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 Original 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, 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))