| Advisory opinion regarding whether David Ellis, as an elected member of the Mandeville City Council (Council), can continue his employment with Arthur J. Gallagher & Company (Gallagher), at a time when it serves as the benefits consultant for STARC. |
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David Ellis, an elected member of the Mandeville City Council (Council), has been employed with Arthur J. Gallagher & Company (Gallagher) in its Benefit Services Division for more than five months as a salaried, non-commissioned insurance consultant. His focus is primarily local - St. Tammany Parish (Parish) - regarding specific industry targets including public entities, nonprofit organizations, etc. Gallagher serves similar clients across the country, providing expertise and resources regarding analytics, human resources and compensation, employer-sponsored health and welfare plans, etc. Gallagher bills its clients on a commission basis, consulting fee, or a combination of both. Additionally, Mr. Ellis owns less than 1% of the shares of Gallagher stock.
STARC of Louisiana, Inc., a private non-profit organization incorporated in 1968, provides day care services, work training services, respite and personal care services, and residential housing for residents of the Parish with mental retardation and/or developmental disabilities. STARC receives funding from the City of Mandeville (City), as well as an ad valorem tax from the Parish. The Council approves the total amount of grant funding available each year. Thereafter, STARC and other entities apply for a portion of the available funds, which is allocated by the City. As such, the individual funding requests are not included as line items in the budget considered by the Council.
STARC intends to use Gallagher as its benefits consultant for their voluntary (work site and individual) insurance benefits, which will be paid through voluntary payroll deductions. Gallagher will enroll STARC's employees at its annual meeting in June. Any commissions will be paid to Gallagher, not to you or any other individual agent. Furthermore, Gallagher will not be paid a consulting fee for these services rendered to STARC. However, Gallagher may have the opportunity to provide similar services in connection with STARC's employer sponsored insurance benefits in the future, which are usually paid by both the employer and employees. Finally, you are not a member of STARC's Board of Directors and you do not own a controlling interest in STARC, as defined in La. R.S. 42:1102(8).
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La. R.S. 42:1111C(2)(d) prohibits a public servant and any 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 or in consideration of services rendered, or to be rendered, to or for any person during his public service unless such services are neither performed for nor compensated by any person who has or is seeking to obtain contractual or other business or financial relationships with his agency.
La. R.S. 42:1112B(3) prohibits a public servant, except as provided in La. R.S. 42:1120, from participating 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.
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Adopt the proposed advisory opinion.
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| Assigned Attorney: |
Haley Williams |
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