Kay Ivey changes stance, signs order prohibiting use of loaned executives

Kay Ivey Signing
Photo of signing. [Photo Credit: Governor's office]

On the first day of her second year as Alabama governor, Gov. Kay Ivey on Wednesday signed an executive order that bans the practice of “loaning” executives in Alabama’s executive branch agencies, despite saying she was okay with the practice just last week.

On April 5, Ivey went on record with WSFA 12 and told them she does not “have any problem with loaned executives” While adding that she does believe they need to be under the ethics law.

Nevertheless, six days later, without explanation of the reverse of her position, Ivey signed Executive Order 714. Effective immediately the order prohibits any executive branch agencies from being “loaned” non-governmental personnel while they are also being paid by private entities, thus ensuring outside parties or entities do not have an inappropriate amount of influence in the executive operations of state.

“When I first took office one year ago, I promised an open and transparent administration; I’ve followed through on that promise and this directive is just another part of our continuing efforts,” Ivey said. “Executive Order 714 will prohibit someone from working in a key government role while taking a salary from private sources for the work being performed.”

The order applies to any appointments made by Ivey, or any other member of the executive branch. Executive appointees or staff members cannot serve in the Ivey administration while also receiving compensation from any private company for the work being performed for the state.

The order also prohibits all appointees or staff members from seeking a private company to provide a loaned employee and or compensation from a private entity, and does not apply to personnel serving on state boards, state commissions or to state contractors.