SLS 10RS-1040 ORIGINAL Page 1 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2010 SENATE BILL NO. 783 BY SENATOR MARIONNEAUX LEGISLATORS. Prohibits any legislator from doing business with the state of Louisiana. (gov sig) AN ACT1 To amend and reenact R.S. 42:1112 and 1113(C), and to enact R.S. 42:1123(42), relative to2 conflicts of interest; to provided that a legislator is prohibited from participating in3 any transaction with the state in which he has a personal economic interest; to4 provide relative to exceptions to conflicts of interest law; and to provide for related5 matters.6 Be it enacted by the Legislature of Louisiana:7 Section 1. R.S. 42:1112 and 1113(C) are hereby amended and reenacted, and R.S.8 42:1123(42) is hereby enacted, to read as follows: 9 §1112. Participation in certain transactions involving the governmental entity10 A. No public servant, excluding any legislator, and except as provided in11 R.S. 42:1120, shall participate in a transaction in which he has a personal substantial12 economic interest of which he may be reasonably expected to know involving the13 governmental entity.14 B. Notwithstanding any other provision of law and without exception15 other than as provided in R.S. 42:1120, no legislator shall participate in any16 transaction in which he has a personal economic interest involving the17 SB NO. 783 SLS 10RS-1040 ORIGINAL Page 2 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. governmental entity.1 B. C. No public servant, except as provided in R.S. 42:1120, shall participate2 in a transaction involving the governmental entity in which, to his actual knowledge,3 any of the following persons has a substantial economic interest:4 (1) Any member of his immediate family.5 (2) Any person in which he has a substantial economic interest of which he6 may reasonably be expected to know.7 (3) Any person of which he is an officer, director, trustee, partner, or8 employee.9 (4) Any person with whom he is negotiating or has an arrangement10 concerning prospective employment.11 (5) Any person who is a party to an existing contract with such public12 servant, or with any legal entity in which the public servant exercises control or owns13 an interest in excess of twenty-five percent, or who owes any thing of economic14 value to such public servant, or to any legal entity in which the public servant15 exercises control or owns an interest in excess of twenty-five percent, and who by16 reason thereof is in a position to affect directly the economic interests of such public17 servant.18 C. D. Every public employee, excluding an appointed member of any board19 or commission, shall disqualify himself from participating in a transaction involving20 the governmental entity when a violation of this Part would result. The procedures21 for such disqualification shall be established by regulations issued pursuant to R.S.22 42:1134(A)(1).23 D. E. No appointed member of any board or commission, except as provided24 in R.S. 42:1120.1 or 1120.4, shall participate or be interested in any transaction25 involving the agency when a violation of this Part would result.26 * * *27 §1113. Prohibited contractual arrangements; exceptions; reports28 * * *29 SB NO. 783 SLS 10RS-1040 ORIGINAL Page 3 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. C. (1) Notwithstanding any other provision of law, no legislator or any1 legal entity in which he has a controlling interest shall bid on or enter into or be2 in any way interested in any contract, subcontract, or other transaction3 involving the governmental entity. (2) No legislator, member of his a legislator's4 immediate family, or legal entity in which he has a controlling interest shall bid on5 or enter into or be in any way interested in any contract, subcontract, or other6 transaction involving the legislator's agency.7 * * *8 §1123. Exceptions9 This Part shall not preclude:10 * * *11 (42) The exceptions provided for in this Section shall not apply to any12 transaction that is otherwise specifically prohibited by R.S. 42:1112(B) or13 1113(C)(1).14 Section 2. This Act shall become effective upon signature by the governor or, if not15 signed by the governor, upon expiration of the time for bills to become law without signature16 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If17 vetoed by the governor and subsequently approved by the legislature, this Act shall become18 effective on the day following such approval.19 The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Alden A. Clement, Jr. DIGEST Present law provides that no public servant, except as provided in present law relative to recusal from voting, is allowed to participate in a transaction in which he has a personal substantial economic interest of which he may be reasonably expected to know involving the governmental entity. Proposed law provides that no public servant, excluding any legislator, and except as provided in present law, is allowed to participate in a transaction in which he has a personal substantial economic interest of which he may be reasonably expected to know involving the governmental entity. Proposed law further provides that except as provided in present law relative to recusal from voting, no legislator is allowed to participate in any transaction in which he has a personal economic interest involving the governmental entity. SB NO. 783 SLS 10RS-1040 ORIGINAL Page 4 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Present law provides that no legislator, member of his immediate family, or legal entity in which he has a controlling interest is allowed to bid on or enter into or be in any way interested in any contract, subcontract, or other transaction involving the legislator's agency. Proposed law retains present law with regard to a legislator's family and further provides that no legislator or any legal entity in which he has a controlling interest is allowed to bid on or enter into or be in any way interested in any contract, subcontract, or other transaction involving the governmental entity. Present law provides exceptions to conflicts of interest law. Proposed law retains present law and adds that these exceptions do not apply to any transaction that is otherwise specifically prohibited by proposed law. Effective upon signature of the governor or lapse of time for gubernatorial action. (Amends R.S. 42:1112 and 1113(C); adds R.S. 42:1123(42))