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HomeMy WebLinkAbout92-504W. J. O'Keefe 2035 Red Coach Road Allison Park, PA 15101 Dear Mr. O'Keefe: STATE ETHICS COMMISSION 309 FINANCE BUILDING P.O. BOX 11470 HARRISBURG, PA 17108-1470 TELEPHONE (717) 783 -1610 ADVICE OF COUNSEL January 13, 1992 92 -504 Re: Conflict of Interest; Investigator; State Ethics Commission; Private Investigator; Former Public Employee; Section 3(g). This responds to your letter of November 13, 1991 in which you requested advice from the State Ethics Commission. Issue: Whether the Public Official and Employee Ethics Law presents any restrictions upon your prospective employment as a private investigator following termination of service with the State Ethics Commission as a Special Investigator III. Facts: As a Special Investigator III with the State Ethics Commission, you seek the advice of this Commission regarding your prospective employment as a private investigator following your planned retirement from the Commission effective January 10, 1992. Upon retirement, you plan to join a newly formed corporation which will do confidential investigations for major corporations and other entities, some of which could be boroughs, townships, municipalities, and the like. You note that your position with the corporation will be on a part -time, contractual basis. Although you will not be a principal in the corporation, your name and your connection with this Commission would be part of a brochure developed for mailing to prospective clients. You specifically inquire as to what restrictions would be placed upon you under the following two scenarios: (1) If you became a member of the corporation and investigated assigned cases for the Mr. W. J. O'Keefe January 13, 1992 Page 2 corporation with your name being used in the brochure; or (2) If as a part -time contractor, your name were to be used in the brochure, and you were to investigate cases assigned by contract. You have submitted approximately seven pages of informational material outlining the organization and anticipated business to be conducted by the corporation, all of which material is incorporated herein by reference. Additionally, copies of your job description, job classification specification, and organizational chart have been obtained from the Administrative Officer of this Commission, all of which documents are also incorporated herein by reference. Discussion: As a Special Investigator III for the State Ethics Commission, you are to be considered a "public employee" within the definition of that term as set forth in the Public Official and Employee Ethics Law and the Regulations of this Commission. 65 P.S. Section 402; 51 Pa. Code Section 1.1. Generally, the Ethics Law does not place any per se prohibition upon a Special Investigator III for the Commonwealth engaging in private employment as a private investigator upon termination of public employment. However, Sections 3(a) and 3(g) and various confidentiality provisions of the Ethics Law are implicated and will be discussed below. 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. 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. Mr. W. J. O'Keefe January 13, 1992 Page 3 "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 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 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(a) would prohibit the use of the authority of public employment or any confidential information received by holding public employment for the private pecuniary benefit of the public employee himself, any member of his immediate family, or any business with which he or a member of his immediate family is associated. Generally, Section 3(a) would prohibit the use of the facilities, status or activities of public employment to advance an opportunity of private employment and /or to eliminate any potential competitors for such a private employment position. gas, Wall, Advice 90 -567 at 4 (citing Pepper, Opinion 87 -008). However, Section 3(a) would not restrict the inclusion of your Mr. W. J. O'Keefe January 13, 1992 Page 4 tenure with this Commission in your resume /curriculum vitae, or on a corporate brochure enumerating your credentials. Any use of confidential information received by holding a position of public employment with this Commission would be prohibited by Section 3(a) and by the various confidentiality provisions set forth in the Ethics Law. Under Section 3(a), confidential investigative files and other types of confidential information available to you by virtue of your position with this Commission could not be used for a prohibited private pecuniary benefit, such as the benefit of your private employer. eft, Conway, Advice 87 -625. But furthermore, you would be required to observe the various confidentiality requirements of the Ethics Law which specifically pertain to matters before this Commission, as an absolute legal duty and without regard to any private pecuniary benefit. A number of situations may arise where you could be placed in a difficult situation with regard to confidentiality. For example, if as a private investigator you should be assigned to a case regarding a particular individual or matter which had been the subject of investigation by this Commission, it is difficult to imagine how you could perform the private investigation without using confidential information which you had obtained through your public employment. Similar problems could arise should you represent a private client as to whom you were privy to confidential information by virtue of your public employment. The better practice in such situations would be for you to forgo any involvement in such private investigations. Turning now to termination of public employee" subject to Employee Ethics Law. that: the applicability of Section 3(g), upon service, you would become a "former public Section 3(g) of the Public Official and Section 3(g) of the Ethics Act provides Section 3. Restricted activities. (g) No former public official or public employee shall represent a person, with promised or . actual compensation, on any matter before the governmental body with which he has been associated for one year after he leaves that body. Initially, to answer your request the governmental body with which you were associated while working with the State Ethics Commission must be identified. Then, the scope of the Mr. W. J. O'Keefe January 13, 1992 Page 5 prohibitions associated with the concept and term of "representation" must be reviewed. The term "governmental body with which a public official or public employee is or has been associated" is defined under the Ethics Law as follows: Section 2. Definitions. "GBvernmental body with which a public official or public employee is or has been associated." The governmental body within State government or a political subdivision by which the public official or employee is , or has been employed or to which the public official or employee is or has been appointed or elected and subdivisions and offices within that governmental body. In applying the above definition to the instant matter, we must conclude that the governmental body with which you were associated upon termination of publid service would be the State Ethics Commission, ,including but not limited to the Pittsburgh Regional Office. The above is based upon the language of the Ethics Law, the legislative intent (Legislative Journal of House, 1989 Session, No. 15 at 290, 291) and the prior precedent of this Commission. Thus, in Sirolli, Opinion 90 -006, the Commission found that a former Division Director of the Department of Public Welfare (DPW) was not merely restricted to the particular Division as was contended but was in fact restricted to all of DPW regarding the one year representation restriction. Similarly in Sharp, Opinion 90- 009 -R, it was determined that a former legislative assistant to a state senator was not merely restricted to that particular senator but to the entire Senate as his former governmental body. Therefore, within the first year after termination of service with the State Ethics Commission, Section 3(g) of the Ethics Law would apply and restrict representation of persons or new employers vis -a -vis the State Ethics Commission. It is noted that Act 9 of 1989 significantly broadened the definition of the term "governmental body with which a public official or public employee is or has been associated." It was the specific intent of the General Assembly to define the above term so that it was not merely limited to the area where a public Mr. W. J. O'Keefe January 13, 1992 Page 6 official /employee had influence or control but extended to the entire governmental body with which the public official /employee was associated. The foregoing intent is reflected in the legislative debate relative to the amendatory language for the above term: We sought to make particularly clear that when we are prohibiting for 1 year that revolving -door kind of conduct, we are dealing not only with a particular subdivision of an agency or a local government but the entire unit..." L►eaislative Journal of House, 1989 Session, No. 15 at 290, 291. Therefore, since the Ethics Law must be construed to ascertain and effectuate the intent of the General Assembly under 1 Pa. C.S.A. 1901, it is clear that the governmental body with which you were associated is the State Ethics Commission including but not limited to the Pittsburgh Regional Office. Turning now to the scope of the restrictions under Section 3(g), the Ethics Law does not affect one's ability to appear before agencies or entities other than with respect to the former governmental body. Likewise, there is no general limitation on the type of employment in which a person may engage, following departure from their governmental body. It is noted, however, that the conflicts of interest law is primarily concerned with financial conflicts‘ and violations of the public trust. The intent of the law generally is that during the term of a person's public employment he must act consistently with the public trust and upon departure -from the public sector, that individual should not be allowed to utilize his association with the public sector, officials or employees to secure for himself or a new employer, treatment or benefits that may be obtainable only because of his association with his former governmental body. In respect to the one year restriction against such "representation," the Ethics Law defines "Represent" as follows: Section 2. Definitions. "Represent." To act on behalf of any other person in any activity which includes, but is,, limited to, the following: personal appearances, negotiations, lobbying and submitting bid or contract proposals Mr. W. J. O'Keefe January 13, 1992 Page 7 which are signed by or contain the name of a former public official or public employee. In addition, the term "Person" is defined as follows under the Ethics Law: Section 2. Definitions. "Person." A business, governmental body, individual, corporation, union, association, firm, partnership, committee, club or other organization or group of persons. The Commission, in Popovich, Opinion 89 -005, has also interpreted the term "representation" as used in Section 3(g) of the Ethics Law to prohibit: 1. Personal appearances before the former governmental body or bodies, including, but not limited to, negotiations or renegotiations in general or as to contracts; 2. Attempts to influence; 3. Submission of bid or contract proposals which are signed or contain the name of the former public official /employee; 4. Participating in any matters before the former governmental body as to acting on behalf of a person; 5. Lobbying, that is representing the interests of any person or employer before the former governmental body in relation to legislation, regulations, etc. The Commission has also held that listing one's name as the person who will provide technical assistance on such proposal, document, or bid, if submitted to or reviewed by the former governmental body constitutes an attempt to influence the former governmental body. In Shay, Opinion 91 -012, the Commission held that Section 3(g) would prohibit the inclusion of the name of a former public official /public. employee on invoices submitted by his new employer to the former governmental body, even though the invoices pertained to a contract which existed prior to termination of public service. Therefore, within the first year after termination of service, you should not engage in the type of activity outlined above. Mr. W. J. O'Keefe January 13, 1992 Page 8 You may, assist in the preparation of any documents presented to the State Ethics Commission so long as you are not identified as the preparer. You may also counsel any person regarding that person's appearance before the State Ethics Commission. Once again, however, the activity in this respect should not be revealed to the State Ethics Commission. Of course, any ban under the Ethics Law .would not prohibit or preclude the making of general informational inquiries of the State Ethics Commission to secure information which is available to the general public. This must not be done in an effort to indirectly influence the former governmental body or to otherwise make known to that body the representation of, or work for the new employer. 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 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. Once again, 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. It is noted that the above restrictions of the Ethics Law would apply to you whether your future status with your prospective employer is as an employee or alternatively is as a part -time contractor investigating cases assigned through a contract with the corporation. Lastly, 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 Act has not been considered in that they do not involve an interpretation of the Ethics Law. Conclusion: As a Special Investigator III for the State Ethics Commission, you are to be considered a "public employee" as defined in the Ethics Law. Subject to the various qualifications and restrictions noted above, the Ethics Law would not prohibit your prospective employment as a private investigator upon termination of public service with this Commission. The Ethics Law would not restrict the inclusion of your tenure with this Commission in your resume /curriculum vitae or on a brochure enumerating your credentials. Section 3(a) would prohibit the use of confidential information available to you by virtue of your public employment to benefit you or your private employer. The various confidentiality provisions of the Ethics Law must be Mr. W. J. O'Keefe January 13, 1992 Page 9 observed at all times. Upon termination of service with the State Ethics Commission, you would become a "former public employee" subject to Section 3(g) of the Ethics Law. The former governmental body is the State Ethics Commission, including but not Baited to the Pittsburgh Regional Office. The restrictions as to representation outlined above must be followed. The propriety of the proposed conduct has only been addressed under the Ethics Law. Further, should service be terminated, as outlined above, the Ethics Law also requires that a Statement of Financial Interests be filed for the year following termination of service. Pursuant to Section 7(11), 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 52.12. Sincerely, cTI/t> Vincent J. Dopko Chief Counsel