| Advisory Opinion Request from Kia Price, an employee of Louisiana Department of Health, regarding issues operating a non-profit entity. |
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Ms. Price is an employee at the Louisiana Department of Health ("LDH"). In her role at LDH, she works under Assistant Secretary Melinda Richard in the Office of Aging and Adult Services ("OAAS"), and she manages staff, determines eligibility and makes referrals with respect to the Permanent Supportive Housing ("PSH") program for housing vouchers for continuum of care.
Ms. Price has formed a non-profit corporation, The Forgotten War Incorporated ("The Forgotten War") to work with the homeless population. The Forgotten War plans to own and manage properties that would be occupied by residents who receive housing vouchers and subsidies from programs other than PSH and not affiliated with LDH or OAAS ("Unaffiliated Vouchers"), including, for example, Section 8 and Emergency Housing Vouchers. Unaffiliated Vouchers are overseen and regulated by agencies other than OAAS and LDH, including the Louisiana Housing Corporation. Any person receiving an Unaffiliated Voucher cannot be considered for assistance in the PSH program. Further, The Forgotten War would not work with any person in the PSH program or otherwise receiving assistance from OAAS.
The Forgotten War is formed on a non-stock basis. Ms. Price serves as President of The Forgotten War, she has managerial control over The Forgotten War, and she plans to be compensated for managing The Forgotten War.
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La. R.S. 42:1111C(2)(d) provides that no public servant and no legal entity in which the public servant exercises control or owns an interest in excess of twenty-five percent, shall receive any thing of economic value for or in consideration of services rendered, or to be rendered, to or for any person during his public service unless such services are neither performed for nor compensated by any person or from any officer, director, agent, or employee of such person, if such public servant knows or reasonably should know that such person has or is seeking to obtain contractual or other business or financial relationships with the public servant's agency; conducts operations or activities which are regulated by the public employee's agency; or has substantial economic interests which may be substantially affected by the performance or nonperformance of the public employee's official duty.
La. R.S. 42:1113A states that no public servant, or a member of such a public servant's immediate family, or a legal entity in which he has a controlling interest shall bid on or enter into any contract, subcontract or other transaction that is under the supervision or jurisdiction of the agency of such public servant.
La. R.S. 42:1102(2)(a)(i) defines "agency" for public servants in the twenty principal departments of the executive branch of state government, to mean the office in which such public servant carries on his primary responsibilities.
La. R.S. 42:1102(8) defines "controlling interest" to mean any ownership in any legal entity or beneficial interest in a trust, held by or on behalf of an individual or a member of his immediate family, either individually or collectively, which exceeds twenty-five percent of that legal entity.
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.
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Adopt proposed advisory opinion.
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| Assigned Attorney: |
Charles Reeves |
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