HLS 21RS-512 ENGROSSED
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 continued employment of the spouse of a public servant by a person with or seeking
4 business or financial relationships with the agency of the public servant under
5 specified circumstances; to provide for an effective date; and to provide for related
6 matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 42:1111(C)(5) is hereby enacted to read as follows:
9 ยง1111. Payment from nonpublic sources
10 * * *
11 C. Payments for nonpublic service.
12 * * *
13 (5) Notwithstanding the provisions of Subparagraph (2)(d) of this
14 Subsection, the spouse of a public servant may continue employment with a person
15 who has or is seeking a contractual or other business or financial relationship with
16 the public servant's agency provided all of the following conditions are met:
17 (a) The spouse is a salaried or wage-earning employee and has been
18 continuously employed by the person for at least one year.
19 (b) The compensation of the spouse is substantially unaffected by a
20 contractual or other business or financial relationship with the public servant's
21 agency.
Page 1 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 21RS-512 ENGROSSED
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 (e) Either prior to or within ten business days of the date the compensated
8 employment would otherwise be prohibited, the spouse and the public servant jointly
9 file with the Board of Ethics a written notice containing a brief description of the
10 nature of the contractual, business, or financial relationship with the public servant's
11 agency, the date the spouse was employed by the person, and any other information
12 required by the board.
13 (f) The spouse complies with the disclosure requirements in R.S. 42:1114.
14 * * *
15 Section 2. This Act shall become effective upon signature by the governor or, if not
16signed by the governor, upon expiration of the time for bills to become law without signature
17by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
18vetoed by the governor and subsequently approved by the legislature, this Act shall become
19effective 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 Engrossed 2021 Regular Session Gadberry
Abstract: Provides an exception to the ethics code to allow the spouse of a public servant
to continue employment with 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.
Page 2 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 21RS-512 ENGROSSED
HB NO. 113
Proposed law provides an exception to allow a public servant's spouse to continue
employment with 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 and has been continuously employed for at least one year; 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; the public servant recuses
or disqualifies himself from participating in any transaction involving the spouse's employer
in accordance with present law (R.S. 42:1112) and related rules and regulations; the spouse
and the public servant jointly file a notice containing specified information with the Board
of Ethics prior to or within 10 days of the the date the prohibition would otherwise occur;
and the spouse complies with the disclosure requirements in present law (R.S. 42:1114).
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
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))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on House and
Governmental Affairs to the original bill:
1. Require that the spouse must have been continuously employed by the person for
a least one year.
2. Require the spouse and the public servant jointly file a written notice with the
Board of Ethics.
3. Require the spouse to comply with specified disclosure requirements.
Page 3 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.