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HomeMy WebLinkAbout82-603 HenchAllen E. Hench, Esquire 227 Walnut Street Newport, PA 17074 RE: Councilman, Laborer, Contract Dear Mr. Hench: „, , 4 444, 114 Mailing Address: STATE ETHICS COMMISSION P.O. BOX 1 179 HARRISBURG, PA 17108 TELEPHONE: (717) 783 -1610 December 21, 1982 ADVICE OF COUNSEL 82 -603 This responds to your letter of November 23, 1982, in which you requested advice from the State Ethics Commission. Issue: You ask whether a borough councilman can be employed as a laborer by the borough. Facts: You represent, as solicitor, Liverpool Borough, hereinafter the Borough, located in Perry County. A Borough Councilman wishes to be considered for employment as a laborer by the Borough to perform some work on the Borough building. This employment will be charged to the Borough at an hourly rate. It is anticipated that the amount to be charged to the Borough for this labor would be less than $500. Discussion: As an elected Borough Councilman, your client, is a public official within the definition of the Ethics Act. Therefore, this Councilman must conform his conduct to the requirements of the Ethics Act. The most pertinent requirement of the Ethics Act is found in Section 3(c) of the Ethics Act which states as follows: (c) No public official or public employee or a member of his immediate family or any business in which the person or a member of the person's immediate family is a director, officer, owner or holder of stock exceeding 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 has been awarded through an open and public process, including prior public notice and subsequent public disclosure of all proposals considered and contracts awarded. Any contract made in violation of this subsection shall be voidable by a court of competent jurisdiction if the suit is commenced within 90 days of making of the contract. 65 P.S. 403(c). State Ethics Commission • 308 Finance Building • Harrisburg, Pennsylvania Allen E. Hench, Esquire December 21, 1982 Page 2 This Section is applicable to contracts made between the Borough and the Councilman in excess of $500. Upon the facts, as you have presented them, this Section of the law would not be applicable to the contract of question given the fact that the contract is not anticipated to exceed $500. Therefore, there need not be an open and public process in this selection of the Borough Councilman as the laborer to perform this work for the Borough. Of course, the Councilman in question should refrain from voting on the question of his employment of a laborer to perform this work. If this contract is anticipated to exceed $500 the public official involved must fully comply with the provisions of Section 3(c) in relation to the open and public process requirements. Conclusion: In the factual situation, as you have presented it, Section 3(c) of the Ethics Act would not require that an open and public process be undertaken before a Borough Councilman could be hired by the Borough. However, should the anticipated cost of this contract exceed $500, the requirements of Section 3(c) of the Ethics Act must be met. In addition, the Councilman in question should not participate in the discussions or votes leading up to the employment of a laborer to perform these services for the Borough. 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 will be scheduled and a formal Opinion from the Commission will be issued. Any such appeal must be made, in writing, to the Commission within 15 days of service of this Advice pursuant to 51 Pa. Code 2.12. SSC /rdp Sincerely, to, 414 'Sandra S. Christianson General Counsel