CEO 80-70 -- September 19, 1980

CONFLICT OF INTEREST

AIRPORT AUTHORITY MEMBER CONTRACTING WITH TENANT OF AUTHORITY

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

Prepared by: Phil Claypool

SUMMARY:

Section 112.313(7)(a) of the Code of Ethics prohibits a public officer from having a contractual relationship with a business entity which is doing business with his agency. Accordingly, a prohibited conflict of interest would be created were a member of an airport authority, which has leased authority property to a company for the construction of hangars, to contract with that company to construct the hangars. The tenant is a business entity which is doing business with the authority by virtue of its lease; and, should the subject authority member enter into an agreement with the tenant for the construction of hangars, he would have a contractual relationship with the tenant.

QUESTION:

Would a prohibited conflict of interest be created were a member of an airport authority, which has leased authority property to a company for the construction of hangars, to contract with that company to construct the hangars?

Your question is answered in the affirmative.

In your letter of inquiry you advise that the subject member of the Titusville-Cocoa Airport Authority is a building contractor who has been engaged in the construction business for a number of years. You also advise that the authority recently has entered into a lease of land located at an airport operated by the authority upon which the tenant will construct, operate, and lease airport hangars. After the lease was executed, you advise, the subject authority member was contacted by the tenant and asked to submit a bid for the construction of hangars. Therefore, you question whether, if he is the successful bidder, he may enter into a contract with the authority's tenant.

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.]

This provision prohibits a public officer from having a contractual relationship with a business entity which is doing business with his agency. We are of the opinion that the tenant is a business entity which is doing business with the authority, by virtue of its lease with the authority. In addition, should the subject authority member enter into an agreement with the tenant for the construction of hangars, he would have a contractual relationship with the tenant.

Section 112.313(12), F. S., contains several exemptions to the operation of s. 112.313(7)(a), above. We have examined these exemptions and we conclude that, under the circumstances you have presented, none of the exemptions would apply. In particular, we reference the competitive bidding exemption of s. 112.313(12)(b), which we feel does not apply here because the competitive bidding process you have referred to is not utilized by the authority, but rather by the tenant.

Accordingly, we find that a prohibited conflict of interest would be created were the subject authority member to enter into a contract with a tenant of the authority for the construction of hangars on the leased land.