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• STATE OF LOUISIANA <br /> '. '''i'• DEPARTMENT OF STATE CIVIL SERVICE <br /> i a <br /> ; : LOUISIANA BOARD OF ETHICS <br /> m r, ! '' 2 QUAIL DRIVE <br /> THIRD FLOOR <br /> e* o BATON ROUGE, LA 70808 <br /> (225) 763 -8777 <br /> FAX: (225) 763 -8780 <br /> 1- 800 - 842 -6630 <br /> www.ethics.state.la.us <br /> April 17, 2007 <br /> Mr. John Schroder <br /> 70117 Highway 59, Suite F <br /> Abita Springs, LA 70424 <br /> Re: Ethics Board Docket No. 2007 -274 <br /> Dear Mr. Schroder: <br /> The Louisiana Board of Ethics, at its April 12, 2007 meeting, considered your request for an <br /> advisory opinion as to the propriety of you using campaign funds to lease office space owned <br /> by you and/or your company, Schroder Development Group, Inc. You stated that you own <br /> several commercial rentals in your district, some that you personally own and others you own <br /> through your company, which is a S- corporation and in which you have a 100 percent <br /> ownership. You also stated that you would lease the space for an amount equal to that for <br /> which it was rented in the past. <br /> R.S. 18:1505.2I. of the Campaign Finance Disclosure Act prohibits the use of campaign <br /> funds for any personal use unrelated to the candidate's political campaign or his holding of <br /> public office. However, it is the opinion of the Board, as set forth in Ethics Board Docket <br /> No. 1995 -170, that a candidate may not perform any service or otherwise seek reimbursement <br /> under circumstances such that the transaction would be deemed taxable by the internal <br /> revenue service. Furthermore, it is the opinion of the Board, as set forth in Ethics Board <br /> Docket No. 1995 -010, the contribution limits do not apply to an IRS S- corporation wholly <br /> owned by a candidate. Copies of the referenced advisory opinions are enclosed. <br /> Therefore, the Board concluded and instructed me to inform you, that the Campaign Finance <br /> Disclosure Act prohibits you from using campaign funds to lease space owned by you, <br /> individually, or through Schroder Development Group, Inc., since it is a S- corporation in <br /> which you own 100 %. However, you and your S- corporation are not prohibited from <br /> donating the use of the office space for your campaign. The Board also concluded that you <br /> are prohibited from using campaign funds to purchase real estate to be used as your campaign <br /> headquarters or as a permanent office if you are elected. <br /> AN EQUAL OPPORTUNITY EMPLOYER <br />