HomeMy WebLinkAbout86-549 BodackHonorable Leonard J. Rodack
State Senator
4922 Hatfield Street
Pittshurgh, PA 15201
RE: State Senator, Stockbroker
Hear Senator Rodack:
STATE ETHICS COMMISSION
308 FINANCE BUILDING
P.O. BOX 11470
HARRISBURG, PA 17108 -1470
TELEPHONE (717) 783 -1610
May 6, 1986
ADVICE OF COUNSEL
86 -549
This responds to your letter of March 25, 1986, wherein you requested tl,o
advice of the State Ethics Commission.
Issue: Whether the State Ethics Act places any prohibition upon your private
employment as a stockhroker when you also serve as a Pennsylvania State
Senator.
Facts: You advised that you have recently became a stockhroker and a member
of the New Ynrk Stock Exchange. You have requested the advice of the State
Ethics Commission as to whether your activity in relation to this employment
presents any conflict of interest with the State Ethics Act. You have
specifically requested to know whether any conflict of interest would he
occasioned through your participating in the issuance or brokerage of
securities relating to Pennsylvania and Municipal bonds.
Discussion: As a Pennsylvania State Senator you are a puhlic official subject
to the purview of the State Ethics Act. Hager, 79 -008. Generally, the State
Ethics Act provides as follows:
Section 3. Restricted activities.
(a) No puhlic official or puhlic employee shall use his
puhlic office or any confidential information received
through his holding puhlic office to ohtain financial gain
other than compensation provided by law for himself, a
memher of his immediate family, or a business with which
he is associated. 65 P.S. 403(a).
Honorable Leonard J. Bodack
May 6, 1986
Page 2
Within the above provision of law no public official may use his public
position in order to obtain any financial gain for himself or for a business
with which he is associated. A public official may not use confidential
information obtained through his public position for similar purposes. While
the Ethics Act would place no absolute or per se prohibition upon your private
activity as a stockbroker, the above provision of law may in certain
circumstances place restrictions upon your activity in relation to the sale or
brokerage of certain public bonds. For example, you may not in your public
position use confidential information in order to obtain business for your
stockbrokerage activities. Additionally, you should not take any action as a
State Senator that would result in the issuance of bonds by a governmental
entity if there is a reasonable expectation that you will then be the broker
handling the issuance of such bonds. See Widmer, 83 -580. Thus, if you as a
State Senator are called upon to take some action either through the
introduction of legislation or the passage of legislation that would in some
way establish an organization with the authority to issue public bonds or
which generally authorizes the issuance of such bonds, then you should not
participate in that action as a public official if there is a reasonable
expectation that you will then be employed as the private stockbroker handling
the issuance of said bonds.
The above restrictions would be applicable not only under §403(a) of the
State Ethics Act, but under §403(d) of the Act which allows the State Ethics
Commission to address other areas of possible conflict. Such conflicts are
determined when a public official or employee is called upon to serve one or
more interests that are adverse. Alfano, 80 -007. Thus, in a particular
situation if as a public official you were called upon to participate in a
;natter that involves some aspect of your private stockbrokerage activities,
you should abstain from participating in such activities. Your abstention in
such matters should be public noted and appropriately recorded. Other than as
stated above, the State Ethics Act would thereafter place no prohibitions upon
your employment as private stockbroker while you simultaneously serve as State
Senator,
Conclusion: The State Ethics Act places no per se prohibition upon the
simultaneous service by a State Senator as a private stockbroker. The Ethics
Act would require your abstention in any matter that comes before the
Pennsylvania State Senate that involves a matter in which you have a personal
interest or in a matter wherein it is reasonably expected that you could
become privately employed. Your abstention in such matters should be publicly
noted and appropriately recorded.
Honorable Leonard J. Bodack
May 6, 1986
Page 3
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.
rely,
John yL?`Conti no
Ce ral Counsel