HomeMy WebLinkAbout81-542 CableDear Mr. Cable:
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
April 10, 1981
ADVICE OF COUNSEL
Robert L. Cable 81 -542
Legislative Reference Bureau
P.O. Box 1127
Harrrisburg, PA 17120
RE: Employment Contracts, Conflict of Interest, Immediate
Family
This responds to your letter of January 29, 1981, in which
you, the Director of the Legislative Reference Bureau, requested
an opinion from the Ethics Commission.
Issue: You requested advice as to whether the spouse of a
public employee may contract with the public employer. You
also request advice as to whether the compensation paid the
spouse of a public employee may be increased by the spouse to
match the compensation of other employees.
Facts: You informed us that you are the Director of the Legis-
lative Reference Bureau. A previous Director, Ted Doyle, hired
Caryl Cable to update computer data on statutes. Caryl Cable
is your wife. The contract between Caryl Cable and the Bureau
was continued by directors after Doyle and the rate of pay
increased to $5 per hour. The rate of pay for other Bureau
employees is now $6 per hour.
Discussion: As a public employee, the Director of the Legisla-
tive Reference Bureau is subject to the provisions of the
Ethics Act. The statute provides that:
" . no public employee or a member of
his immediate family... shall enter into
any contract valued at $500 or more with
a governmental body unless the contract
has been awarded through an open and
public process...." 65 P.S. §403(c).
Accordingly, any contract between your spouse and the
Legislative Reference Bureau valued at more than $500 must be
awarded through an open and public process. A prior decision
of the Commission has defined "open and public process" as:
Robert L. Cable
April 10, 1981
Page 2
(1) Prior public notice; and
(2) public disclosure of all proposals considered; and
(3) public disclosure of the award of the contract,
Howard, 79 -044. The process is open and public if a
competitor of the spouse of the public employee could
receive notice of the employment opportunity to make
timely application for the position.
The employment contract between the Bureau and Caryl J. Cable
was begun before the effective date of the Ethics Act, and this
discussion does not address the validity of that contract. See
Greenblatt, 79 -009. Contracts entered into after the effective
date of the Act and your appointment as Director of the Bureau,
however, must comply with standards of an open and public
process mandated by the Act and the decisions of the Commission.
Approval of Caryl Cable's employment contract appears to
rest with the Director of the Bureau. To avoid the appearance
of a conflict of interest prohibited by 65 P.S. §401, Section 1
of the Ethics Act, you must not directly or indirectly approve
your wife's contract or amendments thereto and insure that the
contract was let in an open and public process as discussed
above. Such hiring or change in your wife's contract would
have to be approved by your superiors.
Again assuming that your wife is employed through an open
and public process, your approving a raise for her also presents
the appearance of a conflict of interest. Any change in her
rate of pay must be separately reviewed and approved.
Conclusion: As a public employee, the Director of the Legisla-
tive Reference Bureau must comply with the Ethics Act. Any
contract between the spouse of a public employee and the Bureau
must be awarded through an open and public process if the
contract is valued at $500 dollars or greater. An open and
public process gives:
(1) Prior public notice; and
(2) public disclosure of all proposals considered; and
(3) public disclosure of the award of the contract.
A competitor of the spouse of the public employee should
have an opportunity to compete for the position.
The public employee should not participate directly or
indirectly in the decision and /or approve, review, or renew the
contract or amendments thereto of your spouse. If you wife is
to be retained or paid more, your superiors would have to
approve same.
Robert L. Cable
April 10, 1981
Page 3
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
Sincerely,
andra S. Christianson
General Counsel