HLS 24RS-724 ENGROSSED
2024 Regular Session
HOUSE BILL NO. 503
BY REPRESENTATIVE CARLSON
ETHICS/CODE: Provides relative to prohibited transactions with the agency of a legislator
and of an appointed board or commission member
1 AN ACT
2To amend and reenact R.S. 42:1113(B) and (C), relative to prohibited transactions; to apply
3 certain prohibitions on transactions with a public servant's agency when those public
4 servants and related persons have a substantial economic interest; to provide for an
5 effective date; and to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 42:1113(B) and (C) are hereby amended and reenacted to read as
8follows:
9 ยง1113. Prohibited contractual arrangements; exceptions; reports
10 * * *
11 B. Other than a legislator, no appointed member of any board or
12 commission, member of his immediate family, or legal entity in which he has a
13 substantial economic interest shall bid on or enter into or be in any way interested
14 have a substantial economic interest in any contract, subcontract, or other transaction
15 which is under the supervision or jurisdiction of the agency of such appointed
16 member.
17 C. No legislator, member of his immediate family, or legal entity in which
18 he has a controlling interest shall bid on or enter into or be in any way interested
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HB NO. 503
1 have a substantial economic interest in any contract, subcontract, or other transaction
2 involving the legislator's agency.
3 * * *
4 Section 2. This Act shall become effective upon signature by the governor or, if not
5signed by the governor, upon expiration of the time for bills to become law without signature
6by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
7vetoed by the governor and subsequently approved by the legislature, this Act shall become
8effective 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 503 Engrossed 2024 Regular Session Carlson
Abstract: Changes the phrase "be in any way interested" in provisions addressing
prohibited transactions for appointed board and commission members and legislators
to "have a substantial economic interest".
Present law (ethics code - R.S. 42:1113(B)) prohibits an appointed member of any board or
commission, member of his immediate family, or legal entity in which he has a substantial
economic interest shall bid on or enter into or be 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. Present law (R.S. 42:1113(C)) prohibits a legislator, member
of his immediate family, or legal entity in which he has a controlling interest from bidding
on or entering into or being in any way interested in any contract, subcontract, or other
transaction involving the legislator's agency. Present law (R.S. 42:1112) further prohibits
a public servant from participating in a transaction in which he, his immediately family
members, and specified other persons and entities have a substantial economic interest of
which he may be reasonably expected to know involving the governmental entity. Further
generally prohibits an appointed board or commission member from participating or being
interested in any transaction involving the agency when a violation of present law (Ethical
Standards for Public Servants) would result.
On Oct. 10, 2023, a majority of the state supreme court in Cartesian Company, Inc. v.
Division of Administrative Law, et al, 371 So. 3d 1041, found "in any way interested"
unconstitutionally vague on its face as to all of its applications.
Proposed law changes the phrase "be in any way interested" to "have a substantial economic
interest". Present law defines "substantial economic interest" as an economic interest which
is of greater benefit to the public servant or other person than to a general class or group of
persons, except the interest that the public servant has in his position, office, rank, salary,
per diem, or other matter arising solely from his public employment or office; the interest
that an elected official who is elected to a house, body, or authority has in a position or office
of such house, body, or authority which is required to be filled by a member of such house,
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HB NO. 503
body, or authority by law, legislative rule, or home rule charter; and the interest that a person
has as a member of the general public.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 42:1113(B) and (C))
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CODING: Words in struck through type are deletions from existing law; words underscored
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