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HomeMy WebLinkAbout80-512 JohnstonTO: RE: FACTS: He advised as follows: STATE ETHICS COMMISSION P. 0. Box 1179 Harrisburg, PA 17108 January 22, 1980 ADVICE OF CHIEF COUNSEL r Ralph J. Johnston 700 First Eastern Bank Building Wilkes - Barre, Pennsylvania 18701 Mayor of a Third -Class Municipality authorizing a Commissioner in his private business to write bonds covering three employees of the City Tax Collection Office. 80 -512 On January 14, 1980 Ralph J. Johnston, Solicitor for Luzerne County, requested the Advice of Chief Counsel in regard to a possible conflict of interest. Mr. Crossin is a member of the Board of Commissioners of Luzerne County and in his private capacity conducts an insurance business. The mayor of the city of Wilkes - Barre, a third -class city, has requested and authorized Mr. Crossin, through one of the insurance companies he represents, to write the bond covering three employees of the Tax Collection Office of the city of Wilkes- Barre. The cost of this contract would exceed the sum of $500.00, and the commission realized by Mr. Crossin's office would exceed the sum of $500.00. Wilkes -Barre City collects the taxes for the current year for Luzerne County, as well as the Wilkes -Barre city taxes and the Wilkes -Barre Area school taxes. Luzerne County contributes $1,000.00 to the city of Wilkes -Barre as the county's share of the Tax Collection Office for the collection of the Luzerne County taxes. The Board of Commissioners of Luzerne County has no jurisdiction whatsoever over the mayor of the city of Wilkes -Barre or the City Council or the employees of the city of Wilkes- Barre, including the employees of the Tax Collection Office. Ralph J. Johnston January 22, 1980 Page 2 DISCUSSION: The issue is whether the city of Wilkes -Barre and the county of Luzerne are the same governmental body for purposes of Section 3(c) of the State Ethics Act. Section 3(c), 65 P.S. 403(c), of the State Ethics Act requires inter alia, that: No public official... or any business in which the person or a member of his immediate family is a director, officer, owner or holder of stock exceeding 5% of the equity at fair - market value of the business shall enter into any contract valued at $500.00 or more with a governmental body [with which that public official is associated] unless the contract has been awarded through an open and public process, including prior public notice and subsequent public disclosure o all proposals considered in contracts awarded.... It is the opinion of the State Ethics Commission that a third -class municipality and a county are two separate, independent governmental bodies. See T.C. Williams, 79 -12. The fact that Luzerne County contributes $1,000.00 to the city of Wilkes -Barre for the collection of Luzerne County taxes is not sufficient involvement as to imply control by the county of Luzerne over the city of Wilkes - Barre. CONCLUSION: A city and a county are two different governmental bodies, therefore, the prior public notice provisions of Section 3(c) do not apply. The $1,000.00 contributed by the county to the city for collection of county taxes is not sufficient involvement to require that the bonding of the tax collectors be bid in order for a county commissioner/ insurance broker to provide the bond. The opinion of the commission is solely related to the State Ethics Act, and does not extend to the requirements of any other statute or regulation which may relate to this fact situtation. 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. 1 Ralph J. Johnston January 22, 1980 Page 3 DRM /rdp -1 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. DAVID RITTENHOUSE MORRISON Chief Counsel