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2023-1006
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2023-1006
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Entry Properties
Last modified
5/15/2024 9:20:04 AM
Creation date
4/11/2024 12:25:26 PM
Metadata
2023-1006
Fields
Template:
Opinion Item
Opinion Type
Advisory Opinion
Docket Number
2023-1006
Requesting Party
Mark Pousson
Parties Involved
USA Rice Council
Agency at Issue
Louisiana Rice Promotion Board
Decision Date
4/5/2024
Law
La. R.S. 42:1111C(2)(d)
La. R.S. 42:1112A
La. R.S. 42:1112B(3)
La. R.S. 42:1111A
La. R.S. 42:1115A(1)
La. R.S. 42:1115.2
Caption
Advisory opinion on certain transactions and participation involving the Louisiana Rice Promotion Board and the USA Rice Council.
Ethics Subject Matters
Prohibited Sources
Participation
Payment - Not Duly Entitled
Travel Expenses
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(3) Does the Code prohibit a member of the Promotion Board from executing, on behalf of <br /> the Promotion Board, an agreement with the USA Rice Council for the legal representation <br /> of the Promotion Board. <br /> La. R.S. 42:1112A prohibits a public servant from participating in a transaction in which he has a <br /> personal substantial economic interest of which he may be reasonably expected to know involving <br /> the governmental entity. <br /> La. R.S. 42:1112B(3) states that no public servant shall participate in a transaction involving the <br /> governmental entity in which, to his actual knowledge, any person of which he is an officer, <br /> director,trustee,partner, or employee has a substantial economic interest. <br /> La. R.S. 42:1102(21) defines "substantial economic interest" as an economic interest which is of <br /> greater benefit to the public servant or other person than to a general class or group of persons. <br /> The Board concluded, and instructed me to inform you, that, in general, La. R.S. 42:1112A and <br /> La. R.S. 42:1112B(3) prohibits a Promotion Board member, in their capacity as a member of the <br /> Promotion Board, from participating in transactions involving the Promotion Board in which they <br /> have a personal substantial economic interest and/or a person of which they are an officer or <br /> director has a substantial economic interest. Since the legal fees are not for a Promotion Board <br /> member's personal representation, La. R.S. 42:1112A does not prohibit a Promotion Board <br /> member from executing an agreement for legal representation of the Promotion Board with the <br /> USA Rice Council. Further, since the USA Rice Council does not have a substantial economic <br /> interest in the agreement for legal representation of the Promotion Board, no issue is presented <br /> under La. R.S. 42:1112B(3) if the Promotion Board member executes the agreement for legal <br /> representation of the Promotion Board with the USA Rice Council while the Promotion Board <br /> member is an officer or director of the USA Rice Council. <br /> (4) Does the Code prohibit a Promotion Board member from participating in discussions <br /> involving the ongoing litigation against the Promotion Board when the Promotion Board <br /> member may have an interest in the litigation as a member of the class action lawsuit? <br /> The Board concluded, and instructed me to inform you, that, in general, La. R.S. 42:1112A <br /> prohibits a Promotion Board member, in their capacity as a member of the Promotion Board,from <br /> participating in transactions involving the Promotion Board in which they have a personal <br /> substantial economic interest. However, since the class has been defined to include approximately <br /> 10,000 individuals and legal entities,the Board concluded that the Promotion Board member does <br /> not have a substantial economic interest in the outcome of the lawsuit and would not be prohibited <br /> from participating in discussions involving the lawsuit. <br /> (5)Does the Code prohibit a Promotion Board member from receiving reimbursement from <br /> the USA Rice Council for travel and lodging while the USA Rice Council has a contractual <br /> relationship with the Promotion Board? <br /> Generally, La. R.S. 42:1111A prohibits a public employee from receiving anything of economic <br /> value, other than compensation and benefits from the governmental entity to which he is duly <br /> Page 3 of 5 (BD 2023-1006) <br />
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