Opinion

Opinion  EC-COI-84-104

Date: 09/11/1984
Organization: State Ethics Commission

A Worcester State Hospital Board of Trustees member may participate as a Board member in transferring surplus hospital property to the Worcester Business Development Corporation and in a lawsuit over the transfer of the property where the board chair and an employee of his private employer are WBDC board members, subject to the restrictions in §§ 6 and 23(b)(3) of the conflict of interest law.

Table of Contents

Facts

You are employed as an engineer by a corporation. You are also a member of the board of trustees of the Worcester State Hospital (Board). Recently the Commonwealth, pursuant to St.1980, c. 579. determined that certain land located on the hospital grounds was surplus, and it made Plans to transfer that land to the Worcester Business Development Corporation (WBDC).[1] The WBDC in turn plans to develop the land consistent with its corporate purpose of promoting the economic growth and development of the Worcester area. The proposed transfer of land has generated considerable controversy and has divided the Board members into factions. One faction filed suit against the Governor, various other state officials, and the WBDC in an effort to halt the transfer. The other faction, of which you are a member, now controls the Board and is seeking to have the suit dismissed. You recently discovered that both your employer's chairman of the board and one of its former employees are elected members, although not officers, of the WBDC.

Question

Does G.L. c. 268A permit you to participate as a hospital trustee in matters regarding the land transfer even though your employer's board chairman and one of its former employees are members of the WBDC?

Answer

Yes.

Discussion

As a trustee of the Worcester State Hospital, you are a state employee and therefore are subject to the provisions of the conflict of interest law. The sections of that law which are relevant to your question are § 6 and § 23. Section 6 provides, in pertinent part, that a state employee may not participate as such an employee in a particular matter in which, to his knowledge, he or a business organization in which he is an employee has a financial interest. You personally do not have a financial interest in the land transfer, nor, according to you, does your employer stand to benefit financially from the transfer, The fact that your employer's board chairman and one of its former employees are WBDC members is too remote a connection to call into play the § 6 prohibition.

You should, however, be aware of § 23 of the law which provides in pertinent part that a state employee shall not 

     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 or influence of any party or person[2] nor

Concerns under this provision could arise in your case since the chairman of the board of your employer is associated with a party of interest. Accordingly, he may be perceived to have some leverage over you. That relationship standing alone will not be sufficient to give reasonable basis for the impression that you could be improperly influenced. Such an impression could be created, however, if any decisions you make as a trustee with regard to the land transfer are without basis, if positions you may take are inexplicably inconsistent, or if the chairman of your employer's board or any of your superiors try to convince you to take a particular position on the matter. These examples are not meant to be all-inclusive. If you have any concerns about any specific course of conduct you intend to take, you should renew your opinion request.[3]

End Of Decision 

[1] The WBDC is a non-profit corporation established by St. 1965 c. 600 for the purpose of promoting the economic growth and development of the Worcester area. It is governed by a board of directors who in turn are elected by the WBDC membership which consists of members of the Worcester area business community.

[2] Section 23 also prohibits a state employee from improperly disclosing confidential material gained by reason of his official position or use such confidential information to further his personal interests.

[3] This conclusion is based on your representation that your employer itself has no interest in the WBDC development project. Should the situation change, this result might be different, and you should contact the Commission for further guidance. Any advice rendered herein is prospective only and cannot address the propriety of conduct that has already occurred.

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