HLS 14RS-236 REENGROSSED Page 1 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2014 HOUSE BILL NO. 277 BY REPRESENTATIVE GEYMANN ETHICS: Provides for additional ethical standards for members of the State Board of Elementary and Secondary Education, the state superintendent of education, and related persons AN ACT1 To enact R.S. 42:1118.2, relative to the Code of Governmental Ethics; to provide for2 additional ethical standards for members and former members of the State Board of3 Elementary and Secondary Education, the state superintendent of education and the4 former state superintendent of education, and related persons; provides for penalties;5 and to provide for related matters.6 Be it enacted by the Legislature of Louisiana:7 Section 1. R.S. 42:1118.2 is hereby enacted to read as follows: 8 ยง1118.2. Additional ethical standards; State Board of Elementary and Secondary9 Education; state superintendent of education; related persons10 A. If any provision of this Section conflicts with any other provision of this11 Part, the more restrictive provision shall govern.12 B.(1) No member of the State Board of Elementary and Secondary13 Education, member of his immediate family, or legal entity in which such a person14 has a substantial economic interest shall bid on or enter into or be in any way15 interested in any contract, subcontract, or other transaction that is under the16 supervision or jurisdiction of the State Board of Elementary and Secondary17 Education or the Department of Education. This Subsection shall not be construed18 to prohibit the employment of any member of the State Board of Elementary and19 HLS 14RS-236 REENGROSSED HB NO. 277 Page 2 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Secondary Education or any member of the immediate family of a member of the1 State Board of Elementary and Secondary Education by a nonpublic school.2 (2) No state superintendent of education, member of his immediate family,3 or legal entity in which such a person has a substantial economic interest shall bid4 on or enter into or be in any way interested in any contract, subcontract, or other5 transaction that is under the supervision or jurisdiction of the State Board of6 Elementary and Secondary Education or the Department of Education.7 C. No immediate family member of the state superintendent of education or8 of a member of the State Board of Elementary and Secondary Education and no legal9 entity of which such an immediate family member is an officer, director, trustee,10 partner, or employee, or in which an immediate family member has a substantial11 economic interest, shall receive or agree to receive any thing of economic value for12 assisting a person in a transaction, or in an appearance in connection with a13 transaction, with the State Board of Elementary and Secondary Education or the14 Department of Education.15 D.(1) No member of the State Board of Elementary and Secondary16 Education nor the state superintendent of education shall participate in a transaction17 in which he has a personal substantial economic interest involving the State Board18 of Elementary and Secondary Education or the Department of Education.19 (2) No member of the State Board of Elementary and Secondary Education20 nor the state superintendent of education shall participate in a transaction involving21 the State Board of Elementary and Secondary Education or the Department of22 Education in which any of the following persons has a substantial economic interest:23 (a) Any member of his immediate family.24 (b) Any person in which he has a substantial economic interest.25 (c) Any person of which he is a member or an officer, director, trustee,26 partner, or employee.27 (d) Any person of which his immediate family member is a member or an28 officer, director, trustee, partner, or employee.29 HLS 14RS-236 REENGROSSED HB NO. 277 Page 3 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (e) Any person with whom he is negotiating or has an arrangement1 concerning prospective employment.2 (f) Any person who is a party to an existing contract with such public servant3 or his immediate family member or with any legal entity in which the public servant4 or his immediate family member owns a controlling interest.5 E. No former member of the State Board of Elementary and Secondary6 Education nor former state superintendent of education shall, for compensation, for7 a period of two years following the termination of his public service in such position8 engage in a transaction, assist another person in a transaction, or make an9 appearance in connection with a transaction involving the State Board of Elementary10 and Secondary Education or the Department of Education or render any service on11 a contractual basis to or for the State Board of Elementary and Secondary Education12 or the Department of Education.13 F. No legal entity in which a former member of the State Board of14 Elementary and Secondary Education or former state superintendent of education is15 an officer, director, trustee, partner, or employee shall, for compensation, for a16 period of two years following the termination of his public service in such position,17 engage in a transaction, assist another person with a transaction, or make an18 appearance in connection with a transaction involving the State Board of Elementary19 and Secondary Education or the Department of Education.20 G. No member of the State Board of Elementary and Secondary Education,21 state superintendent of education, former member of the State Board of Elementary22 and Secondary Education, or former state superintendent of education shall share in23 any thing of economic value received by another person for any activity, action, or24 assistance which such public servant or former public servant is prohibited from25 performing by this Part.26 HLS 14RS-236 REENGROSSED HB NO. 277 Page 4 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. 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)] Geymann HB No. 277 Abstract: Provides for additional ethical standards for members and former members of the State Board of Elementary and Secondary Education, the state superintendent of education and the former state superintendent of education, and immediate family members of such persons and specified related legal entities. Present law (Code of Governmental Ethics) provides for ethical standards for elected officials, public employees, and certain other persons including prohibited conflicts of interest involving payments from nonpublic sources, prohibited participation in transactions, prohibited contractual arrangements, prohibited gifts, abuse of office, nepotism, financial disclosure, and post public service restrictions. Provides definitions and exceptions. Proposed law retains present law, and proposed law further provides for additional ethical standards applicable to members and former members of the State Board of Elementary and Secondary Education (BESE), the state superintendent of education and the former state superintendent of education, and immediate family members and specified legal entities as follows: (1)Prohibits a member of BESE or member of his immediate family, the state superintendent of education or member of his immediate family, or legal entity in which such a person has a substantial economic interest from bidding on, entering into, or being in any way interested in any contract, subcontract, or other transaction which is under the supervision or jurisdiction of BESE or the Dept. of Education. Specifies that this proposed law prohibition shall not be construed to prohibit employment of a member of BESE or an immediate family member of a BESE member by a nonpublic school. (2)Prohibits an immediate family member of the state superintendent of education or of a BESE member and any legal entity of which such an immediate family member is an officer, director, trustee, partner, or employee, or in which an immediate family member has a substantial economic interest, from receiving or agreeing to receive any thing of economic value for assisting a person in a transaction, or in an appearance in connection with a transaction, with BESE or the Dept. of Education. (3)Prohibits a member of BESE and the state superintendent of education from participating in a transaction in which he has a personal substantial economic interest involving BESE or the Dept. of Education. (4)Prohibits a member of BESE and the state superintendent of education from participating in a transaction involving BESE or the Dept. of Education in which any of the following persons has a substantial economic interest: (a) any member of his immediate family; (b) any person in which he has a substantial economic interest; (c) any person of which he is a member or an officer, director, trustee, partner, or employee; (d) any person of which his immediate family member is a member or an officer, director, trustee, partner, or employee; (e) any person with whom he is negotiating or has an arrangement concerning prospective employment; and (f) any person who is a party to an existing contract with such public servant or his immediate family member or with any legal entity in which the public servant or his immediate family member owns a controlling interest (defined by present law as any ownership in any legal entity or beneficial interest in a trust, held by or on behalf of HLS 14RS-236 REENGROSSED HB NO. 277 Page 5 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. an individual or a member of his immediate family, either individually or collectively, which exceeds 25% of that legal entity). (5)Prohibits a former member of BESE or former state superintendent of education for a period of two years following the termination of his public service in such position, from performing the following activities for compensation: engaging in a transaction, assisting another person in a transaction, or making an appearance in connection with a transaction involving BESE or the Dept. of Education or from rendering any service on a contractual basis to or for BESE or the Dept. of Education. (6)Prohibits a legal entity in which a former member of BESE or former state superintendent of education is an officer, director, trustee, partner, or employee, for compensation, for a period of two years following the termination of the member's or superintendent's public service in such position, from engaging in a transaction, assisting another person with a transaction, or making an appearance in connection with a transaction involving the BESE or the Dept. of Education. (7)Prohibits a BESE member, former BESE member, state superintendent, and former state superintendent of education from sharing in any thing of economic value received by another person for any activity, action, or assistance which such public servant or former public servant is prohibited from performing by present law and proposed law (Code of Governmental Ethics). Proposed law provides that if any provision of proposed law conflicts with any other provision of present law (Code of Governmental Ethics), the more restrictive provision shall govern. Violations of proposed law would be subject to the penalties in present law for violation of the ethics code and certain other laws within the ethics board's jurisdiction. For public servants and other persons those penalties include censure and/or a fine of up to $10,000 per violation and for public employees and other persons include removal, suspension, reduction in pay, or demotion and/or a fine of up to $10,000 per violation. (Adds R.S. 42:1118.2) Summary of Amendments Adopted by House Committee Amendments Proposed by House Committee on House and Governmental Affairs to the original bill. 1. Specifies that the proposed prohibition on certain transactions under the supervision or jurisdiction of BESE or the Dept. of Education shall not be construed to prohibit employment of BESE members or immediate family members of BESE members by a nonpublic school. House Floor Amendments to the engrossed bill. 1. Changes the proposed post service prohibitions from applying for a period of four years following termination of public service to applying for a period of two years following termination of public service. 2. In the post service prohibitions, provides that the prohibitions apply only when prohibited activities are performed for compensation.