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HomeMy WebLinkAbout08-510 AdamsCheryl J. Adams 145 Sheep Bridge Road York Haven, PA 17370 Dear Ms. Adams: ADVICE OF COUNSEL January 31, 2008 08 -510 This responds to your communications of December 12, 2007, December 18, 2007, and December 22, 2007, by which you requested advice from the State Ethics Commission. Issue: Whether as a Business Analyst 2 with the Commonwealth of Pennsylvania Department of Health ( "DOH "), either prior to retirement or as a temporary annuitant with DOH serving in the same position, you would be considered a "public employee" subject to the Public Official and Employee Ethics Act (Ethics Act "), 65 Pa.C.S. § 1101 et seq., and the Regulations of the State Ethics Commission, and upon leaving commonwealth employment, the restrictions of Section 1103(g) of the Ethics Act pertaining to former public officials /public employees. Facts: You request an advisory from the State Ethics Commission regarding the post- employment restrictions of the Ethics Act. You have submitted facts that may be fairly summarized as follows. On June 22, 2007, you retired from Commonwealth employment with DOH. You state that until shortly before your retirement, your position had been classified as a Management Analyst 2. You have submitted a document as a copy of the most recent position description for your position, which document is incorporated herein by reference. Said document references your working title as "Program or Management Analyst 3" and your class code as 01020, which is the classification for "Management Analyst 2." A copy of the job classification specifications for a Management Analyst 2 (job code 01020) has been obtained and is also incorporated herein by reference. You state that in September 2005, your supervisor attempted to have your position with DOH reclassified. Your supervisor changed your title on your position description to "Program or Management Analyst 3" to reflect the desired change. The Office of Administration, Bureau of Classification, Compensation and Workplace Support ( "the Bureau "), ultimately reviewed the classification of your position and determined that the appropriate classification for your position was Business Analyst 2. You state that during the time the classification of your position was under review, the responsibilities of your position did not change and only the title on the position description changed. Adams, 08 -510 January 31, 2008 Page 2 You have submitted a copy of correspondence dated June 4, 2007, from Ralph Winters, Director of the Bureau, to you, wherein Mr. Winters states that the Business Analyst 2 job specifications better define the focus of your work than the specifications for the Management Analyst 2 position. A copy of the job classification specifications for a Business Analyst 2 (job code 01052) has been obtained and is incorporated herein by reference. Per the submitted position description, you were responsible for reviewing, coordinating, and evaluating technology usage and functions between and among the three bureaus within the Deputate for Quality Assurance, the office of the Deputy Secretary for Quality Assurance, the Bureau of Information Technology ( "BIT "), other state agencies, the federal government, and various external automated technology vendors. Your duties and responsibilities included the following: • Analyzing, evaluating, and administerin the business process development of the State Agency Information System �"SAIS") information system /application, the Electronic Reporting System, the DOH portion of the Patient Safety System ( "PA- PSRS "), the Automated Plan of Corrections ( "POC ") system /application and related web site application, and all other data bases and technologies used by the bureaus; • Serving as the program office representative for all areas when outside vendors are employed on contractual arrangements between BIT application developers and DOH; • Negotiating time frames and processes, evaluating contractor work products, and resolving contract disputes; • Evaluating program applications, recommending needed changes to applications, and overseeing and prioritizing change management requests to • Evaluating program needs and developing or revising existing reports to assist with planning and analyzing operations; • Designing and managing program /business application testing of new application modules and system changes as they come out of development prior to acceptance and usage by DOH employees and /or health care providers; • Developing test scripts to be followed by staff in conducting testing of new system changes, coordinating business application usage with regional and field office staff, and conducting staff training on all applications; • Serving as initial point of contact for other agencies interested in utilizing SAIS for Communities of Practice standards, preparing draft requirements needed for other agencies to implement the use of SAIS, and serving as liaison between other agencies and SAIS vendor to secure estimates, discuss requirements and provide other assistance as needed; • Meeting regularly with the Deputy Secretary, bureau representatives, and BIT to review current operations, make recommendations on needed changes, and oversee institution of changes in all program areas; • Overseeing all program /business aspects of system development and /or acquisition, preparing work statements for contractual support, coordinating installations of equipment and software for users with BIT, and testing and approving program /business applications prior to acceptance by DOH; Adams, 08 -510 January 31, 2008 Page 3 • Designing and managing a deputate -wide AT equipment inventory and equipment replacement schedule; • Issuing revised or new policies and procedures covering deputate applications; and • Serving on the Patient Safety Authority /DOH Committee. Position description, at 1 -2. Per the job classification specifications under job code 01020, the duties and authority of a Management Analyst 2 include, inter alia: • Evaluating work methods and procedures, organizational structures, or inventory systems in order to improve productivity, to suggest further or initial automation, or to suggest change in agency policy, procedures, or management practices; • Interviewing employees and supervisors in operational or program units, conducting on site inspections, and negotiating for approval of recommendations; • Evaluating requests for office equipment; • Reviewing and analyzing administrative issuances, developing or revising directives or manual issuances, and coordinating internal or external review, printing and distribution; and • Conducting studies of managerial functions and leading other management analysts in studies. Job classification specifications, at 1 -2. Per the job classification specifications under job code 01052, a Business Analyst 2: • Performs analytical work in documenting, enhancing, and maintaining business processes for their application to information technology (IT) systems; • Prepares or reviews functional specifications for system development or enhancements, develops user test scripts, coordinates or conducts system testing, trains users, and troubleshoots user or system problems; • Evaluates the effectiveness of a project or contract to ensure goals, objectives, or terms are met and conducts research on business software solutions; • Analyzes legislation or other business documentation (i.e., RFPs) to determine necessary IT system changes or changes to business processes required to meet the objectives of an agency initiative; • Works with business users to develop and implement improved business processes for their application to an IT system in support of agency program policy; • Works with users to develop or enhance system requirements; Adams, 08 -510 January 31, 2008 Page 4 • Prepares or reviews detailed functional specifications for complex IT system development or enhancement projects to be used by developers for system coding; • Participates in the development of detailed functional specifications for highly complex system development and enhancement projects; • Conducts system testing or coordinates system testing with users and reviews and approves test results performed by contractors; • Prepares system change requests, plans for the implementation of system changes, and recommends system or system change implementation schedules; and • Troubleshoots system, data, or process problems. Job classification specifications, at 1 -2. You state that during your tenure with DOH, you were not required to complete Statements of Financial Interests. Following your retirement from the Commonwealth, you returned to work with DOH as an annuitant in the same position, working on a part -time basis until November 6, 2007. You state that during the period of your annuitancy, you performed testing of new enhancements, prepared test scenarios, and trained your replacement, but you did not perform the full duties of your prior position. You state that from 1998 to the present, Alpine Technology Group ( "ATG ") has been under contract with DOH to create, update, and maintain a comprehensive information system to track health care facility survey and complaint activities. While you were employed as a Business Analyst/Management Analyst 2 with DOH, your responsibilities included reviewing documentation provided by various contractors, including ATG, for new projects and testing the resulting products. Although you reviewed specific contract documents prepared by ATG to ensure consistency with DOH goals, you state that you were not personally responsible for any financial aspects of the contract. You state that BIT administered the contract between DOH and ATG using funding from the program area in which you were employed. You have recently entered into a contract with ATG to work on a part -time basis as a Business Analyst /Business Developer. You state that your Business Analyst responsibilities with ATG include creating design documents for new enhancements and testing such enhancements, creating project management documents, and assisting the Project Manager with project planning. The aforementioned tasks are performed for several government agencies under contract with ATG, including DOH. You state that your Business Developer responsibilities include new development opportunities with entities other than those currently under contract with ATG. You pose the following questions: 1. Whether, in your former position with DOH, you were a "public employee" as the Ethics Act defines that term, such that you would now be considered a former "public employee" subject to Section 1103(g) of the Ethics Act; and 2. To the extent you are a former "public employee" subject to Section 1103(g) of the Ethics Act, whether the one -year period of applicability of Section 1103(g) of the Ethics Act began when you retired from DOH on June 22, 2007, or when your service as an annuitant ended on November 6, 2007. Adams, 08 -510 January 31, 2008 Page 5 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. It is further noted that, pursuant to the same aforesaid Sections of the Ethics Act, 65 Pa.C.S. §§ 1107(10), (11), an opinion /advice may be given only as to prospective (future) conduct. To the extent that your inquiry relates to conduct that has already occurred, such past conduct may not be addressed in the context of an advisory opinion. However, to the extent your inquiry relates to future conduct, your inquiry may and shall be addressed. In responding to your inquiries, the threshold question to be addressed is whether, in your former position with DOH - -in which you served both prior to retirement and as a temporary annuitant following retirement- -you would be considered a "public employee" subject to the Ethics Act. For purposes of responding to your request, this advisory shall refer to your former position as a "Business Analyst 2" with DOH, but such designation shall be deemed to encompass all of the duties and authority set forth in your Position Description and all job classification specifications assigned to you during any applicable time period. The Ethics Act defines the term "public employee" as follows: § 1102. Definitions "Public employee." Any individual employed by the Commonwealth or a political subdivision who is responsible for taking or recommending official action of a nonministerial nature with regard to: (1) contracting or procurement; (2) administering or monitoring grants or subsidies; (3) planning or zoning; (4) inspecting, licensing, regulating or auditing any person; or (5) any other activity where the official action has an economic impact of greater than a de minimis nature on the interests of any person. The term shall not include individuals who are employed by this Commonwealth or any political subdivision thereof in teaching as distinguished from administrative duties. 65 Pa.C.S. § 1102. The Regulations of the State Ethics Commission similarly define the term "public employee" and set forth the following additional criteria: Adams, 08 -510 January 31, 2008 Page 6 (ii) The following criteria will be used, in part, to determine whether an individual is within the definition of "public employe ": (A) The individual normally performs his responsibility in the field without onsite supervision. (B) The individual is the immediate supervisor of a person who normally performs his responsibility in the field without onsite supervision. (C) The individual is the supervisor of a highest level field office. (D) The individual has the authority to make final decisions. (E) The individual has the authority to forward or stop recommendations from being sent to the person or body with the authority to make final decisions. (F) The individual prepares or supervises the preparation of final recommendations. (G) The individual makes final technical recommen- dations. (H) The individual's recommendations or actions are an inherent and recurring part of his position. (1) The individual's recommendations or actions affect organizations other than his own organization. (iii) The term does not include individuals who are employed by the Commonwealth or a political subdivision of the Commonwealth in teaching as distinguished from administrative duties. (iv) Persons in the following positions are generally considered public employes: (A) Executive and special directors or assistants reporting directly to the agency head or governing body. (B) Commonwealth bureau directors, division chiefs or heads of equivalent organization elements and other governmental body department heads. (C) Staff attorneys engaged in representing the department, agency or other governmental bodies. (D) Engineers, managers and secretary - treasurers acting as managers, police chiefs, chief clerks, chief purchasing agents, grant and contract managers, administrative officers, housing and building inspectors, investigators, auditors, sewer enforcement officers and zoning officers in all governmental bodies. Adams, 08 -510 January 31, 2008 Page 7 (E) Court administrators, assistants for fiscal affairs and deputies for the minor judiciary. (F) School superintendents, assistant superintendents, school business managers and principals. (G) Persons who report directly to heads of executive, legislative and independent agencies, boards and commissions except clerical personnel. (v) Persons in the following positions are generally not considered public employes: (A) City clerks, other clerical staff, road masters, secretaries, police officers, maintenance workers, construction workers, equipment operators and recreation directors. (B) Law clerks, court criers, court reporters, probation officers, security guards and writ servers. (C) School teachers and clerks of the schools. 51 Pa. Code § 11.1. The following terms are relevant to your inquiry and are defined in the Ethics Act as follows: § 1102. Definitions "Ministerial action." An action that a person performs in a prescribed manner in obedience to the mandate of legal authority, without regard to or the exercise of the persons own judgment as to the desirability of the action being taken. "Nonministerial actions." An action in which the person exercises his own judgment as to the desirability of the action taken. 65 Pa. C. S. § 1102. Status as a "public employee" subject to the Ethics Act is determined by an objective test. The objective test applies the Ethics Act's definition of the term "public employee" and the related regulatory criteria to the powers and duties of the position itself. Typically, the powers and duties of the position are established by objective sources that define the position, such as the job description, job classification specifications, and organizational chart. The objective test considers what an individual has the authority to do in a given position based upon these objective sources, rather than the variable functions that the individual may actually perform in the position. See, Philips v. State Ethics Commission, 470 A.2d 659 (Pa. Cmwlth. 1984); Eiben, Opinion 04 -002; Shienvold, Opinion 04 -001; Shearer, Opinion 03 -011. The Commonwealth Court of Pennsylvania has specifically considered and approved the Commission's objective test and has directed that coverage under the Ethics Act be construed broadly and that exclusions under the Ethics Act be construed narrowly. See, Phillips, supra. Adams, 08 -510 January 31, 2008 Page 8 The first portion of the statutory definition of "public employee" includes individuals with authority to take or recommend official action of a nonministerial nature. 65 Pa.C.S. § 1102. Likewise, the regulatory criteria for determining status as a public employee, as set forth in 51 Pa. Cocfe § 11.1 ( "public employee" (ii)), include not only individuals with authority to make final decisions but also individuals with authority to forward or stop recommendations from being sent to final decision - makers; individuals who prepare or supervise the preparation of final recommendations; individuals who make final technical recommendations; and individuals whose recommendations are an inherent and recurring part of their positions. See, e.q., Reese /Gilliland, Opinion 05- 005. In applying the objective test in the instant matter, the necessary conclusion is that in your former capacity as a Business Analyst 2 with DOH - -both prior to your retirement and following your retirement as a temporary annuitant with DOH serving in the same position - -you would be considered a "public employee" subject to the Ethics Act. See, Graves, Opinion 00 -009; McGlathery, Opinion 00 -004. As a Business Analyst 2 with DOH, you had the ability to take or recommend official action with respect to subparagraph (5) within the definition of "public employee" as set forth in the Ethics Act, 65 Pa.C.S. § 1102. Specifically, the following duties set forth in the position description and job classification specifications would be sufficient to establish status as a "public employee" subject to the Ethics Act: • Serving as the program office representative for all areas when outside vendors are employed on contractual arrangements between BIT application developers and DOH; • Negotiating time frames and processes, evaluating contractor work products and resolving contract disputes; • Designing and managing program /business application testing of new application modules and system changes as they come out of development prior to acceptance and usage by DOH employees and /or health care providers; • Serving as initial point of contact for other agencies interested in utilizing SAIS for Communities of Practice standards, preparing draft requirements needed for other agencies to implement the use of SAIS, and serving as liaison between other agencies and SAIS vendor to secure estimates, discuss requirements and provide other assistance as needed; • Overseeing all program /business aspects of system development and /or acquisition, preparing work statements for contractual support, coordinating installation of equipment and software for users with BIT, and testing and approving program /business applications prior to acceptance by DOH; • Designing and managing a deputate -wide AT equipment inventory and equipment replacement schedule; • Evaluating the effectiveness of a project or contract to ensure goals, objectives, or terms are met; • Working with business users to develop and implement improved business processes for their application to an IT system in support of agency program policy; • Working with users to develop or enhance system requirements; and Adams, 08 -510 January 31, 2008 Page 9 • Conducting system testing or coordinating system testing with users and reviewing and approving test results performed by contractors. The foregoing activities would also meet the criteria for determining your status as a public employee under the Regulations of the State Ethics Commission, specifically at 51 Pa. Code § 11.1, "public employee," subparagraphs (i) and (ii). Turning to your second specific inquiry, you are advised that the restrictions of Section 1103(g) of the Ethics Act apply for a full one -year period each time an individual becomes a former public employee. Graves, supra; McGlathery, supra. Thus, when you initially retired from DOH on June 22, 2007, you became a former public employee subject to the restrictions of Section 1103(g) of the Ethics Act. When you returned to work as an annuitant with DOH after your retirement, you once again became a public employee subject to the provisions of the Ethics Act. On November 6, 2007, when you terminated your service as an annuitant with DOH, you again became a "former public employee" subject to the restrictions of Section 1103(g) of the Ethics Act, and the one - year period of applicability of Section 1103(g) began to run anew from that point in time. Although you have not posed a specific inquiry with respect to the post - employment restrictions of Section 1103(g), the submitted facts provide that you have entered into a contract to perform work for a private firm that provides services to several governmental agencies, including DOH. Therefore, in order to provide a complete response to your inquiries, this advisory shall set forth the restrictions of Section 1103(g) of the Ethics Act. While Section 1103(g) of the Ethics Act does not prohibit a former public official /public employee from accepting a position of employment, it does restrict the former public official /public employee with regard to "representing" a "person" before the governmental body with which he has been associated ": § 1103. Restricted activities (g) Former official or employee. - -No former public official or public employee shall represent a person, with promised or actual compensation, on any matter before the governmental body with which he has been associated for one year after he leaves that body. 65 Pa.C.S. § 1103(g) (Emphasis added). The terms "represent," "person," and "governmental body with which a public official or public employee is or has been associated" are specifically defined in the Ethics Act as follows: § 1102. Definitions "Represent." To act on behalf of any other person in any activity which includes, but is not limited to, the following: personal appearances, negotiations, lobbying and submitting bid or contract proposals which are signed by or contain the name of a former public official or public employee. "Person." A business, governmental body, individual, corporation, union, association, firm, partnership, committee, club or other organization or group of persons. Adams, 08 -510 January 31, 2008 Page 10 "Governmental body with which a public official or public employee is or has been associated." The governmental body within State government or a political subdivision by which the public official or employee is or has been employed or to which the public official or employee is or has been appointed or elected and subdivisions and offices within that governmental body. 65 Pa. C. S. § 1102. The term "Person" is very broadly defined. It includes, inter alia, corporations and other businesses. It also includes the former public employee himself, Confidential Opinion, 93 -005, as well as a new governmental employer. Ledebur, Opinion 95 -007. The term "representation" is also broadly defined to prohibit acting on behalf of any person in any activity. Examples of prohibited representation include: (1) personal appearances before the former governmental body or bodies; (2) attempts to influence; (3) submission of bid or contract proposals which are signed by or contain the name of the former public official /employee; (4) participating in any matters before the former governmental body as to acting on behalf of a person; and (5) lobbying. Popovich, Opinion 89 -005. Listing one's name as the person who will provide technical assistance on a proposal, document, or bid, if submitted to or reviewed by the former governmental body, constitutes an attempt to influence the former governmental body. Section 1103(g) also generally prohibits the inclusion of the name of a former public official/ public employee on invoices submitted by his new employer to the former governmental body, even though the invoices pertain to a contract that existed prior to termination of public service, Shay, Opinion 91 -012. However, if such a pre - existing contract does not involve the unit where the former public employee worked, the name of the former public employee may appear on routine invoices if required by the regulations of the agency to which the billing is being submitted. Abrams/Webster, Opinion 95 -011. A former public official /public employee may assist in the preparation of any documents presented to his former governmental body. However, the former ublic official /public employee may not be identified on documents submitted to the former governmental body. The former public official /public employee may also counsel any person regarding that person's appearance before his former governmental body. Once again, however, the activity in this respect should not be revealed to the former governmental body. The Ethics Act would not prohibit or preclude making general informational inquiries to the former governmental body to secure information which is available to the general public, but this must not be done in an effort to indirectly influence the former governmental body or to otherwise make known to that body the representation of, or work for the new employer. Section 1103(g) only restricts the former public official /public employee with regard to representation before his former governmental body. The former public official /public employee is not restricted as to representation before other agencies or entities. However, the "governmental body with which a public official /public employee is or has been associated" is not limited to the particular subdivision of the agency or other governmental body where the public official /employee had influence or control but extends to the entire body. See, Legislative Journal of House, 1989 Session, No. 15 at 290, 291; Sirolli, Opinion No. 90 -006; Sharp, Opinion 90- 009 -R. The governmental body with which you are deemed to have been associated upon termination of public service, hereinafter referred to as your "former governmental Adams, 08 -510 January 31, 2008 Page 11 body," is DOH in its entirety as well as any boards, committees, and the like on which you served in your public capacity. At such times as Section 1103(g) of the Ethics Act would apply to you, it would prohibit you from engaging in prohibited representation of ATG before your former governmental body. Although Section 1103(g) of the Ethics Act would only apply to restrict you with respect to prohibited "representation" before your former governmental body, you are advised that to the extent ATG would provide services to other entities that would have involvement with your former governmental body, you would have to exercise caution to ensure that you would not engage in prohibited representation before your former governmental body as to such services, such as, for example, through the prohibited inclusion of your name on documents submitted to your former governmental body. Based upon the facts that have been submitted, the latter portion of this Advice has addressed the applicability of Section 1103(g) only. It is expressly assumed that there has been no use of authority of office for a private pecuniary benefit as prohibited by Section 1103(a) of the Ethics Act. 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 Governor's Code of Conduct. Conclusion: In the former capacity as a Business Analyst 2 with the Commonwealth of Pennsylvania Department of Health ( "DOH "), both prior to your retirement and following your retirement as a temporary annuitant with DOH serving in the same position, you were a "public employee" subject to the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1101 et seq. ( "Ethics Act "). When you initially retired from DOH on June 22, 2007, you became a former public employee subject to the restrictions of Section 1103(g) of the Ethics Act. When you returned to work as an annuitant with DOH after your retirement, you once again became a public employee subject to the provisions of the Ethics Act. On November 6, 2007, when you terminated your service as an annuitant with DOH, you again became a "former public employee" subject to the restrictions of Section 1103(g) of the Ethics Act, and the one -year period of applicability of Section 1103(g) began to run anew from that point in time. The governmental body with which you are deemed to have been associated upon termination of public service, hereinafter referred to as your "former governmental body," is DOH in its entirety as well as any boards, committees, and the like on which you served in your public capacity. The restrictions as to representation outlined above must be followed. The propriety of the proposed conduct has only been addressed under the Ethics Act. Further, since service has been terminated, as outlined above, the Ethics Act would require that a Statement of Financial Interests be filed by no later than May 1 of the year after termination of service. 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. Adams, 08 -510 January 31, 2008 Page 12 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