Meetings
 
Agenda Item
Docket No. 22-776
 
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RE:
Advisory Opinion request on behalf of Dr. John George, CEO of the Biomedical Research Foundation of Northwest Louisiana, in connection with an upcoming bid submission to the Louisiana Economic Development Corp.
Facts:
Dr. John George was appointed as a member of the Board of Directors for the Louisiana Economic Development Corporation ("LEDC") in September 2020. He resigned from the LEDC Board of Directors effective on January 12, 2022.

The LEDC Board of Directors reviews and administers financial assistance programs. Dr. George is employed as the Chief Executive Officer ("CEO") of Biomedical Research Foundation of Northwest Louisiana ("BRF"), which is a private, non-profit corporation. He does not have any ownership interest in BRF. Dr. George's salary is set by the BRF Board of Directors and is not affected by its receipt of funding.


Through the American Rescue Plan Act of 2021, which reauthorized the State Small Business Credit Initiative ("SSBCI"), U.S. Congress has appropriated funds to be allocated and disbursed to the states that have created programs to increase the amount of capital made available by private lenders to small businesses. LEDC has been designated to administer the SSBCI, with the funds being used to increase access to credit and capital funding to further assist small businesses in the State of Louisiana. In connection therewith, LEDC issued a Request for Qualifications for five SSBCI Fund Programs with applications due by April 29, 2022. Selection began in September 2022 and remains an open process with additional applications to be considered going forward.

In response to the Request for Qualifications, BRF submitted a response as a potential contractor. Upon submission, a conflict of interest review was conducted by LED. At that time, it was determined by LED that, pursuant to U.S. Treasury guidelines, Dr. George was an SSBCI insider due to his prior service on the LEDC Board of Directors, thereby causing a twelve-month prohibition on the consideration of BRF's application by LED. At the end of the twelve-month period, BRF will be required to update LED on any changes in the submission, as well as to disclose any potential conflicts. After such update, the application will be scored and presented to the LEDC Board of Directors for consideration and possible selection. BRF has created a team of employees from finance, accounting, human resources, legal, fundraising and grants, and public relations to provide services under the application if selected by LEDC. Signing authority on behalf of BRF has been granted by the BRF Executive Committee to James D. Dean, Executive Vice President and Chief Operating Officer. The point of contact will be Dave Smith, Executive Director of the Entrepreneurial Accelerator Program, which is a division of BRF. Dr. George will not provide any assistance in the future to BRF, outside entities, or LED with regard to any contracted services with LEDC.

Law:
La. R.S. 42:1121A.(1) No former agency head or elected official shall, for a period of two years following the termination of his public service as the head of such agency or as an elected public official serving in such agency, assist another person, for compensation, in a transaction, or in an appearance in connection with a transaction, involving that agency or render any service on a contractual basis to or for such agency.

A.(2) No former member of a board or commission shall, for a period of two years following the termination of his public service on such board or commission, contract with, be employed in any capacity by, or be appointed to any position by that board or commission.


C. No legal entity in which a former public servant is an officer, director, trustee, partner, or employee shall, for a period of two years following the termination of his public service, assist another person, for compensation, in a transaction, or in an appearance in connection with a transaction in which such public servant at any time participated during his public service and involving the agency by which he was formerly employed or in which he formerly held office.

D. No former public servant shall share in any compensation received by another person for assistance which such former public servant is prohibited from rendering by this Section.


La. R.S. 42:1102(2)(a)(i) defines "agency" for public servants who are members or employees of an executive branch board or commission, or who provide staff assistance to a board or commission, to mean the board or commission.
La. R.S. 42:1102(3) defines "agency head" to include any member of a board or commission who exercises supervision over the agency.




Recommendations:
Adopt draft of advisory opinion.
Assigned Attorney: David Bordelon
 
 
ATTACHMENTS:
Description:
2022-776 - AO
1_21_22_LEDC BOD Member Resignation - George
2022-776- BRF SSBCI Seed Fund Narrative and Budget 04272022 V2
2022-776- BRF SSBCI Venture Fund Narrative and Budget 20220427 FINAL
2022-776- Email Alesia 102722 - Additional Information
2022-776- SSBCI Update for Stakeholders -October 2022-FINAL
2022-776 - Advisory Opinion Draft - George