The Louisiana Code of Governmental Ethics

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The Louisiana Code of Governmental Ethics

• Louisiana Association of Public Employees
  Retirement Systems
• LAPERS
• September 13, 2004

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Introduction The Code of Governmental Ethics

• Addresses Conflicts of Interest
• Applies to all Public Servants.
• Public Servants is defined as elected officials
  and public employees

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Policy Goals of the Code of Ethics

• To instill public confidence in the integrity of
  government
• To ensure the independence and impartiality of
  elected officials and public employees
• To ensure that governmental decisions and policy
  are made in the proper channel of government
  structure, and
• To ensure that public office and employment are
  not used for private gain.

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The Board of Ethics

• 11 Members
• 7 appointed by the governor, with at least one
  from each congressional district
• 2 elected by the Senate
• 2 elected by the House of Representatives

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Duties of the Board of Ethics

• Administer the Code of Governmental Ethics to all
  public employees, including elected and appointed
  officials.
• Conduct investigations of alleged violations.
• Holds public hearings to determine if a violation
  of the Code has occurred.
• Issues advisory opinions interpreting the Code.

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1119 Nepotism

• An immediate family member of an agency head may
  not be employed in his/her agency.

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Agency Head

• Chief executive or administrative officer
• -OR-
• Any member of a board or commission who exercises
  supervision over the agency

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Agency

• Any department, office, division, agency,
  commission, board, committee, or other
  organizational unit of a governmental entity.
• A governmental entity is any state or political
  subdivision which employs you, or to which you
  were elected.

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Immediate Family Member

• Includes the following
• Children
• Spouses of Children
• Brothers and Sisters
• Spouses of Brothers and Sisters
• Parents
• Spouse, and
• Parents of Spouse.

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Nepotism Exceptions

• Employment in the agency for one year prior to
  the immediate family member becoming the agency
  head
• -OR-
• Serving in public employment before April 1, 1980.

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1113 Prohibited Transactions

• A public servant, a member of his immediate
  family or a legal entity in which he has a
  controlling interest
• MAY NOT
• bid on or enter into any contract, subcontract,
  or other transaction that is under the
  supervision of his/her agency.

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1115 Gifts

• A public servant may NOT accept anything of
  economic value, directly or indirectly, as a gift
  from someone who is considered a prohibited
  source.

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Prohibited Source public servants(elected
officials and public employees)

• A person who has or is seeking a contractual,
  business, or financial arrangement with your
  agency or
• A person who is seeking, for compensation, the
  passage or defeat of legislation.

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Prohibited Sources public employees

• A person who has or is seeking a contractual,
  business, or financial arrangement with your
  agency
• A person who is seeking, for compensation, the
  passage or defeat of legislation
• A person who conducts activities which are
  regulated by the public employees agency and
• A person who has a substantial economic interest
  in the performance or non-performance of the
  public employees job duties.

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Anything of Economic Value

• Means money or anything having economic value.
• EXCEPTIONS
• 1. Promotional items having no substantial
  resale value
• 2. Food and drink consumed while the guest of
  the giver, and
• 3. Elected officials may accept tickets to
  cultural and sporting events within the state
  with a value of 100 up to an aggregate amount
  of 500

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The Giver of a Prohibited Gift

• The giver of a prohibited gift to a public
  servant also violates the Code of Governmental
  Ethics and may be subject to enforcement
  proceedings.
• If you cant receive it, they cant give it.

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1111 Prohibited Income

• A public employee may not render compensated
  services to a prohibited source.
• Remember what a prohibited source is
• 1. Someone who has or is seeking a business,
  contractual, or financial relationship with your
  agency
• 2. Someone paid to influence legislation or
  ordinances
• 3. Someone who is regulated by your agency, or
• 4. Someone who has a substantial economic
  interest in the performance or non- performance
  of your job duties.

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Prohibited Income

• A public servant is also prohibited from
  receiving anything of economic value for the
  performance of services which are substantially
  related to the responsibilities and programs of
  his agency
• And
• In which he participated
• Example Travel reimbursement

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1112 Participation in Certain Transactions

• A public servant cannot participate in a
  transaction involving his governmental entity in
  which he, or a member of his immediate family,
  has a substantial economic interest.

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Participation

• A public servant cannot participate in a
  transaction if any of the following has a
  substantial economic interest
• A person in which you are an officer, director,
  partner, or employee
• A person that you are negotiating employment
  with or
• A person who owes you money or can affect your
  economic interests because of a contractual
  relationship.

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Participation

• decision making authority
• -OR-
• Taking part in or sharing in the responsibility
  for an action of the governmental entity

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Substantial Economic Interest

• An economic interest which is of greater benefit
  to the public servant than to a general class of
  persons.

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Avoiding Participation

• Elected Officials can recuse themselves to avoid
  participation violations.
• Appointed members of boards and commissions must
  either resolve the conflict or resign. They may
  not recuse themselves.
• Other public employees may disqualify themselves
  to avoid participation problems as long as they
  are not the sole decision maker.

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1121 Post Employment

• A former Agency Head, for a period of 2 years
  following his termination of employment
• Cannot assist a person, for compensation, in a
  transaction or in an appearance in connection
  with a transaction involving his former agency
• AND
• Cannot contract with former agency to perform ANY
  service, cannot be employed by or appointed to
  any position by the former agency.

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Post Employment

• A former Public Employee
• Cannot assist a person for compensation in a
  transaction in which the former public employee
  had participated in during his public employment
  and involving his former public employer AND
• Cannot contract with his former employer to
  perform any service he had performed during his
  public employment.

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New Developments Retirement Systems

• Act 868 effective January 1, 2005 establishes a
  system of reporting for individuals or business
  who are seeking a relationship with a retirement
  system.
• If an individual spends over 500 in a calendar
  year, he must file reports bi-annually.
• The name of the retirement official must be
  disclosed when the expenditures exceed 50 on one
  occasion or 250 in a six month period.
• The Chairman of the board of trustees of each
  system must provide notice to every person
  associated with his system whom he reasonably
  believes is required to file a report. A copy of
  the notification must be sent to the Board within
  15 days.

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New Developments Executive Branch lobbying

• Act 116 First report due on September 15, 2005,
  establishes a system for lobbyist disclosure for
  executive branch agencies.
• Similar to the Legislative branch lobbying, a
  lobbyist must register within 5 days of
  employment as a lobbyist or within 5 days after
  the first action requiring disclosure.
  Registration must be renewed annually. 110 fee.
  Spending 500 or more in a calendar year triggers
  the filing requirement.
• Reports are due in February and August.
• The name of the executive branch official must be
  disclosed when expenditures exceed 50 on one
  occasion or 250 in a six month reporting period.
• A lobbyists principle or employer can opt to
  file reports on behalf of all its lobbyists.

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Where to Get More Information

• Ethics Website www.ethics.state.la.us
• Ethics Quarterly Newsletter
• Informal Advice 1-800-842-6630
• -or- 225-763-8777