RÉSUMÉ DIGEST
ACT 272 (HB 113) 2021 Regular Session Gadberry
Existing 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, 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. Existing 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. Existing 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 25%, 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% and who by reason
thereof is in a position to affect directly the economic interests of such public servant.
Existing 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. Existing 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 transaction under the supervision or jurisdiction of the agency.
New law provides an exception to existing law 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 prior to the
date the prohibition would have initially occurred; 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 existing law and
related rules and regulations; the spouse and the public servant jointly file a notice containing
specified information with the Bd. of Ethics prior to or within 10 days after the date the
prohibition would otherwise occur; and the spouse complies with the disclosure requirements
in existing law. New law specifically provides that the exception does not apply to members
of the legislature.
Effective upon signature of governor (June 15, 2021).
(Adds R.S. 42:1111(C)(5))