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HomeMy WebLinkAbout12-577 Quick ADVICE OF COUNSEL November 20, 2012 Don Quick P.O. Box Q Milford, PA 18337 12-577 Dear Mr. Quick: This responds to your letter dated September 25, 2012 (postmarked September 26, 2012, and received October 2, 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 prohibitions or restrictions upon a member and chairman of a township board of supervisors, who in a private capacity has a contract with the Pennsylvania Department of Transportation (“PennDOT”) to provide tree removal services, with regard to participating in or voting on matter(s) before the township board of supervisors that would involve PennDOT. Facts: You request an advisory from the Pennsylvania State Ethics Commission based upon submitted facts which may be fairly summarized as follows. You are a Member and Chairman of the Board of Supervisors of Milford Township (“Township”), located in Pike County, Pennsylvania. In a private capacity, you own a metal working business which usually purchases a used piece of construction equipment each fall to fix during slow times in the winter. In December 2011, you purchased a tracked, 20-ton tree processor. In June 2012, a retired employee of PennDOT told you that PennDOT was looking for a tree processing machine with an operator to rent in Pike County on an hourly basis. You state that you filed the necessary paperwork to become a vendor and that you were ultimately awarded a contract with PennDOT by public bid. You state that your services require a three-day notice from PennDOT and that no work has been performed to date. The Township has occasional correspondence with PennDOT, and projects requiring PennDOT Highway Occupancy permits come before the Township Board of Supervisors. The Township plows two sections of PennDOT roads, for which the Township receives less than $5,000.00, but the Township’s maintenance responsibility for those roads does not involve any tree removal work. Quick, 12-577 November 20, 2012 Page 2 Based upon the above submitted facts, you seek guidance as to whether you would have a conflict of interest in matter(s) before the Township Board of Supervisors that would involve PennDOT. You state that in the unlikely event the Township would request work from PennDOT which would require your services, you would abstain from any vote requesting such work from PennDOT. 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. As a Member and Chairman of the Township Board of Supervisors, you are a public official as that term is defined in the Ethics Act, and therefore you are 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 related to Section 1103(a) are defined in the Ethics Act as follows: Quick, 12-577 November 20, 2012 Page 3 § 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. "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. The Pennsylvania Supreme Court has held that in order to violate Section 1103(a) of the Ethics Act, a public official/public employee “must be consciously aware of a private pecuniary benefit for himself, his family, or his business, and then must take action in the form of one or more specific steps to attain that benefit.” Kistler v. State Ethics Commission, 610 Pa. 516, 528, 22 A.3d 223, 231 (2011). In each instance of a conflict of interest, a public official/public employee would be required to abstain from participation, which would include voting unless one of the statutory exceptions of Section 1103(j) of the Ethics Act would be applicable. Additionally, the disclosure requirements of Section 1103(j) of the Ethics Act would have to be satisfied in the event of a voting conflict. In applying the above provisions of the Ethics Act to the facts that you have submitted, you are advised as follows. A conflict of interest under Section 1103(a) of the Ethics Act may be based upon an ongoing business relationship (Kitner, Order 1542; Burchfield, Order 1492; Johnson, Order 1338; Confidential Opinion, 06-001; Kannebecker, Opinion 92-010; Miller, Opinion 89-024), or a reasonable and legitimate expectation that a business relationship will form (Gerhard, Order 1460; Mann, Opinion 07-005; Moore, Opinion 04-004; Confidential Opinion, 00-006; Amato, Opinion 89-002). You have an ongoing business relationship with PennDOT. Therefore, you are advised that you would have a conflict of interest and would transgress Section 1103(a) of the Ethics Act by participating in your official capacity in matter(s) before the Quick, 12-577 November 20, 2012 Page 4 Township Board of Supervisors involving PennDOT to the extent that: (1) you would be consciously aware of a private pecuniary benefit for yourself, a member of your immediate family, or a business with which you or a member of your immediate family is associated; and (2) your action would constitute one or more specific steps to attain that benefit (Kistler, supra). In each instance of a conflict of interest, you would be required to abstain from participation, which would include voting unless one of the statutory exceptions of Section 1103(j) of the Ethics Act would be applicable. Additionally, the disclosure requirements of Section 1103(j) of the Ethics Act would have to be satisfied in the event of a voting conflict. 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 Second Class Township Code. Conclusion: As a Member and Chairman of the Board of Supervisors of Milford Township (“Township”), located in Pike County, Pennsylvania, you are a public official subject to the provisions of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq. Based upon the submitted facts that: (1) in a private capacity, you own a metal working business which usually purchases a used piece of construction equipment each fall to fix during slow times in the winter; (2) in December 2011, you purchased a tracked, 20-ton tree processor; (3) in June 2012, a retired employee of the Pennsylvania Department of Transportation (“PennDOT”) told you that PennDOT was looking for a tree processing machine with an operator to rent in Pike County on an hourly basis; (4) you filed the necessary paperwork to become a vendor, and you were ultimately awarded a contract with PennDOT by public bid; (5) your services require a three-day notice from PennDOT, and no work has been performed to date; (6) the Township has occasional correspondence with PennDOT, and projects requiring PennDOT Highway Occupancy permits come before the Township Board of Supervisors; and (7) the Township plows two sections of PennDOT roads, for which the Township receives less than $5,000.00, but the Township’s maintenance responsibility for those roads does not involve any tree removal work, you are advised as follows. You would have a conflict of interest and would transgress Section 1103(a) of the Ethics Act by participating in your official capacity in matter(s) before the Township Board of Supervisors involving PennDOT to the extent that: (1) you would be consciously aware of a private pecuniary benefit for yourself, a member of your immediate family, or a business with which you or a member of your immediate family is associated; and (2) your action would constitute one or more specific steps to attain that benefit. In each instance of a conflict of interest, you would be required to abstain from participation, which would include voting unless one of the statutory exceptions of Section 1103(j) of the Ethics Act would be applicable. Additionally, the disclosure requirements of Section 1103(j) of the Ethics Act would have to be satisfied in the event of a voting conflict. 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 . Quick, 12-577 November 20, 2012 Page 5 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