| Advisory opinion request regarding whether the Ethics Code prohibits St. Bernard Parish employees from bidding on real estate that St. Bernard Parish is selling at public auction. |
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Mr. McGoey and Mr. Smith requested an advisory opinion regarding whether the Ethics Code would prohibit certain St. Bernard Parish employees form bidding on real estate that St. Bernard Parish is selling at public auction. They stated that periodically the Parish will auction real estate purchased by the Road Home Program.
After Hurricane Katrina, The Louisiana Land Trust (LLT) acquired many damaged properties in St. Bernard Parish using U.S. Community Block Development grant funds. The LLT conveyed virtually all of these properties to St. Bernard Parish Government. The Legal Department, the Public Works Office, the Community Development Department, and the Recovery Department, under the supervision of the Chief Administrative Officer of St. Bernard Parish, worked with LLT and the Louisiana Office of Community Development to draft the agreements necessary to transfer the properties to St. Bernard Parish Government. They further stated that the Parish President signed all of these transfers and will eventually sign the "act of sale" documents on each property after auction. A private auction company has been hired to conduct the auction. Several title companies have been contracted to administer the "act of sales" for these auctioned properties. The properties will go to the highest bidder.
Multiple staff members have expressed interest in bidding on and purchasing properties at the auction. They have also inquired as to whether it makes a difference if the employee participated in preparing the properties for auction. They would like to know if employees of the following departments in St. Bernard Parish Government are prohibited from participating in the auction: the Community Development Office, the Chief Administrator's Office, the Public Works Office, the Recovery Department, the Legal Department, the Parish President's Office,and any employee of St. Bernard Government whose Department had no role in the auction process whatsoever. (ex., Fire Department)
Further they inquired if the Code would prohibit a volunteer executive assistant in the Chief Administrator's Office and the employees of the title companies that have been contracted to handle the closing to bid on and purchase the property at the auction.
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La. R.S. 42:1113A states no public servant, or a member of such a public servant's immediate family, or a legal entity in which he has a controlling interest shall bid on or enter into any contract, subcontract or other transaction that is under the supervision or jurisdiction of the agency of such public servant.
La. R.S. 42:1102(2)(a)(i) defines "agency" to mean a department, office, division, agency, commission, board, committee, or other organizational unit of a governmental entity.
La. R.S. 42:1102(18)(a)(iv) "public employee" means anyone, whether compensated or not, who is under the supervision of an elected official or another employee of the governmental entity.
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Adopt the proposed advisory opinion.
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| Assigned Attorney: |
Suzanne Mooney |
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