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HomeMy WebLinkAbout09-579 ConfidentialADVICE OF COUNSEL November 13, 2009 09 -579 This responds to your letter dated October 12, 2009, by which you requested a confidential advisory from the Pennsylvania State Ethics Commission. Issue: Whether, as an A with the B Program (hereinafter the Program ") of Political Subdivision C, Pennsylvania, 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 whether the Ethics Act would prohibit you in your private capacity from entering into a contractual relationship with a company that is under contract with Political Subdivision C to provide management and disbursement of F for [type of individuals] who receive G. Facts: You have requested a confidential advisory from the Pennsylvania State Ethics Commission based upon the following submitted facts. You are licensed by the Commonwealth of Pennsylvania as a [type of professional]. You are employed by Political Subdivision C as an A with the Program. You have submitted a copy of the job description for your current position, which document is incorporated herein by reference. It is noted that said job description lists your working title as D. Per the submitted job description, your duties and responsibilities as an A include the following: [list of certain duties and responsibilities]. You state that your position with Political Subdivision C is not a managerial position, and you do not supervise any employees. You state that Political Subdivision C has a contractual relationship with a company named [name of Company E] (hereinafter the Company "), whereby the Company has agreed to assume responsibility for the management and disbursement of F for [type of individuals] who receive G. All entities in Political Subdivision C that Confidential Advice, 09 -579 November 13, 2009 Page 2 provide G to [type of individuals], including the Program, bill the Company directly with respect to the provision of such services. In your private capacity, you periodically provide H to clients who are not involved with the Program, and you have contractual relationships with Is that provide J for individuals with K for such services. You state that the Company recently has expressed its willingness to enter into a contractual relationship with you whereby you would receive J for roviding L to [type of individuals] residing in Political Subdivision C and Political Subdivision M. You state that this undertaking would be independent from your employment with Political Subdivision C and would take place in your own office. You state that Political Subdivision C's N has indicated to you that she has no objection to your prospective contractual relationship with the Company. Based upon the above submitted facts, you ask whether the Ethics Act would prohibit you in your private capacity from entering into the aforesaid prospective contractual relationship 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 an A with the Program, 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. Confidential Advice, 09 -579 November 13, 2009 Page 3 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. (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, Confidential Advice, 09 -579 November 13, 2009 Page 4 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. (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. In applying the definition of "public employee" and the related regulatory criteria to the submitted facts as to the duties of your position, the necessary conclusion is that in your capacity as an A with the Program, you are not to be considered a "public employee" as that term is defined by the Ethics Act. Based upon an objective review of the submitted job description, you are not responsible for taking or recommending official action of a non - ministerial nature with regard to any of the five categories set forth in the Ethics Act's definition of the term "public employee." You are advised that the Ethics Act would not prohibit you from entering into a contractual relationship with the Company whereby you would receive J for providing L in your private capacity to [type of individuals] residing in Political Subdivision C and Political Subdivision M. The reasons for this conclusion include the fact that you are not a "public employee" subject to the Ethics Act. The only provision of the Ethics Act that applies to you is Section 1103(b), which applies to everyone. For your information, Sections 1103(b) and 1103(c) of the Ethics Act provide in part that no person shall offer or give to a public official /public employee anything of monetary value and no public official /public employee shall solicit or accept anything of monetary value based upon the understanding that the vote, official action, or judgment of the public official /public employee would be influenced thereby. Reference is made to these provisions of the law not to imply that there has been or will be any transgression thereof but merely to provide a complete response to the question presented. Lastly, the propriety of the proposed conduct has only been addressed under the Ethics Act. Confidential Advice, 09 -579 November 13, 2009 Page 5 Conclusion: Based upon the submitted facts, in your capacity as an A with the B Program of Political Subdivision C, Pennsylvania, you are not to be considered a "public employee" as that term is defined by the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. The Ethics Act would not prohibit you from entering into a contractual relationship with Company E whereby you would receive J for providing L in your private capacity to [type of individuals] residing in Political Subdivision C and Political Subdivision M. The only provision of the Ethics Act that applies to you is Section 1103(b), which applies to everyone. Lastly, 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