CEO 80-52 -- July 18, 1980

CONFLICT OF INTEREST

DEPARTMENT OF COMMERCE EMPLOYEE PARTICIPATING IN NONPROFIT ASSOCIATION OF BUSINESSES

To: Gary Cliett, Department of Commerce, Division of Economic Development, Tallahassee

Prepared by: Phil Claypool

SUMMARY:

Reference is made to CEO 80-45, in which it was concluded that noncompensated service as an officer of a nonprofit corporation does not constitute an employment or contractual relationship for purposes of the prohibition contained in s. 112.313(7)(a), F. S. Similarly, the Code of Ethics is not deemed to prohibit an employee of the Department of Commerce, Division of Economic Development, from serving without compensation as chairman of the board of a nonprofit association of businesses within the state.

QUESTION:

Does a prohibited conflict of interest exist when I, an employee of the Department of Commerce, Division of Economic Development, am the chairman of the board of a nonprofit association of businesses within the state?

Your question is answered in the negative.

In your letter of inquiry you advise that you are employed by the Department of Commerce, Division of Economic Development, with the responsibilities of writing a division marketing plan, coordinating a trade mission to Canada, monitoring the requirements of the Governor's Small Business Advisory Council, and assisting with the reestablishment of the Florida Research and Development Commission. You also advise that currently you are serving in an honorary position as chairman of the board of a newly formed, nonprofit association of small businesses in Florida. In this position, you advise, you do not receive any compensation from the association; nor do any of the officers or directors receive any compensation for their contributions.

In a previous opinion, CEO 80-45, we found that the Code of Ethics for Public Officers and Employees did not prohibit an employee of the Bureau of Aquatic Plant Research and Control of the Department of Natural Resources from serving as director of, and editor of a magazine published by, a nonprofit corporation of persons interested in aquatic plant control. Our basis for that conclusion was that the employee did not have an employment or contractual relationship with the nonprofit corporation; therefore, the provisions of s. 112.313(7)(a), F. S., quoted in that opinion, did not apply to his situation.

For these reasons we find that you do not have an employment or contractual relationship with the nonprofit association by virtue of your noncompensated service as chairman of the board. Accordingly, we find that the Code of Ethics for Public Officers and Employees does not prohibit your serving as chairman of the board of a nonprofit association of businesses within the state while being employed in your present capacity with the Department of Commerce, Division of Economic Development.