Request By:
Mr. Joe R. Bolton
Vice President
Harp Enterprises, Inc.
742 Werne Drive
Lexington, Kentucky 40504
Opinion
Opinion By: Steven L. Beshear, Attorney General; By: Walter C. Herdman, Assistant Deputy Attorney General
This is in response to your letter of November 24, in which you indicate that you plan to run for the office of state representative in next year's election and raise the question as to whether or not there would be any conflict of interest in your becoming a candidate and holding the office, if elected, in view of your present employment with Harp Enterprises, Inc., located in Lexington. You duties, in connection with Harp Enterprises, are to set the voting machines in 58 counties, lay out the ballots for 107 counties, and teach the election officers in approximately 120 counties the duties and responsibilities of their office on behalf of the local county board of elections. Of course, Harp Enterprises prints the ballots for the various counties indicated and in so doing contracts with those counties for the services rendered by you on behalf of the company. You further relate that your title with the company is Vice President of the Voting Machines Division; however, you are merely an employee and own no stock in the company.
Insofar as becoming a candidate for the office of state representative there would be no restriction or conflict with any provision of the constitution or statutes relating to conflicts of interest or incompatible positions. See Section 165 of the Constitution and KRS 61.080.
If you are elected to the office of state representative there is a legislative ethics act which governs the activities of members of the legislature. The only section of this act that would in any way involve your activities as a member of the legislature and your position with the company, would be KRS 6.775(7) which reads as follows:
"(7) No legislator shall knowingly himself or by his partners or through any corporation which he controls or in which he owns or controls more than five percent (5%) of the stock, or by any other person for his use or benefit or on his account, undertake, execute, hold or enjoy, in whole or in part, any contract, agreement, sale or purchase of the value of twenty-five dollars ($25.00) or more, made, entered into, awarded or granted by any state agency, unless said contract, agreement, sale or purchase was made or let after public notice and competitive bidding."
The above statute clearly prohibits a member of the legislature who owns or controls more than 5% of the stock of any corporation or anyone in the corporation for his benefit, from executing or holding any contract or agreement with any state agency, the value of which exceeds $25 unless the contract is executed on a competitive bid basis.
It is true that J. Harp Enterprises, Inc. is involved in a state price contract which the State Board of Elections utilizes in connection with the printing of the Secretary of State's election certification to the clerks and certain other election forms it is required to furnish by law; however, such contracts in no way involve the services you are required to perform as an employee of the company.
From the facts given, it is clear that this section of the statute would not apply to your relationship with Harp Enterprises, Inc., since you are not a stock holder and the contracts or agreements for the work performed by you for the company are made with the fiscal court of each of the counties and paid for by said counties as part of the election costs for which they are responsible under KRS 117.345. Thus KRS 6.775(7) would not be involved.
Under the circumstances we know of no legal objection to your running for and holding the office of state representative, and at the same time continue to hold your position of employment with Harp Enterprises, Inc.