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HomeMy WebLinkAbout87-538 WilsonThe Honorable Benjamin H. Wilson Member, House of Representatives 300 West Street Road Warminster, PA 18974 STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PA 17120 TELEPHONE: (717) 783 -1610 April 3, 1987 ADVICE OF COUNSEL 87 -538 Re: Legislator, Business Transaction With Another Member of the General Assembly Dear Representative Wilson: This responds to your letter of March 18, 1987, wherein you requested the advice of the State Ethics Commission. Issue: Whether the State Ethics Act presents any prohibitions upon a member of the General Assembly contracting with another member of the General Assembly in relation to a private transaction. Facts: You currently serve as an elected member of the Pennsylvania House of Representatives. You have requested the advice of the State Ethics Commission in relation to the issue of whether there would be any prohibited conflict of interest when one member of the General Assembly, as an officer or owner or holder of stock exceeding 5% of the market value of a business, enters into a contract with another member of the General Assembly. As an example, you indicate that one member of the General Assembly may seek to sell another member of the General Assembly real estate for their own private personal use. You advise that such a transaction would not be between the member and a governmental agency, but rather on an individual basis. Discussion: As an elected member of the General Assembly, you are a public official and therefore subject to the requirements of the State Ethics Act. 65 P.S. §402; Cessar, 82 -002. The 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 his immediate family, or a business with which he is associated. 65 P.S. 403(a). The Honorable Benjamin H. Wilson April 3, 1987 Page 2 The above provision of law, would be applicable in situations where a public official attempts to use his public position or confidential information obtained therein, in order to obtain a financial gain for himself or a member of his immediate family. In the instant situation, your request indicates that the business transactions between the two members of the General Assembly would be on a private basis. The member of General Assembly would not be contracting with any governmental entity and no public funds would be involved in the situation. Neither public official would be called upon to perform any official action in relation to their business transactions. In light of the foregoing, it does not appear that the Ethics Act would be implicated to any extent. This Commission in the past has indicated that members of the General Assembly would be permitted, within the purview of the Ethics Act, to enter into computer purchase contracts with other members of the General Assembly without implicating the provisions of the State Ethics Act. Taddonio, 79 -069. Similarly, prior Commission advices also indicate, that a member of the General Assembly may enter into a private business association with a member of the Representative's or Senator's staff. See Mellow, 84 -525. In light of the fact that no official functions are involved, that no confidential information obtained in the public official's position is at question and that no public funds or other official responsibilities, duties or actions are involved, the Ethics Act would present no prohibition upon such private business transactions. Of course, this Commission is authorized to address other areas of possible conflicts of interests. 65 P.S. §403(d). In the event that you believe, any other factors would create such a question as to a conflict of interest you are welcome to seek the further advice of this Commission. Conclusion: The State Ethics Act presents no prohibition upon a member of the General Assembly transacting private business with another member of the General Assembly that involves no public duties, responsibilities, activities, or funds. 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. The Honorable Benjamin H. Wilson April 3, 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. Si ricer John . Contino Act ng General Counsel