| Advisory Opinion request from Henry D. Olinde, Jr., on behalf of Pointe Coupee Parish President Major Thibaut. |
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In November of 2016, the voters of Pointe Coupee Parish abolished the police jury form of government and adopted a Home Rule Charter implementing a "president-council" form of government. Under this form of government, the Pointe Coupee Parish Council performs the legislative functions as the governing authority. The Pointe Coupee Parish President performs the executive functions as the chief administrative officer. Mr. Thibaut was recently elected as Parish President and took office on January 14, 2019.
Pursuant to La. R.S. 46:1051, et. seq., the Pointe Coupee Parish Police Jury created the Pointe Coupee Parish Hospital Service District No. 1. ("Hospital District") by ordinance on June 5, 1979. The Hospital District is governed by a nine-member Board of Commissioners, each of whom are appointed by the Pointe Coupee Parish Council. La. R.S. 46:1053V(1). Two of the members appointed to the Hospital District Board may be members of the Pointe Coupee Parish Council. La. R.S. 46:1053V(2). The Commission has the authority to advise the Parish Council on problems concerning the operation of the hospital. La. R.S. 46:1055A. Additionally, the Commission may enter into special services agreements with any person to manage, operate, and administer the hospital, or any part thereof. La. R.S. 46:1055B. The Hospital District is considered a political subdivision of the State of Louisiana. La. R.S. 46:1064A.
Mr. Thibaut owns and operates a one-employee insurance agency in New Roads. In 2012, prior to his election as Parish President, Mr. Thibaut procured the group health insurance contract for the Hospital District and its employees. The insurance is written through Massad-Olinde Group, an independent health insurance agency. Massad-Olinde pays Mr. Thibaut 50% of the commissions generated by the health insurance contract with the Hospital District.
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In Docket No. 2017-1122, the Board determined that the Hospital District would fall under the agency of the Pointe Coupee Parish President. As a result, the Board concluded that Mr. Thibaut, in his capacity as Pointe Coupee Parish President, would be prohibited by Section 1111C(2)(d) from receiving compensation from Blue Cross Blue Shield as a result of any new contract with the Hospital District. The Board further concluded that Mr. Thibaut would be prohibited by Section 1111E(1) from assisting Blue Cross Blue Shield, for compensation, in a new transaction involving the Hospital District while he serves as Pointe Coupee Parish President.
The Board has consistently held that Hospital Districts are a part of the agency of the Parish that created them. See attached prior advisory opinions.
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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, or to 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.
La. R.S. 42:1111E(1) provides that no public servant, and no legal entity in which the public servant is an officer, director, trustee, partner, or employee, or in which the public servant has a substantial economic interest, shall receive or agree to receive anything of economic value for assisting a person in a transaction, or in an appearance in connection with a transaction, with the agency of such public servant.
La. R.S. 42:1102(2)(a)(vi) defines "agency," for public servants of political subdivisions, as the agency in which the public servant serves, except that for members of any governing authority and for the elected or appointed chief executive of a governmental entity, it shall mean the governmental entity. A "governmental entity" means the state or any political subdivision to which the elected official is elected. La. R.S. 42:1102(12). A "political subdivision" means any unit of local government, including a special district, authorized by law to perform governmental functions. La. R.S. 42:1102(17). Article 6 of the Louisiana Constitution defines "political subdivision" to mean a parish, municipality, and any other unit of local government, including a special district, authorized by law to perform governmental functions. La. Const. art. VI, 44.
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Adopt the proposed opinion.
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| Assigned Attorney: |
David Bordelon |
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