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Consideration of a disqualification plan regarding John W. Cox supervising Geokinetics, Inc.'s seismic monitoring of Salt Cavern 2-D while his wife, Davie Cox, is employed as a Seismic Technician for the Louisiana Department of Wildlife and Fisheries. |
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A request for the approval of a disclosure plan for Davie Cox was received from Wildlife and Fisheries Biologist Program Manager, Kyle Balkum, regarding Davie Cox's husband, John W. Cox, company Geokinetics. Geokinetics is permitted in the State of Louisiana to monitor seismic activity. Ms. Cox's husband has been assigned to oversee seismic work being done in Louisiana on the Salt Cavern 2-D project. This project would normally be monitored by Ms. Cox. Ms. Cox is employed by the Louisiana Department of Wildlife and Fisheries as a Seismic Technician, her job duties include monitoring geophysical companies to ensure that they are complying the Rules and Regulations of the State.
In 2006 Ms. Cox requested an ethics advisory opinion regarding work being done by her husband who was employed by Eagle Geophysical which was bonded and permitted by her agency. Eagle Geophysical has gone out of business and her husband found employment with Geokinetics, Inc., which does the same seismic work.
The Board held in Docket number 2006-570, that this relationship may violate Section 1111C(2)(D) and 1112B(1) of the Code. The Board advised Ms. Cox that under the facts presented her husband fits a limited exception found in Board Opinion 82-02D to an 1111C(2)(D) violation. The Board found that all of the following criteria were met: (1) the employee is a salaried or wage-earning employee; (2) the employee's salary remains substantially unaffected by the contractual relationship; (3) the public servant does not own an interest in the company; and (4) the public servant is neither an officer, director, trustee, nor partner in the company.
However the Board instructed Ms. Cox that Section 1112B(1) would prohibit her from participating in any transaction in which her husband has a substantial economic interest. The Board informed her that Section 1112C allows a public servant to disqualify herself from participating in a matter which would present a violation of Section 1112 of the Code. Therefore, the Board ordered Ms. Cox to confect a disqualification plan in accordance with Rule 1401-1404 of the Board of Ethics Rules. The Department did not confect a disqualification plan for Ms. Cox at that times because her husband was reassigned to work elsewhere and there was no longer a conflict.
Submitted herein is a disqualification plan which states that Ms. Cox immediate supervisor would monitor all work by Geokinetics, Inc., thus preventing her participation in any prohibited transaction. Furthermore the Department will ensure that Ms. Cox does not participate in the Salt Cavern 2-D project.
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La. R.S. 42:1111C(2)(d) prohibits a public servant or legal entity in which the public servant exercises control or owns an interest in excess of twenty five percent, from receiving any thing of economic value for services rendered to or for any person during his public service unless such services are neither performed for nor compensated by any person from whom such public servant would be prohibited by La. R.S. 42:1115(A)(1) or (B) from receiving a gift.
La. R.S. 42:1112B(1) provides that no public servant shall participate in a transaction involving the governmental entity in which, to his actual knowledge, any member of his immediate family has a substantial economic interest.
La. R.S. 42:1112C allows a disqualification plan to be developed in accordance with rules adopted by the Board to remove a public servant from participating in transactions that would otherwise present violations of Section 1112 of the Code.
La. R.S. 42:1114 provides that each public servant and each immediate family member who derives anything of economic value, directly, through any person which has bid on or entered into or is in any way financially interested in any contract, subcontract, or any transaction or from a person which is regulated by the agency of such public servant, shall disclose annually, (1) the amount of income; (2) the nature of the business activity; (3) the name and address of the public servant; (4) the name and address of the legal entity, if applicable.
La. R.S. 42:1114E The disclosure statements required by this Section shall be filed each year with the appropriate ethics body by May fifteenth and shall include such information for the previous calender year. Such statements shall be a matter of public record.
Advisory Opinion 82-02-D provides a limited exception to the prohibition contained in La. R.S. 42:1111C(2)(d). That opinion makes La. R.S. 42:1111C(2)d) inapplicable to public servants who meet all of the following criteria: 1) the public servant must be regularly compensated by the non-governmental employer pursuant to a uniform standard (i.e., a salaried or wage-earning employee), 2) the salary of the public servant is unaffected by the business relationship between the non-governmental employer and the agency of the public servant, 3) the public servant owns less than a controlling interest in the non-governmental employer, and 4) the public servant is neither an officer, director, trustee or partner in the non-governmental employer.
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Accept the disqualification plan advise Mr. Cox that he may be required to file a disclosure statement under La. R.S. 42:1114 by May 15, 2016.
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| Assigned Attorney: |
Suzanne Mooney |
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