Opinion  EC-COI-84-148

Date:	12/20/1984
Organization:	State Ethics Commission
Location:	Boston, MA

Section 7 of the conflict of interest law does not prohibit a state agency employee from also serving on a state committee that provides funding to the state agency as well as non-profit organizations because the legislation establishing the committee specifically requires employees of the state agency serve on the committee, therefore the state agency employee's service on the committee is considered an extension of his state agency position.

Facts

You are a member of an unpaid state Committee (Committee). (Description of enabling legislation omitted). The Committee also disburses federal funds in the form of grants to private non-profit agencies and state agencies. ABC is among the state agencies which receives funds from the Committee.

You have recently become employed by ABC. Prior to assuming that position, you terminated professional associations which you had with two private agencies which contract with ABC.

Question

May you remain a member of the Committee while employed by ABC?

Answer

Yes.^[1]

Discussion

As a member of the Committee, you are a state employee as defined in the conflict of interest law, G.L. c. 268A. Because you are unpaid for your Committee membership, you are also a special
state employee in that position under G.L. c. 268A, § 1(o).

Section 7 of the conflict of interest law prohibits a state employee from having a financial interest in a contract made by a state agency. It is clear that you have a financial interest in your Department employment arrangement which is considered a contract for § 7 purposes. However, the Commission concludes that the Committee's enabling legislation calls for representatives of ABC to serve on the Committee, and that the legislation contemplates that the Committee will have dealings with the agencies its members represent. (Discussion of identifying enabling legislation omitted).

Thus, employees of ABC and other public agencies were intended to serve on the Committee as contemplated by the Governor in administering the federal act as well as by Congress in creating such an advisory group. This means that it is by virtue of your employment arrangement with ABC that you are serving on the Committee. Such a situation is analogous to a state employee serving ex officio on a board or council. Because service in both capacities is tied to one state contract, i.e. the original state employment contract, such an individual would not have a § 7 prohibited financial interest in another state contract. Likewise, the Commission concludes that your financial interest does not violate § 7 because it originates in your employment arrangement with ABC, the contract which forms the basis for your Committee membership as well.

End of Decision

^[1] To the extent that EC-COI-84-99, issued to you in August, 1984 is inconsistent with this opinion, it is overruled.