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HomeMy WebLinkAbout81-586 ConnorSTATE ETHICS COMMISSION . 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 June 30, 1981 ADVICE OF COUNSEL Kenneth E. Connor P.O. Box 3145 Harrisburg, PA 17105 RE: Conflicts of Interest, Real Estate Salesman Dear Mr. Connor: 81 -586, This responds to your letter of May 28, 1981, in which you, as Assistant to the Director of Housing, requested an opinion from the Ethics Commission. Issue: You requested advice as to whether the Ethics Act prohibits you from serving as Assistant to the Director of Housing and working as a real estate salesman. Facts: You informed us that you are currently employed by the Pennsylvania Human Relations Commission (PHRC) as an Assistant to the Director of Housing. An Assistant aids the Housing_ Director in coordinating_compliance activities, educational programs and research related to housing. The Assistant determines program progress and effectiveness based upon adherence to PHRC policy and procedures, as well as analysis of financial institutions as they are involved in the housing industry. You also are a licensed real estate salesman. Your license is in escrow but you are thinking of reactivating it. Discussion: A public employee is any individual employed by the Commonwealth responsible for taking or recommending official action of a non - ministerial nature with regard to inspecting any person or any other activity where the official action taken has a greater than de minimus economic impact on the interests of any person. 65 P.S. §402. The Ethics Act, 65 P.S. §401 et. seq., assuming it applies to you, does not prohibit a public employee from other employment or business interests. If you reactivate your real estate sales license, however, you must adhere to the restrictions imposed by the Act. For example, no public employee shall use his public employment or confidential information received through public employment to obtain tinancial_gain for himself or a business with which he is associated. 65 P.S. §403(a) (emphasis added). You could Kenneth E. Connor June 30, 1981 Page 2 not use your position as Assistant to the Director of Housing or confidential information gained in that position to obtain work or listings as a real estate salesman. Nor could anyone offer you anything of value, including the promise of future employment as a real estate salesman, based on any understanding that your official actions as Assistant would be influenced thereby. 65 P.S. §403(b). Finally, Section 3(c) of the statute provides that no public employee or any business in which the person or a member of the person's immediate family is an officer, director or owner of more than 5% of the equity at fair market value of the business shall enter into any contract valued at $500 or more with a governmental body unless the contract is awarded in an open and public process including_prior public notice and subsequent public disclosure of all proposals considered and the contract awarded. 65 P.S. §403(c). As areal estate salesman you could not contract with the PHRC for more than $500 without following the above procedures of an open and public process sufficient to give a competitor of yours a reasonable time to seek award of the contract. Conclusion: The Ethics Act does not preclude the Assistant to the Director of Housing, Pennsylvania Human Relations Commission, from working as a real estate salesman. You must not, however: (1) use your public employment or confidential informa- tion obtained through your public employment to obtain financial gain tor yourself or a business with which you are associated; or (2) accept anything of value, including employment as a real estate salesman, based on any understanding that your official actions will be influenced thereby or (3) enter into any contract valued at more than $500 with the Human Relations Commission unless the contract is awarded in an open and public process. 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 Kenneth E. Connor June 30, 1981 Page 3 SW /rdp 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. Sincerely, andra S. hristianson General Counsel