Request By:
Mr. Hallice Upchurch
Wayne County Judge/Executive
P.O. Box 257
Monticello, Kentucky 42633
Opinion
Opinion By: Robert F. Stephens, Attorney General; By: Charles W. Runyan, Assistant Deputy Attorney General
The following are questions relating to the county judge/executive:
"Question 1: May the County Judge Executive vote on moving the county's bank account, from one banking company to another, of which he is a director and stockholder?
"Question 2: Would this constitute any conflict of interest?
"Question 3: How would this effect any certificates of deposit, in the bank of which the account is being moved from?"
Of course the fiscal court has the authority to designate a depository for the county's money. It has control over county money and property. KRS 67.080 and 67.083, as amended by H.B. 152 [Ch. 118, 1978 Acts, §§ 2 and 3]. The county judge/executive is entitled, like any other member of fiscal court, to vote on any matter coming before that body. He can vote on this question.
We see no conflict of interest, unless substantial monetary benefit, arising from the county deposits, could be traced to the county judge/executive as a stockholder. This would be true whether the county money is on an ordinary deposit basis or involves certificates of deposit with interest. If an accountant or C.P.A. could trace substantial monetary benefit to your bankstock as a direct result of the depository move, then there would be a conflict of interest.
There is a doctrine that he who is entrusted with the business of others cannot be allowed to make such business an object of profit to himself. This is based upon considerations of reason, morality, and public policy. The disqualifying interest must be pecuniary by which the officer stands to gain or lose something. However, the interest is not sufficient to disqualify the officer if the opportunity for self-benefit is a mere possibility or is so remote or collateral that it cannot be reasonably calculated to affect his judgment in the making of the contract. Commonwealth v. Withers, 266 Ky. 29, 98 S.W.2d 24 (1936) 25, 26. If your monetary interest could be shown to be substantial or of such quantum as to be reasonably calculated to affect your judgment in voting on this motion as to the county's depository, then you should consider it a conflict of interest and should refrain from attending the meeting.