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HomeMy WebLinkAbout84-585 SrsicMr. William M. Srsic Executive Director Indiana University of Pennsylvania Financial Aid Office 308 Pratt Hall Indiana, PA 15705 Re: Financial Aid Director; Landlord; Students as Tenants Dear Mr. Srsic: STATE ETHICS COMMISSION 308 FINANCE BUILDING P.O. BOX 11470 HARRISBURG, PA 17108 -1470 TELEPHONE (717) 783 -1610 July 5, 1984 ADVICE OF COUNSEL 84 -585 This responds to your letter of May 22, 1984, in which you requested advice from the State Ethics Commission. Issue: You would like to know what restrictions may be placed upon you as Financial Aid Director if you should purchase rental property which may be rented to students /tenants who receive financial aid. Facts: You are the Associate Director of Financial Aid at Indiana University of Pennsylvania (IUP). At this time, you are considering purchase of some rental property. You state that because of the location of this rental property, you assume that it will be offered to be rented to students, and that since a majority of IUP students are on some type of financial aid, you believe that students living in the rental unit may be recipients of financial aid. You are concerned that this situation may cause a conflict of interest between your role as Student Financial Aid Officer at IUP and your role as landlord. You have, therefore, requested advice from the State Ethics Commission. Discussion: As the Associate Director of Financial Aid at IUP, you are a "public employee" within the definition of that term as contained in the Ethics Act. See 65 P.S. 402. As such, your conduct must conform to the requirements of the Act. Mr. Willi am M. Srsic July 5, 1984 Page 2 The pertinent provisions of the Ethics Act include Sections 403(a) and 403(b), 65 P.S. 403(a) and (b). Section 3(a) prohibits any public employee or public official from using his public employment or confidential information received through his holding public employment to obtain financial gain for himself, a member of his or her immediate family or a business with which he is associated. In addition, Section 3(b) precludes any person from offering a public employee or public official any thing of value based on the understanding that the official's actions will be influenced thereby. In this regard, you could not use any information acquired through your holding your position as associate director of financial aid at IUP to discern financially secure students who would be likely tenants, for example. Further, you could not use your position as Financial Aid Director to induce students to become your tenants through promises of grants or financial aid, nor could you accept a student's promise that he would become a tenant in return for a grant of financial aid. Further, we note that the Ethics also requires that you avoid even the appearance of a conflict with the public trust. See Section 1 of the Ethics Act, 65 P.S. 401. In this regard, if you should acquire this rental property and a tenant turns out to be a student who applies, or has applied, for financial aid, you should abstain from making any decisions on whether to grant or continue or increase financial aid to_such tenants /students. Finally, you should be aware that these restrictions are cited not to indicate any violations of the Ethics Act in the situation you have described to us, but to serve as a point of reference and a guide for conduct in general. Conclusion: As a public employee, you should avoid conflicts of interest and the appearance of such conflicts by complying with the guidelines discussed above. Specifically, you should take note of both the allowable and prohibited activities as discussed with regard to sections 3(a) and 3(b) of the Ethics Act, and you should abstain from participation in any financial aid decisions to any students who happen to be or are to become tenants in your property. 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. Mr. William M. Srsic July 5, 1984 Page 3 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 full 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. SSC /na Sincerely, Sandra S. Chr4"stianson General Counsel