CEO 85-30 -- April 11, 1985

CONFLICT OF INTEREST

COUNTY HOUSING AUTHORITY MEMBER EMPLOYED BY BROKERAGE FIRM SELLING SECURITIES TO AUTHORITY

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

SUMMARY:

A prohibited conflict of interest would be created under Section 112.313(7), Florida Statutes, were the brokerage firm which employs a county housing authority member as an account executive to sell government securities to the authority. The authority member would be employed by a business entity doing business with his agency, and no exemption under Section 112.313(12), Florida Statutes, appears applicable.

QUESTION:

Would a prohibited conflict of interest be created were the brokerage firm which employs a county housing authority member as an account executive to sell government securities to the authority?

Your question is answered in the affirmative.

In your letter of inquiry you advise that .... is a member of the Pinellas County Housing Authority and is employed as an account executive by a brokerage firm. You question whether a prohibited conflict of interest would be created were the Authority to invest in government securities through the brokerage firm which employs the Authority member. The Authority member would stand to benefit financially either in a direct or indirect manner from the purchases.

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), Florida Statutes (1983).]

This provision prohibits a public officer from being employed by a business entity which is doing business with his agency. In our view, the brokerage firm which employs the subject Authority member would be doing business with the Authority if it were to sell government securities to the Authority.

Your inquiry does not indicate that any of the exemptions in Section 112.313(12), Florida Statutes, would be applicable here. Accordingly, we find that a prohibited conflict of interest would be created were the brokerage firm which employs the subject Housing Authority member to sell government securities to the Authority.