| Date: | 12/08/1981 |
|---|---|
| Organization: | State Ethics Commission |
G. L. c. 268A, § 23(e) prohibits a state employee from continuing to serve on the board of directors of a private organization because the organization has contracts with the state employee’s state agency. The state employee’s status as an insider with the private organization might give the impression that the state agency has given favorable consideration to the organization regarding the organization’s contracts with the state agency.
You currently serve as the Executive Secretary to the ABC Commission (ABC). In that capacity, you are responsible for the day-to-day activities of the ABC and are involved in the management of the ABC's operations, personnel and payroll, and in facilitating official ABC business. You were recently elected as an unpaid member of the board of directors of the DEF Council on GHI, which is currently a party to five service contracts with the Department of XYZ totalling approximately $300,000. The costs for these annual contracts were approved by the ABC pursuant to the recommendation of the Department of STU within the ABC. You state that you were not involved in determining the merits of the current DEF costs and that your responsibilities included placing the recommendations of the Department of STU before the ABC, attending the public hearing over the recommendations, recording official votes, and filing appropriate notifications with the Secretary of State's office and XYZ.
You wish to know whether the conflict of interest law, G.L. c. 268A, permits you to maintain your board membership with the DEF.
The Commission advises you that it does not.
In rendering this opinion, the Commission has relied upon the facts as you have stated them and has not made any independent investigation of those facts. In your capacity as Executive Secretary to the ABC you are a state employee within the meaning of G.L. c. 268A, s.1(q). EC-COI-81-46. As a state employee, you are prohibited by G.L. c. 268A, s.23(e) from giving reasonable basis for the impression that any person can improperly influence or unduly enjoy your favor in the performance of your official duties, or that you are unduly affected by the kinship, rank, position or influence of any party or person. The Commission concludes that your board membership with an organization whose contract costs are reviewed and approved by your agency would violate s.23(e). In particular, your board membership with DEF might raise significant public concern over the credibility and impartiality of the ABC' s cost determinations for the DEF contracts and might give the impression that the ABC has given favorable consideration to the DEF based upon your status as a. DEF "insider". See, EC-COI-81-92; 81-65; 81-63. Although you do not personally exercise regulatory authority over the DEF's contracts, you regularly exercise managerial authority over ABC employees who do participate in the cost approval process and thereby place such employees in a position to treat DEF contracts in a partial manner. Compare, EC-COI-81-117; 81-76.
Accordingly, the Commission advises you that your continued membership on the DEF board of directors would violate G.L. c. 268A, s.23(e) as long as you remain as Executive Secretary to the ABC.
End Of Decision
