CEO 76-1 -- January 16, 1976

CONFLICT OF INTEREST

TRUSTEES OF HOSPITAL DISTRICT ALSO DIRECTORS OF HOSPITAL ASSOCIATION

To: John D. McElheny, Attorney, Northwest Lake County Hospital District, Orlando

Prepared by: Gene Rhodes

SUMMARY:

No conflict of interest under the Code of Ethics for Public Officers and Employees exists where two members of the board of trustees of a hospital district which levies taxes and disburses funds to a hospital association are also directors of said hospital association. The hospital district exercises no control over the association, a nonprofit corporation, but merely disburses tax revenue to the association for the purpose of running the hospital. Inasmuch as the district neither does business with nor regulates the association, no conflict of interest is created.

QUESTION:

Does a prohibited conflict of interest exist where two members of the board of trustees of a hospital district which levies taxes and disburses funds to a hospital association for the purpose of operating the only hospital in the district are also directors of said hospital association?

This question is answered in the negative.

Your letter of inquiry advises us that the subject trustees of the hospital district are also directors of a nonprofit corporation which operates the only hospital in the district. The hospital district exercises no control over the hospital association but does disburse tax revenue to the association for the purpose of running the hospital. The district does not do business with the association, and neither individual trustee/director is employed by or holds a contractual relationship with either the district or the association.

The above-described situation does not present a prohibited conflict of interest under the Code of Ethics for Public Officers and Employees. You have informed us that the hospital district is considering the possibility of regulating the hospital association. In this situation no conflict would be created under Fla. Stat. s. 112.313(7), as created by Ch. 75-208, Laws of Florida, because neither trustee/director is employed by, or holds a contractual relationship with, either the district or the association.