Meetings
 
Agenda Item
Docket No. 13-491
 
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RE:
Appearance in connection with an advisory opinion request regarding whether Ed Antie may be appointed to the Louisiana Board of Regents while he and his wife own an interest in Central Telephone.
Facts:
The Louisiana Board of Regents administers and oversees the Louisiana Optical Network Initiative (LONI) which is a fiber optic network set up to facilitate high speed internet communications between higher education institutions in the state. The Board of Regents entered into a lease with Sun America, LLC for the provision of dark telecommunications transmission fiber as part of the LONI network. This contract has been in place since December 5, 2006.

Sun America, LLC has two members: Gulf Investments, LLC (71%) and Network USA, LLC (29%). Prior to January 1, 2013, Network USA, LCC had three members: Central Telephone, Inc. (40%); La Parisienne, Inc. (20%); and Delta Media (40%).

Mr. Antie and his wife own 100% of Central Telephone, Inc.

On December 31, 2012, Central Telephone entered into a Membership Unit Purchase and Credit Sale Agreement whereby Central Telephone sold its 40% membership interest in Network USA, LLC to LA Parisienne and Delta Media. The purchase terms included satisfaction of debts owed by Network USA to (1) Mr. Antie for a personal loan; (2) the Antie Family Trust for a loan; and (3) Central Telephone for a loan. The purchase terms also required La Parisienne and Delta Media to cancel all personal guarantees made by Mr. Antie and/or Central Telephone on Network USA's behalf. The terms of the purchase agreement were satisfied as of April 30, 2013.

As part of the purchase terms, Mr. Antie and Network USA entered into a Master Service Agreement effective April 1, 2013, whereby Network USA will sell to Mr. Antie and Mr. Antie will purchase certain telecommunications services.

Now that Mr. Antie and his company, Central Telephone, has divested itself of any interest in Network USA, other than as a customer, Mr. Antie is interested in being appointed to the Louisiana Board of Regents again.

Network USA provides the maintenance and services for all of Sun America's assets, including the fiber network system leased by the Board of Regents.

Law:
La. R.S. 42:1111C(2)(d) prohibits a public servant and a legal entity in which the public servant exercises control or owns an interest from receiving any thing of economic value for services rendered to or for any person during his public service unless such services are neither performed for nor compensated by any person from whom such public servant would be prohibited by Section 1115(A)(1) or (B) from receiving a gift.
La. R.S. 42:1115A(1) prohibits a public servant from soliciting or accepting, directly or indirectly, any thing of economic value as a gift or gratuity from 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 have a contractual, business or financial relationship with the public servant's agency.

Recommendations:
Adopt proposed advisory opinion.

Assigned Attorney: Tracy Barker
 
 
ATTACHMENTS:
Description:
2013-491- Advisory Opinion Request
2013-491 Draft Opinion