Kimberly L. Robinson

With the passage of Act 1 of the First Extraordinary Session of 2008 and Acts 162 and 472 of the Regular Session of 2008, Louisiana now has four tiers of financial disclosure for public service.

Any person serving in a public service position on or after July 1, 2008, will be required to file the financial disclosure report in 2009. The reports will be due on or before May 15, 2009.

Tier One

The first tier of disclosure applies to statewide elected officials, the commissioner of administration, the secretaries of executive branch agencies[1], the superintendent of education, the commissioner of higher education, the presidents of each higher education system (LSU, Southern, University of Louisiana, and Community and Technical College), the director of state civil service, and certain members of the Governor’s staff (chief of staff, deputy chief of staff, executive counsel, policy director, and legislative director).

Tier One is requires the highest level of disclosure, and persons serving in these offices are required to file financial disclosure statements containing the following information:

• Name, address, and spouse’s name of the individual serving
• Name of the employer, job title, and brief description of each full-time or part-time position held by the individual and spouse
• Name, address, brief description, and interest in businesses in which the individual or spouse serves as a director, officer, owner, partner, member, or trustee, or owns more than a 10% interest
• Name, address, and brief description of any nonprofit organization in which the individual or spouse serves as a director or officer
• Actual amount and source of income received from the state, a political subdivision, or gaming interest, and the nature of services rendered for the income
• Amount by category and source of all income received in excess of $1,000
• Location and fair market value of immovable property valued at more than $2,000
• Description, date, and amount by category of sales or purchases of immovable property, tax credit certificates, stocks, bonds, or commodities futures valued in excess of $1,000
• Name, description, and amount by category of each investment security valued in excess of $1,000
• Name and amount by category of liabilities in excess of $10,000
• A certification the individual has filed his or her federal and state income tax returns, or has filed for an extension of time for filing such tax return

Tier Two

The second tier of disclosure applies to legislators, elected officials representing districts with a population of 5,000 or more, members of the board of ethics, the ethics administrator, and members of the state board of elementary and secondary education (BESE.)

This level of disclosure requires the filing of financial disclosure statements containing the following information:

• Name, address, and spouse’s name of the individual serving
• Name of the employer, job title, and brief description of each full-time or part-time position held by the individual and spouse
• Name, address, brief description, and interest in businesses in which the individual or spouse serves as a director, officer, owner, partner, member, or trustee, and owns more than a 10% interest   
• Name, address, and brief description of any nonprofit organization in which the individual or spouse serves as a director or officer
• Actual amount and source of income received by the individual, spouse, or business in which individual or spouse owns more than  a 10% interest  when the source of the income is the state, a political subdivision, or gaming interest.
• Amount by category and source of all income received from full-time or part-time employment
• Amount by category and nature of services for income received from businesses
• Amount by category of any other income received in excess of $1,000
• Location and fair market value of immovable property valued at more than $2,000
• Description, date, and amount by category of sales or purchases of immovable property, tax credit certificates, stocks, bonds, or commodities futures valued in excess of $5,000
• Name, description, and amount by category of each investment security valued in excess of $5,000
• Name and amount by category of liabilities in excess of $10,000

Tier Three

The third tier of disclosure applies to members or designees of boards and commissions that have the authority to expend, disburse, or invest $10,000 or more of funds in a fiscal year; members of the state civil service commission; and members of the board of commissioners of the Louisiana Stadium and Exposition District (Superdome and N.O. Arena).

The definition of boards and commissions includes:

(i) Each board, commission, and like entity created by law or executive order that is either:

• made a part of the executive branch of state government by the provisions of Title 36 of the Louisiana Revised Statutes of 1950;
• placed in an executive branch department or in the office of the governor or lieutenant governor by law or executive order; or
• any authority or performs any function of the executive branch of state government.

(ii) Each board, commission, and like entity created as a governing authority for a political subdivision of the state or of a local government. It must have been created by either:

• the constitution;
• law;
• a political subdivision, except those in Subparagraph (b); or
• two or more political subdivisions, jointly.

The definition of "board or commission" does not include:

(i) The governing authority of a parish.

(ii) Any board or commission or like entity that governs a political subdivision created by the governing authority of a parish with a population of two hundred thousand (200,000) or less.

(iii) The governing authority of a municipality.

(iv) Any board or commission or like entity that governs a political subdivision created by the governing authority of a municipality with a population of twenty-five thousand (25,000) or less.

(v) A board of directors of a private nonprofit corporation that is not specifically created by law.

It may be necessary to review the statutory authority creating the board or commission to determine whether the members are subject to disclosure. If the board or commission is created by a parish or municipality, the population of the parish or municipality determines if the board or commission members are subject to disclosure. Only those parishes with populations in excess of 200,000 and municipalities with populations in excess of 25,000 are included.

The third tier of disclosure requires the filing of a financial disclosure statement containing the following information:

• Name, address, and spouse’s name of the individual serving
• The name of the employer, job title, and a brief job description of each full-time or part-time employment position held by the individual or spouse
• The name, address, brief description of, nature of association with, and the amount of interest in each business in which the individual or spouse is a director, officer, owner, partner, member, or trustee, and in which the individual or spouse, either individually or collectively, owns an interest which exceeds 10% of that business
• The name, address, brief description of, and nature of association with a nonprofit organization in which the individual or spouse is a director or officer
• The name, address, type, and amount of each source of income received by the individual or spouse, or by any business in which the individual or spouse, either individually or collectively, owns an interest which exceeds 10% of that business, and which is received from the state, a political subdivision, or gaming interest
• Certification that the individual has filed his or her federal and state income tax returns, or has filed for an extension of time for filing such tax return
• One of the following:
  • A certification that neither the individual nor any member of his or her immediate family had a personal or financial interest in any entity, contract, or business, or a personal or financial relationship that in any way posed a conflict of interest which affected the impartial performance of the individual’s duties as a member of the board or commission
  • Failing that, a statement describing each conflict and any action the individual took to resolve or avoid the conflict

Tier Four

The fourth tier of disclosure applies to elected officials representing districts with a population of less than 5,000. This is the lowest tier of disclosure and is not effective until January 1, 2010. This tier requires the filing of a financial disclosure statement on or before May 15, 2010, containing the following information:

• Any and all income in excess of $250 received by the individual, his or her spouse, or by any business in which the individual or spouse, either individually or collectively, owns an interest which exceeds 10% of that business, which is received from the state, a political subdivision, or gaming interest
• Certification that the individual has filed his or her federal and state income tax returns, or has filed for an extension of time for filing such tax return

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[1] Executive Branch Departments are:  state civil service; economic development; culture, recreation, and tourism; environmental quality; health and hospitals; labor; natural resources; public safety and corrections; revenue; social services; transportation and development; wildlife and fisheries; agriculture; education; insurance; justice; public service; state; treasury; and veterans affairs.