HomeMy WebLinkAbout81-504 MonaghanThomas J. Monaghan
Room 113 Finance Building
Harrisburg, PA, 17120
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
January 13, 1981
ADVICE OF COUNSEL
81 -504
RE: Section 3(e), Restrictions
Dear Mr. Monaghan:
This responds to your communication of January 9, 1981.
Issue: In your communication you requested advice from the
Ethics Commission as to the impact of the Ethics Act upon
you as a former public employee.
Facts: You have been an employee of the State Treasury
Department since March 26, 1979. You began your employment
as Co- Director of the Bureau of Public Assistance as of that
date. In September, 1979 you became Director of the Bureau.
In these capacities your duties included performing all
necessary treasury operations, but more specifically you
have been required to work with and furnish information to
the Welfare Department, Revenue Department, and Justice
Department in particular. Your principle duties in regard
to contact with the Welfare Department have been concerning
public assistance payments.
You have resigned your position as of January 23, 1981.
You intend to retire from State employment as of that date.
You have accepted a position as an Assistant Treasurer with
the Leader Nursing Centers, Inc. as of January 26, 1981.
Your role, as Assistant Treasurer, with the Leader
Nursing Centers, Inc. will include performing the following
functions:
Thomas J. Monaghan
January 13, 1981
Page 2
1. Expediting the receipt and prompt deposit of
monthly medical assistance payments made to
residents of Leader Nursing Centers, Inc. from the
Department of Public Welfare;
2. Personally contacting officials of the Department
of Public Welfare and other State agencies in
order to accomplish Objective Number 1 above and to
clarify matters relating to medical assistance,
audits, and reimbursements. You indicate that you
will not contact the State Treasury in regard to
these matters until such time as such contact
would be permitted by the State Ethics Code.
3. Making contact with members of the General Assembly
to enlist their support for legislation affecting
the Health Care Industry in general, and if
appropriate the Leader Nursing Centers, Inc., in ,
particular.
Discussion: The State Ethics Act in Section 3(e), 65 P.S.
403(e) precludes a former public employee from appearing and
representing any person before the governmental body with
which he was associated for a period of one year after he
leaves that body. The Commission has, on several occasions,
made rulings as to the definitions of the terms "governmental
body ", "associated with ", and "representation." Basically,
the decisions of the Commission indicate that an individual's
"govenmental body" should be defined as that entity over
which the former employee or public official had or could
have had authority or influence. See Kline, 79 -001. The
Commission had determined that the prohibition may extend to
a whole department, where the individual involved work in or
with a whole department to the extent that he could be said
to have "influence" over the entire Department. See Cutt,
79 -023. In your case, as Director of the Bureau of Public
Assistance, it is reasonable to assume that you had some
influence of the entire Treasury Department. At your level
of employment, which should be deemed to be a fairly high
one, the Commission concludes that your "governmental body"
would be the entire State Treasury Department.
Having decided that the State Treasury Department, as a
whole, constitutes the "governmental body" with which you
had been associated you should be advised that the decisions
of the Commonwealth have also addressed the question of what
constitutes "representation." In relation to the State
Treasury Department you may not engage in "representing"
any person before the State Treasury Department. The deci-
sions of the Commission indicate in general, what is considered
"representing." In particular, the decision rendered in
Morris, 80 -039 indicates that:
Thomas J. Monaghan
January 13, 1981
Page 2
1. Personal appearance before the governmental body
is prohibited for the one -year period;
2. Attempts to influence the governmental body are
prohibited for the one -year period;
3. The former public employee may not participate in
any case over which he or she had supervision,
direct involvement, or responsibility while
associated with the governmental body;
4. Members of the former public employee's firm or
business or prospective employer are not barred
from representing clients before the governmental
body with which the former public employee was
associated;
5. General informational inquiries on matters which
are subject to question by the general public are
not prohibited, even as the governmental body
named above;
6. Former public employees are not barred from
generally utilizing the knowledge and expertise
gained from their tenure as public employees
except as set forth above;
7. Apppearance in a third forum, such as state or
federal court, is not prohibited.
In your circumstances, as you indicate, you should not
"represent" any person, as described above, before the State
Treasury Department for a period of one -year after you leave
that Department. Your activities in relation to that Depart-
ment should not include items number 1, 2, or 3 above for
the one -year period following your termination of employment.
There is no prohibition against you contacting other depart-
ments, agencies or the General Assembly.
Incidently, one final note as to your obligations under
the Ethics Act should be made. Section 4(a) requires you to
file a Statement of Financial Interest for each year you are
employed by a governmental body and by May 1 of the year
after you leave public employment. Accordingly, you should
file a Financial Interest Statement as a former employee no
later than May 1, 1981 for the year 1980 and a statement no
later than May 1, 1982 for the calendar year 1981.
Thomas J. Monaghan
January 13, 1981
Page 4
Conclusion: The governmental body with which your were
associated is the State Treasury Department. As to this
governmental body, you are prohibited from "representing any
person" before that department for a period of one year from
the date you leave that department's employment. The term
representation, which is prohibited is as set forth in items
number 1, 2, and 3 above.
In addition, you should file a Financial Interest
Statement as a former public employee as set forth above.
Two forms are attached for your use. Follow the instructions
on this form as to the method of filing.
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 may be scheduled and a formal Opinion
from the Commission will be issued. You should make such a
request or indicate your disapproval of this Advice within
the next 30 days.
SSC /rdp
Sin erely,
ndra S. C tianson
General Co • =e1