HLS 12RS-464 ENGROSSED
Page 1 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2012
HOUSE BILL NO. 241
BY REPRESENTATIVE HENSGENS
ETHICS/CODE: Authorizes certain transactions between Hospital Service District No. 3
of Vermilion Parish 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 of the board of2
commissioners of Hospital Service District No. 3 of Vermilion Parish to engage in3
certain transactions and to own an interest in entities that engage in certain4
transactions with the district; to provide for recusal; to provide for restrictions and5
limitations; and to provide for related matters.6
Notice of intention to introduce this Act has been published7
as provided by Article III, Section 13 of the Constitution of8
Louisiana.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 42:1123(18)(b) is hereby enacted to read as follows: 11
§1123. Exceptions12
This Part shall not preclude:13
* * *14
(18)15
* * *16
(b) A member of the board of commissioners of Hospital Service District17
No. 3 of Vermilion Parish or a legal entity in which such a board member owns an18
interest from entering into transactions with the board or with a hospital over which19
the board exercises jurisdiction provided that the total amount of such transactions20
does not exceed one thousand five hundred dollars per year. The board member21 HLS 12RS-464 ENGROSSED
HB NO. 241
Page 2 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
shall 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)]
Hensgens HB No. 241
Abstract: Allows a member of the board of Hospital Service District No. 3 of Vermilion
Parish 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. Prohibits the member
from participating in any action regarding the transaction and requires that he recuse
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.
Proposed law further allows a member of the board of commissioners of Hospital Service
District No. 3 of Vermilion Parish 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 does not exceed
$1,500 per year. Provides 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 12RS-464 ENGROSSED
HB NO. 241
Page 3 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on House and Governmental
Affairs to the original bill.
1. Changes transaction limit from $1,500 per month to $1,500 per year.