The Indiana State Ethics Commission (“Commission”) issues the following advisory opinion concerning the State Code of Ethics pursuant to IC 4-2-6-4(b)(1).
Background
A state employee serves as the Chair of the Meridian Street Preservation Commission (“MSPC”). The MSPC is a historic preservation commission that reviews applications by property owners and authorizes appropriate development and changes to private property.
The Chair requests an official advisory opinion from the Commission to determine whether she or members of the Commission may bid on or be hired for a project when a property owner is requesting a bid for a project previously approved by the MSPC
Issue
The issue in this case is whether a member of the MSPC may bid on and be contracted to do work on a project that was previously approved by the MSPC.
Relevant Law
IC 4-2-6-9, Conflict of economic interests
Analysis
In this case, a conflict of economic interest would not arise if a member of the MSPC bids on and/or is contracted to do work on a project that was previously approved by the MSPC. Specifically, a conflict of economic interest would arise if a member of the MSPC participates in a decision or vote in which the member or any person with whom the member is negotiating or has an arrangement regarding prospective employment has a financial interest in the decision or vote taken by the MSPC. To the extent that a member of the MSPC does not gain a financial interest in the project prior to the MSPC’s ruling, IC 4-2-6-9 would not apply.
However, given that a project that has already been approved by the MSPC may come before the MSPC in the future and to avoid the appearance of impropriety, the MSPC members should avoid bidding on or accepting to work on projects that have come before the MSPC for approval.
Conclusion
Subject to the foregoing analysis, a conflict of economic interest would not arise if a member of the MSPC bids on and/or is contracted to do work on a project that was previously approved by the MSPC. However, to avoid future conflicts and the appearance of impropriety, a member of the MSPC should avoid bidding on and/or accepting to do work on projects that have come before the MSPC for approval.