CEO 87-4 -- January 29, 1987

CONFLICT OF INTEREST

CITY AFFIRMATIVE ACTION OFFICER SERVING

AS NONCOMPENSATED BOARD MEMBER OF CORPORATION

To: Joseph Wright, Affirmative Action Officer, City of Fort Pierce

SUMMARY:

No prohibited conflict of interest exists under Section 112.313(7)(a), Florida Statutes, where a city's affirmative action officer serves as a noncompensated board member of a nonprofit corporation which has a contractual relationship with the city. Noncompensated service as an officer or as a member of the board of directors of a nonprofit corporation does not constitute an employment or contractual relationship with that entity. CEO 83-70 is referenced.

QUESTION:

Would a prohibited conflict of interest be created were you, a city affirmative action officer, to serve as a noncompensated board member of a nonprofit corporation which has a contractual relationship with the city?

Your question is answered in the negative.

In your letter of inquiry you advise that you are the Affirmative Action Officer for the City of Fort Pierce. You contemplate serving as a noncompensated board member of a community development corporation, an independent, nonprofit corporation which has a contract with the City whereby the corporation receives all of its funds for administration and programs through the City's community development block grant program. As Affirmative Action Officer, you advise, you have no interest in or control over the block grant program.

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 (1985).]

This provision prohibits a public officer from having an employment or contractual relationship with a business entity which is doing business with his agency. Under the circumstances you have presented, it does not appear that you would be employed by or have a contractual relationship with the community development corporation. In previous opinions, we have advised that noncompensated service as an officer or as a member of a board of directors of a nonprofit corporation does not constitute an employment or contractual relationship with that entity. See CEO 83-70.

Accordingly, we find that no prohibited conflict of interest would be created were you, a city affirmative action officer, to serve as a noncompensated board member of a nonprofit corporation which receives its funds for administration and programs through a contract with the City.