The Louisiana Code of Governmental Ethics

1. The Louisiana Code of Governmental Ethics Louisiana Association of Public Employees’ Retirement Systems LAPERS September 13, 2004

2. 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

3. 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.

4. 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

5. 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.

6. § 1119 – Nepotism • An immediate family member of an agency head may not be employed in his/her agency.

7. “Agency Head” • Chief executive or administrative officer -OR- • Any member of a board or commission who exercises supervision over the agency

8. “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.

9. “Immediate Family Member” Includes the following: • Children; • Spouses of Children; • Brothers and Sisters; • Spouses of Brothers and Sisters; • Parents; • Spouse, and • Parents of Spouse.

10. 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.

11. § 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.

12. § 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.

13. 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.

14. 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 employee’s agency; and • A person who has a substantial economic interest in the performance or non-performance of the public employee’s job duties.

15. “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

16. 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 can’t receive it, they can’t give it.”

17. §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.

18. 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

19. §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.

20. 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.

21. “Participation” • decision making authority -OR- • Taking part in or sharing in the responsibility for an action of the governmental entity

22. “Substantial Economic Interest” • An economic interest which is of greater benefit to the public servant than to a general class of persons.

23. 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.

24. §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.

25. 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.

26. 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.

27. 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 lobbyist’s principle or employer can opt to file reports on behalf of all its lobbyists.

28. 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