CEO 78-17 -- March 15, 1978

CONFLICT OF INTEREST

FIRE CONTROL DISTRICT BOARD MEMBER OWNER OF HARDWARE STORE DOING BUSINESS WITH DISTRICT

To: Gary F. Parker, Matlacha and Pine Island Fire Control District, Ft. Myers

Prepared by: Phil Claypool

SUMMARY:

The Code of Ethics for Public Officers and Employees generally prohibits a public officer or employee from selling goods to his own agency. Section 112.313(3), F. S. 1977. However, there is an exemption to that prohibition where "[t]he business entity involved is the only source of supply within the political subdivision of the officer or employee, and there is full disclosure of the officer's or employee's interest in the business entity to the governing body of the political subdivision." Section 112.313(12)(e). Therefore, where a hardware store owned by a member of a fire control district board is the only hardware store located within the district and is the only source of supply within the district of items to be purchased by the district, and further provided that full disclosure by the member of his ownership is made to the district board, no prohibited conflict of interest would be created under the Code of Ethics were the district to purchase such items from the board member's store. However, the Commission on Ethics has no jurisdiction to interpret the criminal provisions of Ch. 839, F. S. 1977, which may have some bearing on this matter.

QUESTION:

Would a prohibited conflict of interest under the Code of Ethics for Public Officers and Employees be created were a hardware store owned by a member of a fire control district board to sell supplies to the district where the store is the only hardware store located within the district?

Your question is answered in the negative, subject to certain conditions specified below.

In your letter of inquiry you advise that you are a member of the Matlacha-Pine Island Fire Control District Board and that you own the only retail hardware store within the district.

The Code of Ethics for Public Officers and Employees generally prohibits a public officer from selling goods to his own agency. Section 112.313(3), F. S. 1977. However, there is an exemption to that prohibition where:

The business entity involved is the only source of supply within the political subdivision of the officer or employee, and there is full disclosure of the officer's or employee's interest in the business entity to the governing body of the political subdivision. [Section 112.313(12)(e), F. S. 1977.]

Accordingly, so long as your hardware store is the only source of supply within the district of the item to be purchased by the district, and further provided that you make full disclosure of your ownership of the store to the district board, we find that no prohibited conflict of interest would be created under the Code of Ethics were the district to purchase that item from your store.

Please be advised that this commission has no jurisdiction to interpret the criminal provisions of Ch. 839, F. S. 1977, which may have some bearing on your decision in this matter.