HomeMy WebLinkAbout83-540 MenackerMiriam Menacker
2613 N. Second Street
Harrisburg, PA 17110
Mailing Address
STATE ETHICS COMMISSION
P.O. BOX 1 179
HARRISBURG, PA 17108
TELEPI{ONE: (717) 783 -1610
April 28, 1983
ADVICE OF COUNSEL
RE: Board of Directors, City Treasurer Position
Dear Ms. Menacker:
83 -540
This responds to your letter of March 31, 1983, in which you requested
advice from the State Ethics Commission.
Issue: You ask whether, if elected to the post of Treasurer in the City of
Harrisburg, you would be able to serve on the Board of Directors of a savings
and loan association.
Facts: You indicate that you are currently a candidate for the post of City
Treasurer within the City of Harrisburg. You also indicate that you have in
the past served as a member of the Board of Directors of the First Federal
Savings and Loan Association but are resigning from that position as of
primary day, May 17, 1983. You indicate that your membership on this Board is
of personal interest to you since your late husband and his father served on
the Board. However, pending the election, you feel that it would be best to
resign from this Board as indicated above.
You would, however, be interested in again serving on the Board even if
you were to become City Treasurer and you wish to ascertain whether this
activity would present a conflict under the Ethics Act. You indicate that one
of the City Treasurer's duties would be to insure that the City's resources
were invested properly and prudently at all times. However, given that
savings and loan associations do not offer the best investment opportunities
in this field, you suggest that the City would not be interested in investing
in a savings and loan association, in general, or with First Federal Savings
and Loan Association in particular.
State Ethics Commission s 308 Finance Building • Harrisburg, Pennsylvania
Miriam Menacker
April 28, 1983
Page 2
Discussion: As a candidate for public office or, if elected, as the City
Treasurer of the City of Harrisburg, you would become a "public official"
subject to the provisions of the Ethics Act. As such, your conduct must be
governed by the Ethics Act. Thus, if you were elected, your activities should
be consistent with the provisions of the Ethics Act and should neither present
an actual conflict of interest nor the appearance of a conflict with the
public trust. In this respect, you would be bound to observe the provisions
of Section 3(a) of the Ethics Act which requires that no public offical shall
use his public office to obtain financial gain for a business with which he is
associated. If you were to serve on the Board of Directors of First Federal
Savings and Loan, this would constitute a "business with which you are
associated." As such, and as City Treasurer, if elected, you should not use
your office to the benefit of First Federal Savings and Loan Association. As
you indicate, there would be little possibility that the City's resources
would be invested in such an association, so that the possibility of use of
your public office to actually benefit First Federal would be minimal.
However, public officials must also insure that their conduct does not
"appear" to violate the public trust. See Section 1 of the Ethics Act, 65
P.S. 401. In this regard, as City Treasurer, you would be required to remove
yourself from any decisions or recommendations which would in any way affect
First Federal Savings and Loan Association, were you to reassume a position as
a member of their Board. This abstention would also extend to any situation
where you might be asked to or have authority to pre - approve, audit or
otherwise affect the contracts, deposits, etc. which First Federal and the
City may undertake.
Also, while you were serving as a director, officer, owner or holder of
stock exceeding 5% of the equity at fair market value of First Federal Savings
and Loan, any contracts which would be made between First Federal and the City
Treasurer's Office would have to comply with the requirements of Section 3(c)
of the Ethics Act. See 65 P.S. 403(c) which provides 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).
Miriam Menacker
April 28, 1983
Page 3
Conclusion: If you were to be elected as the City Treasurer in the City of
Harrisburg, your conduct should conform to the discussion presented above,
although it would not present an inherent conflict if you were to serve as
City Treasurer and a member of the Board of Directors of First Federal Savings
and Loan Association.
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.
SSC /rdp
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.
Sipcerely,
ndra S. Ch stianson
General Counsel