| Advisory Opinion request from Mace Bourgeois on behalf of Fire & Safety Commodities regarding the continuation of a contract with the State of Louisiana while his wife, Susan Bourgeois, serves as Secretary for the Department of Economic Development. |
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Mace Bourgeois is the President of Fire & Safety Commodities ("FSC") and is the co-owner along with his brother, Sage Bourgeois. Mace Bourgeois is married to Susan Bourgeois.
On April 26, 2023, FSC was awarded the Portable Fire Extinguishers Statewide Contract (No. 4400027161) by the Division of Administration to provide portable fire extinguishers to the State of Louisiana. The original term provided that the contract "is to be effective for a period of one (1) year beginning May 12, 2023, and ending May 30, 2024, with an option to renew for two (2) additional twelve (12) month periods. Total contract not to exceed thirty-six (36) months."
On the same day, FSC was awarded the Fire Extinguisher & Hood Suppress Svc-SW Contract (No. 4400027258) to furnish fire extinguisher and hood suppression services to the State of Louisiana. The original term provided that the contract "is for a period of twelve (12) months, beginning May 16, 2023 and ending May 15, 2024. At the option of the State of Louisiana and acceptance by the contractor, the contract may be extended for two (2) additional twelve (12) month periods at the same price, terms, and conditions. Total contract time may not exceed thirty-six (36) months."
On January 25, 2024, Susan Bourgeois was appointed as the Secretary for the Louisiana Department of Economic Development ("LED").
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La. R.S. 42:1113D: N
o person identified in Item (ii) of this Subparagraph or the spouse of such person nor any legal entity of a person shall enter into any contract with state government.
(ii) The provisions of this Subparagraph and other provisions which reference this Item shall apply to the following persons: (cc) The secretary, deputy secretary, undersecretary, and each assistant secretary, or the equivalent position of the Department of Economic Development.
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(iii) For purposes of this Subsection, "legal entity of a person" means any corporation, partnership, or other legal entity in which a person identified in Item (ii) of this Subparagraph or the spouse of such person owns an interest of greater than five percent, except a publicly traded corporation or a legal entity in which the person owns a passive ownership interest that is the result of participation in a federally approved program of employee ownership.
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(v) For purposes of this Subsection, "state government" means any branch, agency, department, or institution of state government or with the Louisiana Insurance Guaranty Association, the Louisiana Health Insurance Guaranty Association, or any other state quasi public entity created in law.
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However, La. R.S. 42:1113D provides multiple exceptions, specifically:
(2)(d) The provisions of this Subsection shall not prohibit the following:
Completion of any contract which, at the time it was entered into, was not prohibited by the provisions of this Subsection; however, no such contract shall be renewed except as specifically provided for in this Paragraph.
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| Assigned Attorney: |
David Bordelon |
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