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HomeMy WebLinkAbout08-504 BitzelSteven A. Bitzel 1410 Fish And Game Rd. Littlestown, PA 17340 Dear Mr. Bitzel: ADVICE OF COUNSEL January 16, 2008 08 -504 This responds to your letters of November 27, 2007, and December 7, 2007, by which you requested 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 a township supervisor, who is a member of one of two volunteer fire companies that serve the township, with regard to voting on a resolution or other matter that would affect either of the aforesaid volunteer fire companies. Facts: As a newly - elected Supervisor for Germany Township ( "Township "), Adams County, you seek an advisory from the State Ethics Commission based upon facts that may be fairly summarized as follows. The Township is served by two volunteer fire companies, Alpha Fire Company ( "Alpha ") and Kingsdale Fire Department ("Kingsdale"). Alpha, which serves about three - quarters of the Township residents, is located in Littlestown Borough, and Kingsdale is located in the Township. Both fire companies derive from the Township their authority to operate within the confines of the Township. You state that the Township pays for Kingsdale's workers' compensation insurance but does not do the same for Alpha. While both of the fire companies receive funds from the Township each year, no formula is used to determine how funds are distributed between the companies. You state that from what you can determine, the Township has proposed to allot $20,000 for Fire Operations and $20,000 for EMS Operations to Alpha for the next year. You further state that at this time, no funding is proposed for Kingsdale since it has not provided sufficient accounting for the prior year's allotment from the Township. You state that the Township has not exercised any control as to how monies appropriated to Alpha and Kingsdale have been spent. You express your view that the Second Class Township Code gives the Township Supervisors the authority to control or oversee how the aforesaid fire companies spend funds allotted to them by the Township. Bitzel, 08 -504 January 16, 2008 Page 2 You are a regular member of Alpha, with which you serve in the capacity of a firefighter /EMT. You state that you do not serve in any officer position within Alpha, nor do you have the authority to direct operations or make corporate decisions. As a regular member, you serve on Alpha's Applicant Committee. The Applicant Committee interviews prospective members, completes criminal and personal background checks on such individuals, and then makes recommendations to Alpha's general body for a majority vote. You state that the Applicant Committee serves only as an advisory panel and does not have the authority to deny anyone's application for membership with Alpha. Based upon the above submitted facts, you ask whether, in your capacity as a Township Supervisor, you would have a conflict of interest with regard to voting on a resolution or other matter that would affect either of the aforesaid volunteer fire companies. 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. Upon taking office as a Township Supervisor, you would become 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 Bitzel, 08 -504 January 16, 2008 Page 3 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. "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. "Business." Any corporation, partnership, sole proprietorship, firm, enterprise, franchise, association, organization, self - employed individual, holding company, joint stock company, receivership, trust or any legal entity organized for profit. "Business with which he is associated." Any business in which the person or a member of the person's immediate family is a director, officer, owner, employee or has a financial interest. 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. 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. Bitzel, 08 -504 January 16, 2008 Page 4 Having established the above general principles, your specific inquiry shall be addressed. First, you are advised that in your capacity as a Township Supervisor, you would generally have a conflict of interest in matters that would financially benefit you, a member of your immediate family, or a business with which you or a member of your immediate family is associated. You would also generally have a conflict of interest in matters that would financially benefit a business with which you are associated through a detriment to a competitor of such a business. See, Pepper, Opinion 87 -008. In each instance of a conflict of interest, you would be required to abstain fully from participation and to satisfy the disclosure requirements of Section 1103(j) of the Ethics Act. Based upon the submitted fact that your role with Alpha is limited to that of a regular volunteer member, you are advised that Alpha is not a business with which you are associated within the meaning of that term as defined by the Ethics Act. Since Alpha is not a business with which you are associated, you are advised that you would not have a conflict of interest under Section 1103(a) of the Ethics Act in voting on a resolution or other matter(s) that would financially impact Alpha and /or Kingsdale 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. In light of the above, it is not necessary to determine whether Alpha would be considered a "business" as that term is defined by the Ethics Act. 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 Second Class Township Code. Conclusion: Upon taking office as a Supervisor for Germany Township ( "Township "), Adams County, you would become a public official subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. In your capacity as a Township Supervisor, you would generally have a conflict of interest in matters that would financially benefit you, a member of your immediate family, or a business with which you or a member of your immediate family is associated. You would also generally have a conflict of interest in matters that would financially benefit a business with which you are associated through a detriment to a competitor of such a business. In each instance of a conflict of interest, you would be required to abstain fully from participation and to satisfy the disclosure requirements of Section 1103(j) of the Ethics Act. Based upon the submitted facts that: (1 ) the Township is served by two volunteer fire companies, Alpha Fire Company ("Alpha ") and Kingsdale Fire Department ( "Kingsdale "); (2) that you are a firefighter /EMT with Alpha; (3) that you are a member but not an officer of Alpha; (4) that you serve on Alpha's Applicant Committee, which is advisory; and (5) that your role with Alpha is limited to that of a regular volunteer member, Alpha is not a business with which you are associated within the meaning of that term as defined by the Ethics Act. Therefore, you would not have a conflict of interest under Section 1103(a) of the Ethics Act in voting on a resolution or other matter(s) that would financially impact Alpha and /or Kingsdale, 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. 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. Bitzel, 08 -504 January 16, 2008 Page 5 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