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HomeMy WebLinkAbout81-532 SteadmanJames R. Steadman, Esq. 24 Main Street East Girard, PA 16417 STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 March 31, 1981 ADVICE OF COUNSEL 81 -532 RE: Borough Council,.Conflict of Interest Dear Mr. Steadman: This responds to your letter of February 6, 1981, in which you, as a member of the Girard Borough Council, requested an opinion from the Ethics Commission. Issue: You requested advice as to whether the Ethics Act prevents a Borough Councilman from serving on an Advisory Board to a bank located in the Borough. Facts: You informed us that you are an elected member of the Girard Borough Council. Two banks operate within the Borough: Security Peoples Trust Company (Security) and the Marine Bank. Most of the Borough's banking has been done at Security. The Borough Manager became dissatisfied with Security in November of 1980. In response to this problem Borough Council informally decided to support the Manager should he desire to change banks. Immediately following the meeting of Council you were asked and you agreed to serve on the Advisory Board of the Marine Bank. The Advisory Board serves to keep the Bank abreast of community events and to inform the Bank how it might best serve the community interests. Each member of the Board is paid a $50 honorarium for attendance at monthly meetings. After your acceptance of a position on the Advisory Board, Borough Council voted to change the official depository and Treasurer of the Borough from Security to Marine Bank. You did not participate in the discussion preceeding the vote.- You abstained from voting on this change in depository and placed the reason for your abstention on the public record. Discussion: As an elected Borough Councilman there is no doubt that you are a public official within the meaning of the Ethics Act, 65 P.S. §401 et seq. Section 2 of the Act defines public official as "Any elected or appointed official in the Executive, Legislative or Judicial Branch of the State or any political James R. Steadman, Esq. March 31, 1981 Page 2 subdivision thereof...." 65 P.S. §402. (emphasis added). Accordingly, your conduct as a Borough Council member is governed by the Ethics Act. The Ethics Act does not, however, prohibit a Borough Council member from serving on the Advisory Board to a local Bank. As the Ethics Commission noted in its opinion in Sowers, 80 -050 the statute was not meant to preclude elected officiais from dealing with the public, even though there is no inherent conflict of interest in the situation you described. The statute imposes restrictions on how a public official conducts him or herself in public office. Section 3(a) of the statute provides that no public official shall use his public office or any confidential infor- mation obtained through holding public office to acquire financial gain for himself, his immediate family or a business with which he is associated. 65 P.S. §403(a). You may not use your office as Borough Councilman to secure a position on an Advisory Board. Nor may you pass confidential information received through being a Councilman to the Marine Bank through its Advisory Board. In Section 3(b) of the Act the legislature has stated that no person shall give to a public official, nor shall any public official accept anything of value based on any understanding that the official's vote, official action or judgment would be influenced thereby. 65 P.S. 403(b). Future employment is a thing of value and thus you may not allow your position on the Advisory Board to affect your official actions or judgment on the Girard Borough Council. Further, the honorarium received from Marine Bank should be reported on a statement of financial interest. 65 P.S. § §404 -405. In previous opinions the Commission has held that to avoid the appearance of a conflict of interest a public official should not vote on matters in which he has an interest and place the reason for his abstention on the public record. See e.g., Sowers, 80 -050. Your abstention and disclosure on the vote to change banks is commendable and in compliance with the Act. To remain in conformity to the mandate of the statute that you avoid even the appearance of a conflict of interest, you should continue to abstain from voting on matters involving the Marine Bank and to disclose the reason for the abstention on the public record. Conclusion: There is no inherent conflict of interest created when a Borough Council member serves on the Advisory Board of a local Bank, even when that bank does business with the Borough. James R. Steadman, Esq. March 31, 1981 Page 3 The Borough Council member may not: (1) use his public office to obtain financial gain for himself, his immediate family or a business with which he is associated; and (2) use confidential information received through holding a seat on Borough Council to obtain financial gain for himself or pass such information on to the local Bank; and (3) accept anything of value, including a position on an Advisory Board based on any understanding that his official action or vote would be influenced thereby. The Borough Council member must: (1) disclose honorariums received from the Bank on a statement of financial interests; and (2) abstain from voting on matters affecting the Bank; and 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. SW /rdp (3) disclose the reason for his abstention on the public record. Sincerely, Sandra S. Christianson General Counsel