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2011-1332
Opinion Type
Advisory Opinion
Docket Number
2011-1332
Requesting Party
Bonnie Champagne
Parties Involved
Councilman Larry Rolling
Northshore Images In Stitches LLC
City of Covington
Decision Date
10/20/2011
Law
R.S. 42:1113A(1)(a)
R. S. 42:1112
R. S. 42:1102(8) and (15)
R.S. 1111C(2)(d)
R.S. 42:1115A(1)
Caption
Advisory opinion that the Code of Governmental Ethics prohibits a Covington Councilman, who has a 100% ownership interest in Northshore Images and Stitches LLC, from entering into transactions with the City of Covington or participating in matters in which his business would have a substantial economic interest. Further, the business of the councilman is not precluded from selling products with the city logo to employees of the city provided he employee uses his personal funds. Also, the councilman is precluded from providing compensated services to vendors who have contracts with the City.
Ethics Subject Matters
Prohibited Contracts
Prohibited Transactions
Participation
Prohibited Sources
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2.) Is it permissible for Councilman Rolling, through his company, to sell products on which
the city logo is imprinted to other individuals other than the City?
Generally, the Code of Ethics would not prohibit Councilman Rolling's company from selling
products in which the city logo is imprinted to other individuals besides the City absent those
specific instances delineated in this opinion . However, due to the open -ended nature of this
question, the Board declined to render an opinion on this particular issue. If there is a specific person
that is not listed in the other questions then the Board would request that you or Councilman Rolling
submit an opinion request for the Board's consideration at that time.
3.) Is it permissible for Councilman Rolling, through his company, to sell products on which
the city logo is imprinted to a city employee and can the city employee pay for the products
with his personal funds?
Councilman Rolling would not be prohibited from selling products with the city logo. through his
company, to city employees so long as the city employee pays for such products with his or her
personal funds. As such, no violation of the Code of Ethics is presented by this question.
4.) Is it permissible for Councilman Rolling, through his company , to sell products on which
the city logo is imprinted to a city employee and can the city employee pay for the products
with his personal funds but then request to be reimbursed by the City?
Section 1113A(1)(a) of the Louisiana Code of Ethics also applies to a public servant or legal entity
in which he owns a controlling interest from entering into a subcontract or other transaction under
the supervision or jurisdiction of his agency. Thus, Councilman Rolling's business would be
prohibited by the Code of Ethics from using the employees of the City of Covington as a channel to
enter into a transaction with his agency. The aforementioned prohibitions discussed in Section 1 112
(See Question 1 above) of the Code would also be applicable in such a situation.
5.) Since Councilman Rolling's company does contract work and sells to other vendors, if the
other vendors bring in items to be imprinted with the city logo and that conpany is contracted
with the city, is it permissible for his company to do the work?
Section 1111 C(2)(d) of the Code states that a public servant may not receive anything of economic
value for or in consideration of services which are performed for or compensated by a person from
whom the public servant is prohibited from receiving a gift by Section 1115A( This includes a
person who has or is seeking a contractual, business, or financial arrangement with the agency of the
public servant. Since these "other vendors" would have a financial arrangement with Councilman