HB 506 will empower such municipalities to establish an independent operating account for funds supporting local ethics entities. The operating accounts must be administered in a transparent manner and will be subject to independent audit.

HB 506 also provides for an independent system of procurement procedures that incorporates best practices in public bidding and competitive selection.

HB 506 is consistent with Home Rule Charter amendments that were overwhelmingly approved by New Orleans voters on October 4, 2008. The Charter now allocates funds in support of ERB and OIG operations equal to three-quarters of one percent (.075%) of the City’s annual operating budget.

HB 506 authorizes the establishment of an operating account to receive the funds each year and subjects the account to transparent administration and independent audit. HB 506 will also require that local ethics entities handle their procurements in accordance with best practices.

By requiring transparent and accountable administration of operating funds and procurements, HB 506 supports the independence and integrity of local ethics entities.

In order to implement HB 506, each jurisdiction must first pass an ordinance, thereby assuring that each home rule municipality will continue to exercise local control over its own affairs.