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HomeMy WebLinkAbout08-503 ConfidentialADVICE OF COUNSEL January 15, 2008 08 -503 This responds to your letter received December 7, 2007, by which you requested confidential advice from the State Ethics Commission. Issue: Whether the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa. .S. § 1101 et seq., would present any prohibitions or restrictions upon an A, whose daughter -in law is employed as a B by the [political subdivision], as to: (1) participating in or receiving briefings and updates on contract negotiations between the [political subdivision and the Bs' union; or (2) voting on a contract between the [political subdivision] and the Bs' union. Facts: You are beginning your [number] [time - length] term as an A for Political Subdivision C. Your daughter -in -law, Individual D, is employed as a B by Political Subdivision C. You state that negotiations between the Political Subdivision C Board E and the Bs' union will begin in the coming months of the current F. Based upon the above submitted facts, you pose the following specific questions: 1. Whether the Ethics Act would permit you to sit in on any and all briefings and updates on the negotiations process; 2. Whether the Ethics Act would permit you to be involved in the negotiations process, such as by participating on Board E's negotiations team; and 3. Whether the Ethics Act would permit you to vote on a negotiated and agreed - upon contract at a public meeting of Board E. Discussion: It is initially noted that pursuant to Sections 1107(10) and 1107(11) of the Ethics Act, 65 Pa.C.S. §§ 1107(10), (11), advisories are issued to the requester based upon the facts that the requester has submitted. In issuing the advisory based upon the facts that the requester has submitted, the Commission does not engage in an independent investigation of the facts, nor does it speculate as to facts that have not been submitted. It is the burden of the requester to truthfully disclose all of the material facts relevant to the inquiry. 65 Pa.C.S. §§ 1107(10), (11). An advisory only affords a defense to the extent the requester has truthfully disclosed all of the material facts. Confidential Advice, 08 -503 January 15, 2008 Page 2 As an A for Political Subdivision C, you are a public official subject to the provisions of the Ethics Act. Sections 1103(a) and 1103(j) of the Ethics Act provide: § 1103. Restricted activities (a) Conflict of interest. - -No public official or public employee shall engage in conduct that constitutes a conflict of interest. (j) Voting conflict. - -Where voting conflicts are not otherwise addressed by the Constitution of Pennsylvania or by any law, rule, regulation, order or ordinance, the following procedure shall be employed. Any public official or public employee who in the discharge of his official duties would be required to vote on a matter that would result in a conflict of interest shall abstain from voting and, prior to the vote being taken, publicly announce and disclose the nature of his interest as a public record in a written memorandum filed with the person responsible for recording the minutes of the meeting at which the vote is taken, provided that whenever a governing body would be unable to take any action on a matter before it because the number of members of the body required to abstain from voting under the provisions of this section makes the majority or other legally required vote of approval unattainable, then such members shall be permitted to vote if disclosures are made as otherwise provided herein. In the case of a three - member governing body of a political subdivision, where one member has abstained from voting as a result of a conflict of interest and the remaining two members of the governing body have cast opposing votes, the member who has abstained shall be permitted to vote to break the tie vote if disclosure is made as otherwise provided herein. 65 Pa. C. S. §§ 1103(a), (j). The following terms are defined in the Ethics Act as follows: § 1102. Definitions "Conflict" or "conflict of interest." Use by a public official or public employee of the authority of his office or employment or any confidential information received through his holding public office or employment for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his immediate family is associated. The term does not include an action having a de minimis economic impact or which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the public official or public employee, a member of his immediate family or a business with which he or a member of his immediate family is associated. Confidential Advice, 08 -503 January 15, 2008 Page 3 "Authority of office or employment." The actual power provided by law, the exercise of which is necessary to the performance of duties and responsibilities unique to a particular public office or position of public employment. "Immediate family." A parent, spouse, child, brother or sister. 65 Pa. C. S. § 1102. Pursuant to Section 1103(a) of the Ethics Act, a public official /public employee is prohibited from using the authority of public office /employment or confidential information received by holding such a public position for the private pecuniary benefit of the public official /public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. The use of authority of office is not limited merely to voting, but extends to any use of authority of office including, but not limited to, discussing, conferring with others, and lobbying for a particular result. Juliante, Order 809. In each instance of a voting conflict, Section 1103(j) of the Ethics Act requires the public official /public employee to abstain and to publicly disclose the abstention and reasons for same, both orally and by filing a written memorandum to that effect with the person recording the minutes. In the event that the required abstention results in the inability of the governmental body to take action because a majority is unattainable due to the abstention(s) from conflict under the Ethics Act, then voting is permissible provided the disclosure requirements noted above are followed. See, Pavlovic, Opinion 02 -005. In applying the above provisions of the Ethics Act to the instant matter, you are advised as follows. Subject to the statutory exceptions to the definition of "conflict" or "conflict of interest," pursuant to Section 1103(a) of the Ethics Act, you would have a conflict of interest in matters before Board E that would financially impact you, a member of your immediate family, or a business with which you or a member of your immediate family is associated. As noted above, the term "immediate family" is defined to include a parent, spouse, child, brother or sister. Your daughter -in -law, Individual D, is not a member of your immediate family. Since your daughter -in -law is not a member of your immediate family, you would not have a conflict of interest under Section 1103(a) of the Ethics Act in matters before Board E that would financially impact your daughter -in -law but that would not financially impact you, a member of your immediate family, or a business with which you or a member of your immediate family is associated. Turning to your specific inquiries, you are advised that absent some basis for a conflict of interest other than your daughter -in -law's employment as a B with Political Subdivision C, Section 1103(a) of the Ethics Act would not prohibit you from: (1) receiving briefings and updates on contract negotiations between Political Subdivision C and the Bs' union; (2) being involved in the negotiations process and /or participating on Board E's negotiations team; or (3) voting on a contract between Political Subdivision C and the Bs' union. Lastly, the propriety of the proposed conduct has only been addressed under the Ethics Act; the applicability of any other statute, code, ordinance, regulation or other code of conduct other than the Ethics Act has not been considered in that they do not involve an interpretation of the Ethics Act. Specifically not addressed herein is the applicability of the G. Confidential Advice, 08 -503 January 15, 2008 Page 4 Conclusion: As an A for Political Subdivision C, you are a public official subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. Subject to the statutory exceptions to the definition of "conflict" or "conflict of interest,' pursuant to Section 1103(a) of the Ethics Act, you would have a conflict of interest in matters before Board E that would financially impact you, a member of your immediate family, or a business with which you or a member of your immediate family is associated. Your daughter -in -law, Individual D, is not a member of your "immediate family" as that term is defined in the Ethics Act. Since your daughter - in -law is not a member of your immediate family, you would not have a conflict of interest under Section 1103(a) of the Ethics Act in matters before Board E that would financially impact your daughter -in -law but that would not financially impact you, a member of your immediate family, or a business with which you or a member of your immediate family is associated. Absent some basis for a conflict of interest other than your daughter -in -law's employment as a B with Political Subdivision C, Section 1103(a) of the Ethics Act would not prohibit you from: (1) receiving briefings and updates on contract negotiations between Political Subdivision C and the Bs' union; (2) being involved in the negotiations process and /or participating on Board E's negotiations team; or (3) voting on a contract between Political Subdivision C and the Bs' union. Lastly, the propriety of the proposed conduct has only been addressed under the Ethics Act. Pursuant to Section 1107(11), an Advice is a complete defense in any enforcement proceeding initiated by the Commission, and evidence of good faith conduct in any other civil or criminal proceeding, provided the requester has disclosed truthfully all the material facts and committed the acts complained of in reliance on the Advice given. This letter is a public record and will be made available as such. Finally, if you disagree with this Advice or if you have any reason to challenge same, you may appeal the Advice to the full Commission. A personal appearance before the Commission will be scheduled and a formal Opinion will be issued by the Commission. Any such appeal must be in writing and must be actually received at the Commission within thirty (30) days of the date of this Advice pursuant to 51 Pa. Code § 13.2(h). The appeal may be received at the Commission by hand delivery, United States mail, delivery service, or by FAX transmission (717 - 787 - 0806). Failure to file such an appeal at the Commission within thirty (30) days may result in the dismissal of the appeal. Sincerely, Robin M. Hittie Chief Counsel