CEO 81-6 -- January 22, 1981

CONFLICT OF INTEREST

STATE REPRESENTATIVE ACTING AS ATTORNEY FOR PRIVATE CORPORATION ELIGIBLE TO RECEIVE STATE FUNDS

To: Jon Mills, State Representative, 27th District, Gainesville

SUMMARY:

Section 112.313(7)(a), F. S., in part prohibits a public officer from having a contractual relationship with a business entity which is subject to the regulation of his agency. However, members of legislative bodies are given a limited exemption from the application of that prohibition by subparagraph (7)(a)2 where the regulatory power which the legislative body exercises over the business entity is strictly through the enactment of laws or ordinances. As the regulatory power which the Legislature exercises over business entities in this State is strictly through the enactment of laws, no prohibited conflict of interest would be created were a State Representative to represent as corporate attorney a private corporation which is eligible to receive State funds. It should be noted, however, that Article II, Section 8(e), Florida Constitution, would prohibit him from personally representing the corporation for compensation before any State agency other than judicial tribunals. CEO 77-168 is referenced in this regard.

QUESTION:

Would a prohibited conflict of interest be created were you, a State Representative, to represent as corporate attorney a private corporation which is eligible to receive State funds?

Your question is answered in the negative.

In your letter of inquiry you advise that the Shands Teaching Hospital became a private corporation on July 1, 1980, and that the Hospital is eligible to receive State funds under Chapter 79-248, Laws of Florida. You question whether you may represent Shands Teaching Hospital and Clinics, Inc. as their corporate attorney.

Section 112.313(7)(a), F. S., in part prohibits a public officer from having a contractual relationship with a business entity which is subject to the regulation of his agency. As a State Representative, your agency is the Legislature, whose regulatory powers extend generally over every business entity in the State. However, members of legislative bodies are given a limited exemption from the application of Section 112.313(7)(a) by subparagraph (7)(a)2 where the regulatory power which the legislative body exercises over business entities in this State is strictly through the enactment of the laws; your relationship with the hospital falls within the exemption and therefore does not present a prohibited conflict of interest. See CEO's 77-129 and 80-7.

Accordingly, we find that no prohibited conflict of interest would be created were you to represent as corporate attorney a private corporation which is eligible to receive State funds. Please note that Article II, Section 8(e), Florida Constitution, would prohibit you from personally representing the corporation for compensation before any State agency other than judicial tribunals. For further information in this regard, we are enclosing a copy of advisory opinion CEO 77-168.