SSHB113 362 3916
HOUSE SUMMARY OF SENATE AMENDMENTS
HB 113 2021 Regular Session Gadberry
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
Synopsis of Senate Amendments
1.Remove the requirement that the public servant's spouse must have been
continuously employed by the person for a least one year.
2.Provide that the exception does not apply to members of the legislature.
Digest of Bill as Finally Passed by Senate
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; 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). Proposed law provides that the exception shall
not apply to members of the legislature.
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
Page 1 of 2 SSHB113 362 3916
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))
Page 2 of 2