| Advisory opinion regarding whether a conflict of interest exists where the Office of Group Benefits privatizes services and the outsourcing company hires employees who where formerly employed in those privatized sections. |
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The Office of Group Benefits administers state health and accident benefits, life insurance as well as a flexible benefits plan to state employees, retirees and their dependents. OGB has been providing one plan, the Preferred Provider Option (PPO) in-house, but has recently signed a notice of intent to contract Blue Cross and Blue Shield of Louisiana (BCBS) for administrative services for this plan. BCBS is offering to hire some of the OGB employees who will be displaced by this action as a result of anticipated layoffs.
Employees affected by the outsourcing did not participate in the agency's decision to outsource/privatize the services. The outsourced services will no longer be provided by OGB once the contract goes into effect. The anticipated effective date of the contract is January 1, 2013. BCBS would like the opportunity to bring on board some of the employees prior to the start of the contract for training purposes.
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Section 1121B of the Code prohibits a former public servant for a period of two years following the termination of his public service from assisting another person for compensation in a transaction, or in an appearance in connection with a transaction, in which the former public servant participated at any time during his public service and involving his former agency. Section 1112B(4) prohibits a public servant from participating in a governmental transaction in which a person with whom they are negotiating for future employment has a substantial economic interest.
In BD 2009-934, 2001-621, 2004-365, 2004-759 and 2004-074, the Board concluded that based on the unique circumstances of the privatization of a former employee's duties, the Code did not prohibit the public servants, who did not participate in the agency's decision to privatize the services, to be employed by the private entity.
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Adopt the proposed advisory opinion.
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| Assigned Attorney: |
Aneatra Boykin |
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