HLS 10RS-335 ORIGINAL
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Regular Session, 2010
HOUSE BILL NO. 73
BY REPRESENTATIVES LIGI, CHAMPAGNE, CONNICK, HENRY, LABRUZZO,
LOPINTO, LORUSSO, PEARSON, AND TALBOT AND SENATOR APPEL
RETIREMENT BENEFITS: Requires forfeiture of retirement benefits by any public
employee or elected official who is a member of a public retirement system and is
convicted of certain state or federal felony acts associated with his office
AN ACT1
To amend and reenact the heading of Subpart L of Part II of Chapter 4 of Subtitle I of Title2
11 of the Louisiana Revised Statutes of 1950 and to enact R.S. 11:293, relative to3
retirement benefits; to provide relative to public servants who are members, former4
members, or retirees of public retirement systems; to require the forfeiture of a5
portion of retirement benefits by such persons who are convicted of certain felonies6
related to their offices; to provide relative to the employer and employee7
contributions made on behalf of such persons; to require the Department of Public8
Safety and Corrections and the secretary of state to report such office-related9
felonies; and to provide for related matters.10
Notice of intention to introduce this Act has been published11
as provided by Article X, Section 29(C) of the Constitution12
of Louisiana.13
Be it enacted by the Legislature of Louisiana:14
Section 1. The heading of Subpart L of Part II of Chapter 4 of Subtitle I of Title 1115
of the Louisiana Revised Statutes of 1950 is hereby amended and reenacted and R.S. 11:29316
is hereby enacted to read as follows:17 HLS 10RS-335 ORIGINAL
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SUBPART L. APPLICABILITY OF CERTAIN COURT ORDERS1
LEGAL DETERMINATIONS2
* * *3
§293. Forfeiture of retirement benefits; public corruption crimes4
A. As used in this Section, the following words or phrases shall have the5
following meanings:6
(1) "Conviction" or "convicted" means a criminal conviction, guilty plea, or7
plea of nolo contendere that is final, and all appellate review of the original trial8
court proceedings is exhausted.9
(2) "Public Corruption Crime" means a state or federal felony offense for10
any of the following crimes, or conspiracy to commit any of the following crimes for11
which conspiracy is not an element or attempt to commit the following crimes12
associated with and committed during a public servant's service in public office or13
employment:14
(a) The theft of public money or thing entrusted to such individual as part of15
his official duties.16
(b) Extortion (R.S. 14:66).17
(c) Perjury (R.S. 14:123 and 124).18
(d) Public bribery (R.S. 14:118).19
(e) Corrupt influencing (R.S. 14:120).20
(f) Obstruction of justice (R.S. 14:130.1).21
(g) Malfeasance in office (R.S. 14:134, 134.1, and 134.2).22
(h) Abuse of office (R.S. 14:134.3)23
(i) Public salary extortion (R.S. 14:136).24
(j) Public payroll fraud (R.S. 14:138).25
(k) Political payroll padding (R.S. 14:139).26
(l) Public contract fraud (R.S. 14:140).27
(m) Bribery of public officials and witnesses (18 U.S.C. 201).28
(n) Offer to procure appointive public office (18 U.S.C. 210).29 HLS 10RS-335 ORIGINAL
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(o) Acceptance or solicitation to obtain appointive public office (18 U.S.C.1
211).2
(p) Conspiracy to defraud the government with respect to claims (18 U.S.C.3
286).4
(q) False, fictitious, or fraudulent claims (18 U.S.C. 287).5
(r) Conspiracy to commit offense or to defraud the United States (18 U.S.C.6
371).7
(s) Expenditures to influence voting (18 U.S.C. 597).8
(t) Promise of appointment by candidate (18 U.S.C. 599).9
(u) Solicitation of political contributions (18 U.S.C. 602).10
(v) Intimidation to secure political contributions (18 U.S.C. 606).11
(w) Place of solicitation (18 U.S.C. 607).12
(x) Theft of public money, property, or records (18 U.S.C. 641).13
(y) Embezzlement or theft by court officers (18 U.S.C. 645).14
(z) Theft or bribery concerning programs receiving federal funds (18 U.S.C.15
666).16
(aa) Extortion by officers or employees of the United States (18 U.S.C. 872).17
(bb) Kickbacks from public works employees (18 U.S.C. 874).18
(cc) Fraudulent or false statements or entries (18 U.S.C. 1001).19
(dd) Frauds and swindles (18 U.S.C. 1341).20
(ee) Fraud by wire, radio, or television (18 U.S.C. 1343).21
(ff) Influencing or injuring officer or juror (18 U.S.C. 1503).22
(gg) Interference with commerce by threats or violence (18 U.S.C. 1951).23
(hh) Interstate and foreign travel or transportation in aid of racketeering24
enterprises (18 U.S.C. 1952).25
(ii) Prohibited activities (18 U.S.C. 1962).26
(3) "Public retirement system" means any state, statewide, or any local27
public retirement system, plan, or fund.28 HLS 10RS-335 ORIGINAL
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(4) "Public servant" means a public employee or an elected official as1
defined in R.S. 42:1102, whether a member, former member, deferred retirement2
option plan participant, or retiree under the provisions of any public retirement3
system whose first employment or reemployment making him eligible for4
membership in the public retirement system began on or after the effective date of5
this Section.6
B.(1) Any public servant who is convicted for the commission of a public7
corruption crime shall have any public retirement benefit calculated as provided in8
this Subsection. In the event of such conviction, the system shall calculate such9
person's benefit amount based only on an amount of service credit that could be10
actuarially funded, as though purchased pursuant to R.S. 11:158(C)(1)(a) and (2),11
using the dollar amount of employee contributions remitted to the system plus12
interest on such contributions at the system's actuarially assumed rate of return.13
Such service credit amount shall be used for calculation purposes only and shall not14
affect retirement eligibility.15
(2) Any options for payment of benefits after death, which are otherwise16
applicable to members of public retirement systems upon retirement, shall remain17
applicable to persons convicted of a public corruption crime; however, for purposes18
of calculating retirement allowances pursuant to any such option selected, the system19
shall consider the benefit amount determined pursuant to Paragraph (1) of this20
Subsection to be the maximum allowance available to such person.21
(3) All service credit attributable to employer contributions and interest on22
such contributions shall be forfeited, and any dollar amount of such employer23
contributions and interest, together with any funds in the individual's deferred24
retirement option plan account, shall be applied to reducing the balance of any25
unfunded accrued liability of the system in a manner determined by the system's26
board of trustees. If such system has no unfunded accrued liability, such employer27
contributions and interest shall revert to the system's trust.28 HLS 10RS-335 ORIGINAL
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C. The provisions of this Section shall not apply to any defined contribution1
plan.2
D. The provisions of this Section shall not apply to survivor benefits being3
received by any surviving unmarried spouse, any surviving minor child, or any4
surviving physically or mentally handicapped child who would otherwise be entitled5
to a survivor benefit of a deceased member convicted of a public corruption crime.6
E. Each public retirement system shall provide every public servant with an7
attestation form explaining the provisions of this Section. Such public servant shall8
be required to sign such form indicating that he has read such form and understands9
the contents thereof.10
F.(1)(a) Upon conviction of a public servant of a public corruption crime, if11
the court orders restitution as part of the sentence imposed pursuant to Code of12
Criminal Procedure Article 883.2 or any specific criminal statute, all benefits13
otherwise due under Subsection B of this Section shall be available to satisfy the14
order of restitution. The system, upon being served with a copy of the court's order15
after conviction, shall pay the amount necessary to satisfy the court order, to the16
extent possible, from such benefits.17
(b) Upon conviction of a public servant of a public corruption crime, if the18
court orders payment of a fine as part of the sentence imposed, all benefits otherwise19
due under Subsection B of this Section shall be available to satisfy the court-ordered20
fine. The system, upon being served with a copy of the court's order, shall make21
available to the sheriff or executive officer of the court of conviction such benefits22
to the extent necessary to satisfy the court order. After collection by the sheriff or23
court officer, the monies will be disposed of as otherwise provided in R.S. 15:571.11.24
(2) If the benefits are not sufficient to satisfy both an order for restitution and25
a fine, the benefits due under Subsection B of this Section shall be proportionally26
divided for the satisfaction of both the restitution and the fine.27 HLS 10RS-335 ORIGINAL
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(3) The provisions of this Section shall supersede any provision of law1
exempting public retirement benefits from garnishment, attachment, seizure, or other2
process.3
(4) Any benefits remaining after application of Subsection B of this Section4
and after satisfaction of an order for restitution or fine shall be paid to the public5
servant in accordance with applicable law.6
G.(1) A parish prosecutor shall inform the secretary of the Department of7
Public Safety and Corrections in writing when a conviction for a state public8
corruption crime is entered against a person who the prosecutor knows, or has reason9
to believe, is a member of a public retirement system and who is subject to the10
provisions of this Section. The secretary shall compile such information and11
transmit it to the appropriate public retirement system.12
(2) The secretary of state, upon being notified by a United States Attorney13
of a felony conviction for a federal public corruption crime listed in Paragraph (A)(2)14
of this Section, whether or not such conviction qualifies as a conviction as defined15
by this Section, shall promptly transmit to each public retirement system information16
pertaining to such conviction. Each public retirement system shall determine if the17
provisions of this Section apply to the person convicted of such felony and shall18
determine if such conviction qualifies as a conviction as that term is defined by this19
Section.20
Section 2. This Act shall take effect and become operative if and when the proposed21
amendment of Article X, Section 29(F) of the Constitution of Louisiana contained in the Act22
which originated as House Bill No. 69 of this 2010 Regular Session of the Legislature is23
adopted at the statewide election to be held on November 2, 2010, and becomes effective.24 HLS 10RS-335 ORIGINAL
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Ligi HB No. 73
Abstract: Provides for the forfeiture of public retirement benefits by any public servant
convicted of a state or federal felony related to his office.
Proposed law provides for the forfeiture of retirement benefits by any public servant (hired
on or after the effective date of proposed law) convicted of certain crimes related to the
holding of office (public corruption crimes). Specifies the state and federal crimes
conviction of which results in such forfeiture. Provides that conviction occurs when all
appellate review is exhausted.
Proposed law specifically requires the forfeiture of all service credit attributable to employer
contributions in the event of a conviction of a public corruption crime by a public servant.
The retirement benefits of any such public servant so convicted shall be calculated based on
employee contributions alone. Such employee contributions shall determine the amount of
service credit to be used in calculating such person's benefits. Provides that any payment
options applicable to such persons upon retirement shall remain applicable, except that the
reduced benefit amount calculated pursuant to proposed law shall be considered the
maximum benefit amount.
Proposed law provides that the dollar amount of all employer contributions forfeited
pursuant to proposed law shall be applied toward the unfunded accrued liability of the
retirement system or shall become part of the system's assets if the system has no unfunded
accrued liability.
Proposed law does not apply to any defined contribution plan nor to any survivor benefits
payable to a surviving unmarried spouse, minor children, or physically or mentally
handicapped children.
Proposed law requires every public retirement system to submit an attestation form to every
member, which explains the provisions of proposed law. Such member shall sign such form
indicating that he understands the provisions of proposed law.
Proposed law provides that all benefits otherwise reduced pursuant to proposed law shall be
available for the satisfaction of any court-ordered restitution or criminal fine. Provides that
if the employee contributions are insufficient to satisfy both the restitution and the fine, the
employee contributions shall be apportioned for the satisfaction of both.
Proposed law provides that a parish prosecutor shall inform the secretary of DPS&C and
Corrections in writing when a conviction has been obtained against a person to whom
proposed law may apply. The secretary shall then report this information to the appropriate
retirement system. Relative to convictions of federal felonies, requires the secretary of state
to report information to the retirement system regarding any federal convictions upon which
he receives notice from the U.S. attorney for any federal felony listed in proposed law. The
retirement system shall determine if any of its members or retirees are the subject of such
convictions and whether such convictions are final for purposes of proposed law. HLS 10RS-335 ORIGINAL
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Effective if and when the proposed amendment of Art. X, §29(F) of the Constitution of La.
contained in the Act which originated as HB 69 of the 2010 R.S. of the Legislature is
adopted at the statewide election to be held on Nov. 2, 2010, and becomes effective.
(Amends the heading of Subpart L of Part II of Chapter 4 of Subtitle I of Title 11 of the LRS
of 1950; Adds R.S. 11:293)