HLS 10RS-1761 ENGROSSED
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Regular Session, 2010
HOUSE BILL NO. 933
BY REPRESENTATIVE PERRY
ETHICS/CODE: Authorizes certain transactions between a hospital service district and a
board member and legal entities in which a board member owns an interest
AN ACT1
To enact R.S. 42:1123(18)(b), relative to ethics; to allow a member on the board of2
commissioners of a hospital service district to engage in certain transactions and to3
own an interest in entities that engage in certain transactions; to require certain4
recusals by such board members; to provide for restrictions and limitations; and to5
provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 42:1123(18)(b) is hereby enacted to read as follows: 8
§1123. Exceptions9
This Part shall not preclude:10
* * *11
(18)12
* * *13
(b) A member of a board of commissioners for any hospital service district14
authorized by Chapter 10 of Title 46 of the Louisiana Revised Statutes of 195015
located within a parish which has a population of one hundred twenty-five thousand16
or less or a legal entity in which such a board member owns an interest from entering17
into transactions with the board or with a hospital over which the board exercises18
jurisdiction provided that the total amount of such transactions shall not exceed one19
thousand five hundred dollars per month and provided that the board member shall20 HLS 10RS-1761 ENGROSSED
HB NO. 933
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not participate in any action regarding the transaction before the board and shall1
recuse himself from voting on any action regarding the transaction.2
* * *3
Section 2. This Act shall become effective upon signature by the governor or, if not4
signed by the governor, upon expiration of the time for bills to become law without signature5
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If6
vetoed by the governor and subsequently approved by the legislature, this Act shall become7
effective on the day following such approval.8
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)]
Perry HB No. 933
Abstract: Allows a member of a hospital service district board in parishes with a
population of 125,000 or less to enter into transactions of no more than $1,500 per
month with the board or with a hospital over which the board exercises jurisdiction
provided that he does not participate in any action regarding the transaction and
recuses himself from voting on any action regarding the transaction.
Present law (R.S. 42:1123(18) – relative to exceptions to the Code of Governmental Ethics)
allows any physician serving as a member of a hospital service district board or commission,
if such board or commission is required by law or by local ordinance, rule, or regulation
adopted by a municipal or parish governing authority to have one or more physician
members, to lease space for the provision of health care services from a hospital under
jurisdiction of the board or commission for fair market value. Further allows a licensed
physician who is a member of a hospital service district board located within a parish with
a population of 125,000 or less to contract with the hospital over which the board exercises
jurisdiction, to subcontract with another provider who contracts with the hospital, and to
have an ownership interest in an entity that contracts with the hospital. Requires the
physician to recuse himself from participating in a transaction before the board relating to
such transactions permitted by present law.
Proposed law further allows a member of a hospital service district board of commissioners
for a hospital service district located within a parish with a population of 125,000 or less or
a legal entity in which such a board member owns an interest to enter into transactions with
the board or with a hospital over which the board exercises jurisdiction provided that the
total amount of such transactions shall not exceed $1,500 per month and provided that the
board member shall not participate in any action regarding the transaction before the board
and shall recuse himself from voting on any action regarding the transaction
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 42:1123(18)(b)) HLS 10RS-1761 ENGROSSED
HB NO. 933
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Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on House and Governmental
Affairs to the original bill.
1. Restricted the proposed exception to members of a board of commissioners for
any hospital service district located within a parish with a population of 125,000
or less.