HomeMy WebLinkAbout79-551 GreenleafTO:
RE:
FACTS:
DISCUSSION:
STATE ETHICS COMMISSION
P. 0. Box 1179
Harrisburg, PA 17108
ADVICE OF CHIEF COUNSEL
November 20, 1979
Stewart J. Greenleaf
306 Wyncote Road
Jenkintown, PA 19046
Advice Number 79 - 551
Conflict of interest in being on the board of
directors of a corporation receiving funds from
a division of spouse's governmental body
On September 21, 1979, Senator Greenleaf asked for
an Advice from Chief Counsel. He advised that he had
received an inquiry from William Dennis, an Abingtown
Township Commissioner, now Secretary of the Township,
whose wife is Executive Deputy Secretary of the Department
of Community Affairs. He advised that Mr. Dennis is
involved with a group of community leaders who are
trying to purchase a building presently owned by Goodwill
Industries.
Senator Greenleaf asked if there was a conflict of
interest between Mr. Dennis being on the board of
directors of the corporation formed to purchase this
building and that corporation's receipt of funds from
Ms. Dennis' agency.
The first issue is whether Ms. Dennis, as Executive
Deputy Secretary, is a public official or public
employee. We hold that executive deputy secretary is
an official position, therefore, Ms. Dennis is a
public official.
The next issue is whether a nonprofit corporation,
of which Mr. Dennis is presumably an officer or director,
may receive funds from that public official's agency.
Section 3(c) requires an open and public process
for the awarding of any contract where the public
official's spouse is a director, officer, owner or
holder of stock exceeding 5% of the equity of fair
market value of the business. It is our opinion that a
79 551
Stewart J. Greenleaf
November 20, 1979
page 2
CONCLUSION:
nonprofit corporation is not a business as defined
in Section 3(c). Further, Ms. Dennis will not receive
any of these funds personally.
There is not conflict of interest in the Department
of Community Affairs providing funds to a corporation
of which Mr. Dennis is a director, where his wife is
executive secretary of the Department of Community
Affairs.
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 proceedin5, providing
the requestor has disclosed truthfully all the material
facts and committed the acts complained of in reliance
on the advice given.
A personal appearance before the Commission and a
formal opinion will be issued upon your request, if you
feel this reply does not suffice.
This letter is a public record and will be made
available as such.
DAV D RITTENHOUSE MORRISON
Chief Counsel