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HomeMy WebLinkAbout90-552 StumpSTATE ETHICS COMMISSION 308 FINANCE BUILDING P.O. BOX 11470 HARRISBURG, PA 17108 -1470 TELEPHONE (717) 783 -1610 ADVICE OF COUNSEL May 24, 1990 Ms. Barbara Orsburn Stump 90 -552 Attorney at Law 43 North Duke Street York, PA 17401 Re: Conflict, Public Official /Employee, Borough Councilmember, Fire Company, Councilmembers' As Members or Officers of Fire Company. Dear Ms. Stump: This responds to your letter of April 11, 1990, in which you requested advice from the State Ethics Commission. Issue: You ask whether the Public Official and Employee Ethics Law presents any prohibition or restrictions upon borough councilmembers regarding participating or voting on matters of a fire company and ambulance club when they are officers or members of that company. Facts: As the solicitor of Yoe Borough in York County and at the authorization of Ronald Crull, president of council and Richard Searle, member of council, you note that councilmember Searle is presently president of the fire company and council president Crull is an inactive member. As in a typical community, a large portion of the population contributes annually to the loca,1 fire company and ambulance club and, as such, are members of those organizations. Currently three of the seven councilmembers belong to the fire company and in the past there have been as many of five of the seven council members who are also members of the fire company although most of the five were inactive. The borough annually reviews the financial statements of the fire company and contracts with it for services. Although the fire company accounts for a small portion of the borough's annual budget, the borough has from time to time held title to the fire equipment when state and federal funds were available to local governments for such purchases. After the equipment was paid for, titles were subsequently transferred to the fire company. Prior to July, 1989 the fire company was the borough's landlord for its public meeting room and offices. In addition, the fire Page 2 company has on occasion had zoning applications. There is also a dialogue between the fire company relative to the sufficiency of its need for financial statements and appropriations by the borough to the fire company. The fire department has also been advisory to council on such matters as fire hydrant systems and other public safety matters. At your direction, officers of the fire company have abstained from issues involving the organization while other members who are otherwise inactive have participated in decisions concerning the fire company. You conclude by requesting advice as to whether Councilmen Searle as an officer of the fire company may participate in decisions involving the company and also whether Crull as an inactive member of the fire company may participate relative to matters involving the fire company. Discussion: As Councilmembers for Yoe Borough, Messrs. Searle and Crull are public officials as that term is defined under the Ethics Law, and hence they are subject to the provisions of that law. Section 3(a) of the Ethics Law provides: Section 3. Restricted Activities. (a) No public official or public employee shall engage in conduct that constitutes a conflict of interest. The following terms are defined in the Ethics Law as follows: Section 2. 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. "Conflict" or "conflict of interest" 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 or his immediate family or a business with Page 3 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 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. Section 3(j) of the Ethics Law provides as follows: Section 3. Restricted activities. (j) 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 "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. In addition, Sections 3(b) and 3(c) of the Ethics Law provide in part that no person shall offer to a public official /employee anything of monetary value and no public official /employee shall solicit or accept any thing of monetary value based upon the understanding that the vote, official action, or judgement of the public official /employee would be influenced thereby. Reference is made to these provisions of the law not to imply that there has or will be any transgression thereof but merely to provide a complete response to the question presented. Page 4 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. If a conflict exists, Section 3(j) requires the public official /employee to abstain as well as file a written memorandum to that effect with the person recording the minutes or supervisor. In applying the above provisions and definitions of the Ethics Law to the instant matter, it appears upon the submitted facts that Mr. Searle is associated with the fire company as that term is defined under the Ethics Law in that he is an officer therein whereas Mr. Crull would not appear to be so since he is an inactive member but not a director, officer, owner, employee or individual who has a financial interest in the fire company. Accordingly, although Mr. Crull, based upon the above assumptions, would not be precluded from participating or voting on matters of the fire company, Councilmember Searle would be so precluded because Section 3(a) of the Ethics Law restricts the use of authority of office by a public official to obtain a private pecuniary benefit for himself, a member of his immediate family or business with which he is associated. Accordingly, Mr. Searle could not under Section 3(a) of the Ethics Act participate and he must abstain and as per the requirements of Section 3(j) of the Ethics Law he must publicly note the reason for his abstention as well as file a written memorandum to that. effect with the secretary recording the minutes. The propriety of the proposed conduct has only been addressed under the Ethics Law; the applicability of any other statute, code, ordinance, regulation or other code of conduct other than the Ethics Law has not been considered in that they do not involve an interpretation of the Ethics Law. Specifically Page 5 not addressed herein is the applicability of the respective municipal code. Conclusion: As Councilmembers for Yoe Borough, Mr. Searle and Mr. Crull are public officials subject to the provisions of the Ethics Law. Under Section 3(a) of the Ethics Law, although Mr. Crull as an inactive member of the fire company would not be precluded from participating or voting on matters involving the fire company, Mr. Searle as president and hence as officer of the fire company would be precluded since that is a business with which he is associated as that term is defined under the Ethics Law. Mr. Searle must observe the requirements of Section 3(j) of the Ethics Law noted above. Lastly, the propriety of the proposed conduct has only been addressed under the Ethics Law. Pursuant to Section 7(9)(ii), this 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, providing the requestor has disclosed truthfully all the material facts and committed the acts complained of in reliance on the Advice given. such. This letter is a public record and will be made available as Finally, if you disagree with this Advice or if you have any reason to challenge same, you may request that the full Commission review this Advice. A personal appearance before the Commission will be scheduled and a formal Opinion from the Commission will be issued. Any such appeal must be in writing and must be received at the Commission within 15 days of the date of this Advice pursuant to 51 Pa. Code 2.12. Sincerely, Vincent Dopko , Chief Counsel