013118 KSEO, ETH 2018-01

• Case Date: January 31, 2018
• Court: Kansas

ETH 2018-01 Opinion No. 2018-01 Kansas Ethics Opinion January 31, 2018          Todd W. Davidson          Hampton & Royce, L.C.          119 West Iron          P.O. Box 1247          Salina, Kansas 67402-1247          Synopsis: The local conflict of interest laws, K.S.A. 75-4301a et seq., define "substantial interest" to include customers of businesses from which a local government official or employee receives compensation only when (1) the compensation is a portion or percentage of each separate fee or commission paid by the customer to the business, and (2) the compensation from that portion or percentage aggregates to $2,000 or more in the preceding calendar year.          Cited herein: K.S.A. 75-4301a and Opinion 1997-29.          Dear Mr. Davidson,          In response to your January 19, 2018, letter request, this opinion is provided by the Kansas Governmental Ethics Commission (commission), concerning application of the local conflict of interest law, K.S.A. 75-4301 a et seq. The commission's jurisdiction is limited to applicability of this law. This opinion, provided pursuant to K.S.A. 75-4303a(a), does not address whether some other statutory system, common law theory, or agency rule or regulation applies to your inquiry.          FACTUAL STATEMENT          We understand that your firm requests this opinion as counsel for an individual member of the city commission of Salina, Kansas (commissioner). Since 2009, the commissioner and his spouse are stockholders of a real estate title insurance company incorporated in Kansas (company). The company employs others in addition to the commissioner. The commissioner has also been an officer, director, and employee of the company. He receives an annual salary (in excess of $2,000) and may receive a distribution of any net profit (in excess of $2,000), as a bonus. For tax purposes, the company is a subchapter S corporation.          Customers pay fees and premiums to the company directly. The compensation paid to the commissioner by the company is not based upon a portion or...