| Advisory opinion request regarding whether Arlanda J. Williams, an elected member of the Terrebonne Parish Council, may participate in transactions in which Gilsbar, 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. The 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.
Arlanda J. Williams, an elected member of the Council, is a full-time employee of Gilsbar, LLC, as a Heath and Claims Administrator II. Her job duties include monitoring employee health insurance claims for the Terrebonne Parish School District (District) and administering group health benefit enrollments for new District employees. The District is a separate political subdivision from the Parish. Mrs. Williams is paid an annual salary by Gilsbar, and she does not receive commissions. She does not have any ownership interest in Gilsbar, and she is not an officer, director, trustee, partner of Gilsbar.
Mrs. Williams disclosed her potential conflict regarding this matter and recused herself from voting on the proposals at the Committee meeting. Additionally, she 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. After presentation and discussion of the proposals, five members of the Committee voted unanimously to pass a resolution to contract with Gilsbar, LLC, for the Parish's group health insurance provider/third party administrator. As is procedure, the minutes of the Committee meeting came up for adoption at the meeting of the full Council on November 16, 2016, and the Council adopted the resolution as passed and adopted the ordinance as offered. Mrs. Williams, again, disclosed her possible conflict, refrained from discussion, and recused herself from voting to adopt the resolution and ordinance at the meeting of the full Council.
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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 her actual knowledge, any person of which she is an officer, director, trustee, partner, or employee 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 her office or position, would be required to vote on a matter which vote would be a violation of La. R.S. 42:1112, she shall recuse herself from voting. An elected official who recuses herself from voting pursuant to this Section shall not be prohibited from participating in discussion and debate concerning the matter, provided that she makes the disclosure of her conflict or potential conflict a part of the record of her agency prior to her participation in the discussion or debate and prior to the vote that is the subject of discussion or debate.
La. R.S. 42:1113A prohibits a public servant, a member of her immediate family, or a legal entity in which she has a controlling interest from bidding on or entering into any contract, subcontract, or other transaction that is under the supervision or jurisdiction of her agency.
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 her 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 the public servant's agency.
La. R.S. 42:1114 provides that each public servant and each member of her immediate family who derives any thing of economic value, directly, through any transaction involving her agency or who derives any thing of economic value of which she may be reasonably expected to know through a person which has bid on or entered into or is in any way financially interested in any contract, subcontract, or other transaction under the supervision or jurisdiction of her agency shall file a financial disclosure statement each year by May first.
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Adopt the proposed advisory opinion.
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| Assigned Attorney: |
Haley Williams |
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