HomeMy WebLinkAbout88-615 EshelmanSTATE ETHICS COMMISSION
308 FINANCE BUILDING
P.O. BOX 11470
HARRISBURG, PA 1 71 08 -1 470
TELEPHONE (717) 783 -1610
ADVICE OF COUNSEL
- July 29, 1988
Mr. Lester E. Eshelman 88 -615
923 Thornton Drive
Mechanicsburg, Pennsylvania 17055
Re: Former Public Employee; Section 3(e), PennDOT, Field
Auditor V
Dear Mr. Eshelman:
This responds to your letter of June 24, 1988, in which you
requested advice from the State Ethics Commission.
Issue: You ask whether the Ethics Act presents any restrictions
upon your potential employment following your termination of
service with the Pennsylvania Department of Transportation.
Facts: In your letter you state that you are planning to retire
from Pennsylvania Department of Transportation, hereinafter
PennDOT, as early as September 14th and that after that time you
plan to work part -time in the private sector. After advising
that you have no definite plans at the moment, you would like to
know what restrictions apply to your dealings with PennDOT and
other State agencies after your retirement. In your job
description which is incorporated herein by reference, you are
required to perform the following duties and responsibilities in
your position: Perform a variety of managerial duties with the
Bureau of Municipal Services, hereinafter Bureau, relating to:
I. State and County Liquid Fuels Grants to Municipalities;
II. Highway Safety Grants to Municipalities; III. Road
Turnback Agreements; IV. State -owned Airports - Vendor & Tenant
Audits; V. H.I.A. Enterprise Fund Audit; formulate procedures
and policies used by the Auditing staff; establish audit
priorities from data; review changes in laws, regulations and
accounting procedures which would impact upon audit programs and
prepare directives and guidance for implementations; review
final audit findings and recommendations; maintain liaison with
the officials of other State Agencies and political subdivisions
and the private sector; provide information to various members of
the Pennsylvania Institute of CPA's; attend and participate in
Mr. Lester E. Eshelman
July 29, 1988
Page 2
various State -wide conferences; work with outside consultants,
DCA and other agencies; review audit report received from the
Auditor General; serve on the Department's Audit Review
Committee; serve as liaison between the Bureau and the
Department's Productivity Center; prepare reports and data on
program results and perform such other duties as are required.
As a Field Auditor V for PennDot, you are to be considered a
"public employee" within the definition of that term as set forth
in the Ethics Act and the regulations of this Commission. 65
P.S. §402; 51 Pa. Code §1.1. This conclusion is based upon your
job description, which when reviewed on an objective basis,
indicates clearly that you have the power to take or recommend
official action of a non - ministerial nature with respect to
contracting, procurement, planning, inspecting or other
activities where the economic impact is greater than de minimus
on the interests of another person.
Consequently, upon termination of this employment, you would
become a "former public employee" subject to Section 3(e) of the
Ethics Act. Section 3(e) of the Ethics Act provides that:
Section 3. Restricted activities.
(e) No former official or public employee
shall represent a person, with or without
compensation, on any matter before the
governmental body with which he has been
associated for one year after he leaves that
body. 65 P.S. §403.
Initially, to answer your request the "governmental body"
with which you were associated while working PennDOT must be
identified. Then, the scope of the prohibitions associated with
the concept and term of "representation" must be reviewed. In
this context, the Ethics Commission has previously ruled that the
"governmental body" with which an individual may be deemed to
have been associated during his tenure of public office or
employment extends to those entities where he had influence,
responsibility, supervision, or control. See Ewing, Opinion 79-
010. See also Kury v. Commonwealth of Pennsylvania, State Ethics
Commission, 435 A.2d 940 (1981).
From the description and analysis of your duties and
responsibilities and based upon the facts outlined above, your
jurisdiction, responsibility, influence and control appears to
have been the Bureau. Thus, the "governmental body" with which
you have been "associated" upon the termination of your
The Ethics Act would not affect your ability to appear
before agencies or entities other than with respect to the
Bureau. Likewise, there is no general limitation on the type of
employment in which you may engage, following your departure from
PennDOT. It is noted, however, that the conflicts of interest
law is primarily concerned with financial conflicts and
violations of the public trust. The intent of the law generally
is that during the term of a person's public employment he must
act consistently with the public trust and upon departure from
the public sector, that individual should not be allowed to
utilize his association with the public sector, officials or
employees to secure for himself or a new employer, treatment or
benefits that may be obtainable only because of his association
with his former public employer. See Anderson, Opinion 83 -014;
Zwikl, Opinion 85 -004.
In respect to the one year representation the Ethics
Commission has promulgated regulations to define "representation"
as follows:
Section 1.1 Definitions.
Representation - -- Any act on behalf of any
person including but not limited to the
following activities: personal appearances,
negotiating contracts, lobbying, and
submitting bid or contract proposals which
are signed by or contain the name of the
former public official or public employee.
51 Pa. Code X1.1.
The Commission, in its opinions, has also interpreted the
term "representation" as used in Section. 3(e) of the Ethics Act
to prohibit:
1. Personal appearances before the governmental body or
bodies with which you have been associated, (that is the Bureau),
including, but not limited to, negotiations or renegotiations on
contracts with the Bureau;
2. Attempts to influence the Bureau;
3. Participating in any matters before the Bureau over
which you had supervision, direct involvement, or responsibility
Mr. Lester E. Eshelman
July 29, 1988
Page 3
employment would be the Bureau. Therefore, within the first year
after you would leave PennDOT, Section 3(e) of the Ethics Act
would apply and restrict your "representation" of persons or new
employers vis -a -vis the Bureau.
Mr. Lester E. Eshelman
July 29, 1988
Page 4
while employed by PennDOT;
4. Lobbying, that is representing the interests of any
person or employer before the Bureau in relation to legislation,
regulations, etc. See Russell, Opinion 80 -048 and Seltzer,
Opinion 80 -044.
The Commission has also held that preparing and signing a
proposal, document or bid, or listing your name as the person who
will provide technical assistance on such proposal, document, or
bid, if submitted to or reviewed by the Bureau, constitutes an
attempt to influence your former governmental body. See
Rilareski, Opinion 80 -054. Therefore, within the first year
after you leave PennDOT, you should not engage in the type of
activity outlined above. (The Commission, however, has stated
that the inclusion of your name as an employee or consultant on a
"pricing proposal," even if submitted to or reviewed by the
Bureau, is not prohibited as "representation." See Kotalik,
Opinion 84 -007).
You may, assist in the preparation of any documents
presented to the Bureau so long as you are not identified as the
preparer. You may also counsel any person regarding that
person's appearance before the Bureau. Once again, however, your
activity in this respect should not be revealed to the Bureau.
Of course, any ban under the Ethics Act would not prohibit or
preclude you from making general informational inquiries of the
Bureau to secure information which is available to the general
public. See Cutt, Opinion 79 -023. This, of course, must not be
done in an effort to indirectly influence these entities or to .
otherwise make known to the Bureau your representation of, or
work for your new employer.
Finally, the Commission has concluded that if you are
administering an existing contract as opposed to negotiating or
renegotiating a contract, your activities would not be prohibited
by the Ethics Act. See Dalton, Opinion 80 -056 and Beaser, Advice
81 -538.
Additionally, it is noted that Section 403(b) of the State
Ethics Act would prohibit any public employee or public official
from accepting a position of employment if said position has
been offered based upon the understanding that the official
conduct of the employee or official, while working for his former
governmental body, was influenced by such offer. See 65 P.S.
§403(b).
Lastly, the propriety of the proposed conduct has only been
addressed under the Ethics Act; the applicability of any other
Mr. Lester E. Eshelman
July 29, 1988
Page 5
statute, code, ordinance, regulation or other code of conduct
other than the Ethics Act has not been considered in that they do
not involve an interpretation of the Ethics Act.
Conclusion: As a Field Auditor V, you are to be considered a
"public employee" as defined in the Ethics Act. Upon termination
of your service with PennDOT, you would become a "former public
employee" subject to the restrictions imposed by Section 3(e) of
the , Ethics Act. As such, your conduct should conform to the
requirements of the Ethics Act as outlined above. Your
governmental body for the purpose of the one year representation
restriction is the Bureau. Lastly, the propriety of the proposed
conduct has only been addressed under the Ethics Act.
Further, should you terminate your employment or service, as
outlined above, you are reminded that the Ethics Act also
requires you to file a Statement of Financial Interests for the
year following your termination of service.
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.
Sincerely,
Vincent J. Dopko,
General Counsel