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Last modified
7/12/2021 11:03:41 AM
Creation date
1/23/2017 3:56:08 PM
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2016-1296
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Opinion Item
Opinion Type
Advisory Opinion
Docket Number
2016-1296
Requesting Party
Julius P. Hebert, Jr.
Decision Date
1/20/2017
Caption
Advisory opinion that the Louisiana Code of Governmental Ethics would not prohibit an elected member of the Terrebonne Parish Council from continuing her employment with Gilsbar, LLC., at a time when it has a contract of insurance with the Parish since she meets the exception created in Board Docket No. 82002D; however, she would be prohibited from voting on matters in which Gilsbar, LLC., has substantial economic interest, at a time when she is employed with Gilsbar. The councilwoman may participate in the debate or discussion concerning the matter involving Gilsbar, provided she discloses her conflict or potential conflict on the record of the Council prior to her participation in the debate or discussion and prior to the vote. Finally, she would be prohibited from monitoring employee health insurance claims for the Parish, administering group health benefit enrollments for new Parish employees, or performing any other duties on behalf of Gilsbar, pursuant to its contract of insurance with the Parish.
Ethics Subject Matters
Prohibited Contracts
Prohibited Transactions
Participation
Recusal
Outside Employment
Payment from Third Parties
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La. R.S. 42:1111C(2)(d) prohibits a public servant and any legal entity in which the <br /> public servant exercises control or owns an interest in excess of twenty-five percent, from <br /> receiving any thing of economic value for or in consideration of services rendered, or to <br /> be rendered, to or for any person during her public service unless such services are <br /> neither performed for nor compensated by any person who has or is seeking to obtain <br /> contractual or other business or financial relationships with the public servant's agency. <br /> La. R.S. 42:1114 provides that each public servant and each member of her immediate <br /> family who derives any thing of economic value, directly, through any transaction <br /> involving her agency or who derives any thing of economic value of which she may be <br /> reasonably expected to know through a person which has bid on or entered into or is in <br /> any way financially interested in any contract, subcontract, or other transaction under the <br /> supervision or jurisdiction of her agency shall file a financial disclosure statement each <br /> year by May first. <br /> The Board concluded, and instructed me to inform you, that the Code of Governmental <br /> Ethics would not prohibit Mrs. Williams from continuing her employment with Gilsbar, <br /> LLC, at a time when it has a contract of insurance with the Parish. Board Docket No. 82- <br /> 02D creates an exception to La. R.S. 42:1111C(2)(d) when the following factors are met: <br /> (1) the employee must be a salaried or wage-earning employee; (2) the employee's salary <br /> must remain substantially unaffected by the contractual relationship; (3) the employee <br /> owns less than a "controlling interest" in the company; and (4) the employee is neither an <br /> officer, director, trustee, nor partner in the company. Mrs. Williams is a salaried <br /> employee of Gilsbar and her salary would not be affected by its contract of insurance <br /> with the Parish. Furthermore, Mrs. Williams is not an owner, officer, director, trustee, or <br /> partner of Gilsbar. As such, her employment meets the exception provided in BD No. <br /> 82-02D and she would not be prohibited from continuing her employment with Gilsbar, <br /> LLC. Nevertheless, Mrs. Williams is required to disclose the income that she receives <br /> from Gilsbar, at a time when Gilsbar has a contract of insurance with the Parish, in <br /> accordance with La. R.S. 42:1114. <br /> The Board further concluded, and instructed me to inform you, that the Code of <br /> Governmental Ethics would prohibit Mrs. Williams from voting on matters in which <br /> Gilsbar, LLC has a substantial economic interest, at a time when she is employed with <br /> Gilsbar. However, after recusing herself from voting on the matter, Mrs. Williams may <br /> participate in discussion and debate concerning the matter, provided that she discloses her <br /> conflict or potential conflict on the record of the Council prior to her participation in the <br /> discussion or debate and prior to the vote that is the subject of discussion or debate. <br /> Finally, the Board also instructed me to advise you that La. R.S. 42:1113A would <br /> prohibit Mrs. Williams from monitoring employee health insurance claims for the Parish, <br /> administering group health benefit enrollments for new Parish employees, or performing <br /> any other duties on behalf of Gilsbar, pursuant to its contract of insurance with the Parish. <br />
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