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LMR July 2023

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LEGAL BRIEFS<br />

Convention Care<br />

Our Annual Convention, along with<br />

other large-format events, provides a<br />

perfect opportunity to network with<br />

municipal peers and with corporate<br />

partners and vendors. On the exhibit<br />

hall floor, municipal leaders can explore<br />

the broad spectrum of goods and services<br />

available to assist them in efficient<br />

and effective leadership. Yet, it is important<br />

to be mindful that the rules provided<br />

in the Code of Governmental Ethics<br />

are not suspended during such events.<br />

The Code of Governmental Ethics defines<br />

“public servants” as any public<br />

official and any public employee, and<br />

it prohibits public servants from receiving<br />

gifts under certain circumstances.<br />

The Code uses very specific language,<br />

which is cross-referenced to definitional<br />

sections.<br />

But simply stated, whether the municipality<br />

already has a financial relationship<br />

with an exhibitor, or an exhibitor is seeking<br />

to forge such a connection, the ethics<br />

laws prohibit municipal officials and<br />

employees from accepting any “thing<br />

of economic value.” This is, in fact, the<br />

very nature of an event exhibit hall: to<br />

provide a venue for corporate vendors,<br />

suppliers, and contractors to connect<br />

with governmental decisionmakers for<br />

the purpose of establishing or expanding<br />

a business relationship.<br />

To get ahead of these issues and as<br />

part of the pre-convention vendor and<br />

exhibitor packet, the LMA provides the<br />

following guidance to our corporate collaborators:<br />

La. R.S. 42:1115 prohibits elected officials<br />

and public employees from soliciting or<br />

accepting any thing of economic value<br />

from an entity or person seeking to obtain<br />

a contractual or financial relationship<br />

with the public servant’s agency, or from<br />

persons seeking to influence the course of<br />

legislation through compensation. Public<br />

employees are further prohibited from<br />

accepting any thing of economic value<br />

86 TH ANNUAL CONVENTION<br />

As a general rule,<br />

then, the ethics<br />

laws prohibit<br />

municipal officials<br />

and employees<br />

from receiving<br />

gifts or giveaways<br />

from corporate<br />

exhibit hall<br />

attendees during<br />

convention,<br />

even if the gift<br />

is exchanged<br />

pursuant to a<br />

raffle or random<br />

drawing.<br />

from persons who conduct operations/<br />

activities regulated by the public employee’s<br />

agency, or from persons who have a<br />

substantial economic interest that may be<br />

affected by the performance of the public<br />

employee’s duties.<br />

As a general rule, then, the ethics laws<br />

prohibit municipal officials and employees<br />

from receiving gifts or giveaways<br />

from corporate exhibit hall attendees<br />

during convention, even if the<br />

gift is exchanged pursuant to a raffle or<br />

random drawing. While the possibility<br />

of winning expensive and extravagant<br />

items (such as smart technology devices,<br />

jewelry, and outdoor equipment)<br />

can be very tempting, if the receipt of<br />

such items triggers an ethics complaint<br />

from a disgruntled non-recipient or a<br />

political rival, it is hardly worth the risk.<br />

There are exceptions to the gift prohibition<br />

for promotional items having<br />

no substantial resale value IF those<br />

items have the name and/or logo of<br />

the donor imprinted on them. While<br />

the Board of Ethics is the ultimate arbiter<br />

for what constitutes a “promotional<br />

item,” the Board has provided guidance<br />

that such items may include cups, hats,<br />

pins, pens, and other tradeshow items<br />

sporting the company’s logo. These<br />

promotional items can be an important<br />

part of networking for our corporate<br />

partners, so we encourage exhibitors<br />

to work within the scope of ethics laws<br />

to benefit from this valuable marketing<br />

tool at convention.<br />

Because corporate-sponsored receptions<br />

and dining events are common<br />

during our events, it is also worth noting<br />

that pursuant to La. R.S. 42:1115.1(E)(1),<br />

the monetary limit on the gifting of food<br />

and drink in the ethics provisions does<br />

not apply to large-format gatherings of<br />

our statewide organization of municipal<br />

officials and employees.<br />

Because these ethics prohibitions are<br />

highly fact-specific, when in doubt, we<br />

recommend erring on the side of caution<br />

and declining the gift, or, at least,<br />

contacting the Board of Ethics for oral<br />

guidance.<br />

Editor’s Note: The information provided in<br />

this column is not a replacement for consultation<br />

with your own municipal attorney,<br />

and it should not be considered legal<br />

advice for any particular case or situation.<br />

by Karen Day<br />

White<br />

LMA Executive<br />

Counsel<br />

White is a member of the LMA Legislative<br />

Advocacy Team and can be reached at<br />

kwhite@lma.org.<br />

Page 28<br />

<strong>LMR</strong> | JULY <strong>2023</strong>

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