CEO 84-16 -- March 8, 1984

CONFLICT OF INTEREST

RELATIVE OF EMPLOYEE IN DEPARTMENT OF LABOR AND EMPLOYMENT SECURITY PREPARING WORKERS' COMPENSATION INSOLVENCY APPEAL RECORD

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

SUMMARY:

No prohibited conflict of interest exists where the daughter of a secretary to a Deputy Commissioner of the Department of Labor and Employment Security prepares the record for an appeal of a decision of the Deputy Commissioner in an insolvency case, and where the Workers' Compensation Administrative Trust Fund pays the costs for preparing the record. Section 112.313(3) and Section 112.3185(6), Florida Statutes, generally prohibit a public employee from acting in an official capacity to purchase services for the employee's agency from a relative's business. However, as the Deputy Commissioner rather than his secretary is responsible for designating the person who will prepare the record on appeal, these provisions would not apply.

QUESTION:

Does a prohibited conflict of interest exist where the daughter of a secretary to a Deputy Commissioner of the Department of Labor and Employment Security prepares the record for an appeal of a decision of the Deputy Commissioner in an insolvency case, and where the Workers' Compensation Administrative Trust Fund pays the costs for preparing the record?

Your question is answered in the negative.

In your letter of inquiry you advise that you are a Deputy Commissioner in the Department of Labor and Employment Security, and that .... is employed as your secretary. You also advise that your secretary's daughter is the sole owner of a court reporting firm which you have designated to prepare the record on appeal in insolvency cases.

Under Section 440.25(4)(b), Florida Statutes, and Rule 18(f), Fla. W.C.R.P., a Deputy Commissioner is authorized to find a claimant in a workers' compensation proceeding to be insolvent for the purpose of paying the cost of preparing a record on appeal. If the claimant is found to be insolvent, the costs for the record on appeal are ordered advanced by the Workers' Compensation Administrative Trust Fund pending the outcome of the appeal.

The Code of Ethics for Public Officers and Employees provides in relevant part:

DOING BUSINESS WITH ONE'S AGENCY. -- No employee of an agency acting in his official capacity as a purchasing agent, or public officer acting in his official capacity, shall either directly or indirectly purchase, rent, or lease any realty, goods, or services for his own agency from any business entity of which he or his spouse or child is an officer, partner, director, or proprietor or in which such officer or employee or his spouse or child, or any combination of them, has a material interest. Nor shall a public officer or employee, acting in a private capacity, rent, lease, or sell any realty, goods, or services to his own agency, if he is a state officer or employee, or to any political subdivision or any agency thereof, if he is serving as an officer or employee of that political subdivision. The foregoing shall not apply to district offices maintained by legislators when such offices are located in the legislator's place of business. This subsection shall not affect or be construed to prohibit contracts entered into prior to:

(a) October 1, 1975.

(b) Qualification for elective office.

(c) Appointment to public office.

(d) Beginning public employment.

[Section 112.313(3), Florida Statutes (1983).]

This provision prohibits a public employee from acting in an official capacity as a purchasing agent to directly or indirectly purchase services for the employee's agency from a business entity of which the employee's child is an officer, director, or owner. We find that this provision does not apply here, because your secretary is not responsible for purchasing the services of her daughter's firm. Rather, as Deputy Commissioner you are required to designate a transcriber to transcribe, prepare, certify, and deliver to you the record on appeal, pursuant to Rule 18(g), Fla. W.C.R.P. In addition, the Code of Ethics provides:

No agency employee acting in his official capacity shall directly or indirectly procure contractual services for his own agency from any business entity of which a relative, as defined in s. 116.111(1)(c), is an officer, partner, director or proprietor or in which such officer or employee or his spouse or child, or any combination of them, has a material interest. [Section 112.3185(6), Florida Statutes (1983).]

Similarly, we are of the opinion that this provision does not prohibit your secretary's daughter from preparing the record on appeal in insolvency cases, as you rather than your secretary are procuring the services of the transcriber.

Accordingly, we find that no prohibited conflict of interest exists where the reporting firm of your secretary's daughter prepares the record on appeal in insolvency cases.