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HomeMy WebLinkAbout19-510 ConfidentialPHONE: 717 - 783 -1610 TOLL FREE: 1- 800 -932 -0936 To the Requester: ADVICE OF COUNSEL March 13, 2019 FACSIMILE: 717 -787 -0806 WEBSITE: www.ethics.pa .gov 19 -510 This responds to your letter dated January 24, 2019, by which you requested a confidential advisory from the Pennsylvania State Ethics Commission ( "Commission "). Issue: Whether the Public Official and Employee Ethics Act ( "Ethics Act "), 65 pa 7.S. § 1101 et seg., would impose prohibitions or restrictions upon an individual) who is serving as both a member of an A B and a member of a C B with regard to participating in discussions or other actions pertaining to the issue of whether the current boundaries of a D should be expanded to include additional E(s) within one or more of [number] Fs, where: (1) the individual's G is the H and an I of a ..!! that owns a K L; (2) the individual's G acquired an M L adjacent to the J L in order to facilitate the sale of the J L; and (3) both of the aforesaid Ls are adjacent to the current boundaries of the D and are located within one of the [number] Fs. Facts: You request a confidential advisory from the Commission based upon submitted facts, the material portion of which may be fairly summarized as follows. You are a Member of an A B, hereinafter referred to as "Governmental Body 1." You are also a Member of a C B, hereinafter referred to as "Governmental Body 2," that serves a group of [number] Fs (the "[number] Fs "). You state that Governmental Body 1 and Governmental Body 2 serve as advisory boards to their respective A and C Ns as well as elected officials. The Members of Governmental Body 1 and Governmental Body 2 are not compensated. There is currently a D that includes Es in all but one of the [number] Fs. The D is a mechanism for implementing an O. Your G is the H and an I of a J that owns a K L. Your G acquired an M L adjacent to the J L in order to facilitate the sale of the J L. Both of the aforesaid Ls are adjacent to the current boundaries of the D and are located within one of the [number] Fs, hereinafter referred to as "F -1." Governmental Body 1 and Governmental Body 2, as advisory boards on [type of matters], may soon be expected to comment on whether the current boundaries of the D should be expanded to include additional Es within one or more of the [number] Fs, and if so, what Es should be added to the D. Confidential Advice, 19 -510 March Page 2 Based upon the above submitted facts, you ask whether, in your capacity as a Member of Governmental Body 1 or in your capacity as a Member of Governmental Body 2, you would have a conflict of interest with regard to participating in discussions or other actions pertaining -to the issue of whether the current boundaries of the D should be expanded to include: (1) E(s) in F -1 within the vicinity of the J L and the L acquired by your G: (2) E(s) in F -1 not within the vicinity of the aforesaid Ls; or (3) E(s) not in F -1. 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 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. §§ 11070 0 , (11). An advisory only affords a defense to the extent the requester has truthfully disc osed all of the material facts. In responding to your inquiry, the threshold question to be addressed is whether, in your capacity as a Member of Governmental Body 1 or in your capacity as a Member of Governmental Body 2, you would be considered a public official subject to the provisions of the Ethics Act. The term "public official" is defined in the Ethics Act as follows: § 1102. 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 following 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: JA) The body will be deemed to have the power to expen 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. Confidential Advice, 19 -510 March Page 3 (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: (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. (111) The governing authority is bound by statute or ordinance to accept and enforce the rulings of the body. (1V) 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. (VIII)The enabling legislation of the body indicates that the body is established for 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. Confidential Advice, 19 -510 March , Page 4 (G) Members of the public bodies meeting the criteria in paragraph (i)(A). 51 Pa. Code § 11.1. In applying the Ethics Act's definition of the term "public official" to the submitted facts, the necessary conclusion is that in each of your capacities as a Member of Governmental Body 1 and a Member of Governmental Body 2, you would fall within the statutory exception for members of purely advisory 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 Governmental Body 1 and Governmental Body 2 serve as advisory boards to their respective A and C Ns as well as elected officials. There is no indication in the submitted facts that either Governmental Body 1 or Governmental Body 2 performs function(s) which are not purely advisory, or that either Governmental Body 1 or Governmental Body 2 has authority to expend public funds other than reimbursement for personal expense or to otherwise exercise the power of the State or a political subdivision. Therefore, based upon the submitted facts, you are advised that in each of your capacities as a Member of Governmental Body 1 and a Member of Governmental Bod 2, you are not a "public official" as that term is defined in the Ethics Act. Cf., cites . Thus, in each of our aforesaid capacities, you are not subject to the restrictions of Section 1103(a) of the Ethics Act (pertaining to conflict of interest). In response to your specific questions, you are advised that Section 1103(a) of the Ethics Act —which does not apply to you in your capacity as a Member of Governmental Body 1 or in your capacity as a Member of Governmental Body 2 —would not prohibit you from participating in discussions or other actions of Governmental Body 1 or Governmental Body 2 pertaining to the issue of whether the current boundaries of the D should be expanded to include: (1) E(s) in F-1 within the vicinity of the J L and the L acquired by your G: (2) E(s) in F -1 not within the vicinity of the aforesaid Ls; or (3) E(s) not in F -1. Lastly, 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 are a Member of an A ,Mere na r referred to as "Governmental Body 1"; (2) you are also a Member of a C B, hereinafter referred to as "Governmental Body 2," that serves a group of [number] Fs (the "[number] Fs "); (3) Governmental Body 1 and Governmental Body serve as advisory boards to their respective A and C Ns as well as elected officials; (4) the Members of Governmental Body 1 and Governmental Body 2 are not com ensated; (5) there is currently a D that includes Es in all but one of the [number] Fs; 76) the D is a mechanism for implementing an O; �7� your G is the H and an I of a J tha owns a K L- (8 your G acquired an M L adjacen o the J L in order to facilitate the sale of the J L; 9 both of the aforesaid Ls are adjacent to the current boundaries of the D and are located within one of the [number] Fs, hereinafter referred to as "F-1"; and (10) Governmental Body 'I and Governmental Body 2, as advisory boards on [type of matters], may soon be expected to comment on whether the current boundaries of the D should be expanded to include additional Es within one or more of the [number] Fs, and if so, what Es should be added to the D, you are advised as follows. In each of your capacities as a Member of Governmental Body 1 and a Member of Governmental Body 2, you are not a "public official" as that term is defined in the Confidential Advice, 19 -510 March Page 5 Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa-C.S. § 1101 et seq. Thus, in each of your aforesaid capacities, you are not subject to the restrictions of Section I 103(a) of the Ethics Act (pertaining to conflict of interest). Section 1103(a) of the Ethics Act —which does not apply to you in your capacity as a Member of Governmental Body 1 or in your capacity as a Member of Governmental Body 2—would not prohibit you from participating in discussions or other actions of Governmental Body 1 or Governmental Body 2 pertaining to the issue of whether the current boundaries of the D should be expanded to include: (1) E(s) in F -1 within the vicinity of the J L and the L acquired by your G: (2) E(s) in F -1 not within the vicinity of the aforesaid Ls; or (3) E(s) not in F -1. 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 actually received at the Commission within thirty (30) days of the date or this Advice ursuant 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'-7-87-0806). Failure to file such an appeal at the Commission within thirty (30) days may result in the dismissal of the appeal. Sincerely, S Robin M. Hittie Chief Counsel