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HomeMy WebLinkAbout87-546 PyneSTATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PA 17120 TELEPHONE: (717) 783 -1610 April 15, 1987 ADVICE OF COUNSEL Mrs. Lorie L. Pyne P.O. Box 318 Hereford, PA 18056 Re: Township Secretary /Treasurer, Real Estate Sales Associate, Conflict of Interest 87 -546 Dear Mrs. Pyne: This responds to your letter of April 1, 1987, wherein you requested the advice of the State Ethics Commission. Issue: Whether a township secretary /treasurer may be privately employed as a real estate sales associate. Facts: You indicate that you are currently serving as the secretary /treasurer of the Hereford Township, Berks County, Pennsylvania, Board of Township Supervisors. This position is an appointed position which is filled by the township board of supervisors annually. You are not a member of the township board of supervisors. As secretary /treasurer, you perform various duties relating to the administration and organization of the township board of supervisors. You further advise that you have been considering entering into the real estate profession as a second career. You are concerned that your activity in this respect may occasion a conflict of interest, and as such, you have requested the advice of the State Ethics Commission regarding what, if any, prohibitions are applicable under the State Ethics Act. Discussion: As a secretary /treasurer in a township of the Second Class, you are a public employee as that term is defined in the State Ethics Act. 65 P.S. §402. As such, your conduct must conform to the requirements of that law. Yocabet, 412 -R. Generally, the State Ethics Act presents no per se prohibitions upon a public employee being engaged in supplemental employment outside of their public position. The Ethics Act, however, does provide as follows: Mrs. Lorie L. Pyne April 15, 1987 Page 2 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). Within the above provision of law, public employees may not use their position in order to obtain any financial gain for themselves or for a business with which they are associated. In this respect, the Commission has previously advised, for example, that a township supervisor who acts as a real estate broker in the same township, may not use his public position or any confidential information that may have been obtained through his public position, in order to obtain listings for his private business. Dennis, 81 -520; Rudnitsky, 81 -525. In addition to this specific requirement, it is also clear that you may not participate, as a public employee, in any matter that canes before the township that involves particular property for which you have acted as the real estate agent or broker. This would also require that you may not participate or take any action in a matter that involves a client for whom you have provided similar professional services. This would be applicable not only to those particular clients and to that particular property for which you have already acted as real estate broker, but would also include any property or individuals with whom you will forseeably be involved in the future. See Hattln, 86 -584. It is specifically noted, that while you are not a township supervisor, you may at some time have access to confidential information that could assist you in relation to real estate activities. As such, you must take precautions to ensure that your conduct does not transgress the provisions of the State Ethics Act. Additionally, in the event that the township board of supervisiors are acting upon a matter that involves one of the individuals with whom you have had a private business relationship, or in the event that the township is participating in certain action relating to property with which you have been involved, you must inform the township board of supervisors during the public meeting wherein such action is taken as to your specific interest in relation to that matter, and such should be recorded in township minutes. Finally, the State Ethics Act provides as follows: Mrs. Lorie L. Pyne April 15, 1987 Page 3 Section 3. Restricted activities. (b) No person shall offer or give to a public official or public employee or candidate for public office or a member of his immediate family or a business with which he is associated, and no public official or public employee or candidate for public office shall solicit or accept, anything of value, including a gift, loan, political contribution, reward, or promise of future employment based on any understanding that the vote, official action, or judgment of the public official or public employee or candidate for public office would be influenced thereby. 65 P.S. 403(b). Reference is made to the foregoing provision of law, not to imply that there has or will be any implication thereof, but merely to provide a complete response to the question that you have posed. Conclusion: The State Ethics presents no per se prohibition upon a township secretary /treasurer being engaged in the private real estate business. As a public employee, you must ensure that your conduct conforms to the requirements of the State Ethics Act. As such, you may not participate in any matter or action that relates to your private real estate clients or property with which you have been involved in that capacity. Your abstention in such matters should be publicly noted and recorded. 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. Si pce fly, Conti no Ac ng General Counsel