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Home My WebLink About15-512 Fischer ADVICE OF COUNSEL March 5, 2015 Matthew D. Fischer, Tax Collector Grove City Borough 907 Tidball Avenue Grove City, PA 16127 15-512 Dear Mr. Fischer: This responds to your letters received January 21, 2015, and January 23, 2015, 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 prohibitions or restrictions upon a borough tax collector with regard to appointing his wife to the position of deputy tax collector, where factually, whoever would be appointed as the deputy tax collector would receive no compensation and would only collect and settle taxes during any incapacitation of the tax collector. Facts: You request an advisory from the Pennsylvania State Ethics Commission based upon the following submitted facts. You are the Tax Collector for Grove City Borough (“Borough”). In accordance with the passage of House Bill 1590, you are considering appointing a Deputy Tax Collector pursuant to the Local Tax Collection Law, 72 P.S. § 5511.1 et seq. You state that whoever would be appointed as the Deputy Tax Collector would receive no compensation and would only act during your incapacitation. You further state that you would be responsible for the Deputy Tax Collector’s work. Based upon the above submitted facts, you ask whether you would be permitted to appoint your wife, Caroline M. Fischer, to the position of Deputy Tax Collector. It is administratively noted that upon the signing into law of House Bill 1590 on October 22, 2014, the Local Tax Collection Law was amended effective immediately to provide, in pertinent part, as follows: § 5511.22. Deputy tax collectors.-- …. (b) At a minimum, a tax collector shall, with the approval of a taxing district and the tax collector’s surety, Fischer, 15-512 March 5, 2015 Page 2 appoint a deputy tax collector who shall collect and settle taxes during any incapacitation of the tax collector…. 72 P.S. § 5511.22(b). 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 the Borough Tax Collector, you are a public official subject to the provisions of the Ethics Act. Section 1103(a) of the Ethics Act provides: § 1103. Restricted activities (a)Conflict of interest.-- No public official or public employee shall engage in conduct that constitutes a conflict of interest. 65 Pa.C.S. § 1103(a). The following terms related to Section 1103(a) are defined in the Ethics Act 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. "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. "Immediate family." A parent, spouse, child, brother or sister. 65 Pa.C.S. § 1102. Fischer, 15-512 March 5, 2015 Page 3 Subject to the statutory exclusions to the Ethics Act’s definition of the term “conflict” or “conflict of interest,” 65 Pa.C.S. § 1102, 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 applying the above provisions of the Ethics Act to your inquiry, you are advised as follows. Based upon the submitted facts—and in particular, the submitted fact that regardless of who would be appointed as the Deputy Tax Collector, the Deputy Tax Collector would receive no compensation—you are advised that Section 1103(a) of the Ethics Act would not prohibit you from appointing your wife as the unpaid Deputy Tax Collector. This is because the requisite element of a private pecuniary benefit would be lacking. Cf., Mills, Advice 15-509; Sharrar, Advice 15-507; Harry, Advice 14-565; Hrivnak, Advice 94-644; Caltagirone, Advice 90-553. 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. Conclusion: Based upon the submitted facts that: (1) you are the Tax Collector for Grove City Borough (“Borough”); (2) in accordance with the passage of House Bill 1590, you are considering appointing a Deputy Tax Collector pursuant to the Local Tax Collection Law, 72 P.S. § 5511.1 et seq.; (3) whoever would be appointed as the Deputy Tax Collector would receive no compensation and would only act during your incapacitation; and (4) you would be responsible for the Deputy Tax Collector’s work, you are advised as follows. As the Borough Tax Collector, 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—and in particular, the submitted fact that regardless of who would be appointed as the Deputy Tax Collector, the Deputy Tax Collector would receive no compensation—Section 1103(a) of the Ethics Act would not prohibit you from appointing your wife as the unpaid Deputy Tax Collector. 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 Fischer, 15-512 March 5, 2015 Page 4 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