§1113. Prohibited contractual arrangements; exceptions; reports
A.(1)(a) No public servant, excluding any legislator and any appointed member of
any board or commission and any member of a governing authority of a parish with a
population of ten thousand or less, or member of such a public servant's immediate family,
or legal entity in which he has a controlling interest shall bid on or enter into any contract,
subcontract, or other transaction that is under the supervision or jurisdiction of the agency
of such public servant.
(b) This Paragraph does not prohibit a municipal or parish governing authority from
appointing one of its members:
(i) To fill a vacancy in accordance with the Louisiana Election Code. No person so
appointed, except as provided in R.S. 42:1121(G), shall be eligible to or shall qualify in the
next election as a candidate for the office to which he is appointed.
(ii) To a board or commission for which the governing authority is the appropriate
appointing authority and the appointee receives no salary or per diem for service on the board
or commission, or if a member of the governing authority is required to be appointed to the
board or commission by the home rule charter, ordinance, or resolution which created or
established the board or commission.
(c)(i) This Paragraph shall not prohibit a public servant, any member of the public
servant's immediate family, or a legal entity in which the public servant has an interest from
obtaining basic governmental services from his agency, or entering into transactions arising
from the administration or enforcement of basic governmental regulations by his agency,
which services or regulations are applicable to members of the general public.
(ii) For purposes of this Section, "basic governmental services" shall include water,
sewer, solid waste disposal, police protection, fire protection, public education, recreation,
and other similar services afforded to the general public.
(iii) For purposes of this Section, "basic governmental regulations" include taxation,
permitting, licensing, inspections, code enforcement, law enforcement, and other similar
regulations applicable to the general public.
(2) No head of a department listed in R.S. 36:4(A) who is appointed by the governor
or lieutenant governor shall bid on or enter into any contract, subcontract, or other transaction
that is under the supervision or jurisdiction of any agency to which funds have been
transferred from the agency of such department head, but such prohibition shall apply only
to any contract, subcontract, or transaction related to such funds.
B. Other than a legislator, no appointed member of any board or commission,
member of his immediate family, or legal entity in which the appointed member has a
substantial economic interest shall bid on, enter into, or have 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.
C. No legislator, member of his immediate family, or legal entity in which the
legislator has a controlling interest shall bid on, enter into, or have a substantial economic
interest in any contract, subcontract, or other transaction involving the legislator's agency.
D.(1)(a)(i) No person identified in Item (ii) of this Subparagraph or the spouse of
such person nor any legal entity of a person shall enter into any contract with state
government.
(ii) The provisions of this Subparagraph and other provisions which reference this
Item shall apply to the following persons:
(aa) A legislator and any person who has been certified by the secretary of state as
elected to the legislature.
(bb) The governor and each person holding statewide elected office.
(cc) The secretary, deputy secretary, undersecretary, and each assistant secretary, or
the equivalent position of Louisiana Economic Development.
(dd) The secretary, deputy secretary, undersecretary, and each assistant secretary, or
the equivalent position of the Department of Culture, Recreation and Tourism.
(ee) The secretary, deputy secretary, undersecretary, and each assistant secretary, or
the equivalent position of the Department of Environmental Quality.
(ff) The secretary, deputy secretary, undersecretary, and each assistant secretary, or
the equivalent position of the Louisiana Department of Health.
(gg) The secretary, deputy secretary, undersecretary, and each assistant secretary, or
the equivalent position of Louisiana Works.
(hh) The secretary, deputy secretary, undersecretary, and each assistant secretary, or
the equivalent position of the Department of Conservation and Energy.
(ii) The secretary, deputy secretary, undersecretary, and each assistant secretary, or
the equivalent position of the Department of Public Safety and Corrections and any warden
or assistant warden of a state penal institution.
(jj) The secretary, deputy secretary, undersecretary, and each assistant secretary, or
the equivalent position of the Department of Revenue.
(kk) The secretary, deputy secretary, undersecretary, and each assistant secretary, or
the equivalent position of the Department of Children and Family Services.
(ll) The secretary, deputy secretary, undersecretary, and each assistant secretary, or
the equivalent position of the Department of Transportation and Development.
(mm) The secretary, deputy secretary, undersecretary, and each assistant secretary,
or the equivalent position of the Department of Wildlife and Fisheries.
(nn) The secretary, deputy secretary, undersecretary, and each assistant secretary, or
the equivalent position of the Department of Veterans Affairs.
(oo) The executive secretary of the Public Service Commission.
(pp) The director of state civil service.
(qq) Each member of the State Board of Elementary and Secondary Education.
(rr) The commissioner of higher education and the president of each public
postsecondary education system.
(ss) Each member of the Board of Ethics and the ethics administrator.
(tt) The chief of staff to the governor.
(uu) The commissioner of the division of administration.
(vv) The executive counsel to the governor.
(ww) The legislative director for the governor.
(xx) The deputy chief of staff to the governor.
(yy) The director of policy for the governor.
(zz) The assistant commissioner for management and finance, the deputy
commissioner, the confidential assistant, and each assistant commissioner of the Department
of Agriculture and Forestry.
(aaa) The superintendent of education, the deputy superintendent of education, the
deputy superintendent for management and finance, and each assistant superintendent of the
Department of Education.
(bbb) The chief deputy commissioner, each deputy commissioner, the assistant
commissioner, and the executive counsel of the Department of Insurance.
(ccc) The first assistant attorney general of the Department of Justice.
(ddd) The deputy secretary of the Department of State, the deputy secretary for the
office of the Uniform Commercial Code, and the deputy secretary for the office of GeauxBiz
or his successor.
(eee) Each deputy state treasurer and each assistant state treasurer of the Department
of the Treasury.
(iii) For purposes of this Subsection, "legal entity of a person" means any
corporation, partnership, or other legal entity in which a person identified in Item (ii) of this
Subparagraph or the spouse of such person owns an interest of greater than five percent,
except a publicly traded corporation or a legal entity in which the person owns a passive
ownership interest that is the result of participation in a federally approved program of
employee ownership.
(iv) For purposes of this Subsection,"legal entity of a family member" means any
corporation, partnership, or other legal entity in which an immediate family member of a
person identified in Item (ii) of this Subparagraph, except the spouse of such a person, owns
an interest of greater than five percent, except a publicly traded corporation or a legal entity
in which the immediate family member owns a passive ownership interest that is the result
of participation in a federally approved program of employee ownership.
(v) For purposes of this Subsection, "state government" means any branch, agency,
department, or institution of state government or with the Louisiana Insurance Guaranty
Association, the Louisiana Health Insurance Guaranty Association, or any other state quasi
public entity created in law.
(b)(i) No immediate family member, except the spouse, of a person identified in Item
(a)(ii) of this Paragraph, nor any legal entity of a family member shall enter into any contract
with state government unless the contract is awarded by competitive bidding after being
advertised and awarded in accordance with Part II of Chapter 10 of Title 38 of the Louisiana
Revised Statutes of 1950 or is competitively negotiated through a request for proposal
process or any similar competitive selection process in accordance with Chapter 16 or 17 of
Title 39 of the Louisiana Revised Statutes of 1950; however, this exception for competitively
negotiated contracts shall not include contracts for consulting services.
(ii) The provisions of this Subparagraph shall not prohibit a contract for professional
services entered into with the attorney general which is based on criteria set forth by the
office of risk management.
(c) The following shall not be considered a contract for purposes of this Subsection:
(i) A foster parent provider agreement or a child care provider agreement entered into
with the Department of Children and Family Services. In addition, such an agreement shall
not be subject to R.S. 42:1111(E)(2)(a).
(ii) An agreement with a state entity or state quasi-public entity for housing, medical
treatment, retirement benefits, or insurance benefits provided on the same terms and
conditions available to similarly situated persons.
(iii) An agreement providing for public assistance benefits, including but not limited
to subsidies for agriculture, aquaculture, forestry, soil and water conservation, educational
scholarships, grants and subsidies, or guaranteed student loans, provided that such benefits
are available to similarly situated persons.
(iv) An agreement for which the compensation is solely reimbursement of costs.
(v) Applying for, payment of fees for, or obtaining a license, credential, or permit
provided that such license, credential, or permit is available to similarly situated persons.
(vi) The payment of admission fees.
(vii) The sale of property pursuant to the expropriation of immovable property by any
branch, agency, department, or institution of state government.
(viii) The donation of professional veterinary services and the donation of any goods
and services related to the provision of such veterinary services.
(ix) Any transaction valued at two thousand five hundred dollars or less. However,
no person shall enter into separate transactions valued at two thousand five hundred dollars
or less as a subterfuge to avoid the prohibition of this Subsection.
(2) The provisions of this Subsection shall not prohibit the following:
(a) Contracts for employment in a professional educational capacity in or for
professional services for an elementary or secondary school or other educational institution.
(b) A provider agreement entered into with the Louisiana Department of Health
under the state medical assistance program or the early steps program, a contract with an
early steps program provider, or a provider contract entered into with any plan providing
Medicaid services to Medicaid recipients.
(c) Contracts of employment of a physician or other licensed health care professional
with the state or the charity hospitals of the state or the Louisiana Department of Health.
(d) Except as otherwise specifically provided for in this Paragraph, completion of
any contract which, at the time it was entered into, was not prohibited by the provisions of
this Subsection; however, no such contract shall be renewed except that a contract containing
an option by state government to extend the contract may be renewed if all of the following
apply:
(i) The option is at state government's discretion.
(ii) The contract renewal does not change the initial terms of the contract, including
the services provided and the price.
(iii) State government is not otherwise prohibited from exercising the option to
extend the term of the contract.
(e)(i) Completion of any contract between a person identified in Item (1)(a)(ii) of this
Subsection or his spouse or a legal entity of a person and state government, which contract
was awarded by competitive bidding after being advertised and awarded in accordance with
Part II of Chapter 10 of Title 38 of the Louisiana Revised Statutes of 1950, or competitively
negotiated through a request for proposal process or any similar competitive selection
process in accordance with Chapter 16 or 17 of Title 39 of the Louisiana Revised Statutes
of 1950 or which contract, other than a contract for consulting services, was not
competitively negotiated through a request for proposal process or any similar competitive
selection process in accordance with Chapter 16 or 17 of Title 39 of the Louisiana Revised
Statutes of 1950, and which contract was entered into prior to March 3, 2008; however, no
such contract shall be renewed for a period extending beyond January 9, 2012.
(ii) Completion of any contract between the immediate family member, except for
a spouse, of a person identified in Item (1)(a)(ii) of this Subsection or a legal entity of a
family member and state government, which contract was not awarded by competitive
bidding after being advertised and awarded in accordance with Part II of Chapter 10 of Title
38 of the Louisiana Revised Statutes of 1950 or which contract, other than a contract for
consulting services, was not competitively negotiated through a request for proposal process
or any similar competitive selection process in accordance with Chapter 16 or 17 of Title 39
of the Louisiana Revised Statutes of 1950, and which contract was entered into prior to
March 3, 2008; however, no such contract shall be renewed for a period extending beyond
January 9, 2012.
(f) Contracts for employment or for services by any licensed health care professional
providing services in the classroom or working with administration in an elementary or
secondary school or other educational institution.
(g) Contracts for services by health care professionals which are required by federal
or state law to provide an educational program for students in an elementary or secondary
school or other educational institution.
(h) A contract for professional services entered into by a person selected pursuant
to Part VII of Chapter 10 of Title 38 of the Louisiana Revised Statutes of 1950 with any
agency or entity of state government with which such person had a contract for professional
services pursuant to Part VII of Chapter 10 of Title 38 of the Louisiana Revised Statutes of
1950 at any time prior to March 3, 2008, or at any time prior to the initiation of the public
service which made the person subject to the provisions of this Subsection; however, no
contract for such professional services shall be entered into after January 8, 2012.
(i) A health care provider contract by a physician or other licensed health care
provider with the Office of Group Benefits to provide medical, surgical, and hospital services
or medical equipment or pharmaceuticals at a reduced rate for members of the Office of
Group Benefits Program as the sole reimbursement for such medical services, treatment, or
health care.
(3)(a) No person formerly serving in a position identified in Item (1)(a)(ii) of this
Subsection nor his spouse nor any legal entity of a person shall, for a period of one year
following the termination of the public service of such person enter into a contract that would
have been prohibited by this Subsection prior to the termination of the public service of such
person. The provisions of this Paragraph shall not prohibit the renewal of a contract that was
not prohibited prior to March 3, 2008.
(b) The provisions of this Paragraph shall not apply to a person, to the spouse of a
person, nor to a legal entity of a person if the public service of the person terminated prior
to March 3, 2008. However, the provisions of this Paragraph shall apply to a person, to the
spouse of a person, and to a legal entity of a person if the person served in an office or
position identified in Item (1)(a)(ii) of this Subsection on or after March 3, 2008.
(4)(a) Each person identified in Item (1)(a)(ii) of this Subsection shall file a report
with the Board of Ethics, by May fifteenth of each year of his term of office or of his service
in his position, identifying the parties to and the value and term of each contract between him
or his spouse or legal entity of a person and state government during the previous calendar
year.
(b) Each immediate family member, except a spouse, of a person identified in Item
(1)(a)(ii) of this Subsection shall file a report with the Board of Ethics by May fifteenth of
each year of the person's term of office or of the person's service in his position identifying
the parties to and the value and term of each contract between the immediate family member
or any legal entity of a family member and state government during the previous calendar
year.
(c) Notwithstanding the provisions of Subparagraphs (a) and (b) of this Paragraph,
the first report due pursuant to the provisions of this Subsection shall be due by May 15,
2009, and shall include the information required by this Paragraph for the period between
and including March 3, 2008, and December 31, 2008.
(5) If any provision of this Subsection conflicts with any other provision of this
Section, the more restrictive provision shall govern.
(6) The provisions of Item (1)(a)(i) and Subparagraph (1)(b) of this Subsection, and
other provisions which reference these provisions of law shall not apply to the spouses and
immediate family members of the deputy secretaries, undersecretaries, assistant secretaries,
or equivalent positions in the following agencies:
(a) Louisiana Economic Development.
(b) Department of Culture, Recreation and Tourism.
(c) Department of Environmental Quality.
(d) Louisiana Department of Health.
(e) Louisiana Works.
(f) Department of Conservation and Energy.
(g) Department of Public Safety and Corrections.
(h) Department of Revenue.
(i) Department of Children and Family Services.
(j) Department of Transportation and Development.
(k) Department of Wildlife and Fisheries.
(l) Department of Veterans Affairs.
(m) Department of Agriculture and Forestry.
(n) Department of Education.
(o) Department of Insurance.
(p) Department of Justice.
(q) Department of State.
(r) Department of Treasury.
E. Repealed by Acts 2008, No. 514, §3, June 30, 2008.
NOTE: See Acts 2008, No. 514, §5 for applicability of R.S. 42:1113(D) as
amended.