August 23, 2010
Mr. Peter J. Butler, Jr.
Breazeale, Sachse & Wilson, L.L.P
First Bank & Trust Tower, Suite 1500
909 Poydras Street
New Orleans, Louisiana 70112-4004
Re: Ethics Board Docket No. 2010-617
Dear Mr. Butler:
The Louisiana Board of Ethics, at its August 20, 2010 meeting, considered your request for an advisory opinion as to whether a company owned in part by a person may enter into a subcontract with a company that has a contract with a Board, when a member of that Board is also a business partner with that person in another company. You stated that Al, Bob and Carl each own a 1/3 interest in ABC, LLC. The purpose of the company is to own and maintain an airplane. You stated that ABC engages in no other operations, generates no revenues and makes no distributions. Further, you stated that Al, Bob and Carl are not related to each other in any way.
In addition, you stated that Carl is an appointed member of a Board of Commissioners. You also stated that XYZ Corporation has entered into a contract with the Board of Commissioners. You stated that neither Al, Bob or Carl have an ownership interest in XYZ Corporation. XYZ Corporation would like to subcontract with Sub-Co to perform work on the contract with the Board of Commissioners. Bob owns Sub-Co.
You stated that your client wishes to remain anonymous at this time.
The Board concluded, and instructed me to inform you, that it declines to render an opinion without specific information regarding the identity of the parties involved in the requested advisory opinion. However, the Board concluded, and instructed me to inform you, that Section 1113B of the Code of Governmental Ethics prohibits an appointed member of a board or commission, his immediate family member, or a legal entity in which they have a substantial economic interest, from entering into or being in any way interested in a transaction that is under the supervision or jurisdiction of the board or commission.
In addition, the Board concluded, and instructed me to inform you, that Section 1112 of the Code Ethics prohibits a public servant from participating in a transaction in which he, a legal entity in which he has a substantial economic interest, or a legal entity of which he is an officer, director, trustee, partner or employee, has a substantial economic interest.Mr. Peter J. Butler, Jr.
August 23, 2010
Ethics Board Docket No. 2010-617
This advisory opinion is based solely on the facts as set forth herein. Changes to the facts as presented may result in a different application of the provisions of the Code of Ethics. The Board issues no opinion as to past conduct or as to laws other than the Code of Governmental Ethics. If you have any questions, please contact me at (800) 842-6630 or (225) 219-5600.
LOUISIANA BOARD OF ETHICS
Tracy M. Barker
For the Board