| Advisory opinion request regarding whether Lynn Kliebert may be promoted from Assistant Chief Financial Officer to Chief Financial Officer with Teche Regional Hospital while his spouse, Kathy Kliebert, is the Secretary of the Department of Health and Hospitals. |
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Kathy Kliebert is the Secretary of DHH and is responsible for the policies, the administration of, control and operation of the functions and programs and affairs of DHH. Ms. Kliebert, by statute, has the power to direct and be responsible for the Medical Assistance Program (Medicaid), and to act as sole agent, or to delegate those functions to an office of DHH. Also, pursuant to statute, Ms. Kliebert performs the functions of the state relating to licensing of health facilities, including hospitals. Also, for a hospital to receive Medicaid funding, the hospital must meet certain certification criteria.
Ms. Kliebert has recused herself from all decisions that may impact Teche Regional Hospital. Teche Regional Hospital does receive Medicaid reimbursements from DHH.
Lynn Kliebert is seeking to become the CFO of Teche Regional Hospital. As CFO, Mr. Kliebert will oversee all actions of the financial department including decisions involving health care reimbursement from various sources as well as supervision of fiscal activities. It is possible that Mr. Kliebert may accumulate stock in Teche as part of his compensation package.
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La. R.S. 42:1111C(2)(d) provides that no public servant and no legal entity in which the public servant exercises control or owns an interest in excess of twenty-five percent, shall receive any thing of economic value for or in consideration of services rendered, or to be rendered, to or for any person during his public service unless such services are: (d) Neither performed for nor compensated by any person or from any officer, director, agent, or employee of such person, if such public servant knows or reasonably should know that such person has or is seeking to obtain contractual or other business or financial relationships with the public servant's agency; conducts operations or activities which are regulated by the public employee's agency; or has substantial economic interests which may be substantially affected by the performance or nonperformance of the public employee's official duty.
Ethics Board Docket No. 82-02D provides an exception to Section 1111C(2)(d) of the Code when certain factors are met: (1) the employee must be a salaried or wage-earning employee; (2) the employee's salary must remain substantially unaffected by the contractual relationship; (3) the public servant must own less than a "controlling interest" in the company; and (4) the public servant must be neither an officer, director, trustee, nor partner in the company.
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.
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Adopt proposed advisory opinion.
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| Assigned Attorney: |
Tracy Barker |
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