| Date: | 08/16/1983 |
|---|---|
| Organization: | State Ethics Commission |
An employee of a state agency which administers a federal program and which has regular dealings with a federal agency may not, in his private capacity, submit a contract bid to the same federal agency without informing his appointing official. Following disclosure, the appointing official must determine whether to allow the employee to continue to have regular dealings with the federal program as a state employee.
You are employees in the Disability Determination Services division of the Massachusetts Rehabilitation Commission (MRC). MRC makes findings of disability on Social Security and Supplemental Security Income claims for the Social Security Administration (SSA) of the federal government pursuant to regulations set forth by the Secretary of Health and Human Services. The federal government recently expressed an interest in contracting part or all of this function to the private sector. You would like to submit a proposal to SSA for private sector administration of this program in another state. You intend to submit the proposal while you are state employees. If your proposal is accepted, one of you would terminate your state employment while the other would become a stockholder in the new business but remain a state employee. The Commonwealth is not negotiating with the federal government to retain administration of the program.
Does the conflict of interest law, G.L. c. 268A, permit you to pursue this course of action?
Yes, provided you comply with the conditions discussed below.
During the period that your proposal is under consideration by SSA, certain provisions of § 23 will apply to both of you.[1]
Section 23 provides that no state employee shall "use or attempt to use his official position to secure unwarranted privileges or exemptions for himself or others." It further provides that no state employee shall "by his conduct give reasonable basis for the impression that any person can improperly influence or unduly enjoy his favor in the performance of his official duties, or that he is unduly affected by the kinship, rank, position of any other party or person." These provisions are relevant to your situation because you would be submitting your contract proposal to the same federal agency with which you have regular dealings as a state employee. Because there would be a reasonable impression created that your MRC determinations for SSA might be unduly affected by the pendency of your contract proposal, you need to establish safeguards. At a minimum, you must disclose to your appointing official at MRC that you have submitted a proposal to SSA. Your appointing official, upon disclosure, would then determine whether you should continue to participate in MRC disability determinations for SSA. See, EC-COI-82-123, 80-20.
End of Decision
