| Request for an advisory opinion concerning a company owned by Rep. Dustin Miller entering into a contract with the Louisiana Horsemen's Benevolent & Protective Association 1993, Inc. (HBPA). |
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The HBPA would like to enter into a contract with Acadiana Practitioners. Rep. Dustin Miller owns 50% of Acadiana Practitioners. The contract would be for the provision of medical care for personnel working in the barn area of Evangeline Downs. Those eligible to receive such medical care are HBPA members and their employees, and anyone in need who is located in the barn area.
HBPA was not created by state statute, but it is referenced in the Horse Racing Laws as the recipient of purse proceeds/wagers for the benefit of horsemen.
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According to its 2020 audit, the purpose of the HBPA "is to protect the interest of the horse owners and trainers, particularly as it relates to their relationships with the owners and managers of racetracks. More specifically, [HBPA] operates with the express purpose '. . . to foster, protect, represent, and promote the welfare and common interest of thoroughbred and quarter horse owners and trainer, to improve conditions in the horse racing industry, to improve relationships between horsemen, other members of the racing industry, and the general public in the State of Louisiana.'"
HBPA mediates on behalf of individual members when problems arise with racetrack management or the State Racing Commission, negotiates fair distributions at race tracks, and monitors state and federal legislative developments in the interest of horsemen. HBPA was not created by the Legislature.
HBPA administers a Medical Benefit Plan with scheduled benefits for its members and their dependents. Although the HBPA appoints the Board of Trustees for the Medical Benefit Plan and shares overhead expenses, the Medical Benefit Trust is a separate legal entity with its own funding sources and operating expenses, separate and apart from HBPA's operations. HBPA receives an allocation of 4% of purse money for hospital and medical benefits for use and benefit of permittees and their employees licensed to race horses in Louisiana, pursuant to the parameters established in La. R.S. 4:183.
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Code of Governmental Ethics Provisions
R.S. 42:1113C provides that "[n]o legislator, . . . or legal entity in which he has a controlling interest shall bid on or enter into or be in any way interested in any contract, subcontract, or other transaction involving the legislator's agency."
R.S. 42:1113D prohibits a legislator, and a legal entity in which he or his spouse owns an interest of greater than 5%, from entering into any contract with state government. R.S. 42:1113D(1)(a)(v) provides that "[f]or purposes of this Subsection, "state government" means any branch, agency, department, or institution of state government or with the Louisiana Insurance Guaranty Association, the Louisiana Health Insurance Guaranty Association, or any other state quasi public entity in law."
Definitions - R.S. 42:1102
(2)(a)(iv) "Agency" for legislators means the "legislative branch."
(8) "Controlling interest" means any ownership in any legal entity . . ., held by or on behalf of an individual or a member of his immediate family, either individually or collectively, which exceeds 25%."
Pari-Mutuel Live Racing Facility Economic Redevelopment and Gaming Control Act
R.S. 27:373A(2) prohibits an elected official from engaging in any business activity with a person who is a licensee pursuant to the Pari-Mutuel Live Racing Facility Economic Redevelopment and Gaming Control Act (R.S. 27:351, et seq.). "Business activity" includes the provision of any business or personal service.
Horse Racing Laws
R.S. 4:141 &142 - recognizes the police powers of the state to provide funds and promote safety within the horse-racing industry.
4:185.1, which was enacted in 2010, provides that the HBPA is subject to audits.
R.S. 4:217 - provides for the disbursement of wagers. R.S. 4:217D(1)(d) specifically provides for a certain percentage to be distributed to the HBPA "for the use and benefit of such persons and other horsemen as medical and hospital benefits with an amount not to exceed thirty percent thereof to be used for administrative expenses and other costs necessary to provide the benefits."
Legislative Auditor Laws
R.S. 24:513 provides for who is subject to an audit by the Legislative Auditor, which includes "quasi public agencies." R.S. 513(1)(b) defines "quasi public agency" for the sole purpose of 24:513.
Attorney General Opinions
La. Atty. Gen. Op. No. 10-0292 opined that the funds of the HBPA are "public funds" and referenced a prior opinion (La. Atty. Gen. Op. No. 08-0318) that the HBPA was chartered as a private non-profit corporation.
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Adopt draft of advisory opinion.
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| Assigned Attorney: |
Kathleen Allen |
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