GIFT ACCEPTANCE AND DISCLOSURE/CONFLICT OF INTEREST

COUNTY ECONOMIC DEVELOPMENT DIRECTOR'S
PARTICIPATION IN ECONOMIC DEVELOPMENT EVENTS
FUNDED BY LOCAL ECONOMIC DEVELOPMENT CORPORATION

To: Name withheld at person's request (Charlotte County)

SUMMARY:

Under the circumstances presented, payment by a local economic development corporation for a county economic development director's attendance at economic development events, or the corporation's reimbursement of the director for travel or expenses for economic development, does not constitute a prohibited or reportable gift and is not prohibited by other provisions of the Code of Ethics.¹

QUESTION:

Does payment by a local economic development corporation for a county economic development director's attendance at economic development events, or the corporation's reimbursement of the director for travel or expenses for economic development, constitute a prohibited or reportable "gift" to the director under Section 112.3148, Florida Statutes, or is such payment or reimbursement prohibited by other provisions of the Code of Ethics?

Under the circumstances presented, your question is answered in the negative.

You write in behalf of a county employee who serves as the county's economic development director and who oversees the county's economic development office (a department of county government). You relate that the purpose of the office is to promote and support economic development within the county, that the employee reports directly to the board of county commissioners, and that the employee is not a "local officer" as defined in Section 112.3145, Florida Statutes, or a "reporting individual" as defined in Section 112.3148, Florida Statutes.

You state that a nonprofit corporation was formed many years ago by local businesses and individuals supporting economic development in the county and that the corporation's purpose is to advocate and facilitate a stronger local economy through diversified job growth. You relate that there is no contractual relationship between the corporation and the county's economic development office, or between the corporation and any part of county government, that the corporation is not regulated by county government, that the county does not receive funds from the corporation and the corporation does not receive funds from the county, that the county employee has no employment or contractual relationship with the corporation, that the employee does not serve on the corporation's board of directors, and that the employee is not a member of the corporation.

You relate that the county employee, or members of the employee's staff, attend economic development functions, dinners, and related events sponsored and paid for by the corporation, that these events are associated with county economic development efforts and are for a public purpose, and that as to attendance at these events the employee does not submit reimbursement requests to the county, since the events and the employee's attendance at them already are paid for by the corporation. Additionally, at times the corporation provides funding (primarily, travel and entertainment expenses) to the employee or members of the employee's county staff, directly related to county economic development efforts, for which the employee or staff members are not reimbursed by the county; typically, the employee or staff member pays for these expenses out of his or her own funds, provides receipts and an itemization of expenses through the county economic development office to the corporation, with the corporation then directly reimbursing the employee or staff member. You stress that the receipts and itemized accountings are transparent county records, that no reimbursement is sought for personal meals, personal entertainment, or personal travel, but that reimbursement is sought from the corporation only for expenses directly associated with county economic development efforts.

We find that the county employee is not prohibited by Section 112.3148(4), Florida Statutes, from accepting paid attendance at events or reimbursement from the corporation, for economic development efforts, nor is the employee subject to reporting (disclosing) such items pursuant to Section 112.3148(8), Florida Statutes. This is so because at the local level of government the only donees (gift recipients) subject to the gifts law of Section 112.3148, Florida Statutes, are "reporting individuals," defined in Section 112.3148(2)(d), Florida Statutes, to mean individuals required to file financial disclosure (CE Form 1 or CE Form 6), and the county employee is not a reporting individual.²

Regarding Section 112.313(2), Florida Statutes, which essentially prohibits any public officer or employee, regardless of whether he or she is a reporting individual, from being bribed in the performance of his or her public duties, we do not find the scenario presented to be indicative of such a transgression. As to Section 112.313(4), Florida Statutes, which prohibits any public officer or employee from accepting anything of value when they know, or with the exercise of reasonable care should know, that it was given to influence their official decisionmaking, we similarly do not find it to prohibit the paid attendance or reimbursement for county economic development purposes, under the circumstances presented.³

Accordingly, under the circumstances presented, we find that the county economic development director, or the director's staff who are not "reporting individuals," are not prohibited by the Code of Ethics for Public Officers and Employees (Part III, Chapter 112, Florida Statutes) from attending economic development events at the expense of the local economic development corporation or from being reimbursed by the corporation for economic development travel and expenses.

ORDERED by the State of Florida Commission on Ethics meeting in public session on December 7, 2018, and RENDERED this 12th day of December, 2018.

____________________________________

Guy W. Norris, Chair

^[1]The statutes within the Code of Ethics, cited herein, may be viewed on the Commission on Ethics website (www.ethics.state.fl.us).

^[2]At the local government level, to be a "reporting individual" one must be a "local officer" as defined in Section 112.3145(1)(a), Florida Statutes. County economic development director is not a position listed as a local officer and, while "local officer" includes certain purchasing agents, you relate that the county employee is not a purchasing agent as defined in Section 112.3145(1)(a)3, Florida Statutes (a purchasing agent having authority in excess of CATEGORY ONE under Section 287.017, Florida Statutes—in excess of $20,000). "Purchasing agent" is defined in Section 112.312(20), Florida Statutes.

^[3]Nor do we find the situation presented to be indicative of a corrupt use or attempted use of public position under Section 112.313(6), Florida Statutes, or to constitute a conflicting employment or contractual relationship under Section 112.313(7)(a), Florida Statutes.