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HomeMy WebLinkAbout81-505 CognettiAnthony R. Cognetti, Manager State Workmen's Insurance Fund 100 Lackawanna Avenue Scranton, PA 18503 1981. t STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 January 23, 1981 ADVICE OF CHIEF COUNSEL 81 -505 RE: Workmen's Compensation Appeal Board, Conflicts, Restrictions Dear Mr. Cognetti: This responds to your communication of January 12, Issue: In your communication you request an opinion as to whether any conflicts of interest exists under the Ethics Act or restrictions would apply if you were to be nominated and confirmed to become a member of the Workmen's Compen- sation Appeal Board. Facts: You indicate that you currently serve as the Manager of the State Workmen's Insurance Fund. The State Workmen's Insurance Fund is the statutorily created and State admini- stered.Insurance Company. See 77 P.S. 201 to 395. Your duties as Manager of the State Workmen's Insurance Fund include the planning and directing of all State Fund activities such as underwriting investment, claim investi- gation, and approving all check requisitions for payments of compensation and other vendors. Essentially, the State Fund operates as an insurance company and your duties in relation to managing this Fund are similar to those of such an operation. You further indicate that Governor Thornburgh has submitted your name to the Senate for confirmation and appointment as a member of the Workmen's Compensation Appeal Board. The Workmen's Compensation Appeal Board, as established under Section 441 of the Administrative Code, 71 P.S. 151, consists of three appointed members subject to confirmation by the Senate. The duties and obligations of the Workmen's Compensation Appeal Board are essentially to operate as the first level, administrative review of the decisions of Anthony R. Cognetti, Manager January 23, 1981 Page 2 Workers' Compensation Referees. As you note in your correspondence, the Workmen's Compensation Law provides that any party may prosecute an appeal to the Workmen's Compensa- tion Appeal Board within 20 days after the issuance of a notice of award or disallowance of compensation in a workmen's compensation claim. See 77 P.S. 853. The Board performs a similar appellate function in relation to the Pennsylvania Occupational Disease Act, 77 P.S. 1201 et seq. As a prospective member of the Workmen's Compensation Appeal Board you would be involved in hearing cases before the Board, preparing the written opinions of the Board, after consultation with the other members of the Board, and either affirming, modifying, remanding, or reversing the decision of the Referee. Obviously, cases in which the State Workmen's Insurance Fund is insurer are decided by Workers' Compensation Referees. Likewise, those decisions are subject to appeal and review by the Workmen's Compen- sation Appeal Board. Discussion: The Ethics Act does not contain any prohi- bition, per se, which would preclude you from considering or accepting the post as a member of the Workmen's Compensation Appeal Board. However, Section 1 of the Ethics Act provides that, "public confidence in government can best be sustained by assuring the people of the impartiality and honesty of public officials" and that, therefore, the provisions of the Ethics Act are to be liberally construed to promote complete disclosure by public officials. It would seem clear that in those cases in which the state fund acts as insurer and is interested in a decision made by a referee, that decision might be subsequently appealed to the Workmen's Compensation Appeal Board. If, as the manager of State Workmen's Insurance Fund you had direct involvement, supervision, or responsibility for such a case, your ability to review this case, as a member of the Workmen's Compensation Appeal Board, might raise the appearance of a conflict of interest and a question as to your impartiality. Essentially, as a member of the Workmen's Compensation Appeal Board, the public must be assured that you are acting in an impartial manner. While there is no apparent reason to believe that any personal financial gain may accrue to you by the use of you proposed position as a member of the Workmen's Compensation Appeal Board, the appearance of a conflict with this post and your former post as manager of the State Workmen's Insurance Fund might be perceived. Anthony R. Cognetti, Manager January 23, 1981 Page 3 Accordingly, we must conclude that in order to avoid the appearance of any conflict of interest and to insure the impartiality of the decisions of the board, that you should abstain from reviewing, recommending, and voting on those cases with which you were directly involved, had supervision, or over which you exercised responsibility while serving as manager of State Workmen's Insurance Fund. Conclusion: The Ethics Act does not preclude your appoint- ment and confirmation as a member of the Workmen's Compen- sation Appeal Board. However, if confirmed as a member of this Board, your conduct should conform to the requirements set forth in this advice. 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 Sincerely, a ndra S. .'stianson General Cou sel