CEO 81-82 -- December 18, 1981
CONFLICT OF INTEREST
DEPARTMENT OF HEALTH AND REHABILITATIVE SERVICES EMPLOYEE SERVING ON BOARD OF DIRECTORS OF NONPROFIT SERVICE PROVIDER
To: (Name withheld at the person's request.)
No prohibited conflict of interest would be created were a volunteer services coordinator employed by the Department of Health and Rehabilitative Services to serve on the board of directors of a nonprofit corporation which has contracted with the Department as a service provider. A similar result was reached in CEO 77-16.
Would a prohibited conflict of interest be created were you, a volunteer services coordinator employed by the Department of Health and Rehabilitative Services, to serve on the board of directors of a nonprofit corporation which has contracted with the Department as a service provider?
Your question is answered in the negative.
In your letter of inquiry you advise that you are a Volunteer Services Coordinator with the Department of Health and Rehabilitative Services, District Two, Service Network 2 Office. You question whether you may serve on the Board of Directors of a private nonprofit corporation which provides community mental health services as a subcontractor with another organization, which in turn has contracted with the District Mental Health Board. You also advise that the corporation contracts with the Department to provide Title XX day care services, as well as services to the Children, Youth and Families Program and to the Developmental Services Program. In a telephone conversation with our staff, you advised that members of the board of directors do not receive any compensation for their service.
In a previous opinion, CEO 77-16, we found no prohibited conflict of interest where an employee of the Department wished to serve on the board of directors of a nonprofit corporation which provided mental health services. We find that the rationale of that opinion is equally applicable to the circumstances you have presented, and we accordingly find that no prohibited conflict of interest would be created were you to serve as a noncompensated member of the board of directors of the nonprofit corporation.