CEO 74-8 -- September 25, 1974

CONFLICTING EMPLOYMENT

CLARIFICATION OF "SUBJECT TO REGULATION OF"

To: Patrick N. Irvine, Lake Buena Vista

Prepared by: Gerald Knight

SUMMARY:

Public officers are prohibited by s. 112.313(5), F.S., as amended by Ch. 74-177, Laws of Florida, from accepting other employment with any business entity "subject to the regulation of" the public agency which the public officer serves. In previous interpretations (AGO's 072-172, 074-3, 074-27, and 074-93), a business entity "subject to the regulation of" a state or local government was described therein as a business whose operations or modes of doing business are subject to the control or authority of such an agency. This definition applies equally to s. 112.313(5), supra. In the instance of Mr. Irvine's query, the ownership of property by Walt Disney World Company of land within municipal boundaries of the City of Bay Lake does not constitute a regulatory relationship within the intentions of s. 112.313(5), supra. A Bay Lake city councilman may therefore accept employment with Lake Buena Vista Communities, Inc., a cosubsidiary of Walt Disney Productions, without violating the particular statutory proscription. However, possible conflicts of interest could arise when the properties in question become particular matters of issue before the City of Bay Lake.

QUESTION:

Is Walt Disney World Company, which owns land within the municipal boundaries of the City of Bay Lake, "subject to the regulation of" the City of Bay Lake within the purview of s. 112.313(5), F. S., as amended by Ch. 74-177, Laws of Florida, so as to prohibit a city councilman of the City of Bay Lake from accepting employment with Lake Buena Vista Communities, Inc., a "sister company" of Walt Disney World Company, and cosubsidiary of Walt Disney Productions?

Section 112.313(2), F. S. 1973, formerly required, in general, that a public officer or employee who had an interest in any business entity which was "subject to the regulation of" any state agency, county, city or other political subdivision of the state, file a sworn statement with the appropriate official disclosing such interest. In previous Attorney General Opinions, the word "regulation" within the purview of s. 112.313(2), supra, was defined as "prescribing the manner in which a thing is to be done." AGO's 072-172, 074-3, 074-27, and 074-93. Business entities "subject to the regulation of" a state or local governmental agency, for purposes of s. 112.313(2), supra, were described therein as those businesses whose operations or modes of doing business are subject to the control or authority of such an agency.

This definition of "subject to the regulation of" appears to be equally applicable when construing the mandate of s. 112.313(5), F. S., as amended by Ch. 74-177, Laws of Florida, prohibiting, inter alia, a public officer or employee from accepting other employment with any business entity "subject to the regulation of" the public agency which such officer or employee serves. Thus, with respect to your specific inquiry, the Walt Disney World Company would not be "subject to the regulation of" the City of Bay Lake where the company owns land, unless the operations of such company were subject to the control or authority of the City of Bay Lake; and, in our opinion, such control or authority does not exist.

Therefore, the Walt Disney World Company is not "subject to the regulation of" the City of Bay Lake within the purview of s. 112.313(5), supra, and no violation of this particular statutory proscription is presented by your factual description.

This does not rule out a possibility of a conflict of interest arising because of issues before the City of Bay Lake related directly to the property referred to. But this is not a question you have presented.