HLS 21RS-512 ORIGINAL
2021 Regular Session
HOUSE BILL NO. 113
BY REPRESENTATIVE GADBERRY
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
ETHICS/CODE: Allows the spouse of a public servant to be employed by a person who has
or who is seeking a business or financial relationship with the agency of the public
servant under specified circumstances
1 AN ACT
2To enact R.S. 42:1111(C)(5), relative to the Code of Governmental Ethics; to allow the
3 spouse of a public servant to be employed by a person with or seeking business or
4 financial relationships with the agency of the public servant under specified
5 circumstances; to provide for an effective date; and to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 42:1111(C)(5) is hereby enacted to read as follows:
8 ยง1111. Payment from nonpublic sources
9 * * *
10 C. Payments for nonpublic service.
11 * * *
12 (5) Notwithstanding the provisions of Subparagraph (2)(d) of this
13 Subsection, the spouse of a public servant may be employed by a person who has or
14 is seeking a contractual or other business or financial relationship with the public
15 servant's agency provided all of the following conditions are met:
16 (a) The spouse is a salaried or wage-earning employee.
17 (b) The compensation of the spouse is substantially unaffected by a
18 contractual or other business or financial relationship with the public servant's
19 agency.
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CODING: Words in struck through type are deletions from existing law; words underscored
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HB NO. 113
1 (c) Neither the public servant nor the spouse is an owner, officer, director,
2 trustee, or partner in the legal entity which has or is seeking to have the relationship
3 with the public servant's agency.
4 (d) The public servant recuses or disqualifies himself from participating in
5 any transaction involving the spouse's employer in accordance with R.S. 42:1112 and
6 related rules and regulations.
7 * * *
8 Section 2. This Act shall become effective upon signature by the governor or, if not
9signed by the governor, upon expiration of the time for bills to become law without signature
10by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
11vetoed by the governor and subsequently approved by the legislature, this Act shall become
12effective on the day following such approval.
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)]
HB 113 Original 2021 Regular Session Gadberry
Abstract: Provides an exception to the ethics code to allow the spouse of a public servant
to be employed by a person who has or who is seeking a business or financial
relationship with the agency of the public servant under specified conditions.
Present law (R.S. 42:1111(C)) prohibits a public employee from receiving compensation
from certain sources, including those which have or are seeking a contractual or business or
financial relationship with the public employee's agency, those which conduct operations or
activities regulated by the public employee's agency, and those which have a substantial
economic interest that could be substantially affected by the performance or nonperformance
of the public employee's official duties.
Proposed law provides an exception to allow a public servant's spouse to be employed by
a person who has or is seeking a contractual or other business or financial relationship with
the public servant's agency provided: the spouse is a salaried or wage-earning employee;
the spouse's compensation is substantially unaffected by a contractual or other business or
financial relationship with the public servant's agency; neither the public servant nor the
spouse is an owner, officer, director, trustee, or partner in the legal entity which has or is
seeking to have the relationship with the public servant's agency; and the public servant
recuses or disqualifies himself from participating in any transaction involving the spouse's
employer in accordance present law (R.S. 42:1112) and related rules and regulations.
Present law (R.S. 42:1111(E)) prohibits a public servant and any legal entity of which the
public servant is an officer, director, trustee, partner, or employee, or in which the public
employee 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
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HB NO. 113
with a transaction, with the agency of the public employee. Present law (R.S. 42:1112)
generally prohibits a public servant from participating in a transaction in which, to his actual
knowledge, any of the following persons has a substantial economic interest: any member
of his immediate family; any person in which he has a substantial economic interest of which
he may reasonably be expected to know; any person of which he is an officer, director,
trustee, partner, or employee; any person with whom he is negotiating or has an arrangement
concerning prospective employment; and any person who is a party to an existing contract
with such public servant, or with any legal entity in which the public servant exercises
control or owns an interest in excess of twenty-five percent, or who owes any thing of
economic value to such public servant, or to any legal entity in which the public servant
exercises control or owns an interest in excess of 25 percent and who by reason thereof is
in a position to affect directly the economic interests of such public servant. Present law
further requires a public employee to disqualify himself from participating in a transaction
involving the governmental entity in the manner prescribed by the Board of Ethics when a
violation of the ethics code would result. Present law (R.S. 42:1114) generally requires
financial disclosure statements to be filed by each public servant and each member of his
immediate family who derives any thing of economic value, directly, through any transaction
involving the agency of such public servant or who derives any thing of economic value of
which he may be reasonably expected to know through a person which has bid on or entered
into or is in any way financially interested in any contract, subcontract, or any transaction
under the supervision or jurisdiction of the agency. Proposed law retains present law.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 42:1111(C)(5))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.