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LAWS AFFECTING LOUISIANA GOVERNMENTS

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Title: LAWS AFFECTING LOUISIANA GOVERNMENTS


1
LAWS AFFECTING LOUISIANA GOVERNMENTS
  • LOUISIANA GFOA FALL CONFERENCE
  • JULY 2011
  • PRESENTED BY
  • PAUL C. RIVERA, CPA
  • CHIEF FINANCIAL OFFICER
  • JEFFERSON PARISH SHERIFFS OFFICE

2
OUTLINE OF COURSE
  • Louisiana Compliance Questionnaire
  • Sets forth statutes that must be adhered to
  • This course will mirror the Questionnaire
  • Public Bid Law
  • Code of Ethics
  • Laws Affecting Budgeting
  • Accounting, Auditing, and Financial Reporting
    Laws
  • Meetings
  • Asset Management Laws
  • Fiscal Agency and Cash Management Laws
  • Debt Restriction Laws
  • Revenue and Expenditure Restriction Laws

3
OUTLINE OF COURSE
  • We will finish with an overview of some of the
    criminal statutes that apply to all of us
  • Booklet entitled Laws Affecting Louisiana
    Governments used to be produced by Legislative
    Auditor and LSCPA
  • No longer produced
  • Download booklet of statutes covered in this
    class at http//www.jpso.com/FinancialAdministrati
    on/LAGFOA.aspx

4
LOUISIANA COMPLIANCE QUESTIONNAIRE
  • Lists out the various statutes that governments
    must comply with
  • Available at http//www.lla.la.gov/userfiles/fil
    e/cques-gv.pdf
  • Used by auditors in testing compliance under a
    Yellow Book audit safe-haven
  • There are many statutes that apply that are not
    listed
  • It is imperative that agency personnel are
    familiar with those that apply

5
PUBLIC BID LAW Public Works (Construction)
  • LRS 382211 Definitions
  • LRS 382212 Advertisement and Letting to Lowest
    Responsible Bidder Public Work Electronic
    Bidding
  • LRS 382212 A.(1)(a) - All Public Work
    exceeding Contract Limit (currently 150,000)
    shall be advertised and let by contract to
    lowest responsible bidder
  • A.(1)(b)(i) - Requirements shall not be waived by
    any entity

6
PUBLIC BID LAW Public Works (Construction)
  • A.(1)(b)(ii)(aa) Bid Form
  • Available at http//www.lma.org/Docs/PDF/LAUnifo
    rmPublicWorksBidForm.pdf
  • Designed to make it harder for entities to
    nit-pick bids in order to disqualify bidders
  • (bb) Other documentation and information required
    shall be furnished by the low bidder within 10
    days after the bid opening
  • (c)(i) Evidence of agency, corporate, or
    partnership authority shall be required for
    submission of the bid (i.e., authorized rep of
    bidder must sign)

7
PUBLIC BID LAW Public Works (Construction)
  • A.(1)(c)(ii) Each bid shall be either hand
    delivered by the bidder or his agent, in which
    instance the deliverer shall be handed a written
    receipt, or such bid shall be sent by registered
    or certified mail with a return receipt requested
  • Does not apply to parochial or municipal
    governments
  • Cannot take bids on holidays

8
PUBLIC BID LAW Public Works (Construction)
  • (d) Contract Limit - 150,000
  • (e) Public entities shall furnish all bidders
    with at least one set of complete bid documents
  • May require deposits on the bid documents
  • Deposits to be refunded within 10 days after
    receipt of bids

9
PUBLIC BID LAW Public Works (Construction)
  • (f)(i) Contractors shall be provided the option
    to submit bids for public contracts through a
    uniform and secure electronic interactive system
  • Parishes lt20,000 population are exempt
  • Municipalities lt10,000 population are exempt
  • JPSO contracts with 3rd party vendor
  • See http//www.centralauctionhouse.com/

10
PUBLIC BID LAW Public Works (Construction)
  • (3) (a) Advertisement required for any public
    works contract shall be published once a week for
    three different weeks in a newspaper in the
    locality
  • First ad shall appear at least 25 days prior to
    opening of bids
  • Public Entity must also publish an advertisement
    by electronic media available to the general
    public

11
PUBLIC BID LAW Public Works (Construction)
  • (3)(b) First ad cannot appear on a Sat, Sun, or
    legal holiday
  • Plans and specs must be available on first day of
    ad and up to 24 hours before bid opening date
  • (3)(c)(i) If designers estimate is more than
    funds budgeted, the project shall not be
    advertised for bid. Designers estimate shall be
    read aloud upon opening bids.

12
PUBLIC BID LAW Public Works (Construction)
  • (3)(c)(ii) The bid form shall contain
  • Bid Security or Bid bond
  • Acknowledgment of Addenda
  • Base Bid
  • Signature of Bidder
  • Name, Title, and Address of Bidder
  • Name of Firm or Joint Venture Corp Resolution
  • Louisiana Contractors License Number

13
PUBLIC BID LAW Public Works (Construction)
  • (3)(c)(ii) Other documentation required shall
    be furnished by low bidder within 10 days after
    bid opening
  • (3)(d)(i) When a design professional or public
    entity mandates attendance at a pre-bid
    conference, the date, place, and time of the
    pre-bid conference shall be stated in the first
    advertisement

14
PUBLIC BID LAW Public Works (Construction)
  • (3)(e) Any proposal shall not include more than
    three (3) alternates.
  • Alternates, if accepted, shall be accepted in the
    order in which they are listed on the bid form
  • Determination of low bidder shall be on the basis
    of the sum of the base bid and any alternates
    accepted
  • Public entity reserves the right to accept
    alternates in any order which does not affect
    determination of the low bidder

15
PUBLIC BID LAW Public Works (Construction)
  • (4) All public work contracts shall contain
    provisions authorizing the issuance of change
    orders within the scope of the contract
  • (5) All change orders must be in writing
  • (6) Any change order outside the scope of the
    contract in excess of the contract limit shall be
    let out for public bid
  • (7) Change orders on public work shall be
    negotiated in the best interest of the entity or
    let out for public bid

16
PUBLIC BID LAW Public Works (Construction)
  • 382212 B. Contracts let by any public entity
    for public works estimated to cost in excess of
    the contract limit (150,000) shall be advertised
    and let by contract to the lowest responsible
    bidder
  • Public works estimated to cost less than contract
    limit (150,000) may be undertaken by the public
    entity with its own employees.

17
PUBLIC BID LAW Public Works (Construction)
  • LRS 382212 C.(1) Public Entity may, through the
    issuance of an addendum, extend bid period for up
    to thirty (30) days
  • C.(2) If Public Entity issues an addendum on
    public works project exceeding contract limit
    (150,000) that modifies plans and specs within 7
    days of bid opening, Public Entity must transmit
    a copy of the addendum to all prime bidders who
    have requested bid documents
  • Must do within 24 hours
  • May use fax, e-mail, or other electronic means or
    by hand

18
PUBLIC BID LAW Public Works (Construction)
  • C.(2)(b) No addenda modifying plans or specs
    within 72 hours prior to advertised time to open
    the bids

19
PUBLIC BID LAW Public Works (Construction)
  • LRS 382212 D.(1)(a) This Section shall not
    apply in cases of public emergency where such
    emergency has been certified to by the public
    entity and notice of such public emergency shall,
    within 10 days, be published in the official
    journal of the public entity
  • (b)(i) This Section shall not apply in the event
    that an extreme public emergency occurs
  • (b)(ii) Parish president or mayor shall declare
    that an extreme emergency exists and shall cause
    declaration to be published in official journal

20
PUBLIC BID LAW Public Works (Construction)
  • D.(2) Limitations
  • Contracts must be supported by written
    determination and findings justifying use
  • When telephone or oral offers are taken, a
    written confirmation of the accepted offer shall
    be obtained and made part of the contract
  • Including a description of the work to be
    performed
  • Name and address of each offeror
  • Performance time and terms of each offer

21
PUBLIC BID LAW Public Works (Construction)
  • LRS 382212 E. A publicly owned utility may
    undertake a public works project, other than
    construction of a building, for the contract
    limit or less by
  • Entry into contracts with or without public bid
  • Use of own employees

22
PUBLIC BID LAW Public Works (Construction)
  • LRS 382212 F.(1) When public entity desires to
    purchase technical equipment, apparatus,
    machinery, materials, or supplies of a certain
    type and such purchases are clearly in the public
    interest, the public entity may specify a
    particular brand, make or manufacturer in the
    specs let out for public bid
  • (2) The specs shall state clearly that they are
    used only to denote quality standard of product
    desired and that equivalent products will be
    acceptable

23
PUBLIC BID LAW Public Works (Construction)
  • LRS 382212 H. Under no circumstance shall there
    be a division or separation of any public work
    project into smaller projects which division
    would have the effect of avoiding the requirement
    that public work be advertised and let by
    contract to the lowest responsible bidder

24
PUBLIC BID LAW Public Works (Construction)
  • LRS 382212 J. If the public entity letting the
    contract proposes to disqualify any bidder, on
    grounds that such bidder is not a responsible
    bidder, such public entity shall
  • Give written notice of the proposed
    disqualification to such bidder and include
    reasons for disqualification
  • Give such bidder the opportunity to be heard at
    an informal hearing at which bidder is afforded
    the opportunity to refute the reasons for the
    disqualification

25
PUBLIC BID LAW Public Works (Construction)
  • LRS 382212 M. No public entity shall enter into
    a contract for the purposes of public works with
    a contractor who then finances the project

26
PUBLIC BID LAW Public Works (Construction)
  • LRS 382212 O. Whenever evidence of corporate
    authority is required for the submission of a
    bid, such fact shall be contained in the bid
    documents and such proof shall be provided in
    accordance with this section. The authority of
    the signature of the person submitting the bid
    shall be deemed sufficient if any of the
    following are met
  • Signature of corporate officer listed on current
    annual report filed with Secretary of State
  • Signature is authorized by a Corporate Resolution
  • Corporation has filed list of authorized
    signatures with State or Clerk of Court

27
PUBLIC BID LAW Materials and Supplies
  • LRS 382212.1 Advertisement and letting to
    lowest responsible bidder, materials and supplies
  • LRS 382212.1 A.(1)(a) All purchases of any
    materials and supplies exceeding 30,000 to be
    paid out of public funds shall be advertised and
    let by contract to the lowest responsible bidder

28
PUBLIC BID LAW Materials and Supplies
  • A.(b) However, purchases of 10,000 or more, but
    less than 30,000, shall be made by obtaining not
    less than three (3) telephone or facsimile
    quotations
  • Written confirmation of the accepted offer shall
    be obtained and made part of the file
  • If lowest quote is rejects, reasons shall be
    noted in file

29
PUBLIC BID LAW Materials and Supplies
  • A.(2)(a) Any purchase by a local govt of a used
    or new motor vehicle for conversion into a law
    enforcement vehicle, which purchase cost does not
    exceed 20,000, shall not be subject to the
    thresholds in paragraph (1)

30
PUBLIC BID LAW Materials and Supplies
  • LRS 382212 B.(1) Advertisement required by this
    Section for any contract for materials and
    supplies, shall be published two (2) times in a
    newspaper, the first ad appearing at least 15
    days before the bid opening
  • May also publish an ad by electronic media
    available to the general public

31
PUBLIC BID LAW Materials and Supplies
  • B.(2) First publication of ad shall not occur on
    Sat, Sun, or legal holiday
  • Plans and specs must be available on first day of
    ad up to 24 hours prior to bid opening
  • B.(3) Any proposal shall include no more than
    three (3) alternates
  • B.(4)(a) Contractors shall be provided the
    option to submit bids for public contracts
    through a uniform and secure electronic
    interactive system

32
PUBLIC BID LAW Materials and Supplies
  • LRS 382212.1 C.(1) Wherever in specifications
    the name of a certain brand, make, manufacturer,
    or definite spec is utilized, the specs shall
    clearly state that they are used only to denote
    the quality standard of product desired and that
    equivalent products will be acceptable

33
PUBLIC BID LAW Materials and Supplies
  • LRS 382212.1 D. This Section shall not apply to
    a public entity purchasing surplus materials or
    supplies form another public entity or the
    government of the United States or when the
    particular transaction is governed by the
    procurement code.
  • State of Louisiana Surplus Property auctions are
    held once a month. The auctions are held on the
    SECOND Saturday of each month. Merchandise
    auctioned off includes office equipment, medical
    equipment, office furniture, boating equipment,
    vehicles, and much more.
  • See http//doa.louisiana.gov/lpaa/auction.htm

34
PUBLIC BID LAW Materials and Supplies
  • Also see Federal Property Assistance
  • The primary function of the Federal Property
    Assistance Program is to re-utilize property no
    longer needed by the federal government by making
    it available to Louisiana entities. This surplus
    property may be used by all eligible donees in
    public and private education, public and private
    health facilities, cities, parish and state
    governments, qualified 501 non-profit
    organizations and qualified SBA 8a contractors
  • See http//doa.louisiana.gov/lfpaa/home.htm

35
PUBLIC BID LAW Materials and Supplies
  • LRS 382212.1 E. Any public entity may procure
    materials, supplies and equipment from federal
    General Services Administration (GSA) supply
    schedules in compliance with the Federal
    Acquisitions Streamlining Act and with rules and
    regulations adopted by the central purchasing
    agency of the Division of Administration
  • LRS 382212.1 F. Any public entity may purchase
    materials, supplies, and equipment pursuant to
    the cooperative purchasing provisions of LRS
    391701 et seq.

36
PUBLIC BID LAW Materials and Supplies
  • LRS 391702 Cooperative Purchasing
  • State Contract
  • http//doa.louisiana.gov/osp/contracts_index.htm
  • Federal General Services Administration (GSA)

37
PUBLIC BID LAW Materials and Supplies
  • LRS 382212.3 - Right to reject bids from
    Communist countries
  • Including but not limited to the Soviet Union,
    China, North Korea, and Vietnam
  • Award to next lowest bidder
  • LRS 382212.7 - Limitations on consultants
    competing for contracts
  • Any person contracting with agency for developing
    bid documents, requests for proposals, or other
    solicitations shall be prohibited from bidding,
    proposing or otherwise competing for award of
    that procurement

38
PUBLIC BID LAW Materials and Supplies
  • LRS 382212.8 Prohibition of bids from or
    contracts with unlicensed dealers
  • A public entity shall not accept any bid from or
    enter into any contract for the procurement of
    vehicles, with a dealer who does not possess a
    valid dealers license issued under LRS 321254

39
PUBLIC BID LAW Materials and Supplies
  • LRS 382212.10 Verification of employees
    involved in public contract work (Anti-illegal
    alien)
  • C. A private employer shall not bid on or
    contract with a public entity for the physical
    performance of services unless employer verifies
    in sworn affidavit that
  • Employer is registered and participates in status
    verification system to verify that all employees
    in Louisiana are legal citizens
  • Employer shall continue, during the term of the
    contract, to utilize a status verification system
    to verify the legal status of all new employees
  • Employer will require subcontractors to do the
    same

40
PUBLIC BID LAW Bid Requirements
  • LRS 382214 Designation of time and place for
    opening bids right to reject bids
  • A. the public entity shall, in the advertisement
    for bids, designate the time and place that bids
    will be received and shall at that time and place
    open the bids and read them aloud
  • No holidays

41
PUBLIC BID LAW Bid Requirements
  • LRS 382214 B. The public entity may reject any
    or all bids for just cause. Just cause is
    defined, but not limited to
  • Unavailability of funds sufficient for the
    construction of the proposed project
  • Failure of any bidder to submit a bid within an
    established threshold of the pre-construction
    estimates, as part of the bid specs
  • A substantial change by the public entity in the
    scope or design of the proposed public work
  • A determination by public entity not to build
    within 12 months
  • The disqualification of all bidders

42
PUBLIC BID LAW Bid Requirements
  • C. Bids containing obvious, unintentional, and
    substantial mechanical, clerical, or mathematical
    errors or errors of unintentional omission of a
    substantial portion of work, labor, material or
    services, may be withdrawn by the contractor, if
    clear and convincing sworn, written evidence of
    such errors is furnished within 48 hours of bid
    opening
  • Contractor who withdraws bid shall not be allowed
    to resubmit a bid on this project or work as a
    sub to another

43
PUBLIC BID LAW Bid Requirements
  • LRS 382215 Time period for holding bids,
    issuance of work orders to commence
  • A. State shall act within 30 calendar days of
    such receipt to award said contract to lowest
    responsible bidder or reject all bids
  • Political Subdivisions shall act within 45 days
  • May extend period by written mutual consent of
    public entity and lowest responsible bidder

44
PUBLIC BID LAW Bid Requirements
  • C. Upon the execution of the contract, the
    public entity, within 30 days thereafter, shall
    issue to the contractor a notice to proceed with
    the project.
  • May extend period by written mutual consent of
    public entity and lowest responsible bidder

45
PUBLIC BID LAWS Contract and Bond Requirements
  • LRS 382216 Written Contract and Bond
  • A.(1) When any bid is accepted for the
    construction of any public works, a written
    contract shall be entered into by the successful
    bidder and the public entity
  • The party to whom the contract is awarded shall
    furnish good and solvent bond in an amount not
    less than one-half of the amount of the contract,
    for the faithful performance of his duties

46
PUBLIC BID LAWS Contract and Bond Requirements
  • B. When any bid is accepted for the purchase of
    materials or supplies, a written contract (i.e.,
    purchase order) shall be entered into by the
    successful bidder and the public entity
  • The party to whom the contract is awarded shall
    furnish good and solvent bond in an amount not
    less than one-half of the amount of the contract,
    for the faithful performance of his duties

47
PUBLIC BID LAWS Contract and Bond Requirements
  • LRS 382216 C.(2)(a) Responsible Bidder shall
    mean a contractor who
  • Has an established business
  • Has demonstrated the capability to provide goods
    and services in accordance with the terms of the
    contract without excessive delays, extensions,
    cost overruns, or changes for which the
    contractor was held responsible
  • Does not have a documented record of past
    projects resulting in arbitration or litigation
    in which the contractor was found to be at fault

48
PUBLIC BID LAWS Contract and Bond Requirements
  • C.(1)(b) A responsible bidder shall have a
    negotiable net worth, or shall be underwritten by
    an entity with a negotiable net worth, which is
    equal to or exceeds the value of the total cost
    amount of the public contract. All property
    comprising the negotiable net worth shall be
    pledged and otherwise unencumbered for the
    duration of the contract

49
PUBLIC BID LAWS Contract and Bond Requirements
  • LRS 382218 Evidence of good faith
    countersigning
  • A. The public entity advertising for bids for
    work shall require the bidders to attach a
    certified check, cashiers check, or bid bond for
    not more than 5 of the contract price, as
    evidence of good faith of the bidder
  • C. If a Bid Bond is used, it shall be written
    by a surety or insurance company currently on the
    US Dept of Treasury Financial Management Service
    list, or by a Louisiana domiciled insurance
    company with at least an A- rating in the latest
    AM Bests Key Rating Guide

50
PUBLIC BID LAWS Contract and Bond Requirements
  • LRS 382219 Procurement of surety bonds and
    insurance
  • A.(1)(a) Any surety bond written for a public
    works project shall be written by a surety or
    insurance company currently on the U.S.
    Department of the Treasury Financial Management
    Service list of approved bonding companies which
    is published annually in the Federal Register, or
    by a Louisiana domiciled insurance company with
    at least an A- rating in the latest printing of
    the A.M. Best's Key Rating Guide to write
    individual bonds up to ten percent of
    policyholders' surplus as shown in the A.M.
    Best's Key Rating Guide, or by an insurance
    company that is either domiciled in Louisiana or
    owned by Louisiana residents and is licensed to
    write surety bonds.  
  • (c)  In addition, any surety bond written for a
    public works project shall be written by a surety
    or insurance company that is currently licensed
    to do business in the state of Louisiana.

51
PUBLIC BID LAWS Contract and Bond Requirements
  • LRS 382221 Cost-plus contracts prohibited,
    except for public hospitals working through
    qualified group purchasing organization
  • LRS 382224 A. Affidavit attesting that public
    contract was not secured through employment or
    payment of solicitor. B. No public contract
    shall be granted to any person, corporation, firm
    or organization refusing to execute the affidavit
    required in Section A.

52
PUBLIC BID LAWS Preferences and Design Build
  • LRS 382225 Preference in letting contracts for
    public work
  • Gives Louisiana resident contractors the same
    preference percentages that might be offered by
    non-resident contractors
  • LRS 382225.2 Design-Build contracts
  • Neither the state nor any local entity, unless
    specifically authorized by law, may execute any
    agreement for the purchase of unimproved property
    which contains provisions related to the
    successful design and construction of a project
    prior to the transfer of title to the public
    entity
  • Some exceptions added post-Katrina

53
PUBLIC BID LAWS Small Business Procurement Act
  • LRS 382233 Part II-A. Small Business
    Procurement Act
  • Gives entities the authority to set-aside up to
    10 of the value of anticipated procurement of
    goods or services for small businesses,
    minority-owned businesses, or women-owned
    businesses

54
PUBLIC BID LAWS Telecommunications and Data
Processing Procurement Law
  • LRS 382234 Part II-B. Political Subdivisions
    Telecommunications and Data Processing
    Procurement Law
  • LRS 382235 applicable to any political
    subdivision of the state
  • LRS 382236 definitions
  • Electronic transmission facilities
  • Data transmission facilities
  • Voice transmission systems
  • Telephone systems
  • Related Services
  • Software

55
PUBLIC BID LAWS Telecommunications and Data
Processing Procurement Law
  • LRS 382237 Methods of procurement
  • A. A political subdivision may lease, rent, or
    purchase telecommunications or data processing
    systems, including equipment, and related
    services, through a request for proposal (RFP)
  • (1) Specifications shall be prepared in advance
  • (1) Specs shall designate specific classes of
    equipment
  • (1) Specs can include maintenance

56
PUBLIC BID LAWS Telecommunications and Data
Processing Procurement Law
  • (2) Lease-purchase contracts must meet certain
    requirements
  • (3) Any equipment lease-purchase contract shall
    contain an annual appropriation dependence
    requirement
  • (6) Public notice of the RFP shall be given at
    least 30 days prior to opening of proposals.
    Written notice shall be sent out to firms known
    to be in a position to furnish such equipment or
    systems. Public notice may also be given by
    electronic media.

57
PUBLIC BID LAWS Telecommunications and Data
Processing Procurement Law
  • (7) the RFP will indicate the relative importance
    of price and other evaluation factors
  • (8) an award shall be made to the responsible
    offerer whose proposal is determined in writing
    by the governing authority of the political
    subdivision to be the most advantageous. No
    other basis of evaluation shall be used except
    those set out in the request for proposals

58
PUBLIC BID LAWS Telecommunications and Data
Processing Procurement Law
  • (9) the public entity may reject all proposals
  • (10) the written proposal shall be incorporated
    into the final contract consummated with that
    vendor
  • B. Political subdivisions may, at their option,
    procure telecommunications and data processing
    equipment, systems, or related services in
    accordance with LRS 382211 (i.e., formal
    advertised bid)

59
PUBLIC BID LAWS Other
  • LRS 382238 Political Subdivisions Used Fire
    and Emergency Response Vehicle Procurement Law
  • Allows RFPs to procure equipment and vehicles
  • LRS 382319 Local Government Equipment
    Lease-Purchase Act
  • Allows leases with nonprofit lessors
  • Must have non-appropriations clause
  • Must have purchase option not exceeding 1
  • Must have State Bond Commission approval

60
CODE OF ETHICS
  • LRS 421101 Declaration of Policy
  • It is essential to the proper operation of
    democratic government that elected officials and
    public employees be independent and impartial
    that governmental decisions and policy be made in
    the proper channel of the governmental structure
    that public office and employment not be used for
    private gain other than the remuneration provided
    by law and that there be public confidence in
    the integrity of government.  The attainment of
    one or more of these ends is impaired when a
    conflict exists between the private interests of
    an elected official or a public employee and his
    duties as such.  The public interest, therefore,
    requires that the law protect against such
    conflicts of interest and that it establish
    appropriate ethical standards with respect to the
    conduct of elected officials and public employees
    without creating unnecessary barriers to public
    service.  It is the purpose of this Chapter to
    implement these policies and objectives.

61
CODE OF ETHICS
  • LRS 421102 Definitions
  • (2)(a)(vi)  For public servants of political
    subdivisions, it shall mean the agency in which
    the public servant serves, except that for
    members of any governing authority and for the
    elected or appointed chief executive of a
    governmental entity, it shall mean the
    governmental entity.  Public servants of
    political subdivisions shall include, but shall
    not be limited to, elected officials and public
    employees of municipalities, parishes, and other
    political subdivisions sheriffs and their
    employees district attorneys and their
    employees coroners and their employees and
    clerks of court and their employees.

62
CODE OF ETHICS
  • (18)(a)  "Public employee" means anyone, whether
    compensated or not, who is
  • (i)  An administrative officer or official of a
    governmental entity who is not filling an
    elective office.
  • (ii)  Appointed by any elected official when
    acting in an official capacity, and the
    appointment is to a post or position wherein the
    appointee is to serve the governmental entity or
    an agency thereof, either as a member of an
    agency, or as an employee thereof.
  • (iii)  Engaged in the performance of a
    governmental function.
  • (iv)  Under the supervision or authority of an
    elected official or another employee of the
    governmental entity.
  • (19)  "Public servant" means a public employee or
    an elected official.

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  • (22)(a)  "Thing of economic value" means money or
    any other thing having economic value, except
    promotional items having no substantial resale
    value

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  • LRS 421111 A.(1)  Payments for services to the
    governmental entity.  
  • No public servant shall receive anything of
    economic value, other than compensation and
    benefits from the governmental entity to which he
    is duly entitled, for the performance of the
    duties and responsibilities of his office or
    position

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  • C.  Payments for nonpublic service.
  • (1)  No public servant shall receive any thing of
    economic value for any service, the subject
    matter of which
  • (a)  Is devoted substantially to the
    responsibilities, programs, or operations of the
    agency of the public servant and in which the
    public servant has participated or
  • (b)  Draws substantially upon official data or
    ideas which have not become part of the body of
    public information.

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  • (2)  No public servant and no legal entity in
    which the public servant exercises control or
    owns an interest in excess of twenty-five
    percent, shall receive any thing of economic
    value for or in consideration of services
    rendered, or to be rendered, to or for any person
    during his public service unless such services
    are
  • (a)  Bona fide and actually performed by the
    public servant or by the entity
  • (b)  Not within the course of his official
    duties
  • (c)  Not prohibited by R.S. 421112 or by
    applicable laws or regulations governing
    nonpublic employment for such public servant and
  • (d)  Neither performed for nor compensated by any
    person from whom such public servant would be
    prohibited by R.S. 421115(A)(1) or (B) from
    receiving a gift.

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  • D.  Payments for future services.  
  • No public servant shall receive, directly or
    indirectly, any thing of economic value during
    the term of his public service in consideration
    of personal services to be rendered to or for any
    person subsequent to the term of such public
    service however, a public servant may enter into
    a contract for prospective employment during the
    term of his public service unless otherwise
    prohibited by R.S. 421116.

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  • E.  Payments for rendering assistance to certain
    persons.
  • (1)  No public servant, and no legal entity of
    which such public servant is an officer,
    director, trustee, partner, or employee, or in
    which such public servant has a substantial
    economic interest, shall receive or agree 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
    such public servant.

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  • LRS 421112 Participation in certain
    transactions involving the governmental entity
  • A.  No public servant, except as provided in R.S.
    421120, shall participate in a transaction in
    which he has a personal substantial economic
    interest of which he may be reasonably expected
    to know involving the governmental entity.

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  • B.  No public servant, except as provided in R.S.
    421120, shall participate in a transaction
    involving the governmental entity in which, to
    his actual knowledge, any of the following
    persons has a substantial economic interest
  • (1)  Any member of his immediate family.
  • (2)  Any person in which he has a substantial
    economic interest of which he may reasonably be
    expected to know.
  • (3)  Any person of which he is an officer,
    director, trustee, partner, or employee.
  • (4)  Any person with whom he is negotiating or
    has an arrangement concerning prospective
    employment.
  • (5)  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 twenty-five percent

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  • C.  Every public employee, excluding an appointed
    member of any board or commission, shall
    disqualify himself from participating in a
    transaction involving the governmental entity
    when a violation of this Part would result.  The
    procedures for such disqualification shall be
    established by regulations issued pursuant to
    R.S. 421134(A)(1).

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  • LRS 421113.  Prohibited contractual arrangements
  • A.(1)(a)  No public servant, 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.

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  • LRS 421113.1.  Gubernatorially declared
    emergencies or disasters prohibited personal use
    conversion and prohibited preferences
    (post-Katrina rule)
  • A.  During a gubernatorially declared emergency
    or disaster, no public servant shall convert
    property or resources of his governmental entity
    or property or resources which have been loaned
    to his governmental entity to or for his personal
    use.
  • B.  During a gubernatorially declared emergency
    or disaster, no public servant shall offer, loan,
    or donate the property or resources of his
    governmental entity or property or resources
    which have been loaned to his governmental entity
    to or for the use of members of his immediate
    family in a manner which is preferential to
    members of his immediate family over members of
    the general public.

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  • LRS 421114.  Financial disclosure
  • A.  Other than a legislator, 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 (1) is
    regulated by the agency of such public servant,
    or (2) has bid on or entered into or is in any
    way financially interested in any contract,
    subcontract, or any transaction under the
    supervision or jurisdiction of the agency of such
    public servant shall disclose the following
  • (1)  The amount of income or value of any thing
    of economic value derived
  • (2)  The nature of the business activity
  • (3)  Name and address, and relationship to the
    public servant, if applicable and
  • (4)  The name and business address of the legal
    entity, if applicable.

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  • C.(1)  Other than a legislator, each elected
    official, his spouse, and any business enterprise
    in which he has a substantial economic interest,
    who derives anything of economic value through a
    contract or other subcontract from the state or
    any political subdivision shall disclose the
    following
  • (a)  The amount of income or value of anything of
    economic value derived
  • (b)  The nature of the business activity
  • (c)  The name and address, and relationship to
    the elected official, if applicable and
  • (d)  The name and business address of the
    political subdivision, if applicable.

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  • LRS 421115.  Gifts
  • A.  No public servant shall solicit or accept,
    directly or indirectly, any thing of economic
    value as a gift or gratuity from any person or
    from any officer, director, agent, or employee of
    such person, if such public servant knows or
    reasonably should know that such person
  • (1)  Has or is seeking to obtain contractual or
    other business or financial relationships with
    the public servant's agency, or
  • (2)  Is seeking, for compensation, to influence
    the passage or defeat of legislation by the
    public servant's agency.

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  • B.  No public employee shall solicit or accept,
    directly or indirectly, anything of economic
    value as a gift or gratuity from any person or
    from any officer, director, agent, or employee of
    such person, if such public employee knows or
    reasonably should know that such person
  • (1)  Conducts operations or activities which are
    regulated by the public employee's agency.
  • (2)  Has substantial economic interests which may
    be substantially affected by the performance or
    nonperformance of the public employee's official
    duty.

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  • LRS 421115.1.  Limitation on food, drink, and
    refreshment
  • A.  No person from whom a public servant is
    prohibited by R.S. 421111 or 1115(A) from
    receiving a thing of economic value shall give to
    such a public servant any food, drink, or
    refreshment the total value of which exceeds
    fifty dollars for a single event at which food,
    drink, or refreshment is given.  The total value
    of the food, drink, or refreshment given to a
    public servant at any single event shall not
    exceed fifty dollars regardless of the number of
    persons subject to the provisions of this
    Subsection giving food, drink, or refreshment to
    the public servant at the single event.

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  • C.  Beginning on July 1, 2009, and on July first
    of each year thereafter, when there has been an
    increase in the unadjusted Consumer Price Index
    (CPI-U)( Food and Beverage) as published by the
    United States Department of Labor, Bureau of
    Labor Statistics in January each year, the limit
    of fifty dollars for food, drink or refreshments
    provided in Subsections A and B of this Section
    shall be increased by the same percentage as the
    percentage by which that price index is
    increased.  The amount of the increase shall be
    rounded off to the nearest dollar.  The food,
    drink, or refreshment limit shall be adjusted by
    the Board of Ethics according to the Consumer
    Price Index (CPI-U)(Food and Beverage) and
    adopted and promulgated as a rule or regulation
    by the board in accordance with the provisions of
    R.S. 421134(A).

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  • D.  For purposes of this Section, at an event to
    which a group or organization of public servants
    is invited and at which food, drink, or
    refreshment is given, the value of the food,
    drink, or refreshment provided to a public
    servant shall be determined by dividing the total
    cost of the food, drink, and refreshment provided
    at the event by the total number of persons
    invited, whether formally or informally, and
    which is communicated in any manner or form, to
    the event.

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CODE OF ETHICS
  • LRS 421116.  Abuse of office
  • A.  No public servant shall use the authority of
    his office or position, directly or indirectly,
    in a manner intended to compel or coerce any
    person or other public servant to provide
    himself, any other public servant, or other
    person with any thing of economic value.  

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  • B.  No public servant shall use the authority of
    his office or position, directly or indirectly,
    in a manner intended to compel or coerce any
    person or other public servant to engage in
    political activity.  For the purposes of this
    Subsection, "political activity" means an effort
    to support or oppose the election of a candidate
    for political office in an election.  This
    Subsection shall not be construed to limit that
    authority authorized by law, statute, ordinance,
    or legislative rule in carrying out official
    duties.

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CODE OF ETHICS
  • LRS 421119.  Nepotism
  • A.  No member of the immediate family of an
    agency head shall be employed in his agency.
  • B.(1)  No member of the immediate family of a
    member of a governing authority or the chief
    executive of a governmental entity shall be
    employed by the governmental entity.
  • (2)  Notwithstanding the provisions of Paragraph
    (1) of this Subsection
  • Long list of exceptions

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CODE OF ETHICS
  • LRS 421120.  Recusal from voting
  • If any elected official, in the discharge of a
    duty or responsibility of his office or position,
    would be required to vote on a matter which vote
    would be a violation of R.S. 421112, he shall
    recuse himself from voting.  An elected official
    who recuses himself from voting pursuant to this
    Section shall not be prohibited from
    participating in discussion and debate concerning
    the matter, provided that he makes the disclosure
    of his conflict or potential conflict a part of
    the record of his agency prior to his
    participation in the discussion or debate and
    prior to the vote that is the subject of
    discussion or debate.

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CODE OF ETHICS
  • LRS 421121.  Assistance to certain persons after
    termination of public service
  • A.(1)  No former agency head or elected official
    shall, for a period of two years following the
    termination of his public service as the head of
    such agency or as an elected public official
    serving in such agency, assist another person,
    for compensation, in a transaction, or in an
    appearance in connection with a transaction,
    involving that agency or render any service on a
    contractual basis to or for such agency.

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CODE OF ETHICS
  • A.(2)  No former member of a board or commission
    shall, for a period of two years following the
    termination of his public service on such board
    or commission, contract with, be employed in any
    capacity by, or be appointed to any position by
    that board or commission.

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CODE OF ETHICS
  • B.(1)  General rule for other public employees.  
  • No former public employee shall, for a period of
    two years following the termination of his public
    employment, assist another person, for
    compensation, in a transaction, or in an
    appearance in connection with a transaction in
    which such former public employee participated at
    any time during his public employment and
    involving the governmental entity by which he was
    formerly employed, or for a period of two years
    following termination of his public employment,
    render, any service which such former public
    employee had rendered to the agency during the
    term of his public employment on a contractual
    basis, regardless of the parties to the contract,
    to, for, or on behalf of the agency with which he
    was formerly employed.

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LAWS AFFECTING BUDGETING
  • LRS 391301 Louisiana Local Government Budget Act

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LAWS AFFECTING BUDGETING
  • LRS 391302.  Definitions. For the purposes of
    this Chapter
  • (1)  "Political subdivision" means any
  • (a)  Parish governing authority and all
    districts, boards, or commissions created by such
    parish governing authority either independently
    or in conjunction with other units of government.
  • (b)  Municipality and all boards and commissions
    created by such municipality, either
    independently or in conjunction with other units
    of government.
  • (c)  School board.
  • (d)  Special district created pursuant to and
    under the authority of Article VI, Section 16 or
    19 of the Louisiana Constitution.
  • (e)  City court.

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  • (f)  District public defender office.
  • (g)  Housing authority.
  • (h)  Mortgage authority.
  • (i)  Political subdivisions of the state not
    included within the state's Comprehensive Annual
    Financial Reports.
  • (j)  Registrar of voters.
  • (k) Independently elected parish offices,
    including the office of assessor, clerk of
    district court, coroner, district attorney,
    sheriff, and judges, but only insofar as their
    judicial expense funds, as provided for in Title
    13 of the Louisiana Revised Statutes of 1950.

91
  • LRS 391303.  Legislative intent
  • A.  It is the intent of the legislature that this
    Chapter shall apply, as provided for herein, to
    all political subdivisions of the state with a
    general fund or a special revenue fund, except
    that the provisions of R.S. 391307 related to
    public participation shall only apply to those
    political subdivisions with proposed expenditures
    totaling five hundred thousand dollars or more in
    such funds.  
  • The provisions of this Chapter shall be construed
    as minimal requirements and shall not prevent a
    political subdivision from requiring more
    extensive financial planning and budgeting
    practices nor from imposing more stringent
    penalties for violations.

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  • B.  Preparation and adoption of a budget by a
    political subdivision in any manner contrary to
    the provisions of this Chapter is hereby
    expressly prohibited.
  • D.  The provisions of this Act shall apply to
    school boards only if and when they do not
    conflict with R.S. 1788(A).

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  • LRS 391304.  Uniform chart of accounts
  • A.  The legislative auditor shall develop a
    uniform chart of accounts for use by political
    subdivisions in recording of all financial
    transactions. See http//www.lla.la.gov/userfil
    es/file/chart.pdf
  • B.  The legislative auditor is authorized to
    create political subdivision categories for the
    purpose of carrying out the provisions of this
    Section.

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  • LRS 391305.  Budget preparation
  • A.  Each political subdivision shall cause to be
    prepared a comprehensive budget presenting a
    complete financial plan for each fiscal year for
    the general fund and each special revenue fund.
  • B.  The chief executive or administrative officer
    of the political subdivision or, in the absence
    of such positions, the equivalent thereof shall
    prepare the proposed budget.

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LAWS AFFECTING BUDGETING
  • C.  The budget document setting forth the
    proposed financial plan for the general fund and
    each special revenue fund shall include the
    following
  • (1)  A budget message signed by the budget
    preparer which shall include a summary
    description of the proposed financial plan,
    policies, and objectives, assumptions, budgetary
    basis, and a discussion of the most important
    features.

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  • (2)(a)  A statement for the general fund and each
    special revenue fund showing
  • the estimated fund balances at the beginning of
    the year
  • estimates of all receipts and revenues to be
    received
  • revenues itemized by source
  • recommended expenditures itemized by agency,
    department, function, and character
  • other financing sources and uses by source and
    use
  • and the estimated fund balance at the end of the
    fiscal year.  

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  • Such statements shall also include a clearly
    presented side-by-side detailed comparison of
    such information for the current year, including
  • the fund balances at the beginning of the year,
  • year-to-date actual receipts and revenues
    received and
  • estimates of all receipts and revenues to be
    received the remainder of the year
  • estimated and actual revenues itemized by source
  • year-to-date actual expenditures and

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LAWS AFFECTING BUDGETING
  • estimates of all expenditures to be made the
    remainder of the year itemized by agency,
    department, function, and character
  • other financing sources and uses by source and
    use, both year-to-date actual and estimates for
    the remainder of the year
  • the year-to-date actual and estimated fund
    balances as of the end of the fiscal year
  • and the percentage change for each item of
    information.

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LAWS AFFECTING BUDGETING
  • SAMPLE JPSO BUDGET

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LAWS AFFECTING BUDGETING
  • (b)  School boards shall itemize revenues and
    expenditures in accordance with guidance provided
    by the state Department of Education.

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LAWS AFFECTING BUDGETING
  • D.  A budget proposed for consideration by the
    governing authority shall be accompanied by a
    proposed budget adoption instrument.  
  • The budget adoption instrument for independently
    elected parish offices shall consist of a letter
    from the independently elected official
    authorizing the implementation of the adopted
    budget.  
  • The budget adoption instrument for any
    municipality, parish, school board, or special
    district shall be an appropriation ordinance,
    adoption resolution, or other legal instrument
    necessary to adopt and implement the budget
    document.  

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  • The adoption instrument shall define the
    authority of the chief executive and
    administrative officers of the political
    subdivision to make changes within various budget
    classifications without approval by the governing
    authority, as well as those powers reserved
    solely to the governing authority.
  • E.  The total of proposed expenditures shall not
    exceed the total of estimated funds available for
    the ensuing fiscal year.

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  • LRS 391306.  Completion and submission of the
    proposed budget
  • A.  The proposed budget for political
    subdivisions with a governing authority including
    municipalities, parishes, school boards, and
    special districts shall be
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