| Advisory Opinion Request of Anthony V. Ligi, Jr, Executive Counsel for the La. Department of Treasury, regarding employees applying for funds through the La. Main Street Recovery Program. |
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Act 311 of the 2020 Regular Legislative Session created the Louisiana Main Street Recovery Program ("Program") to receive funding allocated to the State of Louisiana by the federal government pursuant to the Coronavirus Aid, Relief, and Economic Security ("CARES") Act passed by Congress and signed into law on March 27, 2020. The legislation places administration of the Program with the State Treasurer in accordance with the provisions of La. R.S. 39:100.44. The Treasurer has developed the Program for the grant distribution to eligible businesses which was subject to approval by the Joint Legislative Committee on the Budget. The Program is administered under the executive division of the Treasury. The Treasury has contracted with an independent contractor to determine eligibility and the amount of grants according to the statutory criteria and the adopted implementation plan through the appeal process. The Louisiana Legislative Auditor has also been contracted to monitor the Program to insure compliance with applicable state and federal laws.
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La. R.S. 42:1113A provides that no public servant, or member of such a public servant's immediate family, or 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(13) defines "immediate family" as it relates to a public servant to mean his children, the spouses of his children, his brothers and their spouses, his sisters and their spouses, his parents, his spouse, and the parents of his spouse.
La. R.S. 42:1102(8) defines "controlling interest" to mean any ownership in any legal entity by or on behalf of an individual or a member of his immediate family, either individually or collectively, which exceeds twenty-five percent.
La. R.S. 42:1102(2)(a)(i) defines "agency" for public servants in the twenty principal departments of the executive branch of state government to mean the office in which such public servant carries out his primary responsibilities.
La. R.S. 42:1113D(1)(a) provides that neither a deputy state treasurer or an assistant state treasurer, nor any legal entity of a such person shall enter into any contract with state government.
La. R.S. 42:1113D(1)(a)(iii) defines "legal entity of a person" to mean any corporation, partnership, or other legal entity in which the deputy state treasurer or the assistant state treasurer, or the spouse of such person, owns an interest of greater than five percent.
La R.S. 42:1113D(1)(c) states that the following shall not be a contract for purposes of Section 1113D: (iii) an agreement providing for public assistance benefits, including but not limited to grants and subsidies, provided that such benefits are available to similarly situated persons.
La. R.S. 42:1112B(1) states that no public servant shall participate in a transaction involving the governmental entity in which, to his actual knowledge, any member of his immediate family 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.
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Adopt the proposed advisory opinion.
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| Assigned Attorney: |
David Bordelon |
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