Advisory Opinion 94-11-1111
Licensing & Regulatory Services/Conflict of Interest

ISSUE: WHETHER IT WOULD BE A CONFLICT OF INTEREST FOR A DEPARTMENT DIRECTOR TO HAVE A PRIVATE VEHICLE LICENSING BUSINESS WHICH ACTS AS A KING COUNTY SUBAGENT THROUGH THE LICENSING AND REGULATORY SERVICES DIVISION?

Opinion: The Board of Ethics finds there is no conflict of interest in this instance. The director's ownership of an agency which does business with another county division does not conflict with the performance of his official duties, nor does it impair his independent judgment. In addition, the director has met the requirements for financial disclosure under the Code of Ethics.

County employees who occupy cabinet-level positions are cautioned that the Code of Ethics places special obligations upon them to avoid even the appearance of a conflict of interest. Such employees are required to obtain prior written consent of their highest ranking supervisor before accepting compensation or any thing of value for services performed outside King County government. Such employees must also take care not to disclose or use for personal benefit, or for the benefit of an immediate family member, any information acquired in the course of official duties which is not available as a matter of public knowledge or public record.

Statement of Circumstances: In 1987 the Puget Sound License Agency was selected to be a licensing subagent in King County. Ben Woo, currently Director of Construction and Facilities Management, and his wife Ruth own this agency. Mr. Woo, an architect, was later hired as manager of the Facilities Management Division in 1989. At the time of his hire, he requested an opinion from the Board of Ethics as to whether his ownership of the licensing agency posed any conflict of interest issues. Because a documentary record of both the request and any subsequent action by the Board of Ethics cannot be reconstructed, the Manager of the Licensing and Regulatory Services Division has asked the Board to determine whether Mr. Woo's outside business interest presents a conflict with his official position as Director of Construction and Facilities Management (DCFM)?

Analysis: Because Mr. Woo is director of the Department of Construction and Facilities Management, and not the manager of the Licensing and Regulatory Services Division, he removes any potential for a conflict of interest on the basis of incompatibility with the proper discharge of his official duties, or on the basis of impairment of judgment or action in the performance of those duties. In reviewing the Code of Ethics, there are only two provisions which could provide a basis for conflict in this instance, sections 3.04.030 H and 3.04.030 M. Section 3.04.030 H provides that an employee shall have a conflict of interest if that employee:

Is an employee, agent, officer, partner, director or consultant of any person doing or seeking to do business with the county, unless such relationship has been disclosed as provided by this chapter.

Section 3.04.030 M provides for a conflict of interest if an employee:

Directly or indirectly possesses a substantial or controlling interest in any person which does or seeks to do business with the county, without disclosing such interest as provided by this chapter. A substantial interest is an interest that exceeds one-tenth of one percent of the outstanding securities of the person; or, if the interest is in an unincorporated business concern, exceeds one percent of the net worth of such concern; or the financial interest of a person exceeds five percent of the net worth of the employee and his or her immediate family.

Pursuant to 3.04.110, Mr. Woo, as a department director, is required to complete and file an annual statement of financial disclosure. In reviewing these statements, Mr. Woo has complied with the provisions of the Code and has disclosed his interest in the Puget Sound Licensing agency. Therefore, there is no conflict under the Code of Ethics.

References: King County Code of Ethics, sections 3.04.030 (H, M, and Q), 3.04.110.

ISSUED THIS ___________ DAY OF ___________________, 199__.

Signed for the Board: Dr. J. Patrick Dobel, Chair

Members:

Dr. J. Patrick Dobel, Chair
Timothy Edwards, Esq.
Rev. Paul Pruitt

JPD/mag

cc:

Gary Locke, King County Executive
Metropolitan King County Council Members
Susan Baugh, Director–Ombudsman, Office of Citizen Complaints
Robert I. Stier, Senior Deputy Prosecuting Attorney and Counsel to the Board of Ethics
Ben Woo, Director, Department of Construction and Facilities Management
Fred Stephens, Director, Department of Executive Administration
James J. Buck, Manager, Licensing and Regulatory Services Division