In applying section 14, the duties of the employee and the structure of the organization in which he works are also important. As an engineer and a research associate on the project, he has stated that he is responsible for any design and development of equipment necessary for the project. The project is largely directed by University professors, to one of whom, the project manager, the employee is directly responsible. He reviews and either approves or disapproves the employee's decisions, or may refer his decisions for review by other professors. The employee has stated that, although his decision on equipment is subject to review by the project manager, his decision is considered with much confidence and, thus, he does influence final decisions on equipment purchases.
Official action includes decisions involving the use of discretionary authority.
The decisions in this instance clearly involve discretionary authority, and, being considered with much confidence, have a direct effect on that which they concern. Because the corporation in which he has a substantial financial interest manufactures the equipment required, and, because any decision he makes on the source from which equipment is purchased affects the corporation, the employee must refrain from participation in such decisions in order to avoid violation of section 14. If bid and other state requirements are complied with, and if the employee is able to disqualify himself from the decision-making process in favor of another who would not likewise be disqualified, there is no reason the project cannot purchase equipment from the corporation. If, on the other hand, he were to make the decision on source of purchase, however, justified, he would be acting in a conflict of interests situation and would be placing himself and the University project in a position which could well arouse public doubt and criticism and undermine public confidence in state government. While the employment with the corporation does not constitute a controlling interest in the business, if another member of the state agency has a controlling interest in the business, the bid procedure outlined in section 16 must be followed.