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HomeMy WebLinkAbout09-542 TiganoJason Tigano 156 Merrimac Street Pittsburgh, PA 15211 Dear Mr. Tigano: ADVICE OF COUNSEL April 30, 2009 09 -542 This responds to your letter dated January 22, 2009, and your faxed transmissions received March 19, 2009, and March 20, 2009, by which you requested an advisory from the Pennsylvania State Ethics Commission. Issue: Whether, as the Public and Legislative Affairs Manager of the Urban Redevelopment Authority of Pittsburgh ("URA"), 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 if so, whether, upon terminating your employment with the URA, you would be restricted as to private employment with a consulting company in performing work on contracts between the consulting company and organizations with which URA Board Members work. Facts: You have requested an advisory from the Pennsylvania State Ethics C ommission based upon the following submitted facts. You are employed as the Public and Legislative Affairs Manager of the URA. You have submitted a copy of a position description for your current position, which document is incorporated herein by reference. Per the position description, as Public and Legislative Affairs Manager of the URA, you are responsible for working with the Executive Director and Senior Management in the identification, development, and implementation of policies, advocacy strategies, and legislative initiatives with the potential to assist development within the City of Pittsburgh. Your responsibilities and duties as Public and Legislative Affairs Manager include: • The identification, formulation, and organization of advocacy efforts for legislation and policies to assist development; • Acting as a liaison with state and local legislative representatives; • Monitoring project budgets and compliance issues; • Providing technical assistance and support to community groups and real estate developers; Tiqano, 09 -542 April 30, 2009 Page 2 • Managing special projects at the direction of the Executive Director and Senior Management, which projects may include improvements to systems for collecting and manipulating data, promoting URA impacts and activities, and tracking and recommending financing resources; • The oversight, conceptual development and coordination of implementation activities related to special projects assigned by the Executive Director, the majority of which will involve work with multiple URA departments and stakeholders; • Coordinating with legislators and lobbyists to identify potential or existing legislation /policies with the potential to impact economic development in the City of Pittsburgh and organizing appropriate advocacy efforts with community, public and private stakeholders, as appropriate; • Researching and analyzing economic development tools and policies in other regions and markets and coordinating the process of introducing and implementing those tools for the benefit of the City of Pittsburgh as appropriate; • Coordinating project implementation activities related to all aspects of the development process from planning to construction; • The conceptual development of project initiatives including research and analysis related to land acquisition, budgets, planning, and financing options; • Preparing grant applications; and • Meeting with developers to discuss development proposals and financing alternatives. Position Description, at 1. You state that in your current position, your duties include coordinating with county, state, and federal governments to find funding for projects approved by the URA Board of Directors. You report to the Director of Community and Legislative Relations. You state that you are not a project manager and that you have no authority to sign or approve anything on behalf of the URA. You state that a colleague of yours, who has been an independent contractor for the past year and a half, is in the process of incorporating a consulting company ( "the Company "). Your colleague has two contracts ( "the Contracts ") that were awarded by individuals who serve on the URA Board of Directors. You state that the Contracts are with the organizations with which the aforesaid individuals work and are not funded by the URA. You state that you have been offered a job with the Company. You state that you would terminate your employment with the URA if you would be hired by the Company. You further state that you potentially could work on the Contracts for the Company. Based upon the above submitted facts, you ask the following questions: 1. Whether, in your current position as the Public and Legislative Affairs Manager of the URA, you would be considered a "public employee" subject to the Ethics Act; and Tiqano, 09 -542 April 30, 2009 Page 3 2. Whether the Ethics Act would impose any prohibitions or restrictions upon you with regard to accepting an employment position with the Company. 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. In the instant matter, the initial question to be addressed is whether, in your capacity as the Public and Legislative Affairs Manager of the URA, you would be considered a "public employee" subject to the Ethics Act. 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: (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. Tiqano, 09 -542 April 30, 2009 Page 4 (C) office. (D) decisions. The individual is the supervisor of a highest level The individual has the authority to make final (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. (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. Tiqano, 09 -542 April 30, 2009 Page 5 (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 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 organization 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 this 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. 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. Code § 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, Reese /Gilliland, Opinion 05 -005. In applying the objective test in the instant matter, the necessary conclusion is that, in your capacity as the Public and Legislative Affairs Manager of the URA, you would be considered a "public employee" subject to the Ethics Act. Tiqano, 09 -542 April 30, 2009 Page 6 As the Public and Legislative Affairs Manager of the URA, you have the ability to take or recommend official action of a nonministerial nature with respect to subparagraph (5) and possibly subparagraph (2) within the definition of "public employee" as set forth in the Ethics Act, 65 Pa.C.S. § 1102. Specifically, per the position description, you have the authority to: (1) work with the Executive Director and Senior Management in identifying, developing and implementing policies and legislative initiatives with the potential to assist development within the City of Pittsburgh; (2) monitor project budgets and compliance issues; (3) coordinate the process of introducing and implementing economic development tools /policies for the benefit of the City of Pittsburgh; (4) conceptually develop project initiatives including research and analysis related to land acquisition, budgets, planning, and financing options; (5) meet with developers to discuss development proposals and financing alternatives; and (6) manage special projects, which may include recommending financing resources. Additionally, depending upon facts not included within your submission, your authority to prepare grant applications could provide additional support for the conclusion that you are a "public employee" subject to the provisions of the Ethics Act. 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). Consequently, upon termination of your employment with the URA, you would become a "former public employee" subject to Section 1103(g) of the Ethics Act. Section 1103(g) of the Ethics Act restricts a 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. "Governmental body with which a public official or public employee is or has been associated." The governmental body within State government or a political Tiqano, 09 -542 April 30, 2009 Page 7 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 /public 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 if the invoices pertain to a contract that existed prior to termination of service with such governmental body. 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 /public 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 90 -006; Sharp, Opinion 90- 009 -R. The governmental body with which you would be deemed to have been associated upon termination of public service would be the URA in its entirety. Therefore, for the first year following termination of your employment with the URA, Section 1103(g) of the Ethics Act would apply and restrict "representation" of "persons" before the URA. Tiqano, 09 -542 April 30, 2009 Page 8 Turning to your second specific question, you are advised that Section 1103(g) of the Ethics Act would not prohibit you from accepting employment with the Company. However, during the first year following termination of your employment with the URA, Section 1103(g) of the Ethics Act would prohibit you from performing any job duties that would involve prohibited representation before the URA as set forth above. Lastly, the propriety of the proposed conduct has only been addressed under the Ethics Act. Conclusion: In your capacity as the Public and Legislative Affairs Manager of the Urban Redevelopment Authority of Pittsburgh ( "URA "), you would be considered a "public employee" as that term is defined in the Public Official and Employee Ethics Act (`Ethics Act "), 65 Pa.C.S. § 1101 et seq. Upon termination of your employment with the URA, you would become a "former public employee" subject to Section 1103(g) of the Ethics Act. The governmental body with which you would be deemed to have been associated upon termination of public service would be the URA in its entirety. Section 1103(g) of the Ethics Act would restrict you from engaging in any activity that would constitute prohibited representation before the URA for one year following termination of your employment with the URA. The restrictions as to representation outlined above must be followed. The propriety of the proposed conduct has only been addressed under the Ethics Act. Pursuant to Section 1107(11) of the Ethics Act, 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