HomeMy WebLinkAbout88-553 SmallwoodMr, William Lee Smallwood
1301 Wogan Road
Yor!, PA 17404 -1715
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PA 17120
TELEPHONE: (717) 783 -1610
April 19, 1988
ADVICE OF COUNSEL
88 - 553
Re: Simsitaneous Service, Borough Councilmember and Executive Director of a
Human Service Agency
Dear M -. Smallwood:
This responds to your letter of March 7, 1988, in which you requested
advice f. An the State Ethics Commission.
Issue: Whether the State Ethics Act imposes any prohibition or restriction
upon a councilmember from also serving or being employed as a Executive
Director of a non - profit human service agency.
Facts: In your advice request you state that you are currently serving as a
member of council in the City of York, Pennsylvania, and that there is a
possibility that you may be employed as the Executive Director of a local
non - profit 501(c) human service agency. You ask advice as to whether such
simultaneous service would be prohibited under the State Ethics Act.
Discussion: As a councilmember for the City of York, you are a "public
official" as that term is defined in the Ethics Act. See Rider, Order 490 -R;
65 P.':,, §402; 51 Pa. Code §1.1. As such, your conduct is subject to the
provilons of the Ethics Act and the restrictions therein are applicable to
you.
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).
M.. William Lee Smallwo_d
April 19, 1988
Page 2
Scci:ion 3(a) basically provides that a public official may not use his
public office or confidential information to obtain a financial gain other
than compensation es provided for by law for himself or a member of his
i-nediate family or a business with which he is associated. Under this
prevision, the Ethics Commission has determined that the use of office by a
oublic official to obtain a gain or benefit for himself or a member of his
meeiate family or a business with which he is associated which is not
provided for in law constitutes a "financial gain other than compensation
provided for by law." These determinations have been appealed to the
Commonwealth Court of Pennsylvania which has affirmed the Orders of the
Commission. See McCutcheon v. State Ethics Commission, 77 Pa. - Commw. 529
(1933). Se. also Yocabet v. State Ethics Commission, Pa. Commw. , 531
A.2d 536 (1987). Thus, under this provision, a public official may not use
his public position to secure any financial gain for himself or a member of
his immediate family or a business with which he is associated unless it is
provided for by law. Domalakes Opinion, 85 -010.
As outlined above, there does not appear to be a real possibility of any
financial gain or inherent conflict arising if you were to serve both as a
public official and as Executive Director of a non - profit human service
agency. Basically, the Ethics Act does not state that it is inherently
incompatible for a public official to serve or be employed as a Executive
Director of a non - profit human service agency. The main prohibition under the
thics Act and Opinions of the Ethics Commission is that one may not serve the
interests of two persons, groups, or entities whose interests may be adverse.
See Al fa no Opinion, 80 -007. I n the situation outlined above, you would not be
serving entities with interests which are adverse to each other. It is
expressly assumed that you did not use your public office as the means for
obtaining this position and it is further assumed that the human service
agency is not a division of the City of York.
Section 3(b) of the Ethics Act provides:
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 foe public office would be influenced thereby.
65 P.S. 403(b).
Mr. 'Wi l i i am Lee Smallwood
April i. , 1988
Page 3
Reference to Section 3(b) of the Ethics Act is made in order to provide a
: :omplete e- esponse to your inquiry. Under Section 3(b) of the Ethics Act cited
above, which must be observed, a public official must neither offer nor accept
anything of value on the understanding or with the intention that the public
official's judgment would be influenced thereby. It is assumed such a
situa; ion does not exist here. Reference to this Section is added not to
indicate tha any such activity has been or will be undertaken but in an
effort to provide a complete response to your inquiry.
Section 3. Restricted activities.
(d) Cther areas of possible conflict shall be addressed by
the commission pursuant to paragraph (9) of section 7.
55 P.S. 403(d).
Under Section 3(d) of the Ethics Act, the State Ethics Commission may
acdi'. ss other areas of possible conflicts of interest. 65 P.S. §403(d). The
par meters of the types of activities encompassed by this provision of law may
generally be determined by reviewing the purpose and intent of the Ethics Act.
The Ethics Act was promulgated in order to ensure that the financial interests
or p.iblic official do not conflict with the public trust or create the
ppea'cnce of a conflict with the public trust.
Although there is no prohibition under Section 3(a) of the Ethics Act for
you to simultaneously serve as a member of city council and as Executive
Director of the non - profit human service agency, under Section 3(d) of the
Ethics Act you should not participate in any matter concerning the human
service agency that would come before City Council. Further, you must note
your abstention of public record together with the reason for your
abstention.
Lastly, the propriety of your proposed conduct has only been addressed
ur;der the Ethics Act; the applicability of any other statute, code, ordinance,
regulation or other code of conduct has not been addressed in this advice.
Conclusion: As a councilmember for City of York, you are a "public official"
subject to the provisions of the State Ethics Act. As a public official, you
ma consistent with Section 3(a) of the Ethics Act, simultaneously serve in
e positions of councilmember and Executive Director of the non- profit human
service agency subject to the limitations outlined above. However, under
Section 3(d) of the Ethics Act, if any matter concerning the human service
gency would come before City Council, you may not participate or vote in that
natter and you must note your abstention of public record together with the
rein 3 ns for your abstention.
Mr. William Lee Sm:11wood
April 19, 1983
Page 4
Lastly, the propriety r the proposed course of conduct has only been
addressed under the Ethics Act:.
Pursuant to Section 7(9)(ii), thi 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 ::he 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.
S•ncerely,
z
Vincent J: Dopko,
General Counsel