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)]
Richard HB No. 870
Abstract: Prohibits the members of a board of a legal entity that is responsible for the
supervision, management, or operation of a charter school from bidding on or entering
into or being in any way interested in certain transactions under the supervision or
jurisdiction of the board and prohibits the board from entering into a contract or
subcontract related to the supervision, management, or operation of the charter school
with an affiliate.
Present law (Chapter 42 of Title 17) provides for the establishment, organization, and approval
process for charter schools. Provides that except for a Type 4 charter school (which is a charter
between BESE and a local school board), a charter school approved and established in
accordance present law shall be organized as a nonprofit corporation under applicable state and
federal laws. Provides that if a charter school is established with a governing or management
board, the members of such shall receive no compensation other than reimbursement of actual
expenses incurred while fulfilling duties as a member of such a board.
Present law (R.S. 17:3996) provides that present law (Code of Governmental Ethics, ethics code)
is applicable to a charter school and the school's officers and employees.
Present law (ethics code, R.S. 42:1113(B)) prohibits an appointed board or commission member,
member of his immediate family, or legal entity in which he has a substantial economic interest
from bidding on or entering into or being in any way interested in any contract, subcontract, or
other transaction which is under the supervision or jurisdiction of the agency of such appointed
member.
Proposed law (ethics code) further specifies that for the purposes of present law (R.S.
42:1113(B)) "board or commission" includes without limitation the board of a legal entity that is
responsible for the supervision, management, or operation of a charter school established
pursuant to present law (Chapter 42 of Title 17).
Proposed law (ethics code) further prohibits a legal entity responsible for the supervision,
management, or operation of a charter school established pursuant to present law from entering
into a contract or subcontract related to the supervision, management, or operation of the charter
school with an affiliate. Defines "affiliate" as a parent of, subsidiary of, or an entity that controls,
is controlled by, or is under common control with the legal entity that is responsible for the
supervision, management, or operation of the charter school. Proposed law specifies that if any
provision of proposed law (ethics code) is found to conflict with any other provision of present law (ethics code), the more restrictive provision shall govern.
(Amends R.S. 42:1113(B); Adds R.S. 42:1113(E))