LOCAL AGENCIES: Provides for local ethics entities. (8/1/26)

2026 Regular Session Introduced by Patrick McMath

Local ethics entities may allocate taxes they levy to other local agencies within their jurisdiction to bolster compliance with state ethics laws.

Effective date 8/1/2026.

Purpose and Intent

Creates a new statute to govern how funds raised by local ethics entities can be used.

Specifically authorizes the allocation of taxes levied by a local governmental subdivision for a local ethics entity to other local agencies under the same jurisdiction, with the goal of ensuring compliance with state ethics laws.

Key Provisions

Adds a new statute: R.S. 33:9612.2 (Effective August 1, 2026).

Allocation authority:

Any tax that is levied and imposed by a local governmental subdivision for a local ethics entity may be allocated by that ethics entity to any local agencies within its jurisdiction.
The purpose of the allocation is to support compliance with state law (ethics-related requirements) across the local government structure.

Scope:

The provision applies to local ethics entities established by local subdivisions. It affects how those taxes may be distributed rather than changing the existence or mandate of the local ethics entity itself.

Affected Parties

Local government subdivisions that establish local ethics entities.

Local agencies under the jurisdiction of those ethics entities (e.g., city/parish departments or units that fall within the ethics entity’s oversight).

Taxpayers in the sense that tax funds may be reallocated to improve ethics compliance activities.

Procedural and Timeline Details

Effective date: August 1, 2026.

Legislative history:

Introduced in the Senate (SB 458) by Senator McMath (co-sponsored by Patrick McMath).
Reported favorably by the committee on April 15, 2026.
Read for a second time and placed on the calendar for consideration.

Note: The bill adds a specific authority to reallocate funds rather than creating new funding streams; it allows the ethics entity to distribute resources to other local agencies to support compliance with state ethics laws.

Practical Implications

Flexibility in Funding: Local ethics entities gain explicit authority to allocate their tax revenues to other local agencies to bolster ethics compliance programs, audits, training, reporting, and related functions.

Potential for Streamlined Compliance: By enabling resource sharing or centralized support across agencies, municipalities/parishes may achieve more consistent adherence to state ethics requirements.

Oversight and Accountability: While the bill clarifies allocation authority, it does not specify metrics, reporting, or caps on allocations. Local entities may need internal policies to ensure transparent use of funds and compliance with any state ethics mandates.

Bottom Line

SB 458 adds a targeted, enabling provision allowing local ethics entities to allocate taxes they levy to other local agencies within their jurisdiction to promote and ensure compliance with state ethics laws. Effective August 1, 2026, the measure broadens the potential use of local ethics funding to support broader compliance activities across the governing subdivision.

Bill