| A request for an advisory opinion, submitted by Logan J. Hunt, concerning whether the Louisiana Code of Governmental Ethics prohibits him from continuing his employment with Argent Mineral Management, LLC ("AMM") after being elected to the Lincoln Parish Police Jury ("LPPJ"). |
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Mr. Hunt recently ran a successful campaign for LPPJ and was elected to be a police juror for District 5. Currently, the LPPJ contracts with Argent Advisors, Inc. ("AAI"), which is a wholly owned subsidiary of Argent Financial Group, Inc. ("AFG"). AAI performs financial services for the LPPJ, managing approximately $10,000,000.00 in assets, the majority of which are held in the LPPJ's "Hospital Proceeds Fund."
Additionally, Mr. Hunt is currently a salaried employee of AMM, which is also a wholly owned subsidiary of AFG. AMM provides mineral management services, including the accounting and auditing of royalty payments. As a salaried employee of AMM, Mr. Hunt owns 180 shares of AFG stock out of the 1,282,000 outstanding shares (which is roughly .01%). He is not an officer, director, trustee, or partner of AFG or any of its subsidiaries. Additionally, he receives no compensation or commission from AAI.
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Prior Advisory opinions:2015-1150 - An elected parish commissioner worked for Argent Financial, which is the parent company of Argent Trust. Argent Trust had a contract with the parish. The Board of Ethics concluded that the commissioner could not work for the parent company (Argent Financial), when the subsidiary (Argent Trust) had a contract with his agency.
2017-1065 - A parish councilman worked for the parent and its subsidiary, both of which wanted to have a contract with the parish. Although the Board concluded that 1111C(2)(d) prohibited the councilman from working for either company, it applied the exception in BD 82-02D to allow his continued employment.
2013-1037 - An appointed board member worked for a joint venture that was owned in part by a company whose subsidiary was seeking a letter of not objection from his board. The Board of Ethics concluded that since the board member was working for a joint venture and not a subsidiary of the company seeking the letter, the board member was not prohibited from working for the company.
2000-153 & CN 1995-109 - An appointed board member worked for a subsidiary of a company that had a contract with his agency. The Board of Ethics concluded that he was prohibited from working for the subsidiary.
1998-475 - The spouse of the executive director of a board worked for a company. That company's subsidiary has a contract with the executive directors' board. The Board of Ethics concluded that the wife could not work for the parent company when its subsidiary had a contract with the executive director's board.
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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, 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.
La. R.S. 42:1114 provides that each public servant and each member of his immediate family who derives anything of economic value, directly, through any transaction involving the agency of such public servant or who derives any thing of economic value of which he may be reasonably expected to know through a person which (1) is regulated by the agency of such public servant, or (2) has bid on or entered into or is in any way financially interested in any contract, subcontract, or any transaction under the supervision or jurisdiction of the agency of such public servant shall disclose certain information as set forth in Section 1114.
La. R.S. 42:1120.4 provides an exception for appointed members of a board or commission to recuse themselves from voting on matters that violate section 1112 of the Code. The appointed members may not discuss and debate the matter.
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To be discussed at the meeting.
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| Assigned Attorney: |
LaToya D. Jordan |
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