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.
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.