Opinion

Opinion  EC-COI-82-57

Date: 04/01/1982
Organization: State Ethics Commission
Location: Boston, MA

A city community development director does not violate §20 of the conflict of interest law by also serving as the appointed acting administrator of the city housing authority if compensation for both positions is included under one contract.

 

Table of Contents

Question

You are Director of Community Development (Director) for the City of ABC (ABC).  On (date omitted), you were appointed Acting Administrator of the City Housing Authority (CHA) by the Executive Office of Communities and Development (EOCD).  Your compensation for the additional duties you assumed in connection with the Acting Administrator's position will be paid to you as an increase in your salary as Director.1/  You ask whether this arrangement will violate the state conflict of interest law, G.L. c. 268A.  The Commission concludes it does not.

By virtue of Chapter 210 of the Acts of 1978, the State Ethics Commission assumed from the Attorney General the responsibility for advising public employees regarding their duties under Chapter 268A. However, the legislation left unchanged G.L. c. 268A, §22, which provides that municipal employees are "entitled to the opinion of their town counsel, corporation counsel or city solicitor upon any question arising under the conflict of interest law.”  In view of §22, the Commission does not ordinarily render formal advisory opinions to municipal employees, but instead, directs such employees in the first instance to their appropriate local counsel.  However, since the Chief Counsel of EOCD has joined in your request for an opinion, the Commission considers it appropriate to issue an advisory opinion in your case.

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.

Answer

As a municipal employee you are prohibited by §20 of G.L. c. 268A from having a financial interest in a contract made by the City in which the City or a City agency is an interested party.  Whenever a municipal employee is being compensated by the municipality for serving in more than one position, the facts of the case should be examined in light of this prohibition.  In the arrangement you propose, you are not entering into a second contract with the City as described by the terms of §20.  Since you will only be receiving one check which reflects responsibilities you have assumed, in essence your duties as Director have been expanded to include your new authority over the CHA.  As a result, you have a financial interest in only one contract made by the City which is your contract for employment as Director. Since that contract is a prerequisite to your being a municipal employee and, thus, covered by the conflict of interest law, it is obviously not prohibited by §20.

Conclusion

In conclusion, since you will be paid for the additional services you render through your contract as Director of Community Development, you will not be in violation of the conflict of interest law.

1/  Although you have been performing your duties for the CHA since (date omitted), you have not been paid for these services pending the outcome of this opinion.

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