CEO 78-10 -- February 16, 1978

(Revoked; see CEO 78-93)

CONFLICT OF INTEREST

CITY POLICE OFFICERS OWNERS OF PAWN OUTLET LOCATED IN CITY

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

Prepared by: Phil Claypool

SUMMARY:

Although s. 112.313(7)(a), F. S. 1975 prohibits a public officer or employee from having any employment or contractual relationship with a business entity subject to the regulation of his public agency, the Ethics Commission has previously determined that mere ownership of a business entity does not constitute an employment or contractual relationship with that business entity. See CEO 77-68, question 1. The Code of Ethics therefore does not prohibit a husband and wife, both of whom are city police officers, from owning a pawn outlet subject to the regulation of the office of the sheriff, their public agency. It is noted, however, that legislation has been proposed for the upcoming legislative session which would amend the Code of Ethics to prohibit a public officer or employee from owning a business which is subject to the regulation of his agency

QUESTION:

Does a prohibited conflict of interest exist where I and my spouse, who are both city police officers, also own a pawn outlet located in the city?

Your question is answered in the negative.

In your letter of inquiry you advise that you and your husband are police officers with the Office of the Sheriff of ____. In addition, you advise that you and your husband jointly own a pawn outlet located in the city. In a telephone conversation with our staff, your husband advised that the pawn outlet is owned as a sole proprietorship rather than as a corporation, and that the business is operated by his brother and sister-in-law who do approximately 99 percent of the work.

Chapter 428 of the ____ Municipal Code provides that no person in the city may engage in business as a pawnbroker without a permit issued by the sheriff. That chapter further provides grounds and procedures under which the sheriff may grant, deny, renew, suspend and revoke permits, and requires that every pawnbroker must make a written report to the sheriff of every article pawned or purchased by him. Every pawnbroker must keep records of such identification, which must be produced by each person attempting to pawn an item, and every pawn outlet is subject to inspection at any time.

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.]

It is apparent that your pawn outlet is a business entity which is subject to the regulation of the Office of the Sheriff, your public agency. Section 112.312(2) and (3), F. S. 1975. However, we have previously determined that the mere ownership of a business entity does not constitute an employment or contractual relationship with that business entity. See CEO 77-68, question 1.

Accordingly, we find that the Code of Ethics for Public Officers and Employees does not prohibit you and your husband, city police officers, from owning a pawn outlet located in the city. However, we wish to alert you to the fact that legislation has been proposed for the next legislative session that would amend the Code of Ethics to prohibit a public officer or employee from owning a business which is subject to the regulation of his or her agency.