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HomeMy WebLinkAbout19-509 LogsdonPHONE: 717 - 783 -1610 TOLL FREE: 1 -800 -932 -0936 To the Requester: ADVICE OF COUNSEL March 7, 2019 Mr. Sean W. Logsdon, Esquire Donald G. Karpowich, Attorney -at -Law, P.C. Dear Mr. Logsdon: FACSIMILE: 717- 787 -0806 WEBSITE: www.ethics.pa.gov 19 -509 This responds to your letter dated. January 23, 2019, 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 7577S. § 1101 et seg., would impose prohibitions or restrictions upon a borough council member, who is employed with a medical cannabis manufacturing plant located in the borough, with regard to participating in discussions, deliberations, or votes of borough council pertaining to concerns or complaints regarding an odor emanating from the manufacturing plant, land use applications Involving the manufacturing plant, or other matters related to the manufacturing plant. Facts: You have been authorized by Rose Diel ( "Ms. Diel ") to request an advisory Tom the Commission on her behalf. You have submitted facts that may be fairly summarized as follows. Ms. Diel was recent) appointed as a Member of Council for the Borough of White Haven ( "Borough "). In a private capacity, Ms. Die[ is employed with a medical cannabis manufacturing plant (the "Manufacturing Plant ") that opened in the Borough before she was appointed to Borough Council. Several owners of property adjacent to the Manufacturing Plant have attended Borough Council meetings to voice their complaints about an odor emanating from the Manufacturing Plant, and these property owners have urged Borough Council to take action with respect to the odor. Concerns or complaints regarding the odor emanating from the Manufacturing Plant and land use applications involving the Manufacturing Plant may be brought before Borough Council in the future. Based upon the above submitted facts, you seek guidance as to whether the Ethics Act would permit Ms. Diel to participate in discussions, deliberations, or votes of Borough Council pertaining to concerns or complaints regarding the odor emanating from the Manufacturing Plant, land use applications involving the Manufacturing Plan ?, or other matters related to the Manufacturing Plant. Discussion: It is initially noted that pursuant to Sections 1107(10) and 1107(11) of e 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 Logsdoonn, 19 -509 March 7, 2019 Page 2 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 disclosed all of the material facts. As a Borough Council Member, Ms. Diel is a public official subject to the provisions of the Ethics Act. Sections 1103(a) and 11030) of the Ethics Act provide: § 1103. Restricted activities (a) Conflict of interest. - -No public official or public employee shall engage in conduct that constitutes a conflict of interest. 0) 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 wo 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 employee 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 Logsdon, 19 -509 aM rch 7, 2019 Page 3 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. "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 %holding such a public position for the private pecuniary benefit of the public officiallpic employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. In each instance of a conflict of interest, the public official/public employee would be required to abstain from participation. The abstention requirement would not be limited merely to voting, but would extend to any use of authority of office including, but not limited to, discussing, conferrin' with others, and lobbying for a particular result. Juliante, Order 809. Subject to certain statutory exceptions, in each instance of a voting coffin fact, Section 11030) of the Ethics Act would require the public official/public employee to abstain and to publicly disclose the abstention and reasons for same, both orally and by filing a written memorandum to that effect with the person recording the minutes. Per the Pennsylvania Supreme Court's decision in Kistler v. State Ethics Commission, 610 Pa. 516, 22 A.3d 223 (2011), in order to violate Section I I 03(a) of the Et ics Act, a public officiallpublic employee: ... must act in such a way as to put his office /public position] to the purpose of obtaining for himself a private pecuniary benefit. Such directed action implies awareness on the part of the [public official/public employee] of the potential pecuniary benefit as well as the motivation to obtain that benefit for himself. Kistler, supra, 610 Pa. at 523, 22 A.3d at 227. To violate Section 1103(a) of the Ethics Act, a public officiallpublic employee "must be consciously aware of a private pecuniary benefit for himself, his family, or his business, and then must take action in the form of one or more specific steps to attain that benefit." Id., 610 Pa. at 528, 22 A.3d at 231. Having established the above general principles, you are advised as follows. Lo sd�on, 19.509 March 7, 2019 Page 4 The Manufacturing Plant is a business with which Ms. Diel is associated in her capacity as an employee. Ms. Diel would have a conflict of interest and would violate Section 1103(a) of the Ethics Act by participating in discussion(s), deliberation (s), or vote(s) of Borough Council pertaining to concerns or complaints regarding the odor emanating from the Manufacturing Plant, land use applications involving the Manufacturing Plant, or other matter(s) related to the Manufacturing Plant if: (I) she would be conscious) aware of a private pecuniary benefit for herself or the Manufacturing Plant; (2) her action(s) would constitute one or more specific steps to attain that benefit; and �(3) neither of the statutory exclusions to the definition of "conflict" or conflict of interest as set forth in the Ethics Act, 65 Pa.C.S. § 1102, would be applicable. Cf. Kistler, supra. As noted above, in each instance of a conflict of interest, Ms. Diel 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 otther than the Ethics Act has not been considered in that they do not involve an interpretation of the Ethics Act. Specifically not addressed herein is the applicability of the Borough Code. Conclusion: Based upon the submitted facts that: (1) Rose Diel ( "Ms. Die] ") was recently appointed as a Member of Council for the Borough of White Haven ( "Borough "); (2) in a private capacity, Ms. Diel is employed with a medical cannabis manufacturing pplant (the "Manufacturing Plant ") that opened in the Borough before she was appointed io Borough Council; (3) several owners of property adjacent to the Manufacturing Plant have attended Borough Council meetings to voice their complaints about an odor emanating from the Manufacturing Plant, and these property owners have urged Borough Council to take action with respect to the odor; and (4) concerns or complaints regarding the odor emanating from the Manufacturing Plant and land use applications involving the Manufacturing Plant may be brought before Borough Council in the future, you are advised as follows. As a Borough Council Member, Ms. Diel is a public official subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1 101 et seq. The Manufacturing Plant is a business with which Ms. Diel is associated in her capacity as an employee. Ms. Diel would have a conflict of interest and would violate Section 1103(a of the Ethics Act by participating in discussion(s), deliberation(s), or vote(s) of Borough Council ertaining to concerns or complaints regarding the odor emanating from the Manufacturing Plant, land use applications involving the Manufacturing Plant, or other matter(s) related to the Manufacturing Plant if: (1) she would be consciously aware of a private pecuniary benefit for herself or the Manufacturing Plant; (2) her action(s) would constitute one or more specific steps to attain that benefit; and (3) neither of the statutory exclusions to the definition of "conflict" or "conflict of interest" as set forth in the Ethics Act, 65 Pa.C.S. § 1102, would be applicable. In each instance of a conflict of interest, Ms. Die] 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 Logsdon, 19 -509 March �� , 2019 Page 5 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 actually received at the Commission within thirty (30) days of the date of this vice pursuant to 59 Pa. Code § 93.2(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 We such an appeal at the Commission within thirty (30) days may result in the dismissal of the appeal. Sincerely, . rn 1 Robin M. Hittie Chief Counsel