LOGA Industry Report - Winter 2009 - (Page 20) Louisiana ‘Renewed’ – a Brief Practical Analysis of 2008 Ethics Reforms (or, ‘Don’t ever buy meals or anything else for public officials — let a registered lobbyist do it for you!’) by Loulan J. Pitre, Jr. and Kate Bailey Labue The First Extraordinary Session of 2008 saw the new governor’s promised effort to reform the Louisiana ethics laws (which reportedly catapulted Louisiana to the top of the BGA-Alper Integrity Index). The amended ethics laws impact those conducting business within the state of Louisiana whose personnel deal with state agencies. The expansive scope of the revised Louisiana Executive Branch Lobbying Law, La. R.S. 49:71-78.1, as written, is widely unappreciated. The Louisiana Executive Branch Lobbying Law requires registration and reporting by “lobbyists.” La. R.S. 49:72(6) extends the scope of “lobbying” to “any direct act or communication with an executive branch official, the purpose of which is to aid in influencing an executive branch action.” Pursuant to La. R.S. 72(2)(a), “executive branch action” is defined, in pertinent part, as “any act by an executive branch agency or official to effectuate the public powers, functions, and duties of an executive branch official or an executive branch agency. . . .” Included in the definition of “Executive branch agency” or “agency” are all state office, department, board, commission, institution, or any quasi-public entity created in the executive branch as well as any board or commission to which the governor appoints at least a majority of the membership of the board or commission. See La. R.S. 49:72(3). Such broad definitions could conceivably include many run-of-the-mill activities which are necessary to deal with regulatory agencies, thereby expanding into common practices not generally believed to be acts of lobbying. Thus, it is wise to be cautious of any interaction with any department within the state, or any board or commission, including the State Mineral Board. However, the definition of lobbyist, as amended during the 2008 regular session, triggers lobbyist registration and reporting requirements only upon the making of an “expenditure” of greater than $10 on food, drink or other refreshment. Thus, many activities that are defined as executive branch lobbying will not trigger registration and reporting requirement as long as expenditures on food, drink or other refreshments for public servants is avoided. You can avoid this by having professional lobbyists, who are already set up to meet the reporting requirements, make such expenditures on your company’s behalf. Additionally, the First Extraordinary Session of 2008 narrowed exceptions to the general prohibitions on gifts to elected officials and public employees — executive, legislative and judicial, including boards and commissions, special districts, etc. Exceptions to the act are very limited. The most well known change, effective as of March 30, 2008, creates a $50 per “single event” limit on gifts of food, drink or other refreshments. Note that any gifts of food or other refreshment to public servants, subject to the new limit, must be consumed in the presence of the giver (e.g., no mailing allowed). See La. R.S. 42:1115.1. Additionally, Act 19 of the First Special Session immediately prohibited all gifts (the limit is zero) to elected officials and public employees of an admission to a sporting event, trip or golf outing unless same is associated with a candidate’s, elected official’s, or organization’s fundraising event open to the general public. See La. R.S. 42:1123. These restrictions apply with respect to public servants if the person making the gift: has or is seeking to obtain contractual or other business or financial relationships with the public servant’s agency; or is seeking, for compensation, to influence the passage or defeat of legislation by the public servant’s agency. See La. R.S. 42:1115 A. With respect to public employees only, it also applies if the person making the gift: conducts operations or activities which are regulated by the public employee’s agency; or has substantial economic interests which may be substantially affected by the performance or nonperformance of the public employee’s official duty. See La. R.S. 42:1115B. To avoid pitfalls, be extremely careful to follow the law, or avoid making any expenditure on food, drink or other refreshments for public servants directly through your company. ● Loulan Pitre, Jr. is partner in the Gordon Arata law firm. He is a graduate of Harvard Law School and former member of the Louisiana House of Representatives. Kate Bailey Labue is an associate in the Baton Rouge office of Gordon Arata McCollam Duplantis & Eagan, LLP. She graduated from the Paul M. Hebert Law Center at Louisiana State University in 2004 earning her J.D and Bachelor of Civil Law Studies. This article is intended as a general overview and should not be treated as a substitute for legal advice. 20 | LOGA INDUSTRY REPORT | WINTER 2009
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