CEO 77-167 -- October 24, 1977

CONFLICT OF INTEREST

CITY COMMISSIONER ACCEPTING MEMBERSHIP ON BOARD OF TRUSTEES OF NONPROFIT CORPORATION LEASING PROPERTY FROM CITY

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

Prepared by: Phil Claypool

SUMMARY:

Section 112.313(7)(a), F. S., relating to conflicting employment or contractual relationship, would not be violated were a city commissioner to serve on the board of trustees of a nonprofit corporation which leases property from the city, inasmuch as he would have neither an employment nor a contractual relationship with the corporation. While s. 112.313(3) prohibits a public officer from serving as a member of the board of directors of a business entity which leases any realty to his agency, it does not prohibit him from being a director of a business which leases property from his agency. Accordingly, the Code of Ethics does not prohibit a city commissioner from serving on the board of trustees of a nonprofit corporation which leases property from the city.

QUESTION:

Would a prohibited conflict of interest exist were a city commissioner to accept a membership on the board of trustees of a nonprofit corporation which leases property from the city?

Your question is answered in the negative.

In your letter of inquiry and in a telephone conversation with our staff, you advise that the subject city commissioner has been offered membership on the board of trustees of a nonprofit corporation. You also advise that the corporation recently has obtained a 30-year lease of property owned by the city for a nominal sum, with the corporation agreeing to make extensive improvements to the property. In addition, you advise that the subject commissioner, if he accepts membership on the board of trustees, would not receive any salary or other compensation for serving in that capacity.

The Code of Ethics for Public Officers and Employees provides in relevant 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 does not apply in the present case because the subject commissioner would not have an employment or contractual relationship with the corporation by virtue of his being a member of its board of trustees. See CEO 77-16, a copy of which is enclosed. The Code of Ethics also provides:

DOING BUSINESS WITH ONE'S AGENCY. -- No employee of an agency acting in his official capacity as a purchasing agent, or public officer acting in his official capacity, shall either directly or indirectly purchase, rent, or lease any realty, goods, or services for his own agency from any business entity of which he or his spouse or child is an officer, partner, director, or proprietor or in which such officer or employee or his spouse or child, or any combination of them, has a material interest. Nor shall a public officer or employee, acting in a private capacity, rent, lease, or sell any realty, goods, or services to his own agency, if he is a state officer or employee, or to any political subdivision or any agency thereof; if he is serving as an officer or employee of that political subdivision. . . . [Section 112.313(3), F. S. 1975.]

This provision prohibits a public officer from serving as a member of the board of directors of a business entity which leases any realty to his agency. Here, however, the subject commissioner would be a member of the board of trustees of a business entity which is leasing property from the city.

Accordingly, we find that the Code of Ethics does not prohibit the subject city commissioner from serving on the board of trustees of a nonprofit corporation which leases property from the city.