HomeMy WebLinkAbout87-657 MuoloRobert J. Muolo, Esquire
P. O. Box 791
240 -244 Market Street
Sunbury, PA 17801
Dear Mr. Muolo:
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PA 1712C
TELEPHONE: (717) 783 -16i3
December 30, 1987
ADVICE OF COUNSEL
87 -657
Re: Conflict of Interest, Borough Councilperson, Borough Health Board Member
This responds to your letter of December 14, 1987, wherein you requested
advice from the State Ethics Commission.
Issue: Whether a member of a borough council may, consistent with the State
Ethics Act, serve and receive compensation as a member of the Borough Health
Board.
Facts: You state that you are the solicitor for the Borough of Kulpmont,
which is a municipality of approximately 3,800 residents located in
Northumberland County, Pennsylvania. You state that the borough is in the
process of appointing a new member to the Borough Health Board, a five member
board created pursuant to the Borough Code, wherein a vacancy has occurred as
a result of the election of said board member to the borough council.
Although you state that the individual initially contemplated resigning from
the Board of Health, you state that you could find no prohibition against this
individual serving simultaneously as councilperson and member of the Board of
Health. You also note that the position of Board Health member is an
appointed not an elected one in the borough. You further state that you have
been unable to determine whether a councilperson who is appointed to the Board
of Health may receive compensation as a Health Board member. In this regard,
you note that the limitation on the salary of borough councilpersons relates
solely to their performance of duties as a councilperson. You then question
whether a councilperson who would serve on the Board of Health may also
receive additional compensation for the performance of duties in the latter
position. Lastly, you note that the borough council, as a whole, makes
appointments to the Board of Health and in light of the possible appearance of
impropriety which might arise as a result of this appointment, you request
advice from the State Ethics Commission concerning both the matter of the
appointment and the compensation.
Robert J. Muolo, Esquire
December 30, 1987
Page 2
Discussion: As a member of the Borough Council of Kulpmont, the councilperson
is a "public official" as that term is defined in the State Ethics Act. See
Rider Order, 490 -R; 65 P.S. §402; 51 Pa. Code §101. As such, the
councilperson is subject to the State Ethics Act and the restrictions therein
are applicable to him.
Section 3(a) of the Ethics Act provides:
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).
Section 3(a) of the Ethics Act basically provides that a public official
may not use his public office to obtain a financial gain other than
compensation provided for by law for himself or a member of his immediate
family.
Under the above provision, the Ethics Commission has determined that the
use of office by a public official to obtain a gain or benefit for himself
which is not provided for in law constitutes a "financial gain other than
compensation provided by law." See McCutcheon v. State Ethics Commission, 77
Pa. Commw. 529 (1983). See also Yocabet v. State Ethics Commission, Pa.
Commw. , 531 A.2d 536 (1987).
Although the State Ethics Commission may only address questions regarding
the duties and responsibilities of public officials within the purview of the
State Ethics Act, this Commission does not specifically have the statutory
jurisdiction to interpret provisions of the Borough Code. However, if some
other provision of law somehow impacts upon the provisions of the State Ethics
Act or the Ethics Act accords jurisdiction in relation to other provisions of
law, then this Commission may be required to interpret such provisions of law.
See Bigler, 85 -020.
Additionally, the Ethics Act allows the Commission to address other areas
of possible conflict. 65 P.S. §403(d). This Commission has,determined that
within the above provision of law, a public official may not accept any
compensation to which he knows or otherwise should know he or she is not
entitled. Huff, 84 -015; Domalakes, 85 -010. The Commission's determination
was founded on the intent of the Act which is primarily concerned with
Robert J. Muolo, Esquire
December 30, 1987
Page 3
insuring that the financial interests a public official are not in conflict
with the public trust. 65 P.S. §401. Within this provision of law, the
%ommission has determined that when a public official accepts compensation to
which he or she by law is not entitled, the financial interests of said
official are in conflict with the public trust.
Applying the above principles to the instant situation, it is necessary
to review the relevant provisions of the Borough Code.
The Borough Code provides, in part, as follows:
"Councilmen may receive compensation to be fixed by
ordinance at any time and from time to time as follows:
In boroughs with a population of less than five thousand,
a maximum of fifteen hundred dollars ($1500) a year..."
53 P.S. §46001
It is further provided in the Borough Code:
"Unless there is incompatibility in fact, any
elective or appointive officer of the borough shall be
eligible to serve on any board, commission, bureau or
other agency created by or for the borough, or any borough
office created or authorized by statute and may accept
appointments thereunder, but no mayor or councilman shall
receive compensation therefor. Where there is no
incompatibility in fact, and subject to the foregoing
provisions as to compensation, appointees of council may
hold two or more appointive borough offices, but no mayor
or member of council may serve as borough manager or as
secretary or treasurer. No person holding the office of
justice of the peace may at the same time hold the office
of borough treasurer. The offices of secretary and
treasurer may be held by the same person when so
authorized by ordinance. Nothing herein contained shall
affect the eligibility of any borough official to hold
any other public office or receive compensation therefor.
All appointments to be made by the council or the
corporate authorities shall be made by a majority of the
members of council attending the meeting at which the
appointment is made, unless a different vote is required
by statute. 53 P.S. §46104.
Robert J. Muolo, Esquire
December 30, 1987
Page 4
Under the above provisions of the Borough Code and in particular, Section
1104, it is clear that a councilperson, although he may be appointed to serve
on a board, may not receive compensation for such service. As previously
noted, this Commission has determined that the receipt of any gain or benefit
by a public official which is not authorized in law constitutes a "financial
gain other than compensation provided by law" in violation of Section 3(a) of
the Ethics Act. See McCutcheon, supra; Yocabet, supra.
Having established that a borough councilperson may not receive
compensation for simultaneous service as a member of a Borough Health Board,
consideration now must be given as to whether that councilperson may
simultaneously serve as a member of the Borough Health Board in a
non - compensated status. Since the Ethics Act contains no per se prohibition
against simultaneous service and since the Borough Code does allow for such
service in certain enumerated instances, the councilperson, accordingly, could
serve as a member of the Borough Health Board, provided he receive no
compensation thereof, consistent with the provisions of the Ethics Act.
Section 3(d) of the Ethics Act provides:
Section 3. Restricted activities.
(d) Other areas of possible conflict shall be addressed by
the commission pursuant to paragraph (9) of section 7.
65 P.S. 403(d).
The parameters of the activities encompassed by the above provision of
the law generally are determined through the review and intent and purpose of
the Ethics Act. The Ethics Act was promulgated in order to insure the public .
that the financial interest of their officials do not conflict with the public
trust. In this respect, if a member of the borough council seeks appointment
to the Borough Health Board, he may not participate or vote regarding his
appointment to the Borough Health Board. His abstention should be publicly
noted as well as the reason for such abstention.
Lastly, the questions which you have posed have only been addressed under
the State Ethics Act.
Conclusion: A member of the Borough Council of Kulpmont is a public official
subject to the provisions of the Ethics Act. Under Section 3(a) of the Ethics
Act, a borough official may simultaneously serve as a member`of the Borough
Health Board but may not consistent with Section 3(a) of the Ethics Act
receive any compensation for serving on that board. Under Section 3(d) of the
Ethics Act, the member of the borough council may not participate or Note
regarding his appointment to the position of Borough Health Board; in this
regard he must note publicly his abstention and the reason for such
abstention. Lastly, the propriety of the proposed conduct has only been
addressed under the provisions of the State Ethics Act.
Robert J. Muolo, Esquire
December 30, 1987
Page 5
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 wi 1 1 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,
a
Vincent J. Dopko
General Counsel