| Advisory Opinion request, submitted by Alesia Ardoin, on behalf of Riccardo Mekdessie, as to whether the Code prohibits Thecla, LLC from submitting a proposal to design, implement, manage, maintain, and supervise a single remittance system for the Louisiana Uniform Local Sales Tax Board ("LULSTB"). |
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Thecla, LLC, a Louisiana limited liability company owned by Riccardo Mekdessie, is an information technology and software consulting company. On July 1, 2022, Mr. Mekdessie, on behalf of Thecla, entered into a Professional Services Agreement with LULSTB, which expires on June 30, 2024. The contractual duties of Thecla include:
1. Providing advice and recommendations to LULSTB regarding the purchase, licensing, development, maintenance, and support of computer software and hardware relative to Louisiana local sales and use tax collection and administration;
2. Providing oversight and guidance regarding proper functioning of existing LULSTB programs;
3. Maintaining and supporting the LULSTB's website including content and associated features;
4. Attending LULSTB meetings as requested; and,
5. Performing such other tasks or assignments as may be requested by LULSTB or its Executive Director, Clarence Lymon.
During the 2023 Regular Legislative Session, Act. No. 375 was enacted, wherein the collection of local sales tax was shifted from the Louisiana Department of Revenue's responsibility to LULSTB. The statute requires LULSTB to design and implement a new system that will allow taxpayers to remit state and local sales and use taxes for the various taxing jurisdictions in the State of Louisiana through a single location. Thecla would like to submit a proposal to design, implement, manage, maintain, and supervise a single remittance system.
According to Thecla, there will be no overlap between the two contracts. A copy of Thecla's current contract was provided and is attached. Ms. Ardoin states that the new contract will be under the supervision of the Louisiana Office of Technology & Support. The original contract will remain under the supervision of LULSTB.
A copy of the current RPF was requested from Ms. Ardoin. She stated that it has not been let out, so she cannot provide a copy of it.
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Mr. Mekdessie submitted a request for an advisory opinion in BD 2019-1105. However, prior to the meeting, Mr. Mekdessie, on advice of Ms. Ardoin, submitted a request to withdraw the advisory opinion request because the LULSTB lost its funding, and it was not going to issue an RFP for software development. I have attached the following from the file in 2019-1105: the request for the opinion, the RFP and Business Requirement Documents, and the email as for the withdrawal.
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La. R.S. 42:1113(A)(1)(a)
states no public servant, excluding any legislator and any appointed member of any board of commission and any member of a governing authority of a parish with a population of ten thousand or less, or member of such a public servant's immediate family, or 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. 42:1112 prohibits a public servant from participating in a transaction in which he or his company has a substantial economic interest.
La. R.S. 42:1102(18) defines a "Public employee" as anyone, 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; and, (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" as a public employee or an elected official.
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Recommendation to be made at the meeting.
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| Assigned Attorney: |
Kathleen Allen |
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