| Advisory opinion request regarding whether Darrin Guidry, an elected member of the Terrebonne Parish Council, may vote on matters in which South Louisiana Financial Services, LLC, has a substantial economic interest. |
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The Terrebonne Parish Council (Council) approves the selection of insurance agents by ordinance and insurers by resolution based upon a majority of Council membership voting. Terrebonne Parish Consolidated Government (Parish) recently solicited proposals from agents of record and insurers for group health insurance coverage for its employees, including medical, dental and pharmacy benefits. A risk management insurance committee, appointed by the Parish's Administration, vetted the proposals and narrowed the choices down to three companies and their respective agents: 1) Blue Cross/Blue Shield, brokered by South Louisiana Financial Services, LLC, or Laris Insurance Agency, 2) Gilsbar, LLC, brokered by Anthony J. Alford Insurance Corporation, and 3) United Healthcare Services, Inc., brokered by South Louisiana Financial Services, LLC, or Laris Insurance Agency. The risk management insurance committee presented the three proposals to the Council's Policy and Procedure Committee (Committee), which is made up of the entire 9-member Council, at its meeting on November 14, 2016, to which the agents were invited to present their proposals. The Committee was tasked with choosing a group health insurance provider and its agent of record at the Committee meeting.
South Louisiana Financial Services, LLC, is wholly owned by South Louisiana Bank. Darrin Guidry, an elected member of the Council, currently has a collateralized loan obligation with South Louisiana Bank at a fixed term and interest rate. If the Council would have voted to contract with Blue Cross/Blue Shield or with United Healthcare for the Parish's group health insurance coverage, South Louisiana Financial Services, LLC, would have been appointed the agent of record and received monetary commissions from the insurer. However, Mr. Guidry disclosed his potential conflict regarding this matter and recused himself from voting on the proposals at the Committee meeting. Additionally, he refrained from participating in any discussion by the Committee regarding the proposals. Three other members of the Council also recused for this and other reasons. Ultimately, South Louisiana Financial Services, LLC, was not chosen by the Committee as the Parish's agent of record for group health insurance coverage, and an ordinance was offered to appoint another agent. When the minutes of the Committee meeting came up for adoption at the meeting of the full Council on November 16, 2016, Mr. Guidry, again, disclosed his potential conflict, refrained from discussion, and recused himself from voting to adopt the minutes of the Committee meeting in which the agent of record ordinance was offered.
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La. R.S. 42:1112B(5) prohibits a public servant, except as provided in R.S. 42:1120, from participating in a transaction involving the governmental entity in which, to his actual knowledge, any person who is a party to an existing contract with such public servant, or with any legal entity in which the public servant exercises control or owns an interest in excess of twenty-five percent, or who owes any thing of economic value to such public servant, or to any legal entity in which the public servant exercises control or owns an interest in excess of twenty-five percent, and who by reason thereof is in a position to affect directly the economic interests of such public servant has a substantial economic interest.
La. R.S. 42:1120 provides that if any elected official, in the discharge of a duty or responsibility of his office or position, would be required to vote on a matter which vote would be a violation of R.S. 42:1112, he shall recuse himself from voting. An elected official who recuses himself from voting pursuant to this Section shall not be prohibited from participating in discussion and debate concerning the matter, provided that he makes the disclosure of his conflict or potential conflict a part of the record of his agency prior to his participation in the discussion or debate and prior to the vote that is the subject of discussion or debate.
La. R.S. 42:1102(21) provides that "substantial economic interest" means an economic interest which is of greater benefit to the public servant or other person than to a general class or group of persons, except:
(a) The interest that the public servant has in his position, office, rank, salary, per diem, or other matter arising solely from his public employment or office.
(b) The interest that an elected official who is elected to a house, body, or authority has in a position or office of such house, body, or authority which is required to be filled by a member of such house, body, or authority by law, legislative rule, or home rule charter.
(c) The interest that a person has as a member of the general public.
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Adopt the proposed advisory opinion.
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| Assigned Attorney: |
Haley Williams |
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