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Regular Session, 2010
SENATE BILL NO. 12
BY SENATOR APPEL AND REPRESENTATIVE LIGI
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. (See Act.)
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 published.11
Be it enacted by the Legislature of Louisiana:12
Section 1. The heading of Subpart L of Part II of Chapter 4 of Subtitle I of Title 1113
of the Louisiana Revised Statutes of 1950, is hereby amended and reenacted and R.S. 11:29314
is hereby enacted to read as follows:15
SUBPART L. APPLICABILITY OF CERTAIN COURT ORDERS16
LEGAL DETERMINATIONS17 SB NO. 12
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* * *1
ยง293. Forfeiture of retirement benefits; public corruption crimes2
A. As used in this Section, the following words or phrases shall have the3
following meanings:4
(1) "Conviction" or "convicted" means a criminal conviction, guilty5
plea, or plea of nolo contendere that is final, and all appellate review of the6
original trial court proceedings is exhausted.7
(2) "Public corruption crime" means a state or federal felony offense for8
any of the following crimes, or conspiracy to commit any of the following crimes9
for which conspiracy is not an element or attempt to commit the following10
crimes associated with and committed during a public servant's service in11
public office or employment:12
(a) The theft of public money or thing entrusted to such individual as13
part of his official duties.14
(b) Extortion (R.S. 14:66).15
(c) Perjury (R.S. 14:123 and 124).16
(d) Public bribery (R.S. 14:118).17
(e) Corrupt influencing (R.S. 14:120).18
(f) Obstruction of justice (R.S. 14:130.1).19
(g) Malfeasance in office (R.S. 14:134, 134.1, and 134.2).20
(h) Abuse of office (R.S. 14:134.3)21
(i) Public salary extortion (R.S. 14:136).22
(j) Public payroll fraud (R.S. 14:138).23
(k) Political payroll padding (R.S. 14:139).24
(l) Public contract fraud (R.S. 14:140).25
(m) Bribery of public officials and witnesses (18 U.S.C. 201).26
(n) Offer to procure appointive public office (18 U.S.C. 210).27
(o) Acceptance or solicitation to obtain appointive public office (1828
U.S.C. 211).29 SB NO. 12
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(p) Conspiracy to defraud the government with respect to claims (181
U.S.C. 286).2
(q) False, fictitious, or fraudulent claims (18 U.S.C. 287).3
(r) Conspiracy to commit offense or to defraud the United States (184
U.S.C. 371).5
(s) Expenditures to influence voting (18 U.S.C. 597).6
(t) Promise of appointment by candidate (18 U.S.C. 599).7
(u) Solicitation of political contributions (18 U.S.C. 602).8
(v) Intimidation to secure political contributions (18 U.S.C. 606).9
(w) Place of solicitation (18 U.S.C. 607).10
(x) Theft of public money, property, or records (18 U.S.C. 641).11
(y) Embezzlement or theft by court officers (18 U.S.C. 645).12
(z) Theft or bribery concerning programs receiving federal funds (1813
U.S.C. 666).14
(aa) Extortion by officers or employees of the United States (18 U.S.C.15
872).16
(bb) Kickbacks from public works employees (18 U.S.C. 874).17
(cc) Fraudulent or false statements or entries (18 U.S.C. 1001).18
(dd) Frauds and swindles (18 U.S.C. 1341).19
(ee) Fraud by wire, radio, or television (18 U.S.C. 1343).20
(ff) Influencing or injuring officer or juror (18 U.S.C. 1503).21
(gg) Interference with commerce by threats or violence (18 U.S.C. 1951).22
(hh) Interstate and foreign travel or transportation in aid of23
racketeering enterprises (18 U.S.C. 1952).24
(ii) Prohibited activities (18 U.S.C. 1962).25
(3) "Public retirement system" means any state, statewide, or any local26
public retirement system, plan, or fund.27
(4) "Public servant" means a public employee or an elected official as28
defined in R.S. 42:1102, whether a member, former member, deferred29 SB NO. 12
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retirement option plan participant, or retiree under the provisions of any public1
retirement system whose first employment or reemployment making him2
eligible for membership in the public retirement system began on or after the3
effective date of this Section.4
B.(1) Any public servant who is convicted for the commission of a public5
corruption crime shall have any public retirement benefit calculated as6
provided in this Subsection. In the event of such conviction, the system shall7
calculate such person's benefit amount based only on an amount of service8
credit that could be actuarially funded, as though purchased pursuant to R.S.9
11:158(C)(1)(a) and (2), using the dollar amount of employee contributions10
remitted to the system plus interest on such contributions at the system's11
actuarially assumed rate of return. Such service credit amount shall be used for12
calculation purposes only and shall not affect retirement eligibility.13
(2) Any options for payment of benefits after death, which are otherwise14
applicable to members of public retirement systems upon retirement, shall15
remain applicable to persons convicted of a public corruption crime; however,16
for purposes of calculating retirement allowances pursuant to any such option17
selected, the system shall consider the benefit amount determined pursuant to18
Paragraph (1) of this Subsection to be the maximum allowance available to such19
person.20
(3) All service credit attributable to employer contributions and interest21
on such contributions shall be forfeited, and any dollar amount of such22
employer contributions and interest, together with any funds in the individual's23
deferred retirement option plan account, shall be applied to reducing the24
balance of any unfunded accrued liability of the system in a manner determined25
by the system's board of trustees. If such system has no unfunded accrued26
liability, such employer contributions and interest shall revert to the system's27
trust.28
C. The provisions of this Section shall not apply to any defined29 SB NO. 12
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contribution plan.1
D. The provisions of this Section shall not apply to survivor benefits2
being received by any surviving unmarried spouse, any surviving minor child,3
or any surviving physically or mentally handicapped child who would otherwise4
be entitled to a survivor benefit of a deceased member convicted of a public5
corruption crime.6
E. Each public retirement system shall provide every public servant7
with an attestation form explaining the provisions of this Section. Such public8
servant shall be required to sign such form indicating that he has read such9
form and understands the contents thereof.10
F.(1)(a) Upon conviction of a public servant of a public corruption11
crime, if the court orders restitution as part of the sentence imposed pursuant12
to Code of Criminal Procedure Article 883.2 or any specific criminal statute, all13
benefits otherwise due under Subsection B of this Section shall be available to14
satisfy the order of restitution. The system, upon being served with a copy of15
the court's order after conviction, shall pay the amount necessary to satisfy the16
court order, to the extent possible, from such benefits.17
(b) Upon conviction of a public servant of a public corruption crime, if18
the court orders payment of a fine as part of the sentence imposed, all benefits19
otherwise due under Subsection B of this Section shall be available to satisfy the20
court-ordered fine. The system, upon being served with a copy of the court's21
order, shall make available to the sheriff or executive officer of the court of22
conviction such benefits to the extent necessary to satisfy the court order. After23
collection by the sheriff or court officer, the monies will be disposed of as24
otherwise provided in R.S. 15:571.11.25
(2) If the benefits are not sufficient to satisfy both an order for26
restitution and a fine, the benefits due under Subsection B of this Section shall27
be proportionally divided for the satisfaction of both the restitution and the fine.28
(3) The provisions of this Section shall supersede any provision of law29 SB NO. 12
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exempting public retirement benefits from garnishment, attachment, seizure,1
or other process.2
(4) Any benefits remaining after application of Subsection B of this3
Section and after satisfaction of an order for restitution or fine shall be paid to4
the public servant in accordance with applicable law.5
G.(1) A parish prosecutor shall inform the secretary of the Department6
of Public Safety and Corrections in writing when a conviction for a state public7
corruption crime is entered against a person who the prosecutor knows, or has8
reason to believe, is a member of a public retirement system and who is subject9
to the provisions of this Section. The secretary shall compile such information10
and transmit it to the appropriate public retirement system.11
(2) The secretary of state, upon being notified by a United States12
attorney of a felony conviction for a federal public corruption crime listed in13
Paragraph (A)(2) of this Section, whether or not such conviction qualifies as a14
conviction as defined by this Section, shall promptly transmit to each public15
retirement system information pertaining to such conviction. Each public16
retirement system shall determine if the provisions of this Section apply to the17
person convicted of such felony and shall determine if such conviction qualifies18
as a conviction as that term is defined by this Section.19
Section 2. This Act shall take effect and become operative if and when the proposed20
amendment of Article X, Section 29(F) of the Constitution of Louisiana contained in the Act21
which originated as Senate Bill No. _____ of this 2010 Regular Session of the Legislature22
is adopted at the statewide election to be held on November 2, 2010, and becomes effective.23
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Lauren B. Bailey.
DIGEST
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. SB NO. 12
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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 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.
Effective if and when the proposed amendment of Art. X, Sec. 29(F) of the Constitution of
La. contained in the Act which originated as SB of the 2010 Regular Session of the
Legislature is adopted at the statewide election to be held on Nov. 2, 2010, and becomes
effective.
(Adds R.S. 11:293)