This Advisory Opinion concerns the following issue as formulated from
facts and/or circumstances furnished by a requestor. The Commission approved
this opinion on May 12, 2000, basing its approval solely on the facts and
circumstances stated herein.
May the employees of a business that has contracted with the county
to process all the commitments in the county be sworn in as deputy chancery
clerks so the employees can attest to commitment documents and swear in
witnesses at commitment hearings?
State law restricts the Mississippi Ethics Commission to interpreting
and issuing opinions on Sections 25-4-101
through 25-4-119,
1972 Mississippi Code Annotated and Article IV, Section 109, Mississippi
Constitution of 1890. Therefore, this opinion does not address the Mississippi
laws outside the Commission's jurisdiction nor the governmental entity's
internal rules and regulations.
The pertinent conflict of interest laws to be considered here are:
Code Section 25-4-103(a),
(c), (f)(i)(ii), (g)(i), (h), (k)(i)(ii) and (p)(i)(ii)(iii) states:
"(a) 'Authority' means any component unit of a governmental entity.
(c) 'Business' means any corporation, partnership, sole proprietorship, firm, enterprise, franchise, association, organization, holding company, self-employed individual, joint stock company, receivership, trust or other legal entity or undertaking organized for economic gain, a nonprofit corporation or other such entity, association or organization receiving public funds.
(f) 'Contract' means:
(i) Any agreement to which the government is a party; or
(ii) Any agreement on behalf of the government which involves the payment
of public funds.
(g) 'Governmental' means the state and all political entities thereof,
both collectively and separately, including but not limited to:
(i) Counties.
(h) 'Governmental entity' means the state, a county, a municipality
or any other separate political subdivision authorized by law to exercise
a part of the sovereign power of the state.
(k) 'Material financial interest' means a personal and pecuniary interest,
direct or indirect, accruing to a public servant or spouse, either individually
or in combination with each other. Notwithstanding the foregoing, the following
shall not be deemed to be a material financial interest with respect to
a business with which a public servant may be associated:
(i) Ownership of any interest of less than ten percent (10%) in a business
where the aggregate annual net income to the public servant therefrom is
less than One Thousand Dollars ($1,000.00);
(ii) Ownership of any interest of less than two percent (2%) in a business
where the aggregate annual net income to the public servant therefrom is
less than Five Thousand Dollars ($5,000.00).
(p) 'Public servant' means:
(i) Any elected or appointed official of the government;
(ii) Any officer, director, commissioner, supervisor, chief, head, agent
or employee of the government or any agency thereof, or of any public entity
created by or under the laws of the State of Mississippi or created by
an agency or governmental entity thereof, any of which is funded by public
funds or which expends, authorizes or recommends the use of public funds;
or
(iii) Any individual who receives a salary, per diem or expenses paid
in whole or in part out of funds authorized to be expended by the government."
Code Section 25-4-105(3)(a)
states:
"(3) No public servant shall:
(a) Be a contractor, subcontractor or vendor with the governmental entity
of which he is a member, officer, employee or agent, other than in his
contract of employment, or have a material financial interest in any business
which is a contractor, subcontractor or vendor with the governmental entity
of which he is a member, officer, employee or agent."
Pertinent facts and circumstances provided by the requestor, absent
identifying data, are set forth as follows and considered a part of this
opinion.
The County Board of Supervisors has a contract with Business to manage
the County Commitment Holding Facility. The scope of services performed
by Business has recently been broadened to include administrative responsibility
for complete processing of all commitments. Commitment files will be maintained
in my office, with Business being responsible for dealing with families,
arranging hearings, placement of the patient after the hearing, etc.
There are certain documents involved in the commitment process that
must be attested by either the chancery clerk or a deputy chancery clerk,
and witnesses must be sworn in at the commitment hearings. Can I, as Chancery
Clerk, deputize one or more employees and/or officers of Business? There
would be no salary paid by the clerk to these deputy clerks and they would
be involved in no other duties of my office. I feel that this action will
expedite the commitment process in County.
Based solely on the facts and circumstances presented by the requestor,
the Commission's opinion is as follows.
Code Section 25-4-105(3)(a),
cited above, prohibits a public servant, including a deputy chancery clerk,
from having a material financial interest in a business that is a contractor
with the governmental entity employing the public servant.
The business that has contracted with the county to provide the services
of managing the commitment holding facility and of providing the administrative
processing of all commitments is a contractor with the county for purposes
of Code Section 25-4-105(3)(a).
Also, the chancery clerk's office is within the general county government
as it is subject to the general budgeting and funding authority of the
board of supervisors. Therefore, the chancery clerk's office and the county
board of supervisors are within the same authority of the county government
entity for purposes of Code Section 25-4-105(3)(a).
The employees of the business contracting with the county as deputy
chancery clerks will be appointed officials of the county and employees
of the county government. Therefore, the employees will be public servants
of the county as defined in the above cited Code Section 25-4-103(p)(i)(ii).
Therefore, Code Section 25-4-105(3)(a)
will prohibit the employees of the business that is contracting with the
county to provide the above described commitment services from being appointed
as deputy chancery clerks if the employees have a material financial interest
in the business contracting with the county.
A material financial interest is defined in the above cited Code Section
25-4-103(k)(i)(ii).
Specifically, a material financial interest is an ownership of 10% or more;
an ownership interest from 2% to less than10% with an aggregate annual
net income of One Thousand Dollars ($1,000.00) or more; or, an ownership
interest of less than 2% with an aggregate annual net income of Five Thousand
Dollars ($5,000.00) or more.
Ronald E. Crowe
Executive Director