| Request for advisory opinion from William Crawford, on behalf of Bayou Community Academy Charter School (the "Academy"), as to whether the Code would prohibit the Academy from entering into transactions with United Community Bank ("UCB"). |
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The Academy is a charter school located in Thibodaux, Louisiana. UCB is a financial institution serving Lafourche, Terrebonne, Ascension, St. John the Baptist, and East Baton Rouge Parishes. A member of the Academy's board, Harold Callais, owns less than 2% interest in UCB. Harold Callais' father, Corey Callais, owns 15% of UCB and controls 25% of the voting shares of UCB. The Academy would like to engage UCB to provide certain banking and financial services.
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La. R.S. 17:3991A(1)(b)(ii) states that notwithstanding any provision of Chapter 15 of Title 42 of the Louisiana Revised Statutes of 1950 or any other law to the contrary, a member of a charter school governing or management board may serve as an officer, director, or employee, whether compensated or not, of any national or state bank; however, he shall recuse himself from voting in favor of any such bank and shall disclose the reason for such recusal by filing a statement of the reason into the minutes or record of the charter school governing or management board and by forwarding a disclosure form to the Board of Ethics.
La. R.S. 17:3996B(20) states that notwithstanding any state law, rule, or regulation to the contrary and except as may be otherwise specifically provided for in an approved charter, a charter school established and operated in accordance with the provisions of this Chapter and its approved charter and the school's officers and employees shall be exempt from all statutory mandates or other statutory requirements that are applicable to public schools and to public school officers and employees except certain provisions including the Code of Governmental Ethics.
La. R.S. 42:1113B prohibits an appointed member of any board or commission, member of his immediate family, or a legal entity in which he has a substantial economic 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. 42:1102(13) defines "immediate family" as the term relates to a public servant to mean his children, the spouses of his children, his brothers and their spouses, his sisters and their spouses, his parents, his spouse, and the parents of his spouse.
La. R.S. 42:1102(18)(a) defines "public employee" to mean any person, whether compensated or not who is: (i) an administrative officer or official of a governmental entity who is not filling an elective office; (ii) appointed by any elected official when acting in an official capacity, and the appointment is to a post or position wherein the appointee is to serve the governmental entity or an agency thereof, either as a member of an agency, or as an employee thereof; (iii) engaged in the performance of a governmental function; (iv) under the supervision or authority of an elected official or another employee of the governmental entity.
La. R.S. 42:1102(19) defines "public servant" to mean a public employee or elected official.
La. R.S. 42:1102(21) defines "substantial economic interest" as an economic interest which is of greater benefit to the public servant or other person than to a general class or group of persons, except: (a) the interest that the public servant has in his position, office, rank, salary, per diem, or other matter arising solely from his public employment or office; (b) the that an elected official who is elected to a house, body, or authority has in a position or office of such house, body, or authority which is required to be filled by a member of such house, body, or authority by law, legislative rule, or home rule charter, (c) the interest that a person has as a member of the general public.
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Adopt proposed advisory opinion.
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| Assigned Attorney: |
Charles Reeves |
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