| Advisory Opinion request of Tina Petry, compliance officer with Franklin Foundation Hospital, regarding the possible employment of Dr. Bryan G. Frentz. |
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The Franklin Foundation Hospital (Hospital) is operated by the Hospital Service District No. 1 (District) in St. Mary Parish pursuant to La. R.S. 46:1051, et seq. The Hospital is governed by a board of commissioners who are appointed by the St. Mary Parish Council. The District is a political subdivision of the state pursuant to La. R.S. 46:1064.
The Hospital is in employment negotiations with Dr. Bryan G. Frentz, an orthopedic surgeon. Dr. Frentz has a 5% ownership interest in United Orthopedic Corporation (United), which provides orthopedic supplies such as total knee and hip implants. Dr. Frentz is not an employee of United and would not receive any compensation, commission, or bonus related to any potential contracts with the Hospital.
The Hospital seeks an opinion as to whether it can enter into an agreement with United to purchase orthopedic supplies once Dr. Frentz is employed by the Hospital.
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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.
La. R.S. 42:1102(8) defines "controlling interest" to mean any ownership in any legal entity or beneficial interest in a trust, held by or on behalf of an individual or a member of his immediate family, either individually or collectively, which exceeds twenty-five percent of that legal entity.
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.
La. R.S. 42:1112B(3) prohibits a public servant from participating in a governmental transaction in which 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: |
David Bordelon |
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