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HomeMy WebLinkAbout86-531 HessStephen D. Hess, Esquire P.O. Rox 37 30 South Main Street Hughesville, PA 17737 STATE ETHICS COMMISSION 308 FINANCE BUILDING P.O. BOX 11470 HARRISBURG, PA 17108 -1470 TELEPHONE 1717) 783 -1610 April 3, 1986 ADVICE OF COUNSEL 86 -531 Re: Simultaneous Service, Township Tax Collector; Township Secretary Treasurer Dear Mr. Hess: This responds to your letter of February 14, 1986, wherein you requested the advice of the State Ethics Commission. Issue: Whether the township tax collector may simultaneously serve in the office of secretary /treasurer in a township of the second class. Facts: You advise that you serve as the solicitor for six second class townships in upstate Pennsylvania. During the course of your service in this position, the question has been asked as to whether the same individual may simultaneously serve as the township tax collector and township secretary /treasurer. You have requested the advice of the State Ethics Commission in relation to this issue. Discussion: Generally the State Ethics Act was promulgated in order to ensure the public that the financial interests of their public officials and employees do not conflict with the public trust. 65 P.S. 5401. As a result, the Act provides as follows: Section 3. Restricted activities. (a) No public official or public employee shall use his public office or any confidential information received through his holding public office to obtain financial gain other than compensation provided by law for himself, a member of his immediate family, or a business with which he is associated. 65 P.S. 403(a). Stephen D. Hess, Esquire April 3, 1986 Page 2 In addition to the foregoing, the Act provides that this Commission may address other areas of possible conflict. 65 P.S. §403(d). Such a conflict would arise if the public official or public employee attempted to serve interests that are adverse. See Alfano, 80 -007; Fritzinger, 80 -008. Within this provision of law, this Commission has on previous occasions determined that individuals who serve in positions that are inherently incompatible would be in violation of this provision of the State Ethics Act. See Nelson, 85 -008; Norris, 80 -053. In the instant situation, it is clear that a township tax collector would be a public official within the purview of the State Ethics Act. 65 P.S. §402. As such, his conduct must conform to the requirements of the Act as set forth above. Generally, in order to review the situation which you have presented, we must consult the various statutory authority indicating the functions and duties performed in the positions which the individual in question will attempt to serve. Initially we note that our advice herein does not address the situation where this individual also serves as a township supervisor. That specific situation is clearly addressed by the Second Class Township Code which provides that a township supervisor may not serve in any other position except for roadmaster, laborer, or secretary /treasurer. See 53 P.S. §65410(b). A township tax collector is to be elected by the electors of the township and is to serve for a term of four years. 53 P.S. §65414. The duties of one who serves as a tax collector are set forth in the Second Class Township Code which provides that: The tax collector of townships shall collect all county, township, school, institution district and other taxes levied within townships by authorities empowered to levy taxes. He shall, in addition to the powers, duties and responsibilities enumerated in this act, have all the powers, perform all the duties, be subject to all the obligations and responsibilities for the collection of such taxes, as are now vested in, conferred upon, or imposed upon tax collectors by law. 53 P.S. §65570 In addition to the foregoing, the duties of the township treasurer are also clearly set forth in the Second Class Township Code as follows: The township treasurer shall receive all moneys due the township and deposit the same promptly upon receipt thereof in a bank, banking institution, or trust company in the name of the township. He shall keep distinct and accurate accounts of all sums received from taxes and other sources, which account shall be open to the inspection of the supervisors and taxpayers of the township. He shall pay out all moneys received by him Stephen D. Hess, Esquire April 3, 1986 Page 3 only on orders drawn by the supervisors of the township. He shall annually state his accounts, and lay the same, together with the vouchers, before the township auditors for settlement. 53 P.S. §65532 In addition to the foregoing, the Township Code provides for the appointment of a township secretary who is to perform as follows: The secretary in each township shall be clerk to the board of supervisors. He shall keep a record of the proceedings of said officers i n a minute book i n which he shall also record all court orders relative to the laying out, opening and vacating of roads. The minute book, account book and other financial records shall be carefully preserved by the secretary and shall be turned over to his successor in office. Miscellaneous records and papers of the township other than the minute book and account book may be destroyed with the consent of the supervisors after the lapse of six years from the date of such records. The secretary shall prepare and write the annual tax duplicate of the township, and shall receive such salary, wages or other compensation therefor as shall be fixed by the township supervisors. The amount paid to the secretary and treasurer as salary, wages or other compensation for services shall be determined by the board of supervisors, except that where a supervisor is serving as secretary and /or treasurer the auditors shall fix the compensation. 53 P.S. §65540. In reviewing the current situation, we will initially note that the State Ethics Act does not provide that a public official or employee may not simultaneously serve in two positions of public employment. Generally, such prohibitions are addressed by the specific municipal codes establishing such positions. The Ethics Act, however, would prevent a public official or employee from serving interests that are adverse as noted previously. In an effort to make this determination, we must review the specific powers and duties of each of the positions involved in the instant matter in order to determine if there are any inherent incompatibilities in such simultaneous service or if there are any other prohibitions associated with such service. Initially, we will address the position of whether an individual who serves as township secretary may simultaneously serve in the position as tax collector. A review of the specific duties and functions involved in each of these positions does not appear to indicate that there is any inherent incompatibilities. Specifically, the township tax collector is a collector of Stephen D. Hess, Esquire April 3, 1986 Page 4 all taxes and is responsible to the township for the collection of said taxes. The secretary in the township is, in effect, the clerk to the board of supervisors and merely keeps records of proceedings of said officers. The secretary also keeps the books and records of a financial nature for the supervisors. There does not appear to be any cross jurisdiction between one who serves as a supervisor's secretary and one who serves as a tax collector. Some restrictions may be applicable to the individual who serves in these positions simultaneously and will be noted below. A more complex issue is raised by the simultaneous service of the same individual in the position as tax collector and township treasurer. The tax collector and treasurer both have duties which relate to the receipt and disbursement of moneys to the township. Indeed, there is some case law already in existence that indicates that the same individual can not serve in these positions simultaneously. See Commonwealth of Pennsylvania ex. rel. District Attorney v. Graham, 50 C C. 402 (1921). See also In re: Application to Declare Vacant Office of Tax Collector, 23, Luzerne Reporter 477, 1924, (one person may not act in a dual capacity as counsel for township tax collector and township treasurer receiving taxes as attorney for the one and retaining the funds as attorney for the other). Indeed, existing case laws specifically indicate that the township tax collectors are accountable to the township treasurer and not to the board of supervisors. See Lackawanna Township v. Blackwell, 3 C.P. Rep. 197, 4 Lan. 330, (1887). In any event, even if said positions were not incompatible inherently, the State Ethics Act requires that as township treasurer the individual serving in that position should, refrain from undertaking any action in relation to the work performed by him in his position as township tax collector. See Nallo, 79 -041, Wheeler /Williams, 85 -518. In addition, as township treasurer this individual would not be able to take any action that specifically related to the township tax collector's office if that individual were also serving as a township tax collector. This would be so in light of the fact that as township treasurer this person is responsible for assuring that all of the township funds due from the tax collector are appropriately disbursed to the township. This individual, in this respect, would be monitoring and reviewing his own work as township tax collector. Thus, even in the event that said individual could simultaneously serve in both positions, the Ethics Act would require that as township treasurer this individual abstain from participating in any matter that involves the office of tax collector. Similarly, as tax collector, this public official must avoid participating in any matter that's specifically related to the township treasurer's office. Depending upon the nature and scope of the duties performed in each position, this restriction may operate in effect to prevent the same individual from serving in both capacities. These restrictions, however, would seem to be in accord with the intent and purpose of the Ethics Act as well as existing case law. Stephen D. Hess, Esquire April 3, 1986 Page 5 The final question to be addressed is whether the same individual may serve as tax collector and secretary /treasurer. The position of secretary /treasurer seems to be a unique position which may indeed be held by one person. See 53 P.S. §65511. The nature and scope of the duties served by this unique office will, of course, determine whether there is any inherent incompatibility in simultaneously serving in this position. In keeping with the prior restrictions set forth in this advice, it is advised that the individual who is simultaneouly serving in the position of secretary /treasurer and tax collector must abstain from being involved in any matter that relates to their other office. In this respect, said individual will avoid any conflict of interest in such simultaneous service. Thus, as secretary /treasurer, this individual may not participate or take any action in relation to reviewing, negotiating, reporting, or other matters involving the office of township tax collector. Similarly, while the township tax collector may have limited dealings with the secretary /treasurer, this individual, in their position as township tax collector should avoid any matter that involves the office of township secretary /treasurer. In light of the above abstention restrictions, the board of supervisors or the solicitor should review the specific duties and responsibilities of both offices in which this individual will attempt to serve. Those areas where this person must perform duties in one office that relate to the other office should be delineated in writing and this person must abstain from acting in such matters. Setting forth these areas, in this manner, will assist the official in effectively complying with the provisions of the Ethics Act. Additionally, the fact that said official has not participated in matters as outlined above should be appropriately recorded. Conclusion: The Ethics Act presents no per se prohibition upon a public employee serving in simultaneous public positions. The Act does not prohibit a township secretary from serving as a township tax collector. While we do not rule that the township tax collector and treasurer positions are inherently incompatible in this advice, we do advise that existing case law would riot already address this issue. Under the Ethics Act, any individual who simultaneously serves in a position of township treasurer must abstain from participating in any matter that involves the office of township tax collector. Similarly, as township tax collector, this individual would have to abstain from any matter involving the office of township treasurer. The same restrictions would apply to any individual who simultaneously serves as township secretary /treasurer and township tax collector. 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 crimi nal proceedi ng, providi ng the requestor has disclosed truthfully all the material facts and committed the acts complained of in reliance on the Advice given. Stephen D. Hess, Esquire April 3, 1986 Page 6 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. This letter is a public record and will be made available as such. erely, John J. •nt o Gene Counsel