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Article published Oct 13, 2007 State AG says commissioner can serve on committee
The Tennessee attorney general has issued an opinion that Blount County Commissioner Mike Lewis, as an employee of GreenBank, can still serve on the County Purchasing Committee. The same opinion, however, could lead to potential problems if Lewis is a shareholder in the bank.
In his opinion dated Wednesday, state Attorney General Robert E. Cooper Jr. wrote: “Tenn. Code Ann. § 45-2-405 authorizes any officer, director, or employee of any bank to serve in any local office, so long as he or she discloses the position to the bank and the local government. This statute applies ‘notwithstanding the provisions of any law to the contrary.’ Under the statute, therefore, a bank officer, director, or employee may serve in any local office, including on the county commission, the county budget committee, or the county purchasing commission.”Shareholder clause
While this would seem to allow Lewis to hold a seat on the Purchasing Commission, Cooper’s opinion didn’t stop there:
“Tenn. Code Ann. § 5-14-114 of the County Purchasing Law of 1957 prohibits a shareholder of a bank that conducts business with the county from serving as a county commissioner, or as a member of the county budget committee or the county purchasing commission,” he wrote. “While the Tennessee Court of Criminal Appeals has concluded that this statute is unconstitutional to the extent it imposes criminal penalties, we think it may still constitutionally serve as the basis for an ouster action under Tenn. Code Ann. § 8-47-101, et seq.”
According to the GreenBank corporate office, while all senior-level executives with the company are included in a stock-option program, whether Lewis has exercised any options and purchased stock is not publicly available information.
In July, Commissioner Wendy Pitts Reeves questioned whether Lewis, who is employed as a senior vice president by GreenBank, would have a conflict as a member of the Purchasing Commission because the county conducts business with his employer. Lewis sought guidance from the state Attorney General’s Office and said he would abide by the results of the opinion.
County Mayor Jerry Cunningham previously said he does not intend to nominate Lewis to a special Investment Committee that will approve county contracts for financial services next year. Cunningham, reached by telephone Thursday while traveling, said he hadn’t seen the opinion yet. Lewis could not be reached for comment.Budgeting law
The county returned to the County Budgeting Law of 1957 effective July 1. The new Budget Committee is made up of the county mayor and four commissioners: John Keeble, Lewis, Kenneth Melton and Steve Samples. All serve on the Purchasing Commission, which for all practical purposes has been folded into the Budget Committee, as well. State law makes it a felony for a member of the Purchasing Commission (or any county commissioners) to have a direct or indirect conflict of interest.
The banks the county does business with are chosen through a competitive bidding process. GreenBank, formerly known as American Fidelity, was the successful bidder to provide the services in 2002. Prior to that time, First Tennessee held the contract for several years.
On average, the county holds about $37 million in GreenBank. The contract with GreenBank will expire in 2008.
The Investment Committee last met in early 2005. The current contract with GreenBank was approved April 11 of that year. The makeup of the committee at that time was former County Mayor Beverley Woodruff, current County Commission Chairman Robert Ramsey, and former Commissioners Keith Brock, Donna Dowdy and Otto Slater.