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Home My WebLink About83-610 WilsonMr. Carl F. Wilson 814 Rohrer Road Lancaster, PA 17603 Madmg Address STATE ETHICS COMMISSION P.O. BOX 1179 HARRISBURG, PA 17108 TELEPHONE: (717) 783 -1610 November 3, 1983 ADVICE OF COUNSEL RE: Representation; Restrictions; Section 3(e) Dear Mr. Wilson: 83 -610 This responds to your letter of September 20, 1983, in which you requested advice from the State Ethics Commission. Issue: You would like to know what restrictions the Ethics Act places upon you as a former public employee in your future contract with your former public employer, the Department of Revenue. Facts: You are the former Director of the Bureau of Field Operations (BFO) for the Department of Revenue in Harrisburg, Pennsylvania. The basic role of BFO as expressed in your job description (incorporated here by reference) is to investigate taxpayers to collect delinquent taxes and returns and to administer the Inheritance Tax program and Property Tax /Rent Rebate program. In that position, you worked under the administrative direction of the Deputy Secretary for Enforcement and you received administrative guidance from the Secretary of Revenue, the Deputy Secretary for Taxation, and the Deputy Secretary for Administration. You work was performed with considerable independence, and you were accountable for the administration of the annual budget of the BFO, which is approximately $19 million. Some of your duties in that position included: (1) directing the overall activities of the BFO, including one division and the Inheritance Tax Section; (2) administering the Taxpayer Assistance program for the State; (3) appearing publicly and in Court on behalf of the Commonwealth; (4) generally implementing Bureau policies as established by the Deputy Secretaries for Enforcement and Taxation, and determining that departmental policies are complied with; State Ethics Commission • 308 Finance Building • Harrisburg, Pennsylvania Mr. Carl F. Wilson November 3, 1983 Page 2 (5) making recommendations for proposed locations for offices to administer the Taxpayer Fees — : stance program; (6) exercising direct supervision over the Chief of the 1hvestiyation Division; (;; overseeing the personnel of BFO including some 50 central office staff and 600 field personnel; (8) er, i r =ti ng the application of policies and procedures for the collec'.ion of seven major taxes as the designee of the Deputy for Enforce,.ient. (e. preparing proposals and suggestions to improve operations for the Deputy Secretary for Enforcement. You are currently attempting to start a tax consulting business, ar;d while you are aware that you may not use confidential information, you would like fur see direction with regard to representation of clients before the Department of Revenue and other State agencies. Discussion: As Director of the Bureau of Field Operations (BFO) for the Department of Revenue, you were a "public employee" subject to the Ethics Act, 65 F.S. §401 et seq. Upon leaving Revenue, you became a "former public employee." Section 3(e) of the Act, applicable to you as a "former public employee" statee that: (e No former official or public empl c:, shall represent _ a person, with or without compensation, on any matter - before the governmental body with which he has been associated for one year after he leaves that body. 65 P.S. 403(e). Frum your job description, we conclude that the governmental bodies with which you were associated are the Bureau of Field Operations (and field offices) of the Department of Revenue and the Office of Deputy Secretary. Thus, the one year restrictions apply to your representation of persons before the Bureau of Field Operations of the Department of Revenue and its field offices and office of the Deputy Secretary for Enforcement. You would, therefore, also be precluded from representation of any clients before the Deputy Secretary for Enforcement as well as for the one -year period following your termination of employment with the Commonwealth. The Ethics Commission has determined that the "representation" prohibition of Section 3(e) extends to such things as: Mr. Carl F. Wilson November 3, 1983 Page 3 1. personal appearances before the BFO and the Office of the Deputy Secretary for Enforcement with which you were associated, including but not limited to negotiations or contracts with that body; 2. attempts to inlfuence the BFO and this Deputy Secretary; 3. participation in any manner before BFO or the Deputy Secretary in any case over which you had supervision, direct involvement, or responsibility while employed by the BFO; 4. lobbying, tht is representing the interests of any person before the BFO or Deputy Secretary in relation to legislation, regulations, etc. See Russell, 80 -048; Seltzer 80 -044. The mere act of preparing and signing a proposal or appeal, or having you name appear as an employee who will serve in regard to the proposal or appeal constitutes an atempt to influence your former governmental bodies should such a proposal or appeal be presented to the BFO or the Deputy Secretary for Enforcement. Kilareski, 80 -054. This is because the inclusion of your name on the proposal has at least tht potential to influence the decisions of the Bureau or this Deputy Secretary, and is, therefore, prohibited within the one year period after you leave the Department of Revenue. You should also be aware that the Act also requires you to refrain from "representation" where you know, or have reason to believe, that work which you have signed will be forwarded, or could possibly be forwarded, to the BFO or Deputy Secretary for Enforcement for approval. While these restrictions apply to you for one -year following your termination of service with the Commonwealth relative to the Bureau of Field Operations and the Deputy Secretary for Enforcement, you may, nevertheless, engage in the following activities even within the one -year period. 1. administer, rather than negotiate or re- negotiate, any contract that exists or is to be awarded to you or your future employer so long as the contract is entered into without the inclusion of your name as noted above; 2. make general informational inquiries of the Bureau or Office of the Deputy Secretary for Enforcement as long as no attempt is made to influence the Bureau or Deputy Secretary as prohibited above; 3. utilize the knowledge and expertise gained during your tenure as a public employee as long as you do not use any confidential information gained during that time; and 4. appear and represent any person on behalf of any client or new employer before any governmental body, including within the Department of Revenue, except before the Bureau of Field Operations and the Office of the Deputy Secretary for Enforcement. Mr. Carl F. Wilson November 3, 1983 Page 4 You should be aware, as discussed above, that whether or not you are personnaly precluded from representing a clientel before the Bureau and the Deputy Secretary for Enforcement, that restriction is personal to you and does not extend to the members of your consulting service. Morris, 80 -034. Your firm -and your clients may, therefore, receive the benefit of your expertise even though ;°ou personally may not represent your firm or clients before the Bureau or Office of this Deputy Secretary. f Conclesign: Upon your termination of service with the Commonwealth, you became a former public employee subject to 3(e) of the Ethics Act. As such, your conduct must be guided by this Advice, and you should take note of both the prohibited and allowable activities as noted above. Specifically, you are precluded fe on representing clients for the one -year period in Section 3(e) before the Bureau of Field Operations and the Office of the Deputy Secretary for Enforcement. Additionally, as a former public employee, you must file a Financial Yntereet Statement for each year in which you held yot r position anrr for the year following your termination of service. Thus, a Statement of Financial interest should be filed no later than May 1, 1984, which represente the filing required for the year following your termation of service, because that termination occurred during calendar year 1983. Pursuant to Section 7(9)(ii), this Advice is a complete defense in any enforcement proceeding initiated by the Commissions and evidence of good faith conduct in any other civil or criminaT 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 appal 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 Sincerely, Sandra C. Christianson General Counsel