RÉSUMÉ DIGEST
ACT 223 (HB 503) 2024 Regular Session Carlson
Existing 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 from bidding on or entering into any contract, subcontract, or other
transaction which is under the supervision or jurisdiction of the agency of such appointed
member. Existing 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
any contract, subcontract, or other transaction involving the legislator's agency.
Prior law further prohibited an appointed member of any board or commission, member of
his immediate family, or legal entity in which he has a substantial economic interest from
being in any way interested in any contract, subcontract, or other transaction under the
supervision or jurisdiction of the agency of such appointed member. Prior law also
prohibited a legislator, member of his immediate family, or legal entity in which he has a
controlling interest from being in any away interested in any contract, subcontract, or other
transaction involving the legislator's agency.
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.
New law 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 from having
a substantial economic interest in any contract, subcontract, or other transaction which is
under the supervision or jurisdiction of the agency of such appointed member. New law
prohibits a legislator, member of his immediate family, or legal entity in which he has a
controlling interest from having a substantial economic interest in any contract, subcontract,
or other transaction involving the legislator's agency.
Existing 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.
Existing 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 existing and new law (Ethical Standards for Public Servants)
would result.
Effective upon signature of governor (May 23, 2024).
(Amends R.S. 42:1113(B) and (C))


Statutes affected:
HB503 Original: 42:1113(B)
HB503 Engrossed: 42:1113(B)
HB503 Enrolled: 42:1113(B)
HB503 Act : 42:1113(B)