| Request for approval of a disqualification plan concerning the Commissioner of the Office of Financial Institutions son's employment with a regulated entity. |
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The Governor is appointing Stanley M. Dameron to the position of Commissioner of the Office of Financial Institutions (OFI). The Commissioner has exclusive supervisory and regulatory jurisdiction and authority over Louisiana state-chartered financial institutions and other financial entities regulated by OFI. OFI is responsible for the chartering/licensing; examining and investigating complaints; and, other matters related to regulated entities, with the primary focus of its examination and regulation being the lending practices of banks and other financial institutions, which can result in management criticism. Mr. Dameron was formerly employed with a regulated entity, American Bank & Trust Company, from which he still receives retirement benefits and Mr. Dameron's son works for Gulf Coast Bank & Trust, which is a state-chartered bank subject to OFI's regulatory authority.
At the February 2021 meeting, the Board rendered an advisory opinion advising that Mr. Dameron's appointment would not violate the Code of Ethics by virtue of his former employment or while his son is employed with a regulated entity. Mr. Dameron has now submitted a disqualification plan delegating his powers and authority to the Deputy Commissioner of OFI involving any transactions involving the Gulf Coast Bank & Trust and American Bank & Trust Company.
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R.S. 42:1122 provides the following:
A. Pension and benefit plans. A public servant may continue in a bona fide pension, insurance, or other benefit plan maintained by a former employer, provided that such former employer makes no contributions in his behalf with respect to the period of his public service. However, a former employer may make contributions to a pension plan that is qualified under the Internal Revenue Code or to any pension, insurance, or other benefit plan, if such contributions are made on behalf of all former employees who continue in the plan.
B. Profit sharing or stock bonus plans. The rights acquired by a public servant under a bona fide profit sharing or stock bonus plan qualified under the Internal Revenue Code and maintained by a former employer may be retained by such public servant, provided the former employer makes no contributions on his behalf based upon profits derived during the period of his public service.
R.S. 6:102C provides that the OFI Commissioner may employ a principal assistant, a private secretary, and such other examiners and employees as may be necessary for the efficient operation of the office. The OFI Commissioner may delegate to any officer or employee of the office such powers as he may deem appropriate and may designate any officer or employee of the office to perform any of his duties.
La. R.S. 42:1112A prohibits a public servant from participating in a transaction in which he has a personal substantial economic interest of which he may be reasonably expected to know involving the governmental entity.
La. R.S. 42:1112B(1) states that no public servant shall participate in a transaction involving the governmental entity in which, to his actual knowledge, any member of his immediate family has a substantial economic interest.
La. R.S. 42:1112C allows a disqualification plan to be developed in accordance with rules adopted by the Board to remove a public servant from participating in transactions that would otherwise present violations of Section 1112 of the Code.
Docket No. 2021-058
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Approve disqualification plan.
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| Assigned Attorney: |
David Bordelon |
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