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HomeMy WebLinkAbout81-625 ChandlerMailing Address. STATE ETHICS COMMISSION P.O. BOX 1 179 HARRISBURG, PA 17108 TELEPHONE: (717) 783 -1610 October 1, 1981 ADVCE OF COUNSEL Vernon E. Chandler, Jr. Pennsylvania Public Utility Commission P.O. Box' 3265 Harrisburg, PA 17120 RE: Section 3, P.U.C. Rate Division Chief Dear Mr. Chandler: State Ethics Commission • 308 Finance Building • Harrisburg, Pennsylvania •81 -625 This responds to your letter of August 6, 1981, in which you, as the Chief of the Gas Division, Bureau of Rates, requested an opinion from the Ethics Commission. Issue: You asked for advice as to whether the Ethics Act prohibits you from providing consulting service to public utilities not regulated by the Pennsylvania Public Utility Commission. Facts: You informed us that you are employed by the Pennsylvania Public Utility Commission (P.U.C.). The P.U.C. regulates utilities operating solely within the Commonwealth. You are the Chief of the Gas Division of the Bureau of Rates. As part of your official duties you direct Gas Division prosecutions and investigations and preparation of recommendations in rate making proceedings. During your tenure with the P.U.C. you accepted one consulting assignment involving a public utility not regulated by the Commission. The consulting work was performed on your own time and at your own residence. You state that you did not use your position with the P.U.C. or confidential information received through your position to obtain personal financial gain. Discussion: The Ethics Act, 65 P.S. Section 401 et seq., defines a public employee as one who is responsible for taking or recommending non - ministerial official action with regard to regulating any person or any other activity where the official action has a greater than de minimus Vernon E. Chandler, Jr. October 1, 1981 Page 2 economic impact on the interests of any person. Id Section 402. Your description of your duties makes it clear that you are a public employee. As Chief of the Gas Division you take or recommend official action to regulate utilities and your actions have a greater than de minimus economic impact on utilities and their customers. Public employees are not precluded by the Ethics Act from accepting outside employment. In your case, you have appropriately limited your consulting work to utilities not regulated by the P.U.C. You may perform consulting work for such utilities if you comply with the strictures of the Act even though this consulting utilizes the same skills a"s does your regular work. Section 3(a) of the Ethics Act mandates that no public employee use his public employment or confidential information received through public employment to obtain financial gain for himself or a business with which he is associated. 65 P.S. Section 403(a). Accepting as true your assertion that your one previous consulting assignment was not obtained through use of your position as Gas Division Chief or with the help of confidential information received as Division Chief your consulting was not a violation of the Ethics Act. Future consultating work is permitted so long as your position as Division Chief or confidential information received as Division Chief is not employed to obtain consulting work. We also note that Section 3(b) of the Act is applicable to the facts you presented to us. In Section 3(b) the Legislature commanded that no person shall offer or public employee accept anything of value based on any understanding that the official action or judgment of the public employee will be affected thereby. 65 P.S. Section 403(b). "Anything of value" includes a promise of future employment. Therefore, you may not accept consulting work based on any understanding that your official actions as Chief of the Gas Division would be affected thereby. Conclusion: The Chief of the Gas Division, Bureau of Rates, P.U.C. is a public employee subject to the Ethics Act. You may perform consulting work for utilities not regulated by the P.U.C. if you do not: (1) use your public employment to obtain consultant work; and (2) use confidential information received as a public employee to obtain consultant work; and Vernon E. Chandler, Jr October 1, 1981 Page 3 (3) accept work based on any understanding that your official actions would be influenced thereby. 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 /lma cc: Susan M. Shanaman, Chairman PUC Sincerely, S. dra S. • ristianson General C■unsel