STATE OF ALABAMA

ETHICS COMMISSIONMAILING ADDRESS

P.O. BOX4840MONTGOMERY,AL

36103-4840

STREET ADDRESS

RSA UNION100 NORTHUNIONSTREET

SUITE 104MONTGOMERY.AL 36104H. Dean Buttram, Jr., Esq. Chairman

James T. Pursell, Vice-ChairmanHenry B. Gray IIICamille S. ButrusHelen Shores Lee, Esq.

E. J. (Mac) McArthurDirector

May I, 1996TELEPHONE (334) 242-2997

FAX (334) 242-0248

ADVISORY OPINION NO. 96-44

Mr. Robert E. LunsfordDirectorAlabama Department of

Economic and Community Affairs40 I Adams AvenueSuite 580Post Office Box 5690Montgomery, Alabama 36103-5690

Conflict Of Interests/ ADECARenting Office Space That IsPartially Owned By The ChairmanOf The Alabama Coastal FoundationWhich From Time To TimeContracts With ADECA.

As there is no opportunity forpersonal gain, nor any funding orregulation of ACF by ADECA, aconflict of interest does not exist inthe fact that ADECA rents officespace that is partially owned by theChairman of the Alabama CoastalFoundation, when the foundationmay in the future receive grantsfrom, or enter into contracts with,ADECA.

Mr. Robert LunsfordAdvisory Opinion No. 96-44Page two

Dear Mr. Lunsford:

The Alabama Ethics Commission is in receipt of your request for an Advisory Opinion ofthis Commission, and this opinion is issued pursuant to that request.

QUESTION PRESENTED

Due to the fact that the Alabama Department of Economic and Community Affairs hasleased office space in Baldwin County that is partially owned by the Executive Director of theAlabama Coastal Foundation, may ADECA enter into a grant or contract with ACF under thesecircumstances?

FACTS AND ANALYSIS

In 1990, the Alabama Coastal Management Program staff recognized that there wereorganizations in many coastal states which worked to promote and protect coastal resources suchas coastal waters, beaches, dunes, fisheries, wet lands, etc.

The Coastal Zone Management Program (CZM) is a joint federal and state program thatis funded in-part by the Department of Commerce and in-part by the State of Alabama.

In fiscal year 1990/1991, the CZM Program contracted with the Coastal StatesOrganization to prepare a report assessing the need for such an organization in Alabama's coastalarea.

The Coastal States Organization (CSO) is a membership organization consisting of all ofthose states that have coastlines. There is no funding from the state, or ADECA; however, eachstate must pay membership dues to participate. The CSO represents the collective opinions ofthe states on coastal matters before Congress and other organizations.

After undertaking their study to determine the feasibility of a Coastal Foundation in theState of Alabama, it was recommended that the Alabama Coastal Foundation be established.

The Alabama Coastal Foundation is a non-profit foundation incorporated in BaldwinCounty. They represent the State of Alabama on coastal matters. Membership on the Board ofDirectors is by vote of the members of the ACF. There is no funding between ADECA and ACF.

In the past, ADECA has contracted with ACF to jointly prepare a news letter to provide

Mr. Robert LunsfordAdvisory Opinion No. 96-44Page three

information relative to coastal matters. They have also jointly contracted on annual coastalclean-up projects, as well as adopt-a-beach projects.

In the recent past, it has come to the attention of Robert E. Lunsford, the Director ofADECA that office space leased by ADECA in Baldwin County is partially owned by theExecutive Director of the Alabama Coastal Foundation. Based on this information, ADECA hasbeen reluctant to enter into contracts with ACF without receiving a formal advisory opinion fromthe Ethics Commission. This opinion is a result of that request.

The Alabama Ethics Law, Code of Alabama, 1975, Section 36-25-5(a) states:

"(a)No public official orpublic employee shall use or cause to be used his or her officialposition or office to obtain personal gainfor himself or herself, orfamily member of thepublic employee orfamily member of thepublic official, or any business with which theperson is associated unless the use and gain are otherwise specifically authorized by law.Personal gain is achieved when thepublic official,public employee, or afamily memberthereof receives, obtains, exerts control over, or otherwise converts to personal use theobject constituting such personal gain. "

Section 36-25-5( e) states:

"(e)No public official orpublic employee shall, other than in the ordinary course ofbusiness, solicit a thing of valuefrom a subordinate or person or business with whom heor she directly inspects, regulates, or supervises in his or her official capacity. "

Based on the facts as presented and the applicable law, there is no conflict of interestpresent that would prevent ADECA from entering into the aforementioned contracts with ACF.

The facts presented do not provide an opportunity for personal gain, nor is the situationone where ADECA regulates ACF.

ACF is a non-profit foundation with no connection to ADECA other than theseoccasional contracts, and the fact that the Executive Director is part owner of office space leasedby ADECA, would not prevent such contracts from being entered into.

CONCLUSION

As there is no opportunity for personal gain, nor any funding or regulation of ACF byADECA, a conflict of interest does not exist in the fact that ADECA rents office space that is

Mr. Robert LunsfordAdvisory Opinion No. 96-44Page four

partially owned by the Chainnan of the Alabama Coastal Foundation, when the foundation mayin the future receive grants from, or enter into contracts with, ADECA.

AUTHORITY

By 5 - 0 vote of the Alabama Ethics Commission on May 1, 1996

. Dean Buttram, Jr.ChairAlabama Ethics Commission

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