CEO 90-59 -- September 7, 1990

CONFLICT OF INTEREST

STATE REPRESENTATIVE OWNING CONSTRUCTION COMPANY PARTICIPATING IN CITY AND COUNTY AFFORDABLE HOUSING PROGRAMS

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

SUMMARY:

No prohibited conflict of interest would be created under the Code of Ethics for Public Officers and Employees were a State Representative to be the majority stockholder of a company that builds residential housing and participates in affordable housing programs operated by a city and a county. CEO 77-6, CEO 78-39, CEO 82-33, and CEO 87-47 are referenced.

QUESTION:

Would a prohibited conflict of interest be created were you, a State Representative, to be the majority stockholder in a company that builds residential housing and participates in affordable housing programs operated by a city and a county?

Your question is answered in the negative.

In your letter of inquiry you advise that you serve as a member of the Florida House of Representatives. You also advise that you are the majority stockholder in a company that builds residential housing and is participating in an affordable housing program operated by the community development department of a city in your district. The county also is developing such a program; you expect to participate in that program, as well.

You advise that any person or developer may participate in the programs if they meet the criteria. Funding comes from the city or county, with possible supplements from federal funds. In addition, the city and county may receive some State funding from time to time.

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.]

This provision prohibits a public officer from having a contractual relationship with a business entity or an agency that is subject to the regulation of his agency. However, as we have noted in several opinions, Section 112.313(7)(a)2 provides that when the agency is a legislative body and the regulatory power exercised by that body is strictly through the enactment of laws, then the contractual relationship is not prohibited.

In past opinions, we have concluded that a State Representative may have employment or a contractual relationship with a business entity or agency where the authority of the Legislature is expressed through the enactment of laws. For example, in CEO 77-6, we found no conflict where a legislator was a consultant to a family business that performed work for governmental agencies. Similarly, in CEO 87-47, we advised that a State Representative would not be prohibited from being an investor, officer, and director in a corporation that did business with school districts, colleges, and universities. See also CEO 82-33 and CEO 78-39.

Accordingly, we find that no prohibited conflict of interest would be created were you, a State Representative, to be the majority stockholder in a company that builds residential housing and participates in affordable housing programs operated by a city and a county.