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HomeMy WebLinkAbout12-551 Minnich ADVICE OF COUNSEL July 12, 2012 Sharon P. Minnich th 124 N. 30 Street Camp Hill, PA 17011 12-551 Dear Ms. Minnich: This responds to your letters of June 6, 2012, and June 11, 2012, by which you requested an 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 restrictions upon employment of an Assistant Chief Information Officer with the Governor’s Office of Administration (“Office of Administration”), Office for Information Technology (“OIT”), following termination of employment with the Office of Administration. Facts: You request an advisory from the Pennsylvania State Ethics Commission regarding the post-employment restrictions of the Ethics Act. You have submitted facts that may be fairly summarized as follows. You are currently employed as the Assistant Chief Information Officer with OIT within the Office of Administration. You state that no current position description or job classification specifications exist for your position with the Office of Administration. In your capacity as the Assistant Chief Information Officer for the Office of Administration, OIT, you assist the Chief Information Officer (“CIO”) in various strategic duties as assigned, and you are engaged in various aspects with all of the duties associated with running and managing OIT. You work with internal staff to redevelop the process for plan submissions and approvals pertaining to IT governance and strategic planning. You assist the project management office in various process change initiatives and work with Harrisburg University to develop project management opportunities and skills in the Commonwealth. You do not sit on any formal procurement evaluation committees or make final procurement determinations, but you are engaged with various vendors performing normal operational services for the organization. You serve as the CIO when the CIO has delegated that authority to you in his absence. You state that you are or have been involved in contract negotiations for both the Office of Administration and statewide initiatives and that over the past year, you have been actively involved in negotiations for current contract issues with IBM, Keane, Minnich, 12-551 July 12, 2012 Page 2 Verizon, Cisco, Microsoft, and SAP. You further state that you do not sign final contract documents unless delegated to do so in the absence of the CIO. You are beginning to interview for employment with Deloitte Consulting (“Deloitte”). You state that in your current role as the Assistant Chief Information Officer, you have not had any interaction with Deloitte related to current or potential procurements or engaged in any contract related conversations with Deloitte. You seek guidance as to whether the Ethics Act would impose any restrictions upon you if you would terminate your employment with the Office of Administration. In particular, you seek guidance as to what activities you may or may not engage in with Commonwealth entities as well as any specific restrictions which may pertain to your seeking employment in the private sector. 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 your position as the Assistant Chief Information Officer for the Office of Administration, OIT, you would be considered a public employee subject to the Ethics Act. See, 65 Pa.C.S. § 1102; 51 Pa. Code § 11.1. This conclusion is based upon the submitted facts, which when reviewed on an objective basis, indicate clearly that the power exists to take or recommend official action of a non-ministerial nature with respect to one or more of the following: contracting; procurement; administering or monitoring grants or subsidies; planning or zoning; inspecting; licensing; regulating; auditing; or other activity(ies) where the economic impact is greater than de minimis on the interests of another person. The submitted facts are insufficient to enable a conclusive determination as to whether, in the aforesaid position, you would also be considered an “executive-level State employee” as that term is defined by the Ethics Act. See, 65 Pa.C.S. § 1102. In order to provide a complete response to your inquiry, this Advice assumes, without deciding, that as the Assistant Chief information Officer for the Office of Administration, OIT, you would also be considered an executive-level State employee subject to the Ethics Act. Consequently, upon termination of employment with the Office of Administration, you would become a former public employee subject to the restrictions of Section 1103(g) of the Ethics Act, and, to the extent you are currently an executive-level State employee, you would become a former executive-level State employee subject to the restrictions of Section 1103(i) of the Ethics Act. Section 1103(i) restricts former executive-level State employees as follows: § 1103. Restricted activities (i)Former executive-level employee.-- No former executive-level State employee may for a period of two years from the time that he terminates employment with this Commonwealth be employed by, receive compensation from, assist or act in a representative capacity for a business or corporation that he actively participated in recruiting to this Commonwealth or that he actively participated in inducing to Minnich, 12-551 July 12, 2012 Page 3 open a new plant, facility or branch in this Commonwealth or that he actively participated in inducing to expand an existent plant or facility within this Commonwealth, provided that the above prohibition shall be invoked only when the recruitment or inducement is accomplished by a grant or loan of money or a promise of a grant or loan of money from the Commonwealth to the business or corporation recruited or induced to expand. 65 Pa.C.S. § 1103(i). Section 1103(i) restricts the ability of a former executive-level State employee to accept employment or otherwise engage in business relationships following termination of State service, under certain narrow conditions. The restrictions of Section 1103(i) apply even where the business relationship is indirect, such as where the business in question is a client of a new employer, rather than the new employer itself. See, Confidential Opinion, 94-011. However, Section 1103(i) would not prohibit you from being employed by, receiving compensation from, assisting, or acting in a representative capacity for a business subject to the conditions that you did not actively participate in recruiting such business to Pennsylvania, and that you did not actively participate in inducing such business to open or expand a plant, facility, or branch in Pennsylvania, through a grant or loan of money or a promise of a grant or loan of money from the Commonwealth of Pennsylvania. Unlike Section 1103(i), Section 1103(g) does not prohibit a former public official/public employee from accepting a position of employment. However, 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. "Governmental body with which a public official or public employee is or has been associated." The Minnich, 12-551 July 12, 2012 Page 4 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 "represent" 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 public 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 employment with the Office of Administration would be the Office of Administration in its entirety, including but not limited to OIT. Therefore, for the first year following termination of your employment with the Office of Administration, Minnich, 12-551 July 12, 2012 Page 5 Section 1103(g) of the Ethics Act would apply and restrict “representation” of a “person” before the Office of Administration. Based upon the facts that have been submitted, this Advice has addressed the applicability of Sections 1103(g) and 1103(i) only. It is expressly assumed that there has been no use of authority of office or employment, or confidential information received by being in the public position, for a private pecuniary benefit as prohibited by Section 1103(a) of the Ethics Act. Further, you are advised that 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 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; 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: As the Assistant Chief Information Officer for the Governor’s Office of Administration (“Office of Administration”), Office for Information Technology (“OIT”), 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. This Advice assumes, without deciding, that as the Assistant Chief Information Officer for the Office of Administration, OIT, you would also be considered an executive-level State employee subject to the Ethics Act. Upon termination of employment with the Office of Administration, you would become a former public employee subject to the restrictions of Section 1103(g) of the Ethics Act, and, to the extent you are currently an executive-level State employee, you would become a former executive-level State employee subject to the restrictions of Section 1103(i) of the Ethics Act. Under Section 1103(i) of the Ethics Act, you would not be prohibited from being employed by, receiving compensation from, assisting, or acting in a representative capacity for a business subject to the conditions that you did not actively participate in recruiting such business to Pennsylvania, and that you did not actively participate in inducing such business to open or expand a plant, facility, or branch in Pennsylvania, through a grant or loan of money or a promise of a grant or loan of money from the Commonwealth of Pennsylvania. The governmental body with which you would be deemed to have been associated upon termination of your employment with the Office of Administration would be the Office of Administration in its entirety, including but not limited to OIT. For the first year following termination of your employment with the Office of Administration, Section 1103(g) of the Ethics Act would apply and restrict “representation” of a “person” before the Office of Administration. The restrictions as to representation outlined above must be followed. 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 Minnich, 12-551 July 12, 2012 Page 6 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