Transcript Ethics and Vendor Relationships

Marie C Frank, MPA, CPPB
Director of Purchasing & Property Management
Louisiana State University
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Louisiana Constitution Article 10, Section 21
Louisiana Revised Statutes Title 42
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Elected Officials
Public Employees
Immediate Family Members
Legal Entities
Private Entities
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Spouse
Parents
Children
Children’s Spouses
Spouse’s Parents
Brothers and Sisters
Brothers and Sisters’ Spouses
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Money
Any thing having an economic value
Both tangibles and intangibles
No minimum value
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Conflict
of Interest
Public Employees must be independent and impartial
Governmental decisions and policy must be made
without bias
Public Office and employment can not be used for
private gain
Public confidence is critical
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Section 1111A (1)
◦ A Public servant may not receive any thing 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
◦ Prohibition applies to receiving a thing of economic
value from either member of the public or a private
source.
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Award contracts without competition to
friends or family
Favor one vendor through restrictive
specifications
Providing information to only some vendors
Collusion or price-fixing
Falsifying certifications
Providing false statements of qualifications or
experience
Accepting gifts
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Governed by LSA – R.S. 42:1115A (1)
A public servant may not 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 that:
◦ Has, or is seeking to obtain, contractual or other
business or financial relationships with the public
servant’s agency.
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Tickets/complimentary admission
Gift cards
Discounts
Trips
Transportation
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Contractors or Those bidding on contracts
Vendors or Those seeking to provide
products
Recipients of grants or funding from the
university
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Mayor Ray Nagin and family
went to Jamaica courtesy of
Greg Meffert and NetMethods
Published: Wednesday, May 06, 2009, 3:00 PM
28, 2009, 3:58 PM
David Hammer, The Times-Picayune
Updated: Monday, September
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A vendor that does business with LSU offers
to take you to a football game. Can you
accept the invitation?
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The employee cannot accept the ticket or trip to the
football game because it is considered a thing of
economic value and the company is either in a
business relationship with the university or is seeking
one.
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Promotional Items having no Substantial
Resale Value
◦ MUST be imprinted with a logo of a business or an
organization
◦ MUST have a minimal value
◦ Examples: Pens, pencils, notepads, t-shirts, caps,
key chains, cups, calendars.
Flowers or a donation in connection with the
death of an immediate family member of
the public servant if the value does not
exceed $100
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Food and drink must be consumed by the
personal guest in the presence of the
provider or representative of the
company/organization that is providing.
The exception allows a public servant to
receive transportation and entertainment
which is incidental to the food and drink
Gift cards and gift certificates for food or
drink are NOT part of the exception for food
and drink.
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The limitation on the total dollar value of
food and drink which a public servant may be
given at a single event is $54 per public
servant per event.
The food and drink dollar limitation is
calculated by dividing the total cost of the
food and drink by the total number of
persons invited to the event.
DON’T FORGET!!! THE VENDOR MUST BE
PRESENT THE ENTIRE TIME.
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A vendor invites you to a tailgate party. Can
you attend?
At the party, he offers you football tickets to
the game. Can you accept them?
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YES you can attend the tailgate as long as he
is present.
NO you MUST decline the free tickets into the
football game.
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A company who does business with the
university hosts a company Christmas Party
which is catered and invites you to attend.
Can you attend and can you accept any gifts
that are distributed by the company as
“giveaways”?
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You can attend the party if the dollar
limitation of the food and drink is not greater
than $54 AND the vendor is present.
You can accept promotional items but they
must have the company logo and be of
minimal value.
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The week of Thanksgiving, a vendor sends a
turkey or fruit basket to the office not
addressed to anyone in particular. Can you
accept?
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You must return the turkey or fruit basket.
Because you are a public servant and the
vendor has or wants a business relationship
with the university, you cannot accept
anything of economic value. The turkey or
fruit basket does not meet the exception of
being consumed with the company
representative. You can’t give it to any of
your employees either because they are also
prohibited from accepting it.
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Can accept ONLY IF it is admission to a civic,
non-profit, educational or political event, if
the public servant is a honoree, giving a
speech, or a panel member participating in a
debate or discussion at the event.
DOES NOT INCLUDE professional, semiprofessional or collegiate sporting events.
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Can accept admission, reasonable lodging,
and transportation
◦ Must be invited by the organization;
◦ The sponsor cannot be seeking to influence
legislation;
◦ The University must give approval;
◦ If the university pays for the expenses, no affidavit
is required, and the university will seek
reimbursement after the trip from the sponsor.
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CANNOT ACCEPT INCOME FROM A VENDOR IF
YOU ARE:
 An employee of the university;
 An employee’s spouse; or
 A legal entity of which the employee or
spouse owns an interest greater than 25%
May not receive anything of economic value for
or in consideration of services which are
performed for or compensated by a person
from whom the employee is prohibited from
receiving a gift.
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A public servant, immediate family members
and legal entities where ownership is
exceeding 25% or exercises control
◦ MAY NOT enter into, any contract, subcontract, or
other transaction under the supervision or
jurisdiction of the public servant’s agency.
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No allowable minimum value
Apply to contracts or subcontracts even if
awarded from a public bid, RFP or other
competitive process
Donations of services and moveable property
are allowed.
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An employee may not participate in a
transaction involving the university in which
the employee has a substantial economic
interest. This includes:
◦ Immediate family members
◦ Any person in which the employee of his immediate
family has a substantial economic interest
◦ Any employee who is an officer, director, trustee,
partner, or employee
◦ Any person with whom the employee is negotiating
or has a contract concerning prospective
employment
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Approval
Disapproval
Decision
Recommendation
Rendering of advice
Investigation
Failure to act or perform a duty
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Mary Louise is an employee of the Dept of
Chemistry. Her son-in-law, Trey, wants to
assist the department in developing a new
website. Can Chemistry contract for Trey’s
services?
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He cannot bid or enter into a contract with
Chemistry because he is considered an
immediate family member as defined by the
Code of Ethics. It doesn’t matter whether
Mary Louise supervises him or not.
He can donate his services.
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Must be in writing and signed
Issue must have occurred within the past 4 years
Agency heads are required to report any potential
issues (Section 1161)
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Censure
Fine of up to $10,000 or amount of economic gain
plus additional 50%
Forfeiture of gifts and payment
Potential Loss of Job
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http://www.ethics.state.la.us/SeminarRegistration/
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QUESTIONS????
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