CEO 80-58 -- September 19, 1980

CONFLICT OF INTEREST

EMPLOYEE OF PROPERTY APPRAISER'S OFFICE HOLDING ACTIVE REAL ESTATE LICENSES

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

Prepared by: Phil Claypool

SUMMARY:

Section 112.313(7)(a), F. S., prohibits a public officer or employee from having employment or a contractual relationship with a business entity which is subject to the regulation of, or doing business with, his public agency. In a previous opinion, CEO 80-16, it was held that this provision did not prohibit a county property appraiser from holding an active real estate broker's license without actively practicing in the profession. Similarly, there would be no violation of this provision were an employee of the property appraiser merely to place his real estate license with a local broker while remaining inactive in the real estate profession with the broker's knowledge and consent.

QUESTION:

Would a prohibited conflict of interest be created were an employee of a county property appraiser's office to hold an active real estate license placed with a broker, while agreeing to refrain from engaging in any real estate function which requires a license unless prior written consent of the property appraiser is obtained?

Your question is answered in the negative.

In your letter of inquiry you advise that you are the Pinellas County Property Appraiser. You also advise that you feel it is beneficial for the employees of your office to acquire the knowledge gained through obtaining a real estate license. Under county personnel rules, you write, employees may not hold active licenses because of possible conflict of interest situations; therefore, several of your employees have kept their licenses in an inactive status. However, you feel that recent changes in the real estate law, which provide for automatic suspension of a license after a 10- year inactive period, place an unfair burden on these employees. Therefore, you are contemplating a change in policy to allow employees to place their licenses in active status with a local real estate broker upon signing an agreement with you. That agreement, which is made with the knowledge of the broker, provides that the employee must refrain from engaging in any of the real estate functions which require a real estate license, without the prior written consent of the property appraiser. You question whether such an agreement would be prohibited by the Code of Ethics for Public Officers and Employees.

The Code of Ethics 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.]

The first portion of this provision prohibits a public employee from having employment or a contractual relationship with a business entity which is subject to the regulation of, or doing business with, his agency. In a previous advisory opinion, CEO 80-16, we advised that this provision did not prohibit a county property appraiser from holding an active real estate broker's license when he did not actively practice in the profession. In doing so, we noted that real estate licensees are subject to the regulation of the Florida Board of Real Estate and are not regulated by a county property appraiser's office. Therefore, as you have not indicated any facts which suggest that a broker with whom an employee might place his license is doing business with your office, we find that the first portion of s. 112.313(7)(a) does not apply to your inquiry.

The second portion of s. 112.313(7)(a) prohibits a public employee from having employment or a 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. We are of the opinion that merely placing a real estate license with a local broker, while remaining inactive in the real estate profession with the broker's knowledge and consent, would not create a continuing or frequently recurring conflict of interest and would not impede the full and faithful discharge of the employee's public duties.

We note that, under the proposed agreement between you, as property appraiser, and the employee, the employee must obtain your written consent prior to actively engaging in a real estate activity. We caution you to consider whether a conflict of interest would be created by that real estate activity under s. 112.313(7)(a), F. S., and whether any other provision of the Code of Ethics might preclude the proposed employment. In the event that a specific situation arises in which additional guidance is needed, you may wish to request another opinion based upon those specific facts.

Accordingly, we find that no prohibited conflict of interest would be created were an employee of your office to hold an active real estate license placed with a broker, while agreeing to refrain from engaging in any real estate function which requires a license unless your prior written consent is obtained.