Loading...
HomeMy WebLinkAbout87-501 RinehartMs. Cheryl L. Rinehart Secretary Township of Findlay Drawer W Clinton, PA 15026 STATE ETHICS COMMISSION 308 FINANCE BUILDING P.O. BOX 11470 HARRISBURG, PA 17108-1470 TELEPHONE (717) 783 -1610 January 6, 1987 ADVICE OF COUNSEL Re: Insurance Coverage,_ Township Supervisor /Roadmaster Dear Ms. Rinehart: 87 =501 This responds to your letter of December 10, 1986, wherein you requested the advice of the State Ethics Commission. Issue: Whether the board of supervisors, in a township of the second class, may authorize the expenditure of township funds to purchase life insurance for a full -time township supervisor /roadmaster. Facts: As Township Secretary for Findlay Township, you advised that the board of supervisors has decided to provide township employees with an $8,000.00 life insurance policy. One of the members of the board of supervisors is a full -time roadmaster. You have requested the advice of the State Ethics Commission regarding whether this individual may participate in this program. Discussion: Township supervisors are clearly public officials within the purview of the State Ethics Act and, therefore, subject to the requirements of the Act. 65 P.S. §401 et. seq.; Sowers, 80 -050. Generally, the State Ethics 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 nis immediate family, or a business with which he is associated. 65 P.S. 403(a). Ms. Cheryl L. Rinehart January 6, 1987 Page 2 This Commission has, on a number of occasions, previously reviewed questions regarding a township supervisor's receipt of pension, health, medical, and life insurance benefits. Generally, the Commission has ruled that within the purview of the State Ethics Act, township supervisors who are not otherwise employed by the township, as authorized in the Township Code, may not receive these types of benefits as such would be in violation of Section 3(a) of the State Ethics Act. See, McCutcheon v. State Ethics Commission, 77 Pa. Commw. 529, 466 A.2d 283, (1983). Krane, 84 -001; Cowie, 84 -010; Nanovic, 85 -005. The Commission, in these matters, has determined that receipt of such benefits by a township supervisor not otherwise employed by the township, would be the receipt of a financial gain other than the compensation provided for by law. The Commission has also determined that the receipt of these benefits by supervisors who are employed by the township, on a full -time basis, would be appropriate under the State Ethics Act as long as such benefits were properly fixed as compensation by the township board of auditors. Additionally, the Commission has also determined that township supervisors who are employed by the township on a part -time basis within one of the positions authorized in the Township Code, may also receive certain insurance benefits under the purview of the Ethics Act. See, Nanovic, 85 -005. In that opinion, the Commission determined that a supervisor may, within the purview of the State Ethics Act, receive insurance coverage to the extent approved by the auditors. Such coverage, however, should bear a reasonable relationship to the functions performed. Factors to be considered, in this respect, may include; the extent of the coverage offered to other employees performing similar functions; the percentage of time actually worked by said supervisor in relation to other employees; the type and extent of coverage accorded to others under similar circumstances in the locality; the extent of any co -pay requirement to be imposed upon the supervisor; and the limitation of coverage if apportioned in relation to the percentage of time actually worked. In that particular case, the Commission determined that the township supervisor would not be eligible to receive any coverage whatsoever under the State Ethics Act in light of the fact that the supervisor worked only 40 hours per year. Conclusion: In the instant situation, if the township supervisor is employed full -time as a roadmaster and actually performs duties and responsibilities in that position, then he is eligible for such benefits. These benefits, - however, must be fixed as part of this supervisor's compensation by the township board of auditors prior to receipt. 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. Ms. Cheryl L. Rinehart January 6, 1987 Page 3 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. Sincerely, o n J on no Gene Counsel