| Advisory opinion regarding whether the Jefferson Parish Deparment of Resource and Management may contract with Clesi Burns for consulting services where Clesi Burns members managers and employees hold licenses as insurance producers. |
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Jefferson Parish has advertised for Statement of Qualifications from persons interested in providing employee, retiree and their dependents benefit consulting services for Jefferson Parish through the Department of Human Resource and Management. Under the contract the consultant will review proposals by insurance providers and assist in selecting health and welfare benefits. Clesi Burns responded to the advertisement and was determined to be the most qualified. Clesi Burns is not a licensed insurance producer, however, certain members, managers, and employees are licensed insurance producers and have appointments by insurance companies who may seek to provide insurance benefits to Jefferson Parish. Clesi Burns and the proposed contract between Jefferson Parish and Clesi Burns states that its employees, owners, and managers do not accept commissions, bonuses, overrides, contingent compensation, gifts or any other form of compensation from insurance companies.
Under the contract with Jefferson Parish Clesi Burns would be required to determine and recommend the most economical funding method for the Benefits program, conduct research and make recommendations for a stand alone Prescription Drug Plan, prepare written comparative analysis of proposals received, make presentations to the Insurance Advisory Committee concerning received proposals, review contracts for newly selected insurance companies, attend Insurance Advisory Committee Meetings and Council meetings, Provide updates on HealthCare Reform, research and advise the Parish of new developments in employee benefits, assist in reviewing carrier claims experience, assist the Parish in negotiations with providers, advise the Parish of benefits trends.
Jefferson Parish government provides many services to the public which include garbage services, fire protection, construction and maintenance of highways, streets, and infrastructure, water services, recreational activities, library services, health and hospitals, animal control and mass transit. The parish promotes economic development and tourism in the Parish and administers numerous state and federal programs.
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In general, Section 1111C(2)(d) of the Code prohibits a public servant and/or his spouse from providing compensated services to a person that has or is seeking a contractual, financial or other business relationship with his agency.
Section 1102 provides that a public employee is any person who provides a governmental function or acts under the supervision or authority of an elected official or another employee of a governmental entity.
The Board has defined a governmental function as "those services that the law requires be performed by a governmental agency for the public's benefit." Blacks Law dictionary defines a governmental function as a government agency's conduct that is expressly or impliedly mandated or authorized by constitution law or other law that is carried out for the benefit of the general public. The nature of a "governmental function" is such that when a private entity engages in performing a "governmental function", it is much more susceptible to being involved in a conflict of interest than a private entity performing indirect support for others who are performing the governmental function.
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Adopt the proposed advisory opinion.
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| Assigned Attorney: |
Aneatra Boykin |
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