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HomeMy WebLinkAbout87-562 CarrSTATE ETHICS COMMISSION 308 FINANCE BUILDING P.O. BOX 11470 HARRISBURG, PA 17108 -1470 TELEPHONE (717) 783 -1610 May 14, 1987 ADVICE OF COUNSEL Mr. Edward F. Carr 1444 Sunny Avenue New Castle, PA 16101 Re: Township Supervisor, Insurance Coverage, Secretary /Treasurer Dear Mr. Carr: 87 -562 This responds to your letter of May 4, 1987, wherein you requested the advice of the State Ethics Commission. Issue: Whether the Ethics Act would prohibit a township supervisor in a second class township from receiving certain health and life insurance benefits. Facts: You currently serve as a township supervisor in Union Township, Pennsylvania. You advise that upon the taking of office in 1986 you were appointed as the township secretary /treasurer. In this respect you were eligible to receive and did in fact receive hospitalization life and eye care coverage at the expense of the township. In July, 1986 you resigned from this position and advise that certain benefits were terminated for you. You further advise that at the current time you receive compensation for regular or special meetings as set forth in the township code. You have requested the advice of the Commission as to whether you may receive any benefits in your current position. . Discussion: As a township supervisor and a supervisor in the second class you are clearly a public official as that term is defined in the State Ethics Act. 65 P.S. §402. As such, your conduct must conform to the requirements thereof. Sowers, 80 -050. Generally, 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). Mr, Edward F. Carr May 14, 1987 Page 2 This Commission has on a number of occassions, previously reviewed questions regarding a township supervisor's receipt of various types of benefits including pension, health, medical and life insurance. 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 second class township code, may not receive any 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. Ct. 529, 466 A.2d 283, (1983); in Re: Auditors Report of Muncy Creek Township, Pa. Commw. Ct. . 520. A.2d 1241, (1987). The Commission in these matters has determined that receipt of such benefits by township supervisors 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 the 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 State 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 portioned 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. Mr. Edward F. Carr May 14, 1987 Page 3 In the instant situation, upon the termination of your position as the township secretary /treasurer you became once again a township supervisor who was not otherwise employed by the township. In this respect, while you would have been eligible to receive benefits, if approved by the auditors, in the position of secretary /treasurer, upon resigning that position you no longer would have been able to receive such benefits. See, Conrad v. Exitor Township 27 D & C 3d 253, (1983). This would be so in light of the fact that you no longer were an employee of the township as opposed to being an official of the township. Conclusion: As a township supervisor, you are a public official as that term is defined in the State Ethics Act. As such, your conduct must conform to the requirements of the State Ethics Act as outlined above. A township supervisor who is not otherwise employed by the township may not receive pension, health, life or hospitalization benefits. 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. Since ohn J..C'ontino Acti.n(General Counsel