Conflict of Interest Questions

Hello everyone,

Just wanted to provide you with a quick update on an ongoing issue. As you know, the County Commission recently returned to operating under the the County Budgeting Law of 1957. As part of that move, we are also under the County Purchasing Law of 1957. At the last commission meeting, I pointed out the following wording in that law about potential conflicts of interest.

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TCA 5-14-114. Conflicts of interest — Illegal payments. —

(a) Neither the county purchasing agent, nor members of the county purchasing commission, nor members of the county legislative body, nor other officials of the county, shall be financially interested, or have any personal beneficial interest, either directly or indirectly, in any contract or purchase order for any supplies, materials, equipment or contractual services used by or furnished to any department or agency of the county government.

(b) Nor shall any such persons accept or receive, directly or indirectly, from any person, firm or corporation to which any contract or purchase order may be awarded, by rebate, gift or otherwise, any money or anything of value whatsoever, or any promise, obligation or contract for future reward or compensation.

(c) A violation of this section is a Class D felony.

[Acts 1957, ch. 312, § 10; impl. am. Acts 1978, ch. 934, §§ 7, 36; T.C.A., § 5-1414; Acts 1989, ch. 591, § 18.]

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At that meeting, I asked County Finance Director Dave Bennett about our banking partners. He stated that we banked with several banks around town to some degree, but that we did our greatest share of banking by far with Green Bank, formerly known as American Fidelity. When I asked how much money we hold in that bank, he said it varies, but that on average it's around 37 million.

At that meeting, we were voting on the county mayor's recommendations not only to the budgeting committee, but to a new purchasing committee as well. (The 1957 Law requires the creation of both.) Commissioner Mike Lewis, a vice president at Green Bank, was on the list for appointment to both committees.

I moved that we postpone the vote on the purchasing committee until we could get an opinion from Mr. Rob Goddard, the county mayor's attorney, on whether or not Mr. Lewis's service on that committee might constitute a conflict of interest under this law. At Mr. Graham's suggestion, I modified the motion to say that we would vote on the committee that evening, but make it's enactment subject to a favorable opinion by Mr. Goddard. I had no interest in holding up the process, only in making sure we were doing the right thing.

Mr. Bennett was clearly frustrated by my request, though I must admit I don't understand why. He said he thought it was up to Mr. Lewis "and his counsel" to determine these things for himself and, essentially, that he saw no problem with it. He went on to say that if there was a problem, it could go to the Ethics Committee. I pointed out that I was chair of that committee, and that I felt we had an obligation as a legislative body to watch our own practices.

Well, my motion failed and the committee was established. Commissioner Lewis, unfortunately, wasn't able to be there that evening. However, his response since then has been encouraging, and that's what I wanted you to know about.

He has, on his own, gone to Mr. Goddard for advice. Mr. Goddard, apparently, referred him to the state attorney general and CTAS (the County Technical Assistance Service run by UT). With the help of our state legislators, he has submitted a formal request for an opinion by the state attorney general, and is waiting on a response at this time.

I commend Mr. Lewis for his actions, and look forward to hearing the state attorney general's response.

Commission meeting is tomorrow evening. Animal Control meets at 6, and the commission itself at 7.

Join us!
~Wendy