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HomeMy WebLinkAbout83-518 WelshMathrigAWmss STATE ETHICS COMMISSION P.O. BOX 1179 HARRISBURG, PA 17108 TELEPHONE: (717) 783-1610 March 3, 1983 ADVICE OF COUNSEL Mr. Thomas•P. Welsh 1 Plainview Drive 83 -518 Coraopolis, PA 15108 • f RE: Conflict of Interest; Insurance Agent; Candidate for School Director Dear Mr, Welsh: This responds to your letter of January 19, 1983, in whi ch you asked the advice of the State Ethics Commission. Issue: You ask whether your association with the insurance agency that underwrites the Montour School District would preclude your campaigning for the office of School Director of the Montour School Distr' Facts: You have been a licensed insurance agent for a pct. and as such have competed for and obtained the insurance in districts and approximately 15 years ennsyltanin, political sub - divisions located in the Commonwealth bof of school represent is the nMontour the School accounts District currently written by the General Agency you As a resident within the District are considering becoming a candidate for ythehofficeeof requested to become and Montour School District. Director of the You are concerned about whether effect on the concerned your successful campaign would have any your agency does with the Montour School District, Discussion: The Ethics Act, 65 P.S. Di cuss elected §401 et seq,, defines " official in the Executive, Legislative or Judicial Branch of .the state or any nolitical subdivison thereof...." public official" School state is any c i a ad if y public official under the sttatutorY d� An el aduieyou Shouldrbe u in o your campaign for office, definition, e dictates of the Act, y0U would be A public official cannot use his public office or confidential information received through his holding gain for himself, 9 Public office to obtain financial P.S. i , his family or a business with which he is associated. The Ethics Act defines a business with which P. as: 65 an official is State Ethics Commission • 308 Finance Building • Harrisburg, Pennsylvania Mr. Thomas P. Welsh March 3, 1983 Page 2 "Business with which he is associated." Any business in which the person or a member of the person's immediate family is a director, officer, owner, employee or holder of stock. 65 P.S. 402. You would not be able to use your position or confidential information received as a School Director to obtain financial gain for yourself or the insurance business with which you are associated. For example, you would be prohibited from using confidential information received as school Director to benefit your employer in bidding and /or obtaining a School District insurance contract. Thus, the School Director should abstain from discussions relating to and /or voting on the award of the contract and place the reason'for his abstention on the public record even assuming an open and public process as discussed below is used in awarding contracts Sowers, 80 -050. It should here be noted, however, that any insurance contracts with the School District which pre- existed your assumption of office need not be voided or re- negotiated since there is no question that you had no ability to utilize your official capacity as School Director to obtain or influence the award of the contract to the agency you represent. The Act forbids a public official from accepting anything of value based on any understanding that the vote or official action of the public official would be influenced thereby. 65 P.S. §403(b). Sincer "any thing of value" includes a promise of future employment, you as School Director could not allow a promise of benefit to yourself (or continuation of your employment) or the employment and /or contract with your employer to influence your votes or other official acts as School Director. The statute also imposes certain restrictions on contracts entered into between a business with which a public official or his family is associated and the public official's governmental body. Section 3(c) provides that: No public official ... or a member of his immediate family or any business in which 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 in an open and public process.... 65 P.S. §403(c). Mr. Thomas P. Welsh March 3, 1983 Page 3 If you, your wife, or a member of your immediate family is a director, officer or owner of more than 5% of the equity of a business seeking to contract with the School District including the Insurance Agency you represent, and the contract is valued at more than $500, it must be awarded in an open and public process including: (1) Prior public notice; and (2), public disclosure_of all proposals considered; and (3) public disclosure of the award of the contract. The restrictions of an open and public process are required if and only if you are a director, officer or holder of more than 5% of the stock equity of the business seeking to contract with the School District. If you are an employee of the firm, however, you must still refrain from discussions and voting on the award of a contract to your employer as discussed above and place the reason for abstention on the public record. Abstention under such circumstances avoids the appearance of a conflict of interest prohibited by the Act. 65 P.S. 401. Knox, 81 -009. Conclusion: If you are successful in your campaign for School Director of the Mortour School District, you should conform your conduct to the requirements as delineated above. 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. CW /rdp S.ndra S. C 'istianson General Co nsel Sincerely,'