| Advisory opinion request as to whether Reliant Technologies, Inc., a manufacturer located in the City of Port Allen in West Baton Rouge Parish, may seek an exemption from ad valorem taxation. |
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Reliant Technologies, Inc. (Reliant), a manufacturer located in Port Allen, Louisiana, would like to seek an exemption from ad valorem taxation while Barry Hugghins serves as a Parish Councilman in West Baton Rouge Parish. Mr. Hugghins owns 99% of Reliant, which, as a manufacturer, is entitled to seek exemption from ad valorem taxation by requesting that the Louisiana Board of Commerce and Industry (C&I Board) enter into an Industrial Ad Valorem Tax Exemption Program (ITEP) contract with Reliant.
Article 7, Section 21(F) of the Louisiana Constitution states that this contract is established between the C&I Board and the applicant, with the approval of the Governor. The application for exemption from ad valorem taxation would be submitted by Reliant to the Louisiana Department of Economic Development (LED) for review and then presented to the C&I Board for consideration.
On June 24, 2016, Governor Edwards issued Executive Order JBE 2016-26, which states in part that ITEP contracts must include Exhibit "B" consisting of resolutions from the school board, sheriff, municipal council and parish council signifying whether each of those authorities is in favor of the project.
Reliant has sought the assistance from the West Baton Rouge Chamber of Commerce (Chamber of Commerce) to obtain a resolution from the West Baton Rouge Parish Council endorsing Reliant's expansion. Specifically, the Chamber of Commerce will make a request to the West Baton Rouge Parish Council, on Reliant's behalf, to issue a resolution endorsing Reliant's expansion of its manufacturing capacity entitling it to receive an exemption from ad valorem taxation. Neither Mr. Hugghins nor Reliant will be involved in any way with seeking or obtaining a resolution from the West Baton Rouge Parish Council.
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La. R.S. 42:1113A(1)(a) prohibits a public servant, immediate family member, or legal entity in which he has a controlling interest from entering into any contract or transaction that is under the supervision or jurisdiction of the agency of the public servant.
La. R.S. 42:1112A(1) provides that no public servant shall participate in a transaction in which he has a personal substantial economic interest of which he may be reasonably expected to know involving the governmental entity.
La. R.S. 42:1120 provides that any elected official, who is required to vote on a matter in violation of Section 1112, must recuse himself from voting. The elected official is not prohibited from participating in discussion and debate concerning the matter provided he verbally discloses the nature of the conflict or potential conflict prior to his participation in the discussion or debate and prior to any vote being taken.
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Adopt the proposed advisory opinion.
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| Assigned Attorney: |
Jennifer Land |
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