CEO 82-20 -- April 8, 1982

CONFLICT OF INTEREST

DEPARTMENT OF HEALTH AND REHABILITATIVE SERVICES EMPLOYEE OWNING AN INTEREST IN TRAVEL AGENCY BOOKING RESERVATIONS FOR DEPARTMENT EMPLOYEES

To: Mr. Jim Wacksman, Human Relations Supervisor, Department of Health and Rehabilitative Services

SUMMARY:

The Code of Ethics would not prohibit the Human Relations Supervisor of the Department of Health and Rehabilitative Services from owning an interest in a travel agency booking reservations for Department employees, so long as the travel agency does not make reservations for the official travel of the Office of Personnel Management within the Department. In CEO 80-1, a prohibited conflict of interest was found under similar circumstances. However, since the issuance of that opinion, the Department has been reorganized and the employee no longer has the ultimate responsibility for human and labor relations matters within the Department. As the employee has less authority and there is a correspondingly lesser opportunity for the misuse of his position, there has been a material change in the employee's situation. However, the travel agency should not make reservations for the official travel of employees of the Office of Personnel Management within the Department.

QUESTION:

Would a prohibited conflict of interest be created were you, the human relations supervisor of the Department of Health and Rehabilitative Services, to own a five percent interest in a travel agency booking reservations for Department employees?

Your question is answered in the negative, subject to the condition noted below.

In this opinion request, we are asked to revisit CEO 80-1 in light of a reorganization in the Department of Health and Rehabilitative Services and a change in your responsibilities with the Department. In that opinion we found that your proposed ownership of a travel business would impede the full and faithful discharge of your public duties as an employee of the Department if the travel agency were to sell its services to any employee of the Department. Our conclusion was based upon the fact that your public duties included the responsibility for employee and labor relations activities within the Department, a department-wide responsibility. Because of the nature of that position, you were afforded the opportunity for potential contact with all Department employees.

Since that time, you advise, the Office of Personnel Management within the Department has been reorganized. The Employer/Employee Relations Section, which you formerly headed, was abolished and a new section called Human and Labor Relations was established. That section is headed by the Human and Labor Relations Administrator, who is your direct supervisor in your current position as Human Relations Supervisor. Department-wide responsibility for the employee and labor relations program now is assigned to the Human and Labor Relations Administrator. Currently, you are responsible for supervising a unit of employees who review employee grievances and complaints and prepare a recommended response for the Human and Labor Relations Administrator. In addition, you supervise an individual who conducts personnel program related research, development, and staff training. Finally, you advise that you will assure that no travel is booked or commissions earned from the official travel of any employee of the Office of Personnel Management.

From your letter of inquiry and from an examination of your past and present position descriptions, it appears that the primary difference between your past and present positions is that you no longer have the ultimate responsibility for human and labor relations matters within the Department. In other words, although the work you perform for the Department is substantially the same as before, you now work under the direction and supervision of the Human and Labor Relations Administrator, who has the final responsibilities of your former position.

In our view, the fact that you no longer have the ultimate authority or responsibility over these personnel matters is a material change in circumstances. Although your responsibilities still are Department-wide, in the sense of extending to all employees in the Department, they now are performed under the supervision of the Human and Labor Relations Administrator. In addition, although you potentially have the opportunity for contact with all Department employees, the lesser extent of your authority affords a correspondingly lesser opportunity for the misuse of your position in order to obtain business for the travel agency.

We note that you have agreed that no travel will be booked or commissions earned by the travel agency from the official travel of any employee of the Office of Personnel Management. Accordingly, we find that the Code of Ethics for Public Officers and Employees would not prohibit your owning an interest in a travel agency, so long as the travel agency does not make reservations for the official travel of employees of the Office of Personnel Management of the Department of Health and Rehabilitative Services.