CEO 77-102 -- July 21, 1977

(See also 77-102A)

HEALTH SYSTEMS AGENCY

APPLICABILITY OF FINANCIAL DISCLOSURE LAW TO MEMBERS

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

Prepared by: Bonnie Johnson

SUMMARY:

Reference is made to CEO 77-18, in which members of the governing boards of regional health systems agencies, established pursuant to s. 1512 of Public Law 93-641, were found to constitute local officers subject to financial disclosure. While it is argued by the petitioner that the rules and regulations implementing Public Law 93-641 evidence that health service areas are federal rather than state regions, our opinion is based on the law itself, which supersedes such rules and regulations and which provides that health service area boundaries be designated by the Governor of each state in consultation with other specified persons and agencies within the state whose responsibilities lie in the area of health planning. Moreover, the Governor's responsibility to designate such boundaries is more than recommendatory inasmuch as positive action on the part of the Secretary of HEW is required in order to alter such designations. See CEO 77-7. As to the argument that a health systems agency does not meet the definition of "agency" contained in Ch. 112 or in AGO 074-22, for purposes of the Code of Ethics "agency" is defined to include any "political subdivision" of the state. Too, the term is not contained within the definition of "local officer" for purposes of financial disclosure. Finally, in reiteration of the view expressed in CEO 77-18, because of their broad powers, including the power to expend public funds and to affect the lives of citizens, members of a governing board of a health systems agency fall within the class of public officials for which financial disclosure was intended, despite the fact that such agencies are legally structured as nonprofit corporations.

QUESTION:

Are members of the governing board of a health systems agency "local officers" for purposes of the annual filing of financial disclosure?

Your question is answered in the affirmative.

In previous opinion CEO 77-18, referenced in your letter of inquiry, we found that members of the governing boards of regional health systems agencies, established pursuant to s. 1512 of Public Law 93-641, constitute local officers subject to financial disclosure. We remain of that view.

You assert in your letter of inquiry that "the rules and regulations pertaining to the implementation of Public Law 93-641 provide that the Governor recommend the [health service area] boundaries but the Secretary of HEW has sole responsibility to designate the boundaries," thus suggesting that health service areas are federal rather than state regions. Our opinion, however, is based on the law itself, which supersedes such rules and regulations and which provides in s. 1511(b) that HSA boundaries be designated by the Governor of each state in consultation with other specified persons and agencies within the state whose responsibilities lie in the area of health planning. Section 1511(b)(3)(a) further provides that "[t]he boundaries for health service areas submitted by the Governors shall, except as otherwise provided in subparagraph (B), constitute upon their publication in the Federal Register the boundaries for such health service areas." The referenced subparagraph B entitles the Secretary of HEW to revise a boundary submitted by a Governor only where he (the secretary) determines that such boundary does not meet the requirements established by law. We are of the view that the Governor's responsibility to designate health service area boundaries is more than recommendatory, inasmuch as positive action on the part of the secretary is required in order to alter such designations. See CEO 77-7.

As to your second point relative to a health systems agency not meeting the definitions of "agency" contained in Ch. 112 or in AGO 074-22, we would point out that the term "agency" is defined for purposes of the Code of Ethics to include any "political subdivision" of the state. Section 112.312(2), F. S. (1976 Supp.). Moreover, the term "agency" is not contained within the definition of "local officer" for purposes of financial disclosure.

In closing, we reiterate our view, expressed previously in CEO 77-18, that, because of their broad powers, including the power to expend public funds and to affect the lives of citizens, members of the governing board of a health systems agency fall within the class of public officials for which financial disclosure was intended, despite the fact that such agencies are legally structured as nonprofit corporations.