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S1 A1E OF ALABAMA

ETHICS COMMISSIONMAILING ADDRESS

P.O. BOX 4840MONTGOMERY. AL

36103-4840

STREET ADDRESS

RSA UNION100 NORTH UNION STREET

SUITE 104MONTGOMERY. AL 36104COMMISSIONERS

Russell Jackson Drake, Esq., ChainnanJ.Harold Sorrells, Vice-Chainnan

Raymond L. Bell, Jr., Esq.Linda L. Green

Nancy Edwards Eldridge

James L. Sumner, Jr.Director

TELEPHONE (334) 242-2997

FAX (334) 242-0248WEB SITE www.ethics.alalinc.net

January 8, 2003

ADVISORY OPINION NO. 2003-02

Mr. J. W. Holland, Jr.Executive Director

Alabama Real Estate Appraisers BoardP.O. Box 304355Montgomery, Alabama 36130-4355

Conflict OfInterest/Executive Secretary ForReal Estate Appraisers Board AcceptingPart-Time Clerical Employment With TheAlabama Chapter Of The Appraisal Institute.

The Executive Secretary for the Real EstateAppraisers Board may not accept part':timeclerical employment with the AlabamaChapter of the Appraisal Institute, as theReal Estate Appraisers Board licensesmembers of the Appraisal Institute andapproves courses and instructors forcontinuing education courses conducted bythe Appraisal Institute, and where theExecutive Secretary's part-time clericalemployment would involve interactionbetween the Appraisal Institute and the RealEstate Appraisers Board.

Dear Mr. Holland:

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.

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Mr. J. W. Holland, Jr.Advisory Opinion No. 2003-02Page two

OUESTION PRESENTED

May the Executive Secretary for the Real Estate Appraisers Board accept part-timeclerical employment with the Alabama Chapter of the Appraisal Institute, a national voluntaryprivate appraiser organization?

FACTS AND ANALYSIS

The facts as have been presented to this Commission are as follows:

The Alabama Real Estate Appraisers Board (REAB) is a statutory board which providesfor the licensure and regulation of persons performing appraisals of real estate. The Boardreceives and approves applications from real estate appraisers wishing to become licensed in oneof several classifications.

In addition, the Board establishes procedures for processing such applications, maintainsa registry of approved applications, adopts standards for appraisals, establishes rules andprocedures for discipline, prescribes educational requirements for licensure and certification,oversees a program of mandatory continuing education and makes rules and regulations to carryout all necessary functions.

The Real Estate Appraisers Board has no regulatory authority over the Appraisal Institute(AI) or the Alabama Chapter. AI is not required to obtain REAB approval of its appraisaleducation courses or instructors. However, in order for the course participants to receive creditfor the education in obtaining a license from REAB or for credit for continuing education forrenewal of a license from REAB, the course and instructor must be approved by REAB. REABcan withdraw approval of the course or the instructor who is authorized to teach the course forcause.

The Executive Secretary ofREAB has no involvement in the review, recommendationand approval process for appraisal education courses or instructors. Her duties are as follows:

1) Serves as administrative assistant to the Executive Director of the agency2) Responsible for the logistics of Board meetings3) Attends Board meetings, takes and transcribes minutes of the meetings4) Inventory control for accountable property5) SEICTF/Risk Management coordination6) Editor of Agency Newsletter7) Computer System CoordinatorlLiaison with DSMD

,-- Mr. J. W. Holland, Jr.Advisory Opinion No. 2003-02Page three

8) Federal Registry Coordinator9) Experience evaluation for licensure and reclassification10) Application processing and management11) Support staff workload coordination

Her duties at the Alabama Chapter would include:

1) Typing, including the form attached hereto as Exhibit "A" for submission toREAB

2) Bookkeeping3) Reports from the Alabama Chapter to the National organization4) Sending forms to appraisal course registrants5) Collating course material packets for distribution to registrants at course6) Typing and mailing course roster to REAB7) Coordinating with caterer for food service at courses

Mr. Holland states that virtually all contact between the Chapter clerical employee and allparties concerned is by email, regular mail, fax or telephone. He states that this employee doesnot have access to the examinations given to course participants. He further states that all dutiesfor the Alabama Chapter would be performed after-hours or on weekends away from the REABoffices, using only equipment and/or supplies furnished by the AI, and would not interfere withattendance at the full-time employment.

The Alabama Ethics Law, Code of Alabama. 1975, Section 36-25-1(23) defines a publicemployee as:

"(23) PUBLIC EMPLOYEE. Any person employed at the state, county, ormunicipal level of government or their instrumentalities, including governmentalcorporations and authorities, but excluding employees of hospitals or other healthcare corporations including contract employees of those hospitals or other healthcare corporations, who is paid in whole or in part from state, county or municipalfunds. For purposes of this chapter, a public employee does not include a personemployed on a part-time basis whose employment is limited to providingprofessional services other than lobbying, the compensation for which constitutesless than 50 percent of the part-time employee's income."

Section 36-25-2(b) in pertinent part states:

"An essential principle underlying the staffing of our governmental structure isthat its public officials and public employees should not be denied theopportunity, available to all other citizens, to acquire and retain private economic

Mr. J. W. Holland, Jr.Advisory Opinion No. 2003-02Page four

and other interests, except where conflicts with the responsibility of publicofficials and public employees to the public cannot be avoided."

Section 36-25-1(8) defines a conflict of interest as:

"(8) CONFLICT OF INTEREST. A conflict on the part of a public official orpublic employee between his or her private interests and the officialresponsibilities inherent in an office of public trust. A conflict of interest involvesany action, inaction, or decision by a public official or public employee inthe discharge of his or her official duties which would materially affect his or herfinancial interest or those of his or her family members or any business withwhich the person is associated in a manner different from the manner it affects theother members of the class to which he or she belongs."

Section 36-25-5(a) states:

"(a) No public official or public employee shall use or cause to be used his or herofficial position or office to obtain personal gain for himself or herself, or familymember of the public employee or family member of the public official, or anybusiness with which the person is associated unless the use and gain areotherwise specifically authorized by law. Personal gain is achieved when thepublic official, public employee, or a family member thereof receives, obtains,exerts control over, or otherwise converts to personal use the object constitutingsuch personal gain."

While the Ethics Law allows public officials and public employees to have outsidefinancial opportunities, those opportunities are prohibited by the Ethics Law if a conflict ofinterest exists.

In the facts before the Commission, a conflict of interest is present, as the Real EstateAppraisers Board approves continuing education courses conducted by the Appraisers Instituteand licenses its members, and further, where the Executive Secretary would have directinteraction on behalf of the Alabama Chapter back with the Real Estate Appraisers Board.

Based on the facts as provided and the above law, the Executive Secretary for the RealEstate Appraisers Board may not accept part-time clerical employment with the AlabamaChapter of the Appraisal Institute, as the Real Estate Appraisers Board licenses members of theAppraisal Institute and approves courses and instructors for continuing education coursesconducted by the Appraisal Institute, and where the Executive Secretary's part-time clericalemployment would involve interaction between the Appraisal Institute and the Real EstateAppraisers Board.

Mr. J. W. Holland, Jr.Advisory Opinion No. 2003-02Page five

CONCLUSION

The Executive Secretary for the Real Estate Appraisers Board may not accept part-timeclerical employment with the Alabama Chapter of the Appraisal Institute, as the Real EstateAppraisers Board licenses members of the Appraisal Institute and approves courses andinstructors for continuing education courses conducted by the Appraisal Institute, and where theExecutive Secretary's part-time clerical employment would involve interaction between theAppraisal Institute and the Real Estate Appraisers Board.

AUTHORITY

By 4-0 vote of the Alabama Ethics Commission on January 8,2003.

¥;Harold Sorrellscting Chair in the absence of the Chair/

Vice-ChairAlabama Ethics Commission