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HomeMy WebLinkAbout12-510 ADVICE OF COUNSEL February 22, 2012 12-510 This responds to your letters dated December 13, 2011, and January 6, 2012, by which you requested a confidential advisory from the Pennsylvania State Ethics Commission. Issue: Whether the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq., would impose any prohibitions or restrictions upon a member and [officer] of a borough council with regard to simultaneously serving as the borough A. Facts: As Solicitor for [name of borough] (the “Borough”), located in [name of county], Pennsylvania, you have been authorized by Individual B, who is a Member and [officer] of Borough Council, to request a confidential advisory from the Pennsylvania State Ethics Commission on his behalf. You have submitted facts that may be fairly summarized as follows. You state that the Borough has enacted a [type of ordinance], entitled the [title of ordinance] (“Ordinance”), that broadly establishes and regulates Cs. You have submitted a copy of the Ordinance, which document is incorporated herein by reference. The Borough A, also referred to in practice as the Borough D, is charged with enforcing the provisions of the Ordinance. The powers and duties of the Borough A are set forth in [cite] of the Ordinance. You state that pursuant to the Ordinance, the Borough A may: [perform certain enumerated functions]. The Borough A is a part-time position that is paid [amount] per month. You state that the Borough has a population of approximately [number less than 3,000]. Based upon the above submitted facts, you ask whether Individual B may simultaneously serve as a Member and [officer] of Borough Council and the Borough A. 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 Confidential Advice, 12-510 February 22, 2012 Page 2 to the extent the requester has truthfully disclosed all of the material facts. As a Member and [officer] of Borough Council, Individual B is 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 pertaining to conflicts of interest under the Ethics Act are defined 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, 12-510 February 22, 2012 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. 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. Subject to certain statutory exceptions, 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 applying the above provisions of the Ethics Act to the question of simultaneous service, it is initially noted that the General Assembly has the constitutional power to declare by law which offices are incompatible. Pa. Const. Art. 6, § 2. It is administratively noted that the Borough Code provides, in pertinent part, as follows: § 46104. Appointments; incompatible offices (a) Unless there is incompatibility in fact, any elective or appointive officer of the borough shall be eligible to serve on any board, commission, bureau or other agency created by or for the borough, or any borough office created or authorized by statute and may accept appointments thereunder, but no mayor or member of council shall receive compensation therefor. (b) The following apply to employment: (1) Except as set forth in paragraph (2), no elected borough official of a borough with a population of 3,000 or more may serve as an employe of that borough. (2) This subsection shall not apply to a borough official serving as an employe of that borough prior to the certification of a decennial census which indicates an increase in the population of that borough to 3,000 or more. (c) Where there is no incompatibility in fact, and subject to the foregoing provisions as to compensation, appointees of council may hold two or more appointive borough offices, but no mayor or member of council may serve as borough Confidential Advice, 12-510 February 22, 2012 Page 4 manager or as secretary or treasurer. . . . (f) Nothing herein contained shall affect the eligibility of any borough official to hold any other public office or receive compensation therefor. . . . 53 P.S. § 46104 (Emphasis added). You are advised that there does not appear to be any statutorily declared incompatibility that would preclude Individual B from simultaneously serving as a Member and [officer] of Borough Council and the Borough A. Likewise, based upon the facts that have been submitted, there does not appear to be an inherent conflict (see, McCain, Opinion 02-009) that would preclude Individual B from simultaneously serving as a Member and [officer] of Borough Council and the Borough A. Absent a statutorily declared incompatibility or an inherent conflict under Section 1103(a), the Ethics Act would not preclude simultaneous service in the aforesaid positions, but in each instance of a conflict of interest, Individual B would be required to abstain fully from participation, and in the instance of a voting conflict, to abstain fully and satisfy the disclosure requirements of Section 1103(j) of the Ethics Act. Although the Ethics Act would not prohibit Individual B from simultaneously serving as a Member and [officer] of Borough Council and the Borough A, you are cautioned that there are issues as to whether Individual B could receive any compensation for his simultaneous service as the Borough A. Section 46104 of the Borough Code on its face prohibits a borough council member from being compensated for serving in any borough office created or authorized by statute. The determination of whether the position of Borough A would be considered a borough office created or authorized by statute would hinge upon an interpretation of the Borough Code. The State Ethics Commission does not have the statutory jurisdiction to interpret the Borough Code. Therefore, you are generally advised that to the extent the Borough Code would prohibit Individual B from receiving compensation as the Borough A while serving as a Member and [officer] of Borough Council, receipt of such unauthorized compensation could form the basis for a conflict of interest under Section 1103(a) of the Ethics Act. Cf., [cites]. The propriety of the proposed conduct has only been addressed under the Ethics Act. Conclusion: As a Member and [officer] of Council for [name of borough] (the “Borough”), located in [name of county], Pennsylvania, Individual B is a public official subject to the provisions of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1101 et seq . Individual B may, consistent with Section 1103(a) of the Ethics Act, simultaneously serve as a Member and [officer] of Borough Council and the Borough A subject to the restrictions, conditions and qualifications set forth above. To the extent the Borough Code would prohibit Individual B from receiving compensation as the Borough A while serving as a Member and [officer] of Borough Council, receipt of such unauthorized compensation could form the basis for a conflict of interest under Section 1103(a) of the Ethics Act. Lastly, the propriety of the proposed course of conduct has only been addressed under the Ethics Act. Pursuant to Section 1107(11) of the Ethics Act, this 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 Confidential Advice, 12-510 February 22, 2012 Page 5 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