HLS 14RS-1391 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2014
HOUSE BILL NO. 870
BY REPRESENTATIVE RICHARD
ETHICS: Prohibits certain transactions involving charter schools
AN ACT1
To amend and reenact R.S. 42:1113(B) and to enact R.S. 42:1113(E), relative to prohibited2
transactions; to prohibit certain contracts, subcontracts, and other transactions3
involving charter schools and certain related entities; to provide for penalties; and4
to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 42:1113(B) is hereby amended and reenacted and R.S. 42:1113(E)7
is hereby enacted to read as follows: 8
ยง1113. Prohibited contractual arrangements; exceptions; reports9
* * *10
B.(1) Other than a legislator, no appointed member of any board or11
commission, member of his immediate family, or legal entity in which he has a12
substantial economic interest shall bid on or enter into or be in any way interested13
in any contract, subcontract, or other transaction which is under the supervision or14
jurisdiction of the agency of such appointed member.15
(2) For purposes of this Subsection, "board or commission" shall include16
without limitation the board of a legal entity that is responsible for the supervision,17
management, or operation of a charter school established pursuant to Chapter 42 of18
Title 17 of the Louisiana Revised Statutes of 1950.19
* * *20 HLS 14RS-1391 ORIGINAL
HB NO. 870
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
E.(1) No legal entity that is responsible for the supervision, management, or1
operation of a charter school established pursuant to Chapter 42 of Title 17 of the2
Louisiana Revised Statutes of 1950 shall enter into a contract or subcontract related3
to the supervision, management, or operation of the charter school with an affiliate.4
(2) For purposes of this Subsection, "affiliate" means a parent of, subsidiary5
of, or an entity that controls, is controlled by, or is under common control with the6
legal entity that is responsible for the supervision, management, or operation of the7
charter school.8
(3) If any provision of this Subsection is found to conflict with any other9
provision of this Section, the more restrictive provision shall govern.10
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). HLS 14RS-1391 ORIGINAL
HB NO. 870
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
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))