CEO 77-164 -- October 24, 1977

CONFLICT OF INTEREST

COUNTY COMMISSIONER ON BOARD OF DIRECTORS OF NONPROFIT ORGANIZATION CONTRACTING WITH COUNTY TO PROVIDE SERVICES UNDER LEAA GRANT

To: (Name withheld at the person's request.)

Prepared by: Phil Claypool

SUMMARY:

Although s. 112.313(7)(a), F. S., prohibits a public officer from having an employment or contractual relationship with a business entity which is doing business with his agency, this section is not violated where a county commissioner sits on the board of directors of a nonprofit organization contracting to provide services under an LEAA grant, because the commissioner is neither employed by nor has a contractual relationship with the organization. As the organization does not do business with the county, but rather provides services to residents of the county pursuant to the terms of the grant, there is no violation of s. 112.313(3), prohibiting a public officer from doing business with his public agency.

QUESTION:

Would a prohibited conflict of interest exist where a county commissioner is a member of the board of directors of a nonprofit organization which contracts with the board of county commissioners to provide services under an LEAA grant?

Your question is answered in the negative.

In your letter of inquiry you advise that the subject county commissioner is a member of the board of directors of a nonprofit organization which has contracted with the board of county commissioners to provide services under a grant of Law Enforcement Assistance Administration (LEAA) funds. According to the contract between the county and the corporation, the grant will be used to operate an awareness and relationship center, intended to implement a counseling and alternative school program for adolescents and their families. You also advise that the subject commissioner does not have a contractual relationship individually with the corporation and that he does not receive any compensation or other consideration for serving on its board of directors.

The Code of Ethics for Public Officers and Employees provides in part:

CONFLICTING EMPLOYMENT OR CONTRACTUAL RELATIONSHIP. -- No public officer or employee of an agency shall have or hold any employment or contractual relationship with any business entity or any agency which is subject to the regulation of, or is doing business with, an agency of which he is an officer or employee . . . ; nor shall an officer or employee of an agency have or hold any employment or contractual relationship that will create a continuing or frequently recurring conflict between his private interests and the performance of his public duties or that would impede the full and faithful discharge of his public duties. [Section 112.313(7)(a), F. S. 1975.]

This provision prohibits a public officer from having an employment or contractual relationship with a business entity which is doing business with his agency. However, this provision does not apply because the subject commissioner does not have employment or a contractual relationship with the corporation. See CEO 77-16, a copy of which is enclosed.

Nor do we find applicable s. 112.313(3), F. S. 1975, which prohibits a public officer acting in his official capacity from purchasing any services for his own agency from a business of which he is a director. In the instant case, the nonprofit corporation is not selling any services to the county commission, but instead is providing services to the residents of the county pursuant to the terms of the grant. See CEO 77-16.

Accordingly, we find that the Code of Ethics does not prohibit the subject county commissioner from serving as a member of the board of directors of a nonprofit corporation which contracts with the board of county commissioners to provide services under an LEAA grant.