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What does it take? Of 248 fines for ethics violations totaling more $1 million, less than $58,000 (5%) has been collected

Posted in Boards, Corruption, Elections, Ethics, Governor's Office, House, Senate, Judges, Lawsuits, Legislature, Legislators, Lobbyist, ORM, Politicians, Public Records on July 29, 2016| 5 Comments »

Earlier this week, we posted our story about growing frustration over the fact that time after time, when official corruption and wrongdoing are exposed, nothing is done.

https://louisianavoice.com/2016/07/25/in-a-state-where-graft-and-corruption-abound-honesty-and-law-enforcement-have-taken-a-permanent-leave-of-absence/

And it isn’t just the wrongdoing or questionable activities exposed by LouisianaVoice that feeds our exasperation. It doesn’t seem to matter if it’s a member of the media or a state agency, the fact is the vast majority of the cases are quietly ignored until they go away. Ignored, that is unless it’s some hapless inner city resident caught with a couple of joints or a civil servant fudging her timesheets because her agency’s budget has been cut to the bone, forcing shortcuts on her so she can maintain an overburdened caseload.

In those cases, justice is swift and severe.

But for those in positions of power and influence, it’s quite another story.

Only in Louisiana would a sheriff under federal indictment for beating defenseless prisoners and turning vicious dogs on them and who even threatened a federal prosecutor have the gall to petition the courts to give him his gun back. (Well, perhaps Maricopa County, Arizona, Sheriff Joe Arpaio would be so brazen, but we digress.)

http://addictinginfo.org/2016/07/20/violent-sheriff-who-threatened-federal-prosecutor-wants-gun-back-because-hes-scared-video/

Nowhere is Louisiana’s chronic case of legal periodontitis more evident than with the state’s “gold standard of ethics” presented to us way back in 1984. Because of his gutting state ethics laws, the Louisiana Ethics Commissions by all appearances is unable to collect more than $1 million in fines and penalties it has assessed against 248 political candidates. These candidates run the gamut—from sheriffs to current and former legislators and a member of the Board of Elementary and secondary Education.

Thank you, Bobby Jindal.

Jindal’s ethics reform was of such a high “gold standard” that it removed all enforcement powers of the Ethics Board and handed those duties to an administrative judge appointed by the governor—in this case, Jindal. The reform had the effect of making ethics enforcement just another political animal controlled by the governor in the same fashion as the Office of Inspector General, neither of which now have any real powers.

Ten of the 11 Ethics Board members immediately resigned in protest.

Perhaps it was only coincidence, but just 10 days after taking office—and before Jindal introduced his ethics reform bill—he was himself hit with a $2,500 ethics fine after failing to report that the Republican Party of Louisiana spent $118,265 on direct mail to promote his successful 2007 candidacy.

http://www.nola.com/news/index.ssf/2008/01/jindal_to_pay_ethics_fine.html

Jindal spokesperson at the time, Melissa Sellers, said Jindal would pay the fine to avoid a public hearing. The only trouble was, she said his campaign would pay the fine, an ethics violation in itself. Ethics Commission regulations prohibit the use of campaign funds for personal expenses, including ethics fines.

Political consultant Elliott Stonecipher of Shreveport remembers the backroom dealings in drafting the ethics reform of 2008. “By way of my pro bono consulting for the old Ethics Board, I knew details of what House Speaker Jim Tucker (R-Terrytown), Rep. (later Senator) Rick Gallot (D-Ruston), Sen. Bob Kostelka (R-Monroe), Jindal’s Executive Counsel Jimmy Faircloth, Chief of Staff Timmy Teepell, and Ann Wise were concocting,” he would later write.

The new laws bestowed upon Wise, an unclassified employee serving at the pleasure of the governor, the responsibility of selecting administrative law judges who would hear and rule on future ethics cases. “She was, in fact, working with Tucker, Gallot, Kostelka, and one Jindal insider identified her as one of the first people Tucker brought aboard their operation,” Stonecipher said. “At the time all of this was going on, Bobby refused to meet with Hank Perret, Chairman of the Ethics Board, with whom I was working. Under pressure, Jindal finally agreed to a half-hour meeting but would not meet without Teepell there and (Jindal) ultimately used the thirty minutes to command the discussion—never allowing it to approach what Hank was there to tell him,” he said.

“The top players and designers (Tucker, Gallot, and Kostelka) had (at the time discussions were ongoing) active and serious ethics charges against them winding through the system,” Stonecipher said (emphasis added). “Tucker had two charges and Gallot had seven. When the smoke cleared after the new laws took effect, each of them beat the rap in all cases.” Stonecipher said the top political reporters in Louisiana were informed all those details. “None of them ever wrote a story,” he said. “My articles which went to them were never acknowledged.”

http://www.nola.com/politics/index.ssf/2009/09/rep_rick_gallots_ethics_charge.html

http://www.thegramblinite.com/news/view.php/396049/Appeals-court-upholds-Gallot-ruling

So Gallot, Chairman of the House and Governmental Affairs Committee and a key Jindal ally in pushing for changes in the state’s ethics laws, was the subject of seven conflict-of-interest charges involving his legal representation of a company in business dealings with Grambling State University and the University of Louisiana System Board of Supervisors on which his mother was simultaneously serving.

Ethics Board Chairman at that time Frank Simoneaux of Baton Rouge (he was not re-appointed by Jindal when his term expired) called the Gallot case the first real test of state ethics laws since the Jindal reforms went into effect.

Another case pending at the time was that of Lafourche Parish Sheriff Craig Webre. He was charged with a conflict of interest because he was part-owner of Smart Start of Louisiana. He was accused of using his office for financial gain by selling ignition interlock devices to drivers convicted of driving while intoxicated.

It’s interesting to note that neither Webre nor Gallot denied the facts laid out in the charges. Instead, each invoking a statute of limitations in claiming that the board had only one year to file the charges while ethics board attorneys said the time limit for prescription was two years.

In November 2009, a panel of three administrative judges dismissed the charges against Webre.

So, to recap:

  • Jindal’s campaign paid his fine for him.
  • Webre was exonerated.
  • Kostelka, Tucker and Gallot all “beat the rap.”

Tucker was chosen Speaker of the House during Jindal’s first term.

And Gallot?

Well, he went on to be elected to the State Senate and on Tuesday (July 26), he was unanimously chosen by the University of Louisiana System as the new President of Grambling State University. To be fair, though, at least his mother no longer sits on the board.

http://www.theadvocate.com/baton_rouge/news/education/article_d8c82986-5350-11e6-b653-a7be43e9ff0c.html

Gallot even found the time to write an op-ed in the Baton Rouge Advocate in which he addressed his close relationship to the state’s movers and shakers and outlined his plans for Grambling. Oddly, he never got around to discussing ethics in his column.

http://www.theadvocate.com/baton_rouge/opinion/article_24c4f454-55a4-11e6-8f90-93862ea22176.html

For now, Louisiana appears to be stuck with a real albatross: A State Ethics Board that is powerless to collect more than $1 million ethics fines from those 248 candidates, some of them dating as far back as 25 years. The amount represents an average fine of $4,252 per candidate, though of that 248, there were 20 who had fines in excess of $10,000. Of that 20, six had fines of $20,000 or more; four were on the books for $30,000 or more and one was for $41,440.

Of the $1,054,487 in fines assess since 1991, only $57,665, or a scant 5 percent, has been paid, records show.

Court records show that in the majority of cases, fines assessed prior to 2015 that have gone unpaid have resulted in the filing of lawsuits by the Board of Ethics and in many of those cases, judgments against the individuals have resulted.

To be fair, the recipient of that $41,440 levy, James Fahrenholtz, has paid nearly half ($19,342) of his fine. That’s not to say Fahrenholtz, a former member of the Orleans Parish School Board doesn’t have other problems. In an unrelated matter, he was arrested in April 2015 for theft of a lobbyist’s iPad tablet.

Besides Fahrenyholtz, those owing $10,000 or more include:

  • Donald Pryor, former candidate for Orleans Parish Registrar (paid $1,757 to date);
  • Albert Donovan, former legal counsel to Gov. Edwin Edwards and a candidate for Secretary of State: $31,000 (paid $5,453 so far);
  • Gary Wainright, former candidate for Orleans Parish District Attorney: $30,200 (paid nothing on assessment);
  • Percy Marchand, former candidate for State Representative: $26,660 (paid nothing to date);
  • Thomas Robichaux, candidate for Orleans Parish School Board: $20,060 (paid $800);
  • James Perry, candidate for State Representative: $18,060 (paid nothing);
  • Edward Scott, candidate for U.S. Representative: $17,380 (paid nothing);
  • Robert Murray, candidate for State Representative: $17,080 (paid $160);
  • Jason Wesley, candidate for East Baton Rouge Parish Metro Council: $16,000 (paid nothing);
  • Isaiah Marshall, candidate for East Baton Rouge Parish Metro Council; $14,600 (paid $1,240);
  • Patrick Tovrea, candidate for Jefferson Parish School Board: $14,220 (paid nothing);
  • Joel Miller, candidate for Washington Parish Sheriff: $12,360 (paid nothing);
  • Melva Vallery, office unknown: $12,000 (paid nothing);
  • Marvin Frazier, candidate for Sabine Parish Sheriff: $11,800 (paid $4,031);
  • Myron Lee, candidate for State Representative: $10,900 (paid nothing);
  • Sandra Hester, candidate for Orleans Parish School Board: $10,660 (paid nothing);
  • Remic Darden, office unknown: $10,600 (paid $350);
  • Thelma Brown, candidate for East Baton Rouge Parish Metro Council: $10,000 (paid nothing);
  • Ali Moghimi, candidate for Monroe Mayor: $10,000 (paid nothing).

Other notable personalities hit with ethics fines and the amounts paid on their fine include:

  • State Rep. John Bagneris: $4,680 (nothing paid);
  • Livingston Parish Council Chairman Ricky Goff: $1,760 (nothing paid);
  • State Rep. Michael Jackson: $2,000 (nothing paid);
  • Former U.S. Rep. Vance McAllister: $1,260 (nothing paid);
  • Former Plaquemines Parish Sheriff Ernest Wooton: $2,000 (nothing paid);
  • Board of Elementary and Secondary Education member Kyra Orange Jones: $2,500 (nothing paid).

Here is a complete list of UNPAID fines assessed by the Board of Ethics

In January, the Ethics Board staff drafted an opinion on former Commission of Administration Kristy Nichols and her job as a lobbyist for Ochsner Health System which typically, was not adopted by the full board.

http://www.theadvocate.com/baton_rouge/news/politics/article_22f710cd-dda5-5b79-9545-db933add8f6e.html

That opinion said state law would prohibit Nichols from advising Ochsner on any matter involving the Division of Administration (DOA) until October 2017. It also said she could not deal with legislators who handle the state budget (and that should include all 105 representatives and 39 senators because they all must vote on the state budget.

http://www.ethics.la.gov/AgendaAttachments/27389/PublicAgendaAttachment.pdf

Rather than making a definitive decision, which was—and is—its responsibility, the Louisiana Board of Ethics boldly postponed action—at the request of Ochsner—until February.

Well, February has come and gone and the Ethics Board has yet to post anything online and we are now back to our original lament: Nothing gets done.

 

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In a state where graft and corruption abound, honesty and law enforcement have taken a permanent leave of absence

Posted in Boards, Campaign Contributions, Commissions, Corruption, Courts, DOA, Ethics, Fraud, Governor's Office, Jobs, Legislature, Legislators, Lobbyist, Politicians, Retirement, State Police on July 25, 2016| 12 Comments »

Call it the summer doldrums or whatever you wish. The truth is there hasn’t been much political blog activity—from any of us.

It’s not that there is a dearth of news to report; between killings by cops, killings of cops, terrorist attacks, political accusations, political promises that border on fantasy, e-mail scandals and plagiarized speeches, there’s more than enough to go around. But somehow, we’ve become inured, victims of a malady we can only identify as scandal fatigue for lack of a better term.

But LouisianaVoice, with the help of a couple of volunteer researchers, is working on a project that should generate considerable readership interest—unless, of course, readers are also victims of the summertime lethargy that seems to be at least somewhat contagious.

But we’d be less than honest if we didn’t admit we get pretty discouraged when we expose wrongdoing—some of it even criminal in nature—on the part of elected and appointed officials and nothing is done about it.

What more needs to be done, for example, than to point out the illegal use of campaign funds for such personal use as season tickets to sporting events, luxury car leases and even paying ethics violation fines and personal federal income taxes from campaign funds? Yet, nothing is done.

https://louisianavoice.com/2015/05/17/improper-spending-of-campaign-funds-appears-to-be-the-rule-rather-than-the-exception-in-louisiana-random-check-reveals/

What more needs to be done than to publish official investigative reports of a state trooper having sex in his patrol car while on duty to bring severe disciplinary action down on that officer?

https://louisianavoice.com/2015/10/04/you-couldnt-time-an-egg-with-this-guy-state-police-lt-has-sex-twice-on-duty-once-in-back-seat-of-patrol-car-still-on-job/

It took LouisianaVoice weeks and many stories before official action was finally taken against a state trooper who went home to sleep during his shift so that he could work his second job the next day before he was finally fired. And even though we revealed that his supervisor allowed this practice to go on for years, the supervisor was simply transferred—even after we published audio recordings of that same supervisor refusing to accept a citizen’s complaint after he had denied refusing the complaint.

https://louisianavoice.com/2015/09/11/gift-cards-for-tickets-payroll-chicanery-quotas-short-shifts-the-norm-in-troop-d-troopers-express-dismay-at-problems/

After we ran a story about a legislator, who made thousands of dollars by purchasing stock in a company he knew was going to be approved for a major program with the Department of Education, that legislator was re-elected.

https://louisianavoice.com/2014/03/27/senate-education-chairman-appel-purchases-discovery-stock-week-before-company-enters-into-state-techbook-agreement/

When we outed Frederick Tombar III, the $260,000 per year director of the Louisiana Housing Corporation, over his sexually explicit emails sent to two female employees, he promptly resigned only to turn up at Cornerstone Government Affairs, a consulting company headed by former Louisiana Commissioners of Administration Mark Drennan and Paul Rainwater.

https://louisianavoice.com/category/campaign-contributions/page/9/

When we ran the story of a clerk in Fourth Judicial District Court in Monroe with ties to powerful attorney and banking interests who was failing to show up for work, both the Louisiana Attorney General the Office of Inspector General punted on their investigations.

When a north Louisiana contractor sued the Louisiana Department of Transportation and Development over attempts by DOTD employees to extort payoff money from him, he won more than $20 million. Instead of paying up as it should, however, the state simply said it doesn’t have the money to pay the contractor who was forced into bankruptcy by the department’s criminal activity. Yet, no one at DOTD was fired, much less prosecuted.

http://www.thenewsstar.com/story/news/local/2015/12/04/contractor-wins-20m-suit-against-dotd/76813444/

Department of Public Safety Deputy Undersecretary Jill Boudreaux twerked the system by taking an incentive buyout for early retirement that netted her an extra $59,000. She promptly promoted herself and came back to work the next day at a salary bump. Ordered to repay the $59,000 by then Commissioner of Administration Angele Davis, she never did.

https://louisianavoice.com/2014/08/24/edmonson-not-the-first-in-dps-to-try-state-ripoff-subterfuge-undersecretary-retiresre-hires-keeps-46k-incentive-payout/

But a caseworker for the understaffed and overworked Office of Children and Family Services was arrested with all the appropriate posturing and chest-thumping by law enforcement officials—including State Police—for payroll fraud after allegedly falsifying reports on monthly in-home visits with children in foster care.

https://louisianavoice.com/2016/03/13/dcfs-funding-slashed-necessitating-driveway-visits-but-overworked-caseworker-is-arrested-for-falsifying-records/

The lesson here is obvious: if you’re politically connected, you can scarf off $59,000 with no repercussions but if you’re a lowly civil servant striving to meet impossible work demands brought about by budgetary cuts, you’re SOL. It’s not that we condone the payroll falsification, but justice should that should be administered evenly and blindly—but somehow never is.

The stories we have written about the Louisiana State Board of Dentistry and what the board does to dentists to destroy their practices and their very lives are horrific. Some of the investigative tactics and the retributions against defenseless dentists are sadistic at best and criminal at worst. Yet the board is allowed to continue its practices unchecked.

And as recently as May 2, we have the announcement from Gov. John Bel Edwards of the appointment of TERRENCE LOCKETT of Baton Rouge to the Louisiana Auctioneers Licensing Board. His appointment was made despite his being ordered in 2013 to pay $600 in penalties for his failure to file lobbying expenditure reports from March-December 2011 and his second-offense DWI in April 2014, which was reduced to a first-offense DWI.

http://gov.louisiana.gov/news/gov-edwards-announces-boards-and-commissions-appointments-5-2

By now, you’ve probably detected a trend.

It’s more than a little frustrating to see these transgressions reported, to know they are seen by those in a position to do something, and yet see these same ones in charge do nothing—or do so little as to make any discipline meaningless.

LouisianaVoice over the next few days will examine ethics fines that have gone uncollected for years, critical legislative audits of state agencies about which nothing seems to get done, and campaign contributions and lobbying activity that fortify the positions of special interests while diminishing to virtual insignificance the influence and interests of Louisiana’s citizens.

And nothing gets done.

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Jindal truly the gift that keeps on giving; judge rules 2014 closure of Rapides’ Huey P. Long Hospital ‘Null and Void’

Posted in Courts, DHH, Earl Long, Huey Long, Ethics, Governor's Office, Health Care, Jobs, Judges, Lawsuits, Layoffs, Legislature, Legislators, Privatization, Senate, Transparency on June 15, 2016| 10 Comments »

By Robert Burns

After Louisiana’s FYE books were closed on June 30, 2013, the Jindal administration touted the fact that 2,340 hospital employees had been laid off during that fiscal year. Nevertheless, one hospital, the Huey P. Long Hospital in Pineville, was proving particularly vexing for Jindal’s administration.

With much fanfare, Jindal’s folks called a news conference to announce that the hospital’s operations would be transferred to England Airpark with an estimated $30 million required to renovate the facility which was closed in the early 1990s. The money was said to come from $5 million pledged by the England facility and the remainder from state-issued capital outlay bonds issued during FYE ’13.

Despite all of the hoopla associated with the announcement of the transfer, the proposal ended up fizzling out, and Jindal’s administration had to conjure up a “Plan B.”

That turned out to be another iteration of the public/private partnerships for which the Jindal administration essentially could have qualified for a patent on crafting such arrangements. In this instance, the public/private partnership would entail Rapides Regional Medical Center and Christus St. Frances Cabrini Hospital taking over much of the workload of Huey P. Long.

Of course, the whole proposal had the

gnawing obstacle that it needed approval from those darn folks at the Legislature, and that’s where things got interesting.

To accomplish the goal, Senator Gerald Long obediently introduced

Senate Concurrent Resolution (SCR) 48 in the regular session of the 2014 Legislative Session. On March 31, 2014, the Senate Committee posted an agenda for its meeting of April 2, 2014; however, that agenda was devoid of any reference to SCR-48.

On April 1, 2014 at 4:07 p.m., a revised agenda was posted in which SCR

-48 was posted and itemized to include a notation entailing its subject matter: “creating a new model of health care delivery in the Alexandria and Pineville area.” Amendments were added to SCR-48, and it ultimately passed both the House (66-28) and Senate (26-11).

Baton Rouge attorney Arthur Smith, III,

filed litigation on behalf of affected employees of the hospital and others alleging violations of Senate Rules of Order 13.73 and 13.75.

Also alleged was a violation of Louisiana’s Open Meetings Laws

, and relief was sought to have SCR-48 declared null and void (a relief available under Louisiana’s Open Meetings laws) based on that violation and also an assertion that SCR-48 was unconstitutional. A preliminary injunction was also sought to block the closure of the hospital with the ultimate goal of obtaining a permanent injunction.

The trial court granted the preliminary injunction, but it simultaneously suspended enforcement of the

preliminary injunction upon the defendants (the Louisiana Senate, LSU, and the State of Louisiana) perfecting an appeal.

It was initially believed that the Louisiana Supreme Court (LSC) would decide the matter because of the issue raised of the constitutionality of SCR

-48. However, the Supreme Court quickly refused to hear the matter in stating that it was “not properly before this Court.” The Supremes (no, not the singing Supremes) elaborated by ruling that it could consider only matters which had been declared unconstitutional in a court of law.

Since the trial court’s reasons for judgment only made reference to the

potential unconstitutionality of SCR-48 without making a definitive declaration that it was unconstitutional, the Supreme Court denied writs.

Meanwhile, the hospital was closed, and Smith took his case to the First Circuit Court of Appeal. That appeal was dismissed based

upon the fact there was no active injunction to prevent the hospital from being closed. That was the case because, expecting (wrongly) the Supreme Court to rule on the matter, Judge Robert Downing suspended the preliminary injunction. With no injunction in place to prevent the closure, the hospital was padlocked.

The First Circuit issued its decision on September 15, 2015. That ruling notwithstanding, the

declaratory judgment aspect of the lawsuit could proceed forward, and that led to a hearing in 19th JDC Judge Don Johnson’s courtroom on Monday, June 13, 2016.

During that hearing, much of what has been elaborated above was rehashed, but then co-counsel for the day’s proceedings, Chris Roy, Sr., of Alexandria, took center stage and converted what had been basically a snooze fest into a fireworks display.

Prior to Roy beginning testimony, Judge Johnson interjected a few points of his own into the arguments. First, Johnson indicated that, while he was a student at Southern University, he experienced a significant health issue and went to Baton Rouge’s local charity hospital

, Earl K. Long, and he said, “I sure was glad it was there to treat me.”

Earl K. Long was also shut down by the Jindal administration and subsequently demolished. Emergency room treatment of indigent patients was initially taken over by Baton Rouge General Midtown. But Baton Rouge General closed its emergency room more than a year ago. That forced low-income charity patients in the northern part of East Baton Rouge Parish to travel a much further distance to Our Lady of the Lake Medical Center in South Baton Rouge for treatment. That point was not lost on attorneys for the defendants who claimed that care would continue to be provided for the underprivileged, but such care would simply now take place under the new public/private venture.

Roy said that the closure of the

Huey Long Charity Hospital caused an enormous level of anxiety among the community’s population and also with the employees of the hospital. Johnson acknowledged that fact and said, “I’m aware of that fact. They didn’t like it at all.” Roy stressed that “125 employees lost their jobs and $11 million in wages were lost as a result of this episode.”

Roy focused most of his arguments on the fact that, contrary to defense attorney claims, the whole issue

of SCR-48 is not now “moot.” He emphasized that ordinary citizens are provided with only one mechanism for making their sentiments known about proposed legislation and that is through “showing up and testifying at committees and subcommittees of the Legislature.”

Roy then rhetorically asked how they were supposed to do that w

hen the Senate would engage in such a “flat-out violation” of posting an addition to the agenda at 4:07 p.m. the day before a hearing when the clearly-established deadline was 1 p.m. for such an addition. Roy then stressed his age, and even poked fun at the relative youth of one of his opposing counselors (who appeared to be in his late 20s at most), in indicating that he, Roy, was one of the participants in the formation of the present Louisiana Constitution.

Roy said, “One of our main objectives was to try and make everything as transparent as possible because there had been a prior governor, whom I won’t reference by name (a thinly veiled reference to Huey Long), who sought to keep the public from knowing

anything that was transpiring.” The irony of the subject matter of the suit being the closing of a hospital named for him seemed not to be lost on anybody in the room.

“Your Honor,” Roy continued, “the Senate basically said ‘to hell with the Constitution. We are the Senate of the State of Louisiana, and we decide what we will do and won’t do.’” Roy then emphasized that opposing counsel could not simply argue that the whole matter was “moot,” and assert a defense along the lines of “we won’t do it again.” Roy then emphasized that Louisiana Senate President John Alario is a good man with integrity and a close personal friend of his, but he then asserted that what Alario allowed to transpire in this instance was just “wrong.”

The State sought the granting of a Motion for Summary Judgment (MSJ) to dismiss the case, and the plaintiffs sought the granting of an MSJ declaring SCR-48 to be null and void. In the battle of the MSJs, Johnson ruled in favor of the plaintiffs: “SCR-48 of the 2014 Regular Session is declared to be Null and Void. The Plaintiff’s may seek attorney fees, costs, and expenses through post-hearing motion. The Joint Motion for Summary Judgment filed by defendants is denied.”

Now all that remains to be seen is whether the state will have to pay salaries and benefits retroactive to the hospital’s closing date to those 125 employees (the amount given was $11 million saved by closing the facility) or if there will be yet another appeal of a 19th JDC judge’s ruling to the First Circuit.

The smart money is on an appeal.

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Baton Rouge judge permits lawsuit against Office of Group Benefits to move forward as possible remedy for insomnia

Posted in Courts, DOA, Ethics, Governor's Office, Judges, Lawsuits, Legislature, Legislators, Office of Group Benefits on June 13, 2016| 4 Comments »

By Robert Burns

With all parties acknowledging the need for an affirmation of her ruling Monday (June 13, 2016) by the First Circuit Court of Appeal, 19th JDC Judge Janice Clark denied multiple exceptions filed by the Louisiana State Office of Group Benefits (OGB) in response to a lawsuit filed by six retired state employees.

The lawsuit alleges that OGB, which provides health insurance coverage to nearly a quarter of a million state workers, teachers, retirees, and dependents, didn’t follow proper approval procedures calling for prior notice and public comment on significant changes to their health insurance coverage.

Winston DeCuir, Sr., who claimed in oral arguments before Judge Clark that the lawsuit was “moot,” explained that in June 2014, significant changes began to come under consideration for OGB benefits.

When an uproar began that the contemplated changes had not followed proper procedures, former Louisiana Attorney General James D. “Buddy” Caldwell’s Office issued a ruling on September 23, 2014 that, in fact, the rule-making process had been circumvented.

Pursuant to Caldwell’s ruling, DeCuir said, OGB sought an “emergency rule” to take effect because of the urgency of the situation. When Judge Clark inquired, “What triggered the need for the emergency rule?” DeCuir responded that the rapidly-shrinking balance in the reserve fund prompted OGB actuaries to say something had to be done as soon as possible.

DeCuir indicated that genuine concerns existed that, if the rate of decline wasn’t slowed, the system could literally deplete its reserve balance and be left with no funds with which to pay claims. He neglected to say the reserve fund was drawn down from its one-time high of $500 million by the reckless fiscal policies of the Bobby Jindal administration.

DeCuir explained that because of the looming impact the rule change would have on those covered by OGB benefits, on November 23, 2014, OGB issued the emergency rule but also provided simultaneous guidance entailing the additional costs to those covered.

He indicated that some costs would continue to be reimbursed until September 30, 2014 rather than August 1, 2014 as was originally planned.  He also emphasized that full implementation of the changes would not transpire until March 1, 2015 rather than January 1, 2015.

DeCuir noted that the final rule entailing full implementation was implemented on February 20, 2015 to replace the emergency rule. He said that with the required 180-day timeframe for going through normal procedures for rule changes, together with another 180 days to actually implement the changes, OGB’s reserves would have run a very serious risk of being fully depleted before the effects of the changes could take hold.

DeCuir said a public hearing was held on the changes but was “very, very poorly attended.”  He added, “In fact, I don’t know if any of Art’s (Smith, counsel for plaintiffs) clients were even present for the hearing.” Arthur Smith, III, dismissed the hearing as a “sham” designed to accomplish nothing but “window dressing with everything already done.”

Smith then focused his arguments on Jindal’s administration having “drained” OGB’s reserve balances. That statement prompted a sharp retort by DeCuir who said, “That statement simply is not accurate. There was not one dime transferred out of OGB’s reserves to the general fund. What transpired is that premiums charged to members declined. That, in turn, resulted in a decline in the State of Louisiana’s match in that it covers 75 percent of the cost of the coverage.  That is what caused the reserves to decline.”

Judge Clark then asked for reiteration of the fact that no funds were swept from OGB’s reserves to the general fund. Both DeCuir and Michael Adams, another defense attorney representing OGB, were emphatic in stating no such sweeps transpired.

What actually occurred was this: the administration lowered premiums so that its own 75 percent match would be reduced and the money saved from that maneuver was then used to cover some of the recurring budgetary shortfalls experienced by Jindal and a sadly incompetent but compliant Legislature for eight straight years. The decline in premiums, Mr. DeCuir, was not caused by fewer covered employees but by the clumsy shell game perpetrated by Jindal and Co. That statement, Mr. DeCuir, is accurate.

DeCuir indicated to Judge Clark that the plaintiffs may not be happy if they get what they’re ultimately seeking with their lawsuit. He explained that it’s conceivable that plaintiffs could end up owing OGB significant premium dollars if the plaintiffs do in fact ultimately prevail.

In making her ruling, Judge Clark stated: “The Court is of the opinion that plaintiffs have stated a valid cause of action within the four corners of the document.  It’s time for this matter to be presented to the First Circuit, which I understand is now returning from Sandestin, so that these plaintiffs can know whether they can move forward with their claim or have it drained.”

Adams then inquired about the prospect for him to assert Exceptions for Prematurity and Subject Matter Jurisdiction. Clark said that the Exception of Prematurity was too “intertwined” with DeCuir’s exception and therefore denied that exception as part of the day’s proceedings.  When DeCuir inquired if he could reassert the Exception of Subject Matter Jurisdiction, Clark indicated he could “have another bite at the apple, but it needs to be quick.”

Smith wrapped up the proceedings by inquiring about a Motion to Compel he’d previously filed, but Clark said, “Surely that matter can be resolved between the parties.” Adams then indicated that Smith had modified his discovery requests to make it far more narrow and that he believed that a mere meeting between him and Smith ought to be able to negate the need for any hearing on a Motion to Compel.

Adams said after the day’s hearing that he would appeal Clark’s ruling to the First Circuit Court of Appeal.

Judge Clark said if the whole matter proceeds to trial, “It will be a challenge to keep the jurors awake when all those actuaries start testifying.”

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Bossier council to pay $1M to firm taking over water system after mayor, 2 councilmen accept $20,000 in campaign cash

Posted in Boards, Campaign Contributions, Commissions, Contract, Contracts, Corruption, Elections, Ethics, Governor's Office, Legislature, Legislators, Politicians, Privatization, Public Records, Transparency, Uncategorized on June 7, 2016| 11 Comments »

During the Bobby Jindal years in Louisiana, it was well documented that seats on prestigious boards and commissions were the rewards for generous campaign contributions.

Seats on the LSU Board of Supervisors, the Board of Supervisors of the University of Louisiana System, the Louisiana Stadium and Exposition District (Superdome), or various levee boards came at a price and those who wanted the seats ponied up. http://www.nola.com/politics/index.ssf/2013/11/bobby_jindals_political_appoin.html

Even the job of monitoring Louisiana’s hundreds of boards and commissions went to the director of the Committee to Re-Elect Bobby for an eight-month period from mid-October, 2012 to June 28, 2013, thus insuring that board appointees would do the bidding of the governor.

That, apparently, is the way politics work just about everywhere.

In Florida, a large enough campaign contribution can even buy justice—or stymie justice, as the case may be.

Pam Bondi, attorney general in the Sunshine State (talk about a misnomer), solicited—and received—a $25,000 contribution from the Donald Trump Foundation and once the check cleared, she promptly dropped her office’s investigation of Trump University, conveniently citing insufficient grounds to proceed. http://finance.yahoo.com/news/florida-ag-asked-trump-donation-075016133.html

And in Bossier City, less than $20,000 in campaign contributions has smoothed the way for the transfer of the city’s water and sewer department to a private Baton Rouge firm—at a first-year cost of more than $1 million to the city, and the loss of about 40 jobs in the department.

http://www.ksla.com/story/32159296/public-private-partnership-in-bossier-city-threatens-dozens-of-jobs

http://www.ktbs.com/story/32163755/bossier-city-council-considers-privatizing-water-sewer-operations

Word has been filtering down to LouisianaVoice for some time now that Caddo Parish is the new New Orleans in terms of political corruption. Apparently elected officials across the Red River have been paying attention to both Caddo Parish and to Bobby Jindal’s love of privatization as well as his thirst for campaign contributions.

The city council voted unanimously Tuesday (June 6) afternoon to approve the PUBLIC PRIVATE PARTNERSHIP AGREEMENT with Manchac Consulting Group out of Baton Rouge.

Typical of the seemingly growing penchant of public officials for operating out of earshot of the public, more than 100 employees of the Water and Sewer Department have been told nothing over the last several months of negotiations. City officials have refused to provide information to workers even though an organizational chart proposed by Manchac reflects half the current staffing in some departments.

On Tuesday, the vote was 7-0 to approve a five-year contract with Manchac Consulting to oversee the city water and sewer treatment plants, distribution lines and daily operations at a first-year cost of a little more than $1 million the first year, including $120,000 upon city officials’ signing the contract.

Campaign finance reports show that at-large council member David Montgomery received $2500 from Manchac, $2500 from its CEO Justin Haydel, $2500 from Atakapa Construction Group, which includes Haydel and Manchac President Kenneth Ferachi as officers, $2500 from Manchac Senior Project Manager Christopher LaCroix, and $999 from Ferachi—a total of $10,999.

Council member Scott Irwin received $500 each ($2000 total) from Atakapa, Ferachi, Haydel and Manchac Consulting Group.

Bossier City Mayor Lorenz “Lo” Walker received $6,644 total, including $2500 from Manchac Consulting, $3,144 from Haydel (including $2,144 in an in-kind contribution for a fundraising dinner in Baton Rouge), and $1000 from Atakapa Construction.

An Associated Press story pointed out that the Trump family foundation contribution, received by a political group supporting Bondi’s re-election, was received on September 17, 2013 and was in “apparent violation” of rules regulating political activities by charities.

But hey, what’s a little obstacle like a federal law when you’re trying to buy your way out of trouble? It was The Donald himself, after all, who is on record as saying he expects and receives favors from politicians to whom he gives money.

The commitment to pay Manchac more than $1 million over the next 12 months may be completely above-board—we hope so, anyway—but taken in context with the way city officials kept their own employees in the dark even as the mayor and two council members took contributions from the prospective vendor, it just doesn’t look good. And, as they say: perception is everything.

Public employees, after all, are prohibited—as they should be—from accepting anything of monetary value from vendors or contractors. So why should elected officials be held to a completely different (read: double) standard of ethical behavior?

Before we leave this topic, it should be pointed out that politicians will only do what they can get away with. If the voters lower the bar, then our public officials will respond accordingly. Only if we demand accountability, will officials be accountable. A compliant legislature not held accountable by voters allowed Jindal to rape this state for eight years. Likewise, our failure to insist on statesmanship instead of demagoguery, decorum instead of buffoonery, serious discussion of the issues instead of meaningless rhetoric, sanity instead of hysteria, has created candidates like Donald Trump.

If we consistently look the other say and say that’s just the way it is, that’s the way it will always be.

And we will have no one to blame but ourselves.

We will have done it to ourselves.

 

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