2023-1006 - Laserfiche WebLink

(3) Does the Code prohibit a member of the Promotion Board from executing, on behalf of the Promotion Board, an agreement with the USA Rice Council for the legal representation of the Promotion Board. La. R.S. 42:1112A prohibits a public servant from participating in a transaction in which he has a personal substantial economic interest of which he may be reasonably expected to know involving the governmental entity. La. R.S. 42:1112B(3) states that no public servant shall participate in a transaction involving the governmental entity in which, to his actual knowledge, any person of which he is an officer, director,trustee,partner, or employee has a substantial economic interest. La. R.S. 42:1102(21) defines "substantial economic interest" as an economic interest which is of greater benefit to the public servant or other person than to a general class or group of persons. The Board concluded, and instructed me to inform you, that, in general, La. R.S. 42:1112A and La. R.S. 42:1112B(3) prohibits a Promotion Board member, in their capacity as a member of the Promotion Board, from participating in transactions involving the Promotion Board in which they have a personal substantial economic interest and/or a person of which they are an officer or director has a substantial economic interest. Since the legal fees are not for a Promotion Board member's personal representation, La. R.S. 42:1112A does not prohibit a Promotion Board member from executing an agreement for legal representation of the Promotion Board with the USA Rice Council. Further, since the USA Rice Council does not have a substantial economic interest in the agreement for legal representation of the Promotion Board, no issue is presented under La. R.S. 42:1112B(3) if the Promotion Board member executes the agreement for legal representation of the Promotion Board with the USA Rice Council while the Promotion Board member is an officer or director of the USA Rice Council. (4) Does the Code prohibit a Promotion Board member from participating in discussions involving the ongoing litigation against the Promotion Board when the Promotion Board member may have an interest in the litigation as a member of the class action lawsuit? The Board concluded, and instructed me to inform you, that, in general, La. R.S. 42:1112A prohibits a Promotion Board member, in their capacity as a member of the Promotion Board,from participating in transactions involving the Promotion Board in which they have a personal substantial economic interest. However, since the class has been defined to include approximately 10,000 individuals and legal entities,the Board concluded that the Promotion Board member does not have a substantial economic interest in the outcome of the lawsuit and would not be prohibited from participating in discussions involving the lawsuit. (5)Does the Code prohibit a Promotion Board member from receiving reimbursement from the USA Rice Council for travel and lodging while the USA Rice Council has a contractual relationship with the Promotion Board? Generally, La. R.S. 42:1111A prohibits a public employee from receiving anything of economic value, other than compensation and benefits from the governmental entity to which he is duly Page 3 of 5 (BD 2023-1006)