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HomeMy WebLinkAbout82-511 KauffmanGeorge E. Kauffman, Jr. Office of the City Treasurer Room 110 Municipal Building 423 Walnut Street Harrisburg, PA 17101 Mailing Address: STATE ETHICS COMMISSION P.O. BOX 1 179 HARRISBURG, PA 17108 TELEPHONE: (717) 783 -1610 February 10, 1982 ADVICE OF COUNSEL RE: City Treasurer, County Employment Dear Mr. Kauffman: 82 -511 This responds to your letter of February 1, 1982, in which you requested advice from the State Ethics Commission. Issue: You requested advice as to whether you could simul- taneously serve as the elected City Treasurer of the City of Harrisburg and as Finance Director for the County of Dauphin. Facts: You are currently employed as the elected City Treasurer of the City of Harrisburg. Your present duties as City Treasurer include the collection of all City revenues, deposit and safe - keeping of City revenues, invest- ment of idle cash and the bank reconciliation process as well as the certification of cash availability prior to the disbursement of City funds. You are bonded by the City against the loss of funds in all instances. In relation to the investment of idle cash you would typically be involved with investing in short term items. The County of Dauphin has created a position entitled Finance Director. The basic duties of this position will involve budget preparation and monitoring. You would not be authorizing County to City payments or vice- versa. The position would be a part -time one. You would be involved with the investment of County Funds. State Ethics Commission • 308 Finance Building • Harrisburg, Pennsylvania George E. Kau.' :.'man , Jr. February 10,.x'8 Page 2 You have also provided us with an analysis of the City Solicitor as to the duties = •nposed by statute on the City Treasurer and the incompatibility, if any, with that office and the Finance Director role. The gist of this Opinion that there is no legal evidence of any basic incompatibility of the offices of City Treasurer and the role which you seek to play with the County of Dauphin. In addition, this opinion indicates that there are no acti- vities or interplay of functions between the two positions (City Treasurer and County Finance Director) which would indicate the duties of either job would have a control or audit function over the duties of the City Treasurer or the County Finance Director as applicable Discussion: - Initially we note that the jurisdiction of the Ethics Commission is strictly limited by the Ethics Act 65 P.S. 401 seq. and therefore this Opinion discusses only your duties and obligations under that Act in relation to the questions presented. The Ethics Act does, however, govern the conduct of public officials. The statutory definition of "public official" includes all elected officials in political sub- divisions of the Commonwealth. See 65 P.S. 402. Clearly, as an elected official (City Treasurer) of the City of Harrisburg, you are a public official within the meaning of the Ethics Act. As such, the statute governs your conduct. However, it is not a conflict of interest per se to engage in "dual employment" as you propose. According to the decisions of the Ethics Commission, a conflict of interest exists when an individual represents or is employed by two or more persons whose interests are adverse to one another. See Alfano, 80 -007. We do not perceive a basic and inherent incompatibility or conflict of interest between the City and the County in relation to the roles you would play for each. Essentially, the City and the County do not have interests which are adverse to each other. However, we should note that the Ethics Act does preclude a public official from using his public office or confidential information received through the holding of public office to obtain financial gain other than the compen- sation provided by law. See 65 P.S. 403(a). In addition, no public officer may solicit or accept anything of value including the promise of future employment on the under- standing that his official action or judgment of the public official would be influenced thereby. See 65 P.S. 403(b). Thus, in either of the roles you would play for the City or the County your conduct should be governed by - .hese consider- In particular, in your role as City Treasurer or George E. Kauffman, Jr. February 10, 1982 Page 3 County Finance Director, you should not be involved in decisions (including investment decisions) which would inure to your Personal benefit. Likewise, Sectiori 3(c) provides that No public official ... 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). If you are to accept employment with the County as well as with the City you would be deemed to be associated with two governmental bodies, that is, the City and the County. Thus, any other contractual relationships you might have with either the City or the County could be awarded only after compliance with Section 3(c). I note that these later concerns are expressed merely to provide some details as to the standards of conduct required by the Ethics Act. Conclusion: The Ethics Act does not prohibit you from simultaneously serving as the elected Treasurer of the City of Harrisburg and the Finance Director for the County of Dauphin. There is no conflict per se in the holding of these two separate offices. 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 /na Sincerely, Sandra S. Christianson General Counsel