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HomeMy WebLinkAbout18-527 LucianiPHONE: 717- 783 -1610 TOLL FREE: 1- 800 -932 -0936 To the Requester: ADVICE OF COUNSEL Mr. John J. Luciani, P.E. President First Capital Engineering Dear Mr. Luciani: April 26, 2018 P.L.S., S.E.O. FACSIMILE: 717- 787 -0806 WEBSITE: www.ethics.na.gov 18527 This responds to your letter received March 12, 2018, by which you requested an advisory from the Pennsylvania State Ethics Commission ( "Commission "). Issue: Whether the Public Official and Employee Ethics Act ( "Ethics Act "), 65 F —a.C-S. § 1101 et sec.., would impose prohibitions or restrictions upon an individual with regard to performing the duties of his position as a township commissioner, where the individual in a private capacity is a principal and the president of a civil engineering firm that prepares land development/subdivision plans for properties in the township. Facts: You were recently elected as a Commissioner for a township ownship"). In a private capacity, you are a principal and the President of a civil engineering firm named "First Capital Engineering' the "Firm "). The Firm prepares land development/subdivision plans for properties in the Township. Based upon the above submitted facts, the question that is presented is whether the Ethics Act would impose prohibitions or restrictions upon you with regard to performing the duties of your position as a Township Commissioner. Discussion: It is initially noted that pursuant to Sections 1107(10) and 1107(11) of the Ethics Act, 65 Pa.C.S. §§ 1107(10), (11), advisories are issued to the requester based upon the facts that the requester has submitted. In issuing the advisory based upon the facts that the requester has submitted, the Commission does not en age in an independent investigation of the facts, nor does it speculate as to facts that have not been submitted. It is the burden of the requester to truthfully disclose all of the material facts relevant to the inquiry. 65 Pa.C.S. §§ 1107(10 }, (11). An advisory only affords a defense to the extent the requester has truthfully discllosed all of the material facts. As a Township Commissioner, you are a public official subject to the provisions of the Ethics Act. Sections 1103(a) and 11030) of the Ethics Act provide: Luciani, 18 -527 April 26, 2018 Page 2 § 1103. Restricted activities (a) Conflict of interest.- -No public official or public employee shall engage in conduct that constitutes a conflict of interest. Q) Voting conflict.- -Where voting conflicts are not otherwise addressed by the Constitution of Pennsylvania or by any law, rule, regulation, order or ordinance, the following procedure shall be employed. Any public official or public employee who in the discharge of his official duties would be required to vote on a matter that would result in a conflict of interest shall abstain from voting and, prior to the vote being taken, publicly announce and disclose the nature of his interest as a public record in a written memorandum filed with the person responsible for recording the minutes of the meeting at which the vote is taken, provided that whenever a governing body would be unable to take any action on a matter before it because the number of members of the body required to abstain from voting under the provisions of this section makes the majority or other legally required vote of approval unattainable, then such members shall be permitted to vote if disclosures are made as otherwise provided herein. In the case of a three - member governing body of a political subdivision, where one member has abstained from voting as a result of a conflict of interest and the remaining two members of the governing body have cast opposing votes, the member who has abstained shall be permitted to vote to break the tie vote if disclosure is made as otherwise provided herein. 65 Pa.C.S. §§ 1103(a), 0). The following terms related to Section 1103(a) are defined in the Ethics Act as follows: § 1102. Definitions "Conflict" or "conflict of interest." Use by a public official or public employyee of the authority of his office or employment or any confidential information received through his holding public office or employment for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his immediate family is associated. The term does not include an action having a de minimis economic impact or which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the public official or public employee, a member of his immediate family or a business with which he or a member of his immediate family is associated. "Authority of office or employment." The actual power provided by law, the exercise of which is necessary to the performance of duties and responsibilities unique to a particular public office or position of public employment. Luciani, 18527 April 26, 2018 Page 3 "Business." Any corporation, partnership, sole proprietorship, firm, enterprise, franchise, association, organization, self - employed individual, holding company, joint stock company, receivership, trust or any legal entity organized for profit. "Business with which he is associated." Any business in which the person or a member of the person's immediate family is a director, officer, owner, employee or has a financial interest. 65 Pa.C.S. § 1102. Subject to the statutory, exclusions to the Ethics Act's definition of the term "conflict" or "conflict of interest," 65 Pa.C.S. § 1102, a public official/public employee is prohibited from using the authority of public office /employment or confidential information received by holding such a public position for the private pecuniary benefit of the public official/public employyee himself, any member of his immediate family, or a business with which he or a.member of his immediate family is associated. The use of authority of office is not limited merely to voting, but extends to any use of authority of office including, but not limited to, discussing, conferring with others, and lobbying for a particular result. Juliante, Order 809. In each instance of a conflict of interest, a public official/public employee would be required to abstain from participation, which would include voting unless one of the statutory exceptions of Section 11030) of the Ethics Act would be applicable. Additionally, the disclosure requirements of Section 11030) of the Ethics Act would have to be satisfied in the event of a voting conflict. In applying the above provisions of the Ethics Act to the question presented, you are advised as follows. The Firm is a business with which you are associated in your capacities as a principal and an officer (President). The Ethics Act would not prohibit the Firm from preparing land development/subdivision plans for properties in the Township or performing other work in the Township while you are serving as a Township Commissioner. However, subject to the statutory exclusions to the definition of "conflict" or conflict of interest as set forth in the Ethics Act, 65 Pa.C.S. 1102, you would have a conflict of interest under Section 1103(a) of the Ethics Act wit h regard to participating in discussion(s), vote(s), or other action(s) of the Township Board of Commissioners pertaining to matter(s) that would financially impact you or the Firm, including but not limited to land development/subdivision plans prepared by the Firm. In each instance of a conflict of interest, you would be required to abstain from participation, which would include voting unless one of the statutory exceptions of Section 11030) of the Ethics Act would be applicable. Additionally, the disclosure requirements of Section 11030) of the Ethics Act would have to be satisfied in the event of a voting conflict. The propriety of the proposed conduct has only been addressed under the Ethics Act; the applicability of any other 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: Based upon the submitted facts that: (1) you were recently elected as a 7,o mmissioner for a township ( "Township "); (2) in a private capacity, you are a principal and the President of a civil engineering firm named "First Capital Engineering" Ludani, 18 -527 April 26, 2018 Page 4 (the "Firm "), and (3) the Firm prepares land development/subdivision plans for properties in the Township, you are advised as follows. As a Township Commissioner, you are a public official subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa-C.S. § 1101 et seq. The Firm is a business with which you are associated in your capacities as a principal and an officer (President). The Ethics Act would not prohibit the Firm from preparing land development/subdivision plans for properties in the Township or performing other work in the Township while you are serving as a Township Commissioner. However, subject to the statutory exclusions to the definition of "conflict" or "conflict of interest" as set forth in the Ethics Act, 65 Pa.C.S. § 1102, you would have a conflict of interest under Section 1103(a) of the Ethics Act with regard to articipating in discussion(s), vote(s), or other action(s) of the Township Board of commissioners pertaining to matter(s) that would financially impact you or the Firm, including but not limited to land development/subdivision plans prepared by the Firm. In each instance of a conflict of interest, you would be required to abstain from participation, which would include voting unless one of the statutory exceptions of Section 11030) of the Ethics Act would be applicable. Additionally, the disclosure requirements of Section 11030) of the Ethics Act would have to be satisfied in the event of a voting conflict. Lastly, the propriety of the proposed conduct has only been addressed under the Ethics Act. Pursuant to Section 1107(11) of the Ethics Act, an 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, provided the requester 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 appeal the Advice to the full Commission. A personal appearance before the Commission will be scheduled and a formal Opinion will be issued by the Commission. Any such appeal must be in writingg and must be act�ualil received at the Commission within thirty (30) days of the date of this Advice pursuant to 51 Pa. Code § 13.2(h). The appeal may be received at the Commission by hand delivery, United States mail, delivery service, or by FAX transmission (717 - 787 - 0806). Failure to Me such an appeal at the Commission within thirty (30) days may result in the dismissal of the appeal. Sincerely, Robin M. Hittie Chief Counsel