| Advisory Opinion request from Lafayette Center Development District d/b/a Downtown Development Authority ("DDA"), as to whether the Code of Governmental Ethics would prohibit DDA board members from participating in certain transactions. |
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DDA is a political subdivision of the State of Louisiana created by an act of the Louisiana legislature in 1983. The Downtown Lafayette Economic Development District ("EDD") is a political subdivision of the State of Louisiana created by the City of Lafayette (the "City") in 2019. DDA, EDD and the City entered into a cooperative endeavor agreement (the "CEA") dated December 1, 2019, which relates to the use of funds generated by taxes levied by EDD. Pursuant to provisions of the CEA, DDA approval is required for any projects or spending funded by EDD.
John Doe is a DDA board member. He owns property in downtown Lafayette. DDA is considering the approval of funding of infrastructure projects on public property situated between Mr. Doe's property and the street. These projects would include demolition work and installation of new street curbs, sidewalks and lighting. These improvements would benefit Mr. Doe's property value.
Mr. Doe has designed an underground water retention system incorporated into his proposed parking lot. The system would benefit Mr. Doe's property as well as public drainage. Mr. Doe would like EDD funding for the underground system and parking lot.
Rob Roe and Joe Citizen are DDA board members. In their private capacities, they are each performing professional work for third parties seeking EDD funding for projects.
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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: (d) 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. 42:1112A prohibits a public servant from participating in a transaction involving his governmental entity in which he has a substantial economic interest.
La. R.S. 42:1113A states 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. 42:1120.4 provides an exception for appointed members of a board or commission to recuse themselves from voting on matters that violate Section 1112 of the Code. The appointed members may not discuss and debate the matter
La. R.S. 42:1102(2)(a)(i) defines "agency" to mean a department, office, division, agency, commission, board, committee, or other organizational unit of a governmental entity.
La. R.S. 42:1102(3) defines "agency head" to mean the chief executive or administrative officer of an agency or any member of a board or commission who exercises supervision over the agency.
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(15) defines "participate" to mean to take part in or to have responsibility for action of a governmental entity or proceeding, personally, as a public servant of the governmental entity, through approval, disapproval, decision, recommendation, the rendering of advice, investigation, or the failure to act or perform a duty.
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.
La. R.S. 42:1102(23) defines "transaction involving the governmental entity" to mean any proceeding, application, submission, request for a ruling or other determination, contract, claim, case, or other such particular matter which the public servant or former public servant of the governmental entity in question knows or should know: (a) Is, or will be, the subject of action by the governmental entity. (b) Is one to which the governmental entity is or will be a party. (c) Is one in which the governmental entity has a direct interest.
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Approve proposed advisory opinion.
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| Assigned Attorney: |
Charles Reeves |
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