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HomeMy WebLinkAbout19-511 NagyPHONE: 717 - 783 -1610 TOLL FREE: 1 -800- 932 -0936 ADVICE OF COUNSEL March 14, 2019 To the Requester: Ms. Jill E. Nagy, Esquire Summers Nagy Law Offices Dear Ms. Nagy: FACSIMILE: 717 -787 -0806 WEBSITE: www.ethics.pa.gov 19 -511 This responds to your letter dated January 28, 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 P a.U-S. § 1101 et seq., would impose prohibitions or restrictions upon a member and chairman of a township board of supervisors, whose son is a member of the board of directors of an ambulance association, with regard to participating in deliberations or other actions of the township board of supervisors pertaining to: (1) a tax increase related to the provision of financial support to the ambulance association; or (2) other matters involving the ambulance association. Facts: You have been authorized by an individual (the "Individual ") to request an a -disory from the Commission on his behalf. You have submitted facts that may be fairly summarized as follows. The Individual is a Member and Chairman of a township (the "Township ") board of supervisors (the "Board of Supervisors "). The Individual's son is a Member of the Board of Directors of the Topton Ambulance Association ( "Ambulance Association "). The question presented by your advisory request is whether the Ethics Act would impose prohibitions or restrictions upon the Individual with regard to participating in deliberations or other actions of the Township Board of Supervisors pertaining to. (1) a tax increase related to the provision of financial support to the Ambulance Association; or (2) other matters involving the Ambulance Association. Discussion: It is initial) 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 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. It is further initially noted that, pursuant to the same aforesaid Sections of the Ethics Act, an opinion /advice may be given only as to prospective (future) conduct. If Nagy, 19 -511 March 14, 2019 Page 2 the activity in question has already occurred, the Commission may not issue an opinion /advice but any person may then submit a signed and sworn complaint, which will be investigated by the Commission if there are allegations of Ethics Act violations by a person who is subject to the Ethics Act. To the extent you have inquired as to conduct that has already occurred, such past conduct may not be addressed in the context of an advisory opinion. However, to the extent you have inquired as to future conduct, your inquiry may, and shall, be addressed. As a Member and Chairman of the Township Board of Supervisors, the Individual 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. {j) 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(x) 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 enefit 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 Na , 19 -511 March 14, 2019 Page 3 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. "Immediate family." A parent, spouse, child, brother or sister. "Business." An 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 employee 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 ap Iying the above provisions of the Ethics Act to the instant matter, you are advised as follows. The Individual's son is a member of the Individual's "immediate family" as that term is defined in the Ethics Act. The Ambulance Association is a business with which the Individual's son is associated in his capacity as a Director. See, Rendell v. State Ethics Commission, 603 Pa. 292, 983 A.2d 708 (2009) Holding that the tics ct s definition o the term "business" includes non - profit entities. Subject to the statutory exclusions to the definition of "conflict" or "conflict of interest" as set forth in Section 1102 of the Ethics Act, 65 Pa.C.S. § 1102, pursuant to Section 1103(a) of the Ethics Act, the Individual would have a conflict of interest with regard to particip ating in deliberation(s) or other action(s) of the Township Board of Supervisors pertaining to matter(s) that would financially impact the Ambulance Nagy, 19 -511 March 14, 2019 Page 4 Association, including but not limited to a tax increase related to the provision of financial support to the Ambulance Association. In each instance of a conflict of interest, the Individual would be required to abstain from participation, which would include voting unless one of the statutory exceptions of Section 1103) 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 Second Class Township Code. Conclusion; In his capacit as a Member and Chairman of a township (the owns ip board of supervisors the "Board of Supervisors "), the Individual on whose behalf you have inquired is a public official subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. Based upon the submitted fact that the Individual's son is a Member of the foard of Directors of the Topton Ambulance Association ( "Ambulance Association "), you are advised as follows. The Individual's son is a member of the Individual's "immediate family" as that term is defined in the Ethics Act. The Ambulance Association is a business with which the Individual's son is associated in his capacity as a Director. Subject to the statutory exclusions to the definition of "conflict" or "conflict of interest" as set forth in Section 1102 of the Ethics Act, 65 Pa.C.S. § 1102, pursuant to Section 1103(a) of the Ethics Act, the Individual would have a conflict of interest with regard to participating in deliberation(s) or other action(s) of the Township Board of Supervisors pertaining to matter(s) that would financially impact the Ambulance Association, including but not limited to a tax increase related to the provision of financial support to the Ambulance Association. In each instance of a conflict of interest, the Individual would be required to abstain from participation, which would include voting unless one of the statutory exceptions of Section 1103 6) 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 an yy 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�uall� received at the Commission within thirty (30) days of the date of this Advice pursuant to 51 Pa. Code § 1r3.2(h). The appeal may be Nagy, 19 -511 March 14, 2019 Page 5 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, 4Robin M. Hittie Chief Counsel