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HomeMy WebLinkAbout13-504 Schorpp ADVICE OF COUNSEL January 31, 2013 Edward L. Schorpp, Esquire Office of the Solicitor Cumberland County Courthouse 1 Courthouse Square, Room 208 Carlisle, PA 17013 13-504 Dear Mr. Schorpp: This responds to your letters of December 7, 2012, and January 3, 2013, 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 county employee with regard to applying for a personal Sheetz loyalty program card to purchase fuel at a discount for county vehicles, where: (1) the county employee would receive certain offers provided by Sheetz to holders of the loyalty program card; and (2) such offers would not be dependent upon the purchase of fuel or the volume of fuel purchased by the county. Facts: As Solicitor for Cumberland County (“County”), Pennsylvania, you have been authorized by the County Board of Commissioners to request an advisory from the Pennsylvania State Ethics Commission under the following submitted facts. Sheetz, which sells gasoline and diesel fuels and convenience store items, currently offers a “My Sheetz Card” loyalty program (the “Program”). The Program provides a discount of three cents per gallon on fuel purchases. The Program also provides offers (the “Offers”) to a Program cardholder such as “buy ten get one free” on certain items, special in-store savings, and notification to a cardholder via email of free items added to the cardholder’s card. You state that the Offers provided to a Program cardholder are not dependent upon the purchase of fuel or the volume of fuel purchased by the cardholder. The County currently has a contractual relationship with Sheetz under which a County credit card was established for certain authorized County employees to use when purchasing fuel for County vehicles. The County would like to take advantage of the fuel discount available through the Program. You state that in order for the County to do so, Sheetz would require each County-authorized employee to apply for a personal Program card which would apparently be tied to a driver’s license number. A Schorpp, 13-504 January 31, 2013 Page 2 County-authorized employee would use the personal Program card at the dispensing fuel pump to reduce the fuel price and would charge the fuel purchase to the County’s credit card. A County employee holding a personal Program card would receive the Offers provided to a Program cardholder. Based upon the above submitted facts, you seek guidance as to whether the Ethics Act would impose any prohibitions or restrictions upon a County employee with regard to applying for a personal Program card to purchase fuel at a discount for County vehicles. 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. 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 are defined in the Ethics Act as follows: Schorpp, 13-504 January 31, 2013 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. 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 instant matter, you are advised as follows. Section 1103(a) of the Ethics Act would not prohibit a County employee who is subject to the provisions of the Ethics Act from applying for a personal Program card to purchase fuel at a discount for County vehicles because, under the submitted facts, the County employee would not receive any private pecuniary benefit as a result of using the Program card to make such fuel purchases for the County. 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 County Code. Conclusion: Based upon the submitted facts that: (1) Sheetz, which sells gasoline and diesel fuels and convenience store items, currently offers a “My Sheetz Card” loyalty program (the “Program”); (2) the Program provides a discount of three Schorpp, 13-504 January 31, 2013 Page 4 cents per gallon on fuel purchases; (3) the Program also provides offers (the “Offers”) to a Program cardholder such as “buy ten get one free” on certain items, special in-store savings, and notification to a cardholder via email of free items added to the cardholder’s card; (4) the Offers provided to a Program cardholder are not dependent upon the purchase of fuel or the volume of fuel purchased by the cardholder; (5) Cumberland County (“County”), Pennsylvania, currently has a contractual relationship with Sheetz under which a County credit card was established for certain authorized County employees to use when purchasing fuel for County vehicles; (6) the County would like to take advantage of the fuel discount available through the Program, and in order for the County to do so, Sheetz would require each County-authorized employee to apply for a personal Program card which would apparently be tied to a driver’s license number; (7) a County-authorized employee would use the personal Program card at the dispensing fuel pump to reduce the fuel price and would charge the fuel purchase to the County’s credit card; and (8) a County employee holding a Program card would receive the Offers provided to a Program cardholder, you are advised as follows. Section 1103(a) of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1103(a), would not prohibit a County employee who is subject to the provisions of the Ethics Act from applying for a personal Program card to purchase fuel at a discount for County vehicles because, under the submitted facts, the County employee would not receive any private pecuniary benefit as a result of using the Program card to make such fuel purchases for the County. 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