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To the Requester:
Yz'
STATE ETHICS COMMISSION
FINANCE BUILDING
613 NORTH STREET, ROOM 309
HARRISBURG, PA 17120 -0400
ADVICE OF COUNSEL
February 1, 2019
Martin Ciccocioppo, Director
Pennsylvania eHealth Partnership Program
Pennsylvania Department of Human Services
Dear Mr. Ciccocioppo:
FACS[M ILE: 717- 787 -0806
WEBSITE: www.ethics.paxiov
19 -502
This responds to your letter dated December 20, 2018, by which you requested
an advisory from the Pennsylvania State Ethics Commission ( "Commission ") on behalf
of David F. Simon, Esquire.
Issue: Whether, as a Member and Chairperson of the Pennsylvania eHealth
t a nership Advisory Board, David F. Simon, Esquire, would be considered a "public
official" subject to the Public Official and Employee Ethics Act (the "Ethics Act'), 65
Pa.C.S. § 1101 et seg., and the Regulations of the State Ethics Commission, 5 Pa.
Code § 11.1 et sec.., and particularly, the requirements for filing Statements of Financial
Interests.
Facts: You seek a determination as to whether David F. Simon, Esquire ( "Mr.
Si on "), in his capacity as a Member and Chairperson of the Pennsylvania eHealth
Partnership Advisory Board ( "eHealth Partnership Advisory oard "), would be
considered a .'public official" subject to the Ethics Act and the Regulations of the State
Ethics Commission and therefore would be required to file Statements of Financial
Interests.
It is administratively noted that pursuant to Act 76 of 2016, the Human Services
Code, 62 P.S. 0 et sec ., was amended to provide for the establishment of the
Pennsylvania Ae1a1t1hPdFFnership Proggram within the Pennsylvania Department of
Human Services. See, 62 P.S. § 1402 -C. Act 76 of 2016 further amended the Human
pr
Services Code to ovide for the establishment of the eHealth Partnership Advisory
Board as an advisory board within the Pennsylvania Department of Human Services.
See, 62 P.S. § 1404 -C.
The eHealth Partnership Advisory Board is composed of: (1) the Secretary of
Human Services for the Commonwealth of Pennsylvania or a designee; (2) the
Secretary of Health for the Commonwealth of Pennsylvania or a designee; (3) the
Insurance Commissioner of the Commonwealth of Pennsylvania or a designee; and (4)
various Members appointed by the Secretary of Human Services, the President Pro
Tempore of the Pennsylvania Senate, and the Speaker of the Pennsylvania House of
Representatives. See, 62 P.S. § 1404 -C.
Ciccocio o, 19 -502
February 1, 2019
Page 2
Section 1404-C(i) of the Human Services Code provides that Members of the
eHealth Partnership Advisory Board "may not receive a salary or per diem allowance for
serving as members of the board but shall be reimbursed for actual and necessary
expenses incurred in the performance of the members' duties." 62 P.S. § 1404 -C(i).
You state that the eHealth Partnership Advisory Board has no authority to
expend public funds or to exercise the power of the Commonwealth of Pennsylvania. [t
is noted that the Human Services Code does not set forth any powers, duties, or
responsibilities of the eHealth Partnership Advisory Board but merely establishes it as
an `advisory board." 62 P.S. § 1404 -C.
Discussion: It is initials noted that pursuant to Sections 1107(10) and 1107(11) of
e t -cs ct, 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 engage 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 disc osed all of the material facts.
The term "public official" is defined in the Ethics Act as follows:
§ 9102. Definitions
"Public official." Any person elected by the public or
elected or appointed by a governmental body or an
appointed official in the executive, legislative or judicial
branch of this Commonwealth or any political subdivision
thereof, provided that it shall not include members of
advisory boards that have no authority to expend public
funds other than reimbursement for personal expense or to
otherwise exercise the power of the State or any political
subdivision thereof.
65 Pa.C.S. § 1102.
The Regulations of the State Ethics Commission similarly define the term "public
official" and set forth the followin additional criteria that are used to determine whether
the advisory board exception applies:
(i) The following criteria will be used to determine if
the exception in this paragraph is applicable:
(A) The body will be deemed to have the power to
expend public funds if the body may commit funds or may
otherwise make payment of moneys, enter into contracts,
invest funds held in reserves, make loans or grants, borrow
money, issue bonds, employ staff, purchase, lease, acquire
or sell real or personal property without the consent or
approval of the governing body and the effect of the power to
expend public funds has a greater than de minimis economic
impact on the interest of a person.
(B) The body will be deemed to have the authority to
otherwise exercise the power of the Commonwealth or a
political subdivision if one of the following exists:
Ciccodo aa, 19 -502
e rF b uary 1, 2019
Page 3
(1) The body makes binding decisions or orders
adjudicating substantive issues which are appealable to a
body or person other than the governing authority.
(11) The body exercises a basic power of
government and performs essential governmental functions.
(III) The governing authority is bound by statute or
ordinance to accept and enforce the rulings of the body.
(IV) The body may compel the governing authority to
act in accordance with the body's decisions or restrain the
governing authority from acting contrary to the body's
decisions.
(V)) The body makes independent decisions which
are effective without approval of the governing authority.
(VI) The body may adopt, amend and repeal
resolutions, rules, regulations or ordinances.
(VII) The body has the power of eminent domain or
condemnation.
(VI11)The enabling legislation of the body indicates
that the body is established far exercising public powers of
the Commonwealth or a political subdivision.
(ii) The term does not include judges and inspectors
of elections, notary publics and political party officers.
(iii) The term generally includes persons in the
following offices:
(A) Incumbents of offices filled by nomination of the
Governor and confirmation of the Senate.
(B) Heads of executive, legislative and independent
agencies, boards and commissions.
(C) Members of agencies, boards and commissions
appointed by the General Assembly or its officers.
(D) Persons appointed to positions designated as
officers by the Commonwealth or its political subdivisions.
(E) Members of municipal, industrial development,
housing, parking and similar authorities.
(F ) Members of zoning hearing boards and similar
quasi-judicial bodies.
(G) Members of the public bodies meeting the
criteria in paragraph (i)(A).
51 Pa. Code § 11.1.
February i y 1, 119
February , 2019
Page 4
In applying the Ethics Act's definition of the term "public official" in the instant
matter, the necessary conclusion is that Mr. Simon, in his capacity as a Member and
Chairperson of the eHealth Partnership Advisory Board, would fall within the statutory
exception for members of purely dvisory boards lacking authority to expend public
funds other than reimbursement for personal expense or to otherwise exercise the
power of the State or a political subdivision. This conclusion is based upon your factual
submission that the eHealth Partnership Advisory Board has no authority to expend
public funds or to exercise the power of the Commonwealth of Pennsylvania, as well as
the fact that the Human Services Code does not set forth any owers, duties, or
responsibilities of the eHealth Partnership Advisory Board but merely establishes it as
an `advisory board." 62 P.S. § 1404 -C.
Therefore, based upon the submitted facts, you are advised that Mr. Simon, in
his capacity as a Member and Chairperson of the eHealth Partnership Advisory Board,
is not a "public official" subject to the Ethics Act or the Regulations of the State Ethics
Commission, and he is not required to file Statements of Financial Interests pursuant to
the Ethics Act.
Conclusion: David F. Simon, Esquire, in his capacity as a Member of the
ennsy vania eHealth Partnership Advisory oard, is not a "public official" subject to the
Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et se q., or the
Regulations of the State Ethics Commission, 51 Pa. Code § 11.1 et seq., and t erefore
he is not required to file Statements of Financial Interests pursuant to 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 Op►n►on will be issued by the Commission.
Any such appeal must be in writing and must be act�ual/V
received at the Commission within thirty (30) days of the date of this
Advice pursuant to 51 Pa. Code § �3.2(h). The appeal may be
received at the Commission by hand delivery, United States mail,
delivery service, or by FAX transmission (717787 - 0806). Failure to
file such an appeal at the Commission within thirty (30) days may
result in the dismissal of the appeal.
Sincerely,
Robin M. Hittie
Chief Counsel