| Advisory Opinion Request from Stephen B. Morris, M.D., member of the Lafourche Parish Hospital Service District No. 2. Board, regarding leasing an office to Ochsner Clinic Foundation. |
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The Lafourche Parish Hospital Service District No. 2 ("District") was created by Lafourche Parish Ordinance No. 34-157, pursuant to the authority granted by La. R.S. 46:1051, et seq., governing the creation of Hospital Service Districts. The District has a contractual agreement with Ochsner Clinic Foundation ("Ochsner") to operate the Ochsner St. Anne Hospital in Raceland. Lafourche Parish has a population of 96,318 according to the most recent census information.
Dr. Stephen Morris currently serves as an appointed member of the District Board pursuant to La. R.S. 46:1053. Ochsner has approached Dr. Morris about the possibility of leasing office space from his medical office located at 162 Acadia Park Drive in Raceland. Dr. Morris's medical office is adjacent to the Ochsner St. Anne Hospital complex.
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La. R.S. 42:1111C(2)(d) provides that no public servant shall receive anything of economic value for, or in consideration of services rendered, or to be rendered, to or for any person who has, or is seeking to obtain, a contractual, business, or financial relationship with the public servant's agency.
La. R.S. 42:1123(18)(a) provides the following exception: A licensed physician who is a member of a board of commissioners for any hospital service district authorized by Chapter 10 of Title 46 of the Louisiana Revised Statutes of 1950 located within a parish which has a population of one hundred twenty-five thousand or less from contracting with the hospital over which the board exercises jurisdiction, from subcontracting with another provider who contracts with such hospital, or from owning an interest in an entity that contracts with such hospital. However, such licensed physician shall recuse himself from participating in any transaction before the board relating to any contracts entered into by him, or by a provider with which he subcontracts, or by any entity in which he owns an interest, and permitted by this Paragraph.
La. R.S. 42:1112B: No public servant, except as provided in R.S. 42:1120, shall participate in a transaction involving the governmental entity in which, to his actual knowledge, any of the following persons has a substantial economic interest:
(5) Any person who is a party to an existing contract with such public servant, or with any legal entity in which the public servant exercises control or owns an interest in excess of twenty-five percent, or who owes any thing of economic value to such public servant, or to any legal entity in which the public servant exercises control or owns an interest in excess of twenty-five percent, and who by reason thereof is in a position to affect directly the economic interests of such public servant.
La. R.S. 42:1120.4 provides the following recusal provisions:
A. If any appointed member of a board or commission in the discharge of a duty or responsibility of his office or position, would be required to vote on a matter which vote would be a violation of R.S. 42:1112, he shall recuse himself from voting.
B. An appointed member of a board or commission who recuses himself from voting pursuant to this Section shall be prohibited from participating in discussion and debate concerning the matter.
La. R.S. 42:1114:
A. Other than a legislator, each public servant and each member of his immediate family who derives any thing of economic value, directly, through any transaction involving the agency of such public servant or who derives any thing of economic value of which he may be reasonably expected to know through a person which
(1) is regulated by the agency of such public servant, or
(2) has bid on or entered into or is in any way financially interested in any contract, subcontract, or any transaction under the supervision or jurisdiction of the agency of such public servant shall disclose the following:
(1) The amount of income or value of any thing of economic value derived;
(2) The nature of the business activity;
(3) Name and address, and relationship to the public servant, if applicable; and
(4) The name and business address of the legal entity, if applicable.
E. The disclosure statements required in this Section shall be filed each year with the appropriate ethics body by May fifteenth and shall include such information for the previous calendar year. Such statements shall be a matter of public record.
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Adopt the proposed advisory opinion.
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| Assigned Attorney: |
David Bordelon |
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