Advisory Opinion 92-04-1042
Union-Employee Acceptance of Honoraria & Outside Compensation

ISSUE: DOES EMPLOYEE ACCEPTANCE OF HONORARIA FOR PARTICIPATION AT TRAINING SEMINARS, CONFERENCES, AND SIMILAR EVENTS VIOLATE THE KING COUNTY CODE OF ETHICS?

AND

DOES EMPLOYEE ACCEPTANCE OF COMPENSATION FROM PERSONS DOING OR SEEKING TO DO BUSINESS WITH THE COUNTY FOR CONSULTANT OR DESIGN RELATED WORK TO BE REVIEWED OUTSIDE OF KING COUNTY GOVERNMENT VIOLATE THE KING COUNTY CODE OF ETHICS?

Opinion: The Code was not written to stagnate the education of either the public or King County employees. Nor was it written to prohibit King County employees from benefiting others outside of their job. The Code was written to help assure the impartiality and honesty of officials and employees in all public transactions and decisions. However the Code does regulate employee acceptance of such things as compensation, employment, things of value and employee interaction with Persons doing or seeking to do business with the County.

As to either acceptance of honoraria for participation in training sessions and similar events or the rendering of consultant services, the following criteria are used by the Board in determining whether employee interaction with Persons seeking to utilize their services presents a violation of the Code of Ethics:

1. If there is no business relationship between the Person and the County there is no conflict of interest arising solely because of the business relationship between the Person and the County employee.

2. If there is a business relationship between the Person and the County, there would be no conflict of interest arising solely because of the business relationship between the Person and the County employee unless the employee has responsibility for or participates in decisions or actions regarding the Person and the County.

In the context of this request, the Board finds that the Code does not prohibit County employee's from accepting compensation in the form of honoraria for consulting fees from Persons who do not do business with the County or at least do not do business with the County in an area of the employee's responsibility or participation.

If there is a business relationship between the Person and the County there would be a conflict of interest if the employee has responsibility for or participates in decisions regarding the Person or the business relationship.

Pursuant to Section 3.04.030 (I), certain employees listed in the Code of Ethics must obtain prior written authorization before accepting employment or compensation for services outside County Government without regard to the presence or absence of any particular business relationship between the potential employee and the County or the employee.

Section 3.04.030 (I) prohibits compensation, employment or the rendering of service by County employees when such employment or services is incompatible with the proper discharge of official duties or would impair independence of judgment or action in the performance in official duties. While the language of this section regarding independence of judgment or action is clearly related to the concerns and issues raised by the analysis in this opinion, nothing in this opinion should be interpreted as implying that the Board has concluded that the use of the term "incompatibility" in that same section is strictly limited to those issues; there term may well cover other considerations, for example the performance of outside work on County time.

Finally, the King County Board of Ethics finds that neither the language in Section 3.04.030 or the information contained in this advisory opinion should be interpreted as prohibiting administrative units or the County from promulgating more restrictive policies and procedures regarding employee acceptance of honoraria or outside employment including a complete prohibition, if they deem it necessary.

Statement of Circumstances: The Business Representative for a union representing County employees has solicited an advisory opinion from the King County Board of Ethics to determine the impact of the new Code of Ethics on its members. As set forth above, the two questions her involve employee acceptance of honoraria and employee acceptance of compensation from persons doing or seeking to do business with the County for consultant or design related work which will not be submitted to agencies of King County Government for review or approval.

Analysis: The two related questions presented in this advisory opinion are similar to a question previously addressed by the Board in ADV1009, in which an employee was solicited to make a paid presentation to an organization, which in the terminology of the Code of Ethics is defined as a Person does business with the County and whether the employee participates in or is responsible for the conduct of business with the Person. KCC 3.04.030(B0 (C) and (E). In addition, an employee who serves as a consultant to a Person seeking to do business with the County must disclose the relationship pursuant to Section 3.04.030 (H).

As to the separate issue of concurrent employment with the County and a Person who does business with County, Section 3.04.030(I), prohibits the rendering of service to a Person by a County employee when such services will be incompatible with the employee's duties as a County employee or would impair an employee's independence of judgment or action in the performance of his or her official duties. Certain personnel must obtain prior written consent for any employment or compensation fro services performed outside King County Government. Finally, Section 3.04.030(K) prohibits a County employee from entering into a business relationship outside County Government with any Person concerning a matter for which the employee has responsibility as a County employee.

AUTHORITY RELIED UPON

3.04.030 Conflict of interest. No county employee shall engage in any act which is in conflict with the performance of official duties. A county employee shall be deemed to have a conflict of interest if the employee directly or indirectly:

B. Is beneficially interested, directly or indirectly, in any contract, sale, lease, option or purchase that may be made by, through, or under the supervision of the employee, in whole or in part, or accepts, directly or indirectly, any compensation, gift or thing of value from any other person beneficially interested therein;

C. Accepts or seeks for others, directly or indirectly, any employment, travel expense, service information, compensation, gift or thing of value on more favorable terms than those granted to other county employees or the public generally, from any person doing business, or seeking to do business with the county for which the employee has responsibility or with regard to which he or she may participate, provided that this subsection shall not apply to the receipt by elected officials, or by employees who are supervised directly by an elected officials, or by employees who are supervised directly by an elected official, of meals, refreshments or transportation within the boundaries of King County when given in connection with meetings with constituents or meetings which are informational or ceremonial in nature;

E. Participates in, influences, or attempts to influence, directly or indirectly, the selection of, or the conduct of business or a transaction with a person doing or seeking to do business with the County if the employee has a financial interest in or with said person.

H. 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;

I. Engages in or accepts compensation, employment or renders services for any person or a governmental entity other than King County when such employment or service is incompatible with the proper discharge of official duties or would impair independence of judgment or action in the performance of official duties.

In addition, the following employees must obtain the prior written consent of their highest ranking supervisory authorizing either new or continued employment, or the acceptance of any compensation or any thing of value for services performed outside King County government:

1. The deputy county executive, the chief officer of each executive department or administrative office is defined by the provisions of the county charter, the manager of each division of such department or office, and all persons who report directly to such individuals;
2. All non-elected council employees, provided that the personal staff of each individual councilmember shall obtain such consent from such councilmember;
3. All non-elected employees of the prosecuting attorney;
4. All non-elected employees of the department of judicial administration;
5. All non-elected employees of the department of assessments.

If such employment or service is deemed by the highest-ranking supervisor to pose a conflict of interest, the employee immediately shall divest such employment and failure to do so shall be grounds for dismissal;

K. Enters a business relationship outside county government with any other person regard to a matter for which the employee has responsibility as a county employee;

ISSUED ON THE ___________________ day of __________________, 1992

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

Members:

Timothy Edwards, Esq.
Dr. J. Patrick Dobel, Chair

JPD:dwm

cc:

Tim Hill, King County Executive
King County Councilmembers
Robert Stier, Deputy Prosecuting Attorney, Legal Counsel, King County Board of Ethics
Rella Foley, Ombudsman, Office of Citizen Complaints