HomeMy WebLinkAbout85-557 NeffDear Mr. Neff:
STATE ETHICS COMMISSION
308 FINANCE BUILDING
P.O. BOX 11470
HARRISBURG, PA 17108 -1470
TELEPHONE (717) 783 -1610
June 25, 1985
ADVICE OF COUNSEL
85 -557
Mr. Edward Neff
City Treasurer
225 Market Street
Sunbury, PA 17801
Re: Conflict of Interest; City Treasurer, Manager, Federally Funded Apartment
Complex
This responds to your letter of June 13, 1985, wherein you requested the
advice of the State Ethics Commission.
Issue: Whether you may serve as the manager of an apartment complex that was
constructed through federal funds, while you serve as city treasurer.
Facts: You currently serve as the elected city treasurer for the city of
Sunbury, a city of the Third Class. You have been offered a position as
manager of an apartment complex that is run by Shikellamy Community Services,
Inc. This is a non - profit corporation which has borrowed funds from the
United States Department of Housing and Urban Development (HUD), for the
construction of the apartment complex.
As manager of the apartment complex, you will be responsible for the
general operation of the complex. Your duties will include insuring proper
maintenance, rentals as well as bookkeeping related thereto. Your
compensation will be paid by Shikellamy Community Services Inc., hereinafter
the Corporation.
You have indicated that the Corporation has no contracts or business with
the city. While your office is responsible for collecting the property tax on
this building, you have no responsibilities for the assessment thereof.
You ask whether there would he any conflict if you were to accept this
position.
Mr. Edward Neff
June 25, 1985
Page 2
Discussion: As the elected city treasurer, you are a public official, as that
term is defined in the State Ethics Act and subject to the requirements
thereof. 65 P.S. §402.
At the outset, it should be noted that the Commission may only address
your question within the purview of the State Ethics Act. The Commission will
not review your question under any other statute, code or regulation.
Generally, the Ethics Act places no absoulute prohibition upon a public
official's outside or private employment.
The Ethics Act provides that:
Section 3. Restricted activities.
(a) No public official or public employee shall use his
public office or any confidential information received
through his holding public office to obtain financial gain
other than compensation provided by law for himself, a
member of his immediate family, or a business with which
he is associated. 65 P.S. 403(a).
A business with which one is associated is defined as:
Section 2. Definitions.
"Business with which he is associated." Any business in
which the person or a member of the person's immediate
family is a director, officer, owner, employee or holder
of stock. 65 P.S. 402.
Thus, upon acceptance of this position, the Corporation would become a
business with which you are associated and you would be prohibited from acting
as a public official in any way that would produce a financial gain for that
business. Palumbo, 83 -595. Within this restriction, you may not participate,
vote or act, as city treasurer upon any matter relating to the Corporation.
In the event that your office is called upon to take or perform any action in
relation to that business, you must abstain from involvement therein. Also in
such a situation, you should make public disclosure of your relationship with
the Corporation. Sowers, 80 -050
In addition to the foregoing, the Commission may address other areas of
possible conflict. 65 P.S. §403(d). Such a conflict is generally defined in
light of the enumerated intent of the Ethics Act. That intent is to insure
that the financial interests of a public official do not conflict or appear to
conflict with the public trust. 65 P.S. §401.
Mr. Edward Neff
June 25, 1985
Page 3
While the Commission cannot envision each and every possible situation
wherein such a conflict may arise, you are reminded of the above provision and
in the event such a question develops, you are encouraged to seek further
advice.
Finally, we note that in the event that the Corporation enters in a
contract with the city or your office, certain criteria may be applicable
pursuant to Section 3(c) of the Act, which requires an open and public
process. 65 P.S. §403(c). Once again, in such a situation, you may wish to
seek further advice.
Conclusion: As an elected city treasurer, you are a public official within
the State Ethics Act. The Act presents no absolute prohibition upon your
employment by a Corporation that operates an apartment complex that was
constructed through a low interest government loan. You may not, however, use
your public position or any confidential information obtained therein, to
obtain any financial gain for this business. You are also reminded to avoid
any other confl ci t of interest or appearance of such conflict.
Pursuant to Section 7(9)(ii), 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, providing the requestor 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 request that the full Commission review this Advice. A
personal appearance before the Commission will be scheduled and a formal
Opinion from the Commission will be issued. Any such appeal must be made, in
writing, to the Commission within 15 days of service of this Advice pursuant
to 51 Pa. Code 2.12.
JJC /sfb
Sincerely,
John J •ntino
Ge!Je al Counsel