| Request for an advisory opinion from Melissa M. Grand, attorney for Sunset French Immersion School relative to a board member can provide collateral to Sunset French Immersion School Foundation to secure financing to purchase property which in turn will be leased to the school. |
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Jerry Domengeaux is the President of the Board of Sunset French Immersion School, Inc. ("Sunset"). Sunset French Immersion School Foundation, Inc. ("Foundation") is a separate nonprofit corporation that intends to serve as a support organization for Sunset. Foundation plans to acquire immovable property, which the Foundation will lease to Sunset to be used as a school site. Foundation will make all decisions relative to the construction of the school, including the location, design and contractor. Sunset will have no say in the construction of the school. The lender providing financing for the Foundation's property purchase requires a guaranty on the loan. Jerry Domengeaux would like to offer a certificate of deposit and his personal guaranty as collateral on the loan to the Foundation.
Further, Jerry Domengeaux's son, Christopher Chad Domengeaux, is an employee at Lambright Construction, Inc. which was awarded a contract to perform construction on the immovable property to be acquired by the Foundation.
Jerry Domengeaux is not a board member of the Foundation and he will not receive anything of economic value from Sunset or the Foundation in connection with his offer to provide collateral relative to the loan involving the Foundation.
Jerry Domengeaux is the owner of Domengeaux's Lumber Depot Inc. and may sell material to Lambright Construction during the construction process.
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La. R.S. 42:1113B prohibits an appointed member of any board or commission, member of his immediate family, or legal entity in which he has a controlling interest from bidding on or entering into or being in any way interested in any contract, subcontract, or other transaction which is under the supervision or jurisdiction of the agency of such appointed member.
La. R.S. 42:1114 provides that 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 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: (1) the amount of income; (2) the nature of the business activity; (3) name, address, and relationship to the public servant; and (4) name and business address of the legal entity.
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Adopt the proposed advisory opinion draft.
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| Assigned Attorney: |
Greg Thibodeaux |
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