines "legal entity of a person" for <br /> the purposes of this provision to mean any corporation, partnership, or other legal entity in which <br /> the legislator or spouse owns an interest of greater than five percent. <br /> The Board further concluded that Section 1113D would not prohibit Vantage Health Plan, Inc. <br /> from entering into a contract with the State of Louisiana, as Vantage Health Plan Inc. does not <br /> meet the definition of"legal entity of a person" since neither you nor your wife own a combined <br /> interest of greater than 5% of Vantage Health Plan, Inc. <br /> PROHIBITED SOURCES OF COMPENSATION <br /> La. R.S. 42:1111C(2)(d) provides that no public servant, and no legal entity in which the public <br /> servant exercises control or owns an interest in excess of twenty-five percent, shall receive <br /> anything of economic value for, or in consideration of services rendered, or to be rendered, to or <br /> for any person who has, or is seeking to obtain, a contractual, business, or financial relationship <br /> with the public servant's agency. La. R.S. 42:1102(2)(a)(iv)defines"agency" for a legislator to be <br /> the legislative branch of state government. <br /> Page 3 of 5 (Docket No. 2020-058) <br />
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