Louisiana Board of Ethics in the Matter of Chris C. Smtih

STATE OF LOUISIANA

COURT OF APPEAL

FIRST CIRCUIT

2021 CA 0164

BOARD OF ETHICS

VERSUS

CHRIS C. SMITH

Judgment Rendered: NOV 15 2021

On Appeal from the Ethics Adjudicatory Board
State of Louisiana, Division of Administrative Law

Number 2019 -15454 -ETHICS -A

Ethics Adjudicatory Board - Panel A
Administrative Law Judges
A. Brock Avery, Sherlyn Shumpert, Lance B. Vinson

Kathleen M. Allen Counsel for Plaintiff/ Appellant
Tracy M. Barker Louisiana Board of Ethics
Baton Rouge, Louisiana

Chris C. Smith Defendant/ Appellee
Arcadia, Louisiana In Proper Person

BEFORE: McCLENDON, WELCH AND THERIOT, JJ.

TO

8' vt4

McCLENDON, J.

The Louisiana Board of Ethics ( BOE), in its capacity as the Supervisory

Committee on Campaign Finance,' seeks review of a decision of the Ethics Adjudicatory

Board ( EAB), which held that the EAB was authorized to assess additional penalties

against a candidate for failing to file campaign finance disclosure reports. For the

following reasons, we reverse the decision of the EAB that imposed additional penalties
against the candidate.

FACTS AND PROCEDURAL BACKGROUND

Chris Smith unsuccessfully ran for mayor of the Town of Arcadia in 2018. In

connection with his campaign for mayor, Mr. Smith was provided with a schedule of

report filing dates pursuant to the Louisiana Campaign Finance Disclosure Act, LSA- R.S.
18: 1481, et seq. ( the Act), which included a report due on the tenth day prior to the

primary election ( 10- 13) and a report due on the tenth day prior to the general election

10- G). 2 Mr. Smith did not file either report, and the BOE imposed a $ 1, 000. 00 penalty

for each failure to file a required report, pursuant to LSA- R. S. 18: 1505. 4A( 1) and

2)( a)( iii). 3 Mr. Smith did not pay the late fees, and the BOE requested a hearing

before the EAB to determine if Mr. Smith was subject to additional penalties.

See LSA- R. S. 18: 1511. 1 ( establishing the Supervisory Committee on Campaign Finance Disclosure and
providing that the BOE shall function as the supervisory committee to administer and enforce the
provisions of the Campaign Finance Disclosure Act) and LSA- R. S. 18: 1483( 19) ( defining the supervisory
committee as the BOE when functioning as the Supervisory Committee on Campaign Finance Disclosure
to enforce the provisions of the Campaign Finance Disclosure Act).

2
The office of Mayor of Arcadia is an " any other" level office, which requires the filing of certain
campaign finance reports if the candidate for said office spends more than $ 2, 500. 00 or receives a
contribution in excess of $200. 00. See LSA- R. S. 18: 1484( 2). Because Mr. Smith received contributions in
the amount of $250. 00 and $ 1, 000. 00, the requirement to file with the BOE campaign disclosure reports
by the deadlines in the Act was triggered.

Further, LSA- R. S. 18: 1495. 4B( 4) provides that each candidate shall file a report no later than the
tenth day prior to the primary election that shall be complete through the twentieth day prior to the
primary election. Mr. Smith was required to file the 10- P campaign finance report by October 29, 2018,
in connection with the November 6, 2018 election. Additionally, LSA- R.S. 18: 1495. 4B( 5) provides that
each candidate shall file a report no later than the tenth day prior to the general election that shall be
complete through the twentieth day prior to the general election. Mr. Smith was required to file the 10- G
campaign finance report by November 28, 2018, in connection with the general election.

3 Louisiana Revised Statutes 18: 1505. 4A( 1) and ( 2)( a)( iii) provide:

A. ( 1) Any candidate, the treasurer or chairman of a political committee, or any other
person required to file any reports under this Chapter, who knowingly fails to file or who
knowingly fails to timely file any such reports as are required by this Chapter may be
assessed a civil penalty as provided in R. S. 18: 1511. 4. 1 for each day until such report is
filed.

2)( a) The amount of such penalty may be:

2

The hearing was conducted on March 13, 2020, before the EAB, Panel A. 5

Counsel for the BOE was present, but Mr. Smith, although given proper notice, failed to

appear for the hearing. Counsel for the BOE presented the case and offered ten

exhibits at the hearing, which were admitted into evidence, and the record was closed.

The EAB concluded that the BOE proved by clear and convincing evidence that Mr.

Smith knowingly failed to file the 10- P and 10- G reports required under the Act, thereby

authorizing the BOE to assess statutory penalties for the failure to meet the Act's

reporting requirements. The EAB further found that nothing in evidence rebutted the

presumption of Mr. Smith's knowing failure to file the reports.6

The EAB affirmed both penalties of $ 1, 000. 00. The EAB then referenced Mr.

Smith' s lack of responsiveness to the correspondence of the BOE and to the

adjudication hearing before the EAB, finding that it suggested little motivation on Mr.

Smith' s part to come into compliance with the reporting requirements of the Act.

Therefore, under these circumstances, and stating that Mr. Smith had a relatively small

campaign with receipts of less than $ 4, 000. 00, the EAB determined that an additional

penalty of $ 2, 000. 00 for each violation was warranted. The EAB further stated that

those penalties would be waived if Mr. Smith " file[ d] both outstanding penalties" within

sixty days of the EAB' s order. The Decision and Order were signed on May 1, 2020.

Thereafter, the BOE filed a Request for Rehearing and Reconsideration, asserting

that the Decision and Order exceeded the authority of the EAB and was therefore

contrary to law. The BOE contended that it, as the supervisory committee on campaign

iii) Forty dollars per day, not to exceed one thousand dollars, for any candidate for all
other offices and any treasurer or chairman of any political committee designated as a
principal campaign committee or subsidiary committee of such a candidate.

Additionally, LSA- R. S. 1511. 4. 1A provides that [ t] he staff of the supervisory committee may assess and
issue a final order for the payment of civil penalties for knowingly failing to file or knowingly failing to
timely file in accordance with R. S. 18: 1505. 4 and rules adopted by the supervisory committee."
4 See LSA- R. S. 18: 1505. 4A( 4)( a) and ( b) ( providing that the BOE may impose on a candidate required to
file a report under the Act, but who does not file such a report after a certain number of days after the
report is due and after an adjudicatory hearing by an adjudicatory panel of the EAB, an additional civil
penalty up to ten thousand dollars).

5 Louisiana Revised Statutes 42: 1141. 5A provides that the EAB shall sit in rotating panels and that the
determination of the majority of the panel in a particular case shall be the determination of the EAB.

G See LSA- R. S. 18: 1505. 1 ( setting forth that the failure to provide any required report within three days
after the final date for filing shall be presumptive evidence of intent not to file the report).

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finance, is the only body that may impose additional civil penalties, not the EAB.

Additionally, the BOE maintained that the EAB erred in affirming the late fee orders

issued to Mr. Smith, as this issue was neither pending before the EAB nor under the

EAB' s jurisdiction.

The EAB granted reconsideration in part and denied reconsideration in part. The

EAB determined that the BOE' s assessment orders were before it as factual components

of the case and did not need to be affirmed. While the EAB found that the affirming of

those penalty assessments was inconsequential, as it did not affect the amount or

enforceability of the penalty assessments, it nevertheless found that, as a technical

matter, it should not have affirmed the BOE' s penalty assessments. Therefore, the

EAB, upon reconsideration, amended and revised the Decision and Order to remove the

language affirming the penalty assessments.

However, with regard to the assessment of additional penalties, the EAB

determined that the statutory authority granted to it extends to the determination of

the amount of additional penalties and concluded that the issue of additional penalties

was properly before and adjudicated by the EAB. The EAB signed its order regarding

the Request for Rehearing and Reconsideration on August 10, 2020, and the BOE

appealed.'

ASSIGNMENTS OF ERROR

In its appeal, the BOE assigns the following as error:

1. The EAB erred as a matter of law by concluding that its statutory authority

included the ability to assess penalties or other sanctions in matters involving the
failure to file finance disclosure reports under the Campaign Finance Disclosure

Act; and

2. The EAB erred as a matter of law when it ordered the assessment of an

additional penalty of $ 2, 000. 00 against Mr. Smith for each untimely campaign

disclosure report, and the waiver of such penalty if said reports were

subsequently filed, when the EAB lacked the statutory authority under the

Campaign Finance Disclosure Act.

We note that Mr. Smith has not participated in any way in this appeal.
A'

STANDARD OF REVIEW

The BOE filed this appeal pursuant to the authority set forth in LSA- R. S.

42: 1142A( 2)( a). This statute, which governs appeals under the Code of Governmental

Ethics, 8 provides:

Upon the unanimous vote of its members present and voting, the
Board of Ethics may appeal a final decision of the Ethics Adjudicatory
Board to the Court of Appeal, First Circuit, within thirty days after the
signing and transmission of the notice of the final decision, or if a
rehearing is requested, within thirty days after the transmission of the
notice of the decision of the Ethics Adjudicatory Board on the rehearing.
Only questions of law in a final decision may be appealed pursuant to this
Paragraph, and the appeal shall be limited to the record created at the
hearing before the adjudicatory panel of the Ethics Adjudicatory Board.
For purposes of this Paragraph, " final decision" means the decision and
order of the adjudicatory panel of the Ethics Adjudicatory Board on the
final disposition of the entire matter the Ethics Adjudicatory Board was
required to hear.

Because only questions of law in a final decision may be appealed under LSA- R. S.

42: 1142A( 2)( a), the standard of review herein is de novo. See In re Ferrara Fire

Apparatus, Inc., 03- 0446 ( La. App. 1 Cir. 12/ 31/ 03), 868 So. 2d 762, 764 ( on legal

issues, the reviewing court gives no special weight to the findings of the administrative

tribunal, but conducts a de novo review of questions of law and renders judgment on

the record).

DISCUSSION

The BOE, functioning as the Supervisory Committee on Campaign Finance

Disclosure, is charged with administering and enforcing the provisions of the Campaign

Finance Disclosure Act. See LSA- R. S. 42: 1132C.9 The legislature recognized that the

effectiveness of representative government is dependent upon a knowledgeable

electorate and the confidence of the electorate in their elected officials. Therefore, the

legislature enacted the Act to provide public disclosure of the financing of election

8
Pursuant to the authority of LSA -Const. art. X, sec. 21, the legislature enacted the Code of
Governmental Ethics, LSA- R. S. 42: 1101, et seq., which provided for the creation of the Louisiana Board
of Ethics in LSA- R. S. 42: 1132. See In re Arnold, 07- 2342 ( La. App. 1 Cir. 5/ 23/ 08), 991 So. 2d 531, 536.
9
Louisiana Revised Statutes 42: 1132C provides, in pertinent part that "[ t] he Board of Ethics shall
administer and enforce the provisions of this Chapter and the rules, regulations, and orders issued
hereunder with respect to public employees and elected officials, including final decisions of the Ethics
Adjudicatory Board. In addition, the Board of Ethics, functioning as the Supervisory Committee on
Campaign Finance Disclosure, shall administer and enforce the provisions of Chapter 11 of Title 18 of the
Louisiana Revised Statutes of 1950 [ LSA- R. S. 18: 1481, et seq.], and the rules, regulations, and orders
issued thereunder."

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campaigns and to regulate certain campaign practices. LSA- R. S. 18: 1482. See also In

re Hughes, 03- 3408 ( La. 4/ 22/ 04), 874 So. 2d 746, 777.

The central issue in this appeal is whether the EAB has the statutory authority to

assess penalties or other sanctions in matters involving the failure to file finance

disclosure reports under the Act, including the determination and imposition of

additional penalties under LSA- R. S. 18: 1505. 4A( 4)( a) and ( b), when a candidate files a

10- P report more than six days late or a 10- G report more than eleven days late.

Louisiana Revised Statutes 18: 1505. 4A(4)( a) and ( b) provide:

4)( a) For reports required by this Chapter which are required to be filed
between the time a candidate qualifies and election day, in addition to any
penalties which may be imposed under this Section or any other law, the
supervisory committee may impose on any person required to file such a
report who has not filed such report by the sixth day after the report is
due, after an adjudicatory hearing by an adjudicatory panel of the Ethics
Adjudicatory Board conducted in accordance with the provisions of the
Code of Governmental Ethics, with notice to the party who is the subject
of the hearing, an additional civil penalty not to exceed ten thousand
dollars.

b) For all other reports required by this Chapter, in addition to any
penalties which may be imposed by this Section or any other law, the
supervisory committee may impose on any person required to file such a
report who has not filed such report by the eleventh day after the report
is due, after an adjudicatory hearing by an adjudicatory panel of the
Ethics Adjudicatory Board conducted in accordance with the provisions of
the Code of Governmental Ethics, with notice to the party who is the
subject of the hearing, an additional civil penalty not to exceed ten
thousand dollars.

The BOE argues that under this statue it has the sole authority to determine and

impose the amounts of the penalties. Nevertheless, the EAB determined that it could

assess such penalties, stating that the BOE read the statute in isolation and failed to
consider the related statute, LSA- R. S. 42: 1141. 5.

Louisiana Revised Statutes 42: 1141. 5B, entitled " Adjudicatory hearings,"

provides:

After the hearing, the adjudicatory panel shall determine whether a
violation of any provision of law within the jurisdiction of the Board of
Ethics has occurred. If the adjudicatory panel determines that a violation
has occurred, it shall determine what authorized penalties or other
sanctions, if any, should be imposed and shall issue a final decision.

The EAB concluded that when reading the two statutes in pari materia, the more

reasonable interpretation extends the authority to the EAB to determine the amount of

I

additional penalties. Otherwise, it stated, the role of the EAB in the adjudication would

be ministerial and so limited so as to render the process largely meaningless.

Therefore, the EAB found that the issue of additional penalties was properly before and

adjudicated by the EAB. We disagree.

Although LSA- R. S. 42: 1141. 56 seems to indicate that the EAB has authority to

impose penalties or sanctions after it has found a violation of any provision of law

within the jurisdiction of the BOE, we find that the legislature did not intend for the EAB

to have authority to assess additional penalties under the Campaign Finance Disclosure
Act. First, the Act gives authority to the BOE, in its capacity as the Supervisory

Committee on Campaign Finance, to impose additional penalties under the Act, as

provided in LSA- R.S. 18: 1505. 4A(4)( a) and ( b). See also LSA- R. S. 18: 1511. 1 and

18: 1483( 19). Further, as previously noted, LSA- R. S. 42: 1132C provides, in pertinent

part:

The Board of Ethics shall administer and enforce the provisions of
this Chapter and the rules, regulations, and orders issued hereunder with
respect to public employees and elected officials, including final decisions
of the Ethics Adjudicatory Board. In addition, the Board of Ethics,
functioning as the Supervisory Committee on Campaign Finance
Disclosure, shall administer and enforce the provisions of Chapter 11 of
Title 18 of the Louisiana Revised Statutes of 1950, and the rules,
regulations, and orders issued thereunder.

Emphasis added). 10 Additionally, LSA- R. S. 42: 1153A provides that upon a

determination that an elected official or other person has violated any provision of any

law within the jurisdiction of the BOE " except violations of the Campaign Finance

Disclosure Act which shall be governed by Chapter 11 of Title 18 of the

Louisiana Revised Statutes of 1950," the EAB may censure the elected official or

person or impose a fine. ( Emphasis added). Thus, we find, pursuant to the clear

provisions of these statutes, that the legislature gave the BOE, functioning as the

Supervisory Committee on Campaign Finance Disclosure, the authority to assess

additional penalties under the Act, and not the EAB.

Even if one were to find a conflict between the statutes, our conclusion is

supported by the fundamental rule of statutory construction that the more specific

Campaign Finance." Its
io Again, Chapter 11 of Title 18, LSA- R. S. 18: 1481, et seq., is entitled " Election
short title is the Campaign Finance Disclosure Act. See LSA- R. S. 18: 1481.
7

statute controls over a broader, more general statute. When two statutes deal with the

same subject matter, if there is a conflict, the statute specifically directed to the matter

at issue must prevail as an exception to the statute more general in character.

Louisiana Board of Ethics v. Purpera, 20- 0801 ( La. App. 1 Cir. 2/ 19/ 21), 321 So. 3d

401, 405, writ denied, 21- 00404 ( La. 5/ 11/ 21), 315 So. 3d 868. Moreover, the word

shall" must be given meaning. Id.

Therefore, the more general provision giving authority to the EAB to determine

violations of law within the jurisdiction of the BOE and to impose penalties and other

sanctions upon the determination that a violation has occurred, must be limited by the

specific provisions giving the authority to the BOE, functioning as the Supervisory

Committee on Campaign Finance Disclosure, to administer and enforce the provisions of

the Act. Accordingly, we find that the EAB legally erred when it imposed additional

penalties against Mr. Smith.

Additionally, with regard to the BOE's argument that the EAB erred in failing to

issue an order finding only that the 10- P report was more than six days late and that
the 10- G report was more than eleven days late, we disagree. The BOE had previously

made the determination that the 10- P report was more than six days late and the 10- G

report was more than eleven days late when it imposed the two $ 1, 000. 00 penalties.

Moreover, the EAB made findings of fact that Mr. Smith " did not file either the 10- P or

the 10- G report by its deadline" and that "[ a] s of the date of the hearing, [ Mr. Smith]

had not filed the 10- P or 10- G reports or paid the assessed fees." As there is no

dispute between the adverse parties to this appeal regarding the determination that Mr.

Smith failed to timely file the required reports under the Act, there is no controversy for
See Steiner v. Reed, 10- 1465
consideration by this court regarding this issue.
Moreover, to the extent the BOE seeks
La. App. 1 Cir. 2/ 11/ 11), 57 So. 3d 1188, 1192.

review of these factual determinations, only questions of law in a final decision may be

appealed pursuant to LSA- R. S. 42: 1142A( 2)( a). See Louisiana Bd. of Ethics ex rel.

Empower PAC, 13- 1841 ( La.App. 1 Cir. 5/ 2/ 14), 145 So. 3d 398, 401. Accordingly, we

do not consider this argument of the BOE.

CONCLUSION

For the above reasons, we reverse the decision of the Ethics Adjudicatory Board

that held that the Ethics Adjudicatory Board was authorized to assess additional

penalties against a candidate for failing to file required campaign finance disclosure

reports. Costs of this appeal in the amount of $ 485. 25 are assessed against the Ethics

Adjudicatory Board.

DECISION OF ETHICS ADJUDICATORY BOARD REVERSED.

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