HomeMy WebLinkAbout84-620A ThauSTATE ETHICS COMMISSION
308 FINANCE BUILDING
P.O. BOX 11470
HARRISBURG, PA 17108 -1470
TELEPHONE (717) 783 -1610
ADVICE OF COUNSEL
October 16, 1984
Mr. Felix Thau
1244 Barley Corn Square
Harrisburg, PA 17112
Re: Attorney III, Liquor Control Board, Public Employee
Dear Mr. Thau:
84 - 6201
This responds to your letter of August 14, 1984, in which you requested
advice from the State Ethics Commission.
Issue: You ask whether in your capacity as an Attorney III with the Liquor
Control Board, hereinafter, the LCB, you are to be considered a "public
employee" as that term is defined in the Ethics Act, and therefore, whether
you are required to file a Statement of Financial Interests pursuant to the
Ethics Act.
Facts: You indicate that you do not believe that your activities and
functions fall within the purview of the definition of "public employee" as
that phrase is defined in the State Ethics Act and the regulations of this
Commission. In order to review the question presented, we will briefly
outline the duties and responsibilities associated with your position, and as
contained in your job description and the classification specifications for
this position. Your duties and responsibilities, as set forth in these two
documents which are incorporated herein by reference, include the following
responsibilities and functions:
1. You review hearing examiner reports from hearings for legality
and sufficiency of evidence and prepare written synopsis of same
with recommendations to the Assistant Chief Counsel and /or Chief
Counsel of the LCB.
2. You review proposed citations for legal sufficiency and make
recommendations on same to the Assistant Chief Counsel.
3. You review proposed regulations for legal sufficiency and propriety
and you make formal written recommendations on same.
4. You advise various staff on legal interpretations and the proper
course of action by way of written and /or verbal communications.
Mr. Felix Thau
October 16, 1984
Page 2
5. You represent the Board at citation and licensing hearings and before
the Civil Service Commission on hearings and appeals.
6. You prepare complex legal memorandum to present the Board's legal
position and you assist in complex litigation as required.
However, you believe that as an attorney you are exempt from the
provisions of the State Ethics Act because, as you say in your letter of
August 23, 1984, "the Supreme Court of Pennsylvania has exclusive powers to
govern the conduct and discipline of attorneys." In this argument you rely
upon the Commonwealth Court ruling as set forth in Ballou v. State Ethics
Commission, 424 A.2d 983, 56 Pa. Cmwlth. 240 (1981). You recognize that the
Supreme Court reviewed the conclusions the Commonwealth Court reached in
Ballou, as cited above, but you argue that the Commonwealth Court's ruling
should be applicable here and should prevail in its reasoning,
notwithstanding, the fact that the Supreme Court's ruling was based upon
other, statutory and non - constitutional, grounds. For the Supreme Court's
ruling in the Ballou v. State Ethics Commission case, see 496 Pa. 127, 436
A.2d 186 (1981).
We should also note that for the years 1980 and 1982 you did file
Statements of Financial Interests in accordance with the requirements of the
State Ethics Act and the directives of the Office of Administration, Bureau of
Personnel. Nonetheless, you have, for the year 1984, as of 8/13/84, executed
a "appeal form" from the determination that you are required to file a
Statement of Financial Interests in order to place your position and your
arguments before the State Ethics Commission for review.
Discussion: As set forth above, the question to be answered here is clear.
Specifically, are you, in your capacity as an Attorney III serving with the
LCB to be considered a "public employee" as those terms are defined in the
State Ethics Act and the regulations of the Commission as follows:
Section 2. Definitions.
"Public employee." Any individual employed by the
Commonwealth or a political subdivision who is responsible
for taking or recommending official action of a
nonministerial nature with regard to:
(1) contracting or procurement;
(2) administering or monitoring grants or
subsidies;
(3) planning or zoning;
(4) inspecting, licensing, regulating or auditing
any person; or
(5) any other activity where the official action
has an economic impact of greater than a de
minimus nature on the interests of any person.
Mr. Felix Thau
October 16, 1984
Page 3
"Public employee" shall not include individuals who are
employed by the State or any political subdivision thereof
in teaching as distinguished from administrative duties.
65 P.S. 402.
Section 1.1. Definitions.
Public employee - --
(i) The term includes any individual:
(A) who is employed by the Commonwealth or a
political subdivision and who is responsible for
taking or recommending official action of a
nonministerial nature with regard to:
(I) contracting or procurement;
(II) administering or monitoring grants or
subsidies;
(III) planning or zoning;
(IV) inspecting, licensing, regulating, or
auditing any person; or
(V) any other activity where the official
action has greater than a de minimis economic
impact; and
(B) who meets the criteria of either subclause
(I) or (II):
(I) The individual is:
( -a -) a person who normally
performs his responsibility in the field
without on -site supervision;
( -b -) the immediate supervisor of a
person who normally performs his
responsibility in the field without
on -site supervision; or
( -c -) the supervisor of any highest
level field office.
(II) The individual is a person:
Mr. Felix Thau
October 16, 1984
Page 4
( -a -) who:
( -1 -) has the authority to
make final decisions;
( -2 -) has the authority to
forward or stop recommendations
from being sent to the person or
body with the authority to make
final decisions;
( -3 -) prepares or
supervises the preparation of
final recommendations; or
( -4 -) makes the final
technical recommendations; and
( -b -) whose recommendations or
actions:
( -1 -) are an inherent and
recurring part of his position;
and
( -2 -) affect organizations
other than his own organization.
(ii) The term does not include individuals
who are employed by the Commonwealth or a political
subdivision of the Commonwealth in teaching as
distinguished from administrative duties.
(iii) Persons in the positions listed below are
generally considered public employees.
(A) Executive and special directors or
assistants reporting directly to the agency head or
governing body.
(B) Commonwealth bureau directors, division
chiefs, or heads of equivalent organization
elements and other governmental body department
heads.
(C) Staff attorneys engaged in representing
the department, agency, or other governmental
bodies before the public.
Mr. Felix Thau
October 16, 1984
Page 5
(D) solictors ,engineers, managers, and
secretary - treasurers acting as managers, police
chiefs, chief clerks, chief purchasing agents,
grant and contract managers, housing and building
inspectors, sewer enforcement officers, and zoning
officers in all governmental bodies.
(E) Court administrators, assistants for
fiscal affairs, and deputies for the minor
judiciary.
(F) School business managers and principals.
(iv) Persons in the positions listed below are
generally not considered public employes:
(A) City clerks, other clerical staff, road
masters, secretaries, police officers, welfare case
workers, maintenance workers, construction workers,
detectives, equipment operators, and recreation
directors.
(B) Law clerks, court criers, court reporters,
probation officers, security guards, and writ
servers.
(C) School teachers and clerks of the schools.
51 Pa. Code 1.1.
We must review the question you present under these provisions of the
statute and the regulations of the Commission in light of your duties and
obligations as described in your request for advice and /or appeal, the
operate. Our inquiry necessarily focuses on the job itself and not on the
individual incumbent in the position, the variable functions of the position,
or the manner in which a particular individual occupying a position may carry
out those functions. See McClure, 83 -001; Phillips, 82 -008, affirmed on
appeal, Pa. Cmwlth. , 470 A.2d 659 (1984); and Mummau v. Ranck, 531
Fed. Supp. 402 (E.D. Pa. 1982).
Also, in reviewing your question, the Commonwealth Court in its ruling in
Phillips, supra, at page 661, directs us to construe coverage of the Ethics
Act broadly, rather than narrowly, and conversely, directs that exclusions
from the Ethics Act should be narrowly construed. Based upon this directive
and reviewing the definition of "public employee" in the statute and the
regulations and opinions of this Commission, in light of your job functions
and the information available to us, we are led to the conclusion that while
you serve in this capacity, you are a "public employee" subject to the
financial reporting and disclosure requirements of the State Ethics Act.
Further detail on our analysis follows.
Mr. Felix Thau
October 16, 1984
Page 6
It is clear that in your capacity as an Attorney III, you have the
ability to recommend official action with respect to subparagraphs (1), (4)
and (5) within the definition of "public employee" as set forth in the Ethics
Act, 65 P.S. 402. Specifically, your power to make recommendations regarding
hearing examiner reports, proposed citations, and regulations are clearly
other than ministerial. In addition, your ability to represent the Board at
citation and licensing hearings and at civil service hearings and appeals in
addition to your representation of the LCB in litigation, in general,
represent activies in which you exercise an authority to take or recommend
official action within the confines of the definition of "public employee" as
set foth in the Ethics Act. These activities fall within the definition of
public employee as contained in the regulations of the Commission 51 Pa. Code
(i)(A)(I), (IV),and (V) and (8)(II)(a)(2) and (3). Under these circumstances
and given your duties and responsibilities as outlined above, we must conclude
that you are a "public employee" as that term is defined in the State Ethics
Act.
While from the above discussion it is clear that you are a "public
employee" as that term is defined in the State Ethics Act, you seek to secure
a ruling that you are "exempt" from the otherwise applicable provisions of the
State Ethics Act because you are admitted to the practice of law in
Pennsylvania. In this respect you argue that as a member of the legal
profession, you are to be regulated only by the Supreme Court of Pennsylvania.
You point to the Commonwealth Court's ruling in Ballou, as outlined above for
support. We believe, however, that the Supreme Court's ruling in this case,
was limited to and exempted from the statutory definition of "public employee"
or "public official" only those persons who serve in the part -time capacity as
independent contractors as solicitor(s) with a municipality or other
governmental entity. Because the Supreme Court ruled in this matter on
narrow, statutory definition grounds, we do not believe that the reasoning set
forth in the Commonwealth Court ruling at 424 A.2d 983, 56 Pa. Cmwlth. 240
(1981) is dispositive, persuasive, or is binding with respect to the situation
which you present.
We recognize that only the Supreme Court has the inherent or exclusive
power to govern the admission or discipline of an attorney. However, we are
not in a position to declare the provisions of the Ethics Act unconstitutional
or to concede that this power of the Supreme Court extends to or is applicable
to this situation. No case which you present or argue in your appeal is
clearly applicable or mandates the conclusion that the Legislature may not
adopt and apply the Ethics Act to full -time employees, such as you, who are
otherwise within the definition of "public employee" as set forth in the
Ethics Act simply because you are an attorney. Lacking any specific
dispositive or applicable case, we conclude that your argument and appeal is
to be rejected. Accordingly, as a full -time public employee who falls within
the definition of "public employee ", we are bound to apply the provisions of
the State Ethics Act to you and require that you file a Statement of Financial
Interests in accordance with that statute.
Mr. Felix Thau
October 16, 1984
Page 7
Conclusion: Based upon the above discussion, we conclude that you are to be
considered a "public employee" in your capacity as an Attorney III with the
LCB. Accordingly, you must file a Statement of Financial Interests for each
year in which you hold the position outlined above and for the year following
your termination of this service.
As outlined above, we find that you are not exempt from the requirement
of filing a Statement of Financial Interests under any applicable and
diapositive precedent or on any constitutional arguments that you have
raised.
If you have not already done so, a Statement of Finanical Interests must
be filed within 15 days of this Advice. This Statement of Financial Interests
would report information of the prior calendar year. Please file the original
of such a Statement with this Commission to insure compliance with this
Advice, provide the yellow copy to your Personnel Office and retain the green
copy for your records.
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 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.
Enclosure: SFI
S SC/ rdp
cc: Daniel Pennick, Chairman
Joseph Phillip, Director
Sincerely,
andra S. Chr
General Couns -1
tianson