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STATE ETHICS COMMISSION
309 FINANCE BUILDING
P.O. BOX 11470
HARRISBURG. PA 17108 -1470
TELEPHONE (717) 783 -1610
ADVICE OF COUNSEL
January 11, 1994
Re: Board Director, Board A; Public Official; FIS
94 -500
This responds to your letter of November 29, 1993, in which
you requested advice from the State Ethics Commission.
Issue: Whether a Board Member with Board A, hereinafter "Board ",
is to be considered a "public official" as that term is defined in
the Public Official and Employee Ethics Law, and therefore, whether
such individual is required to file a Statement of Financial
Interests.
Facts: You question whether your activities and functions fall
within the purview of the definition of "public official" as that
phrase is defined in the State Ethics Law and the regulations of
this Commission. You state that the Board is a quasi governmental
board. At a recent monthly Board meeting, you raised the question
with your fellow Directors as to whether you were bound by the
Public Official and Employee Ethics Law and thus required to file
Statements of Financial Interests.
You state that you were concerned because the Board makes
decisions on allocation of public monies for Project B and Project
C. You indicate that the Board receives federal and state funds
under Program D from Agency F and Department F, Bureau G.
You have submitted a copy of the Board's latest informational
booklet which contains the By -laws, Board composition, mission,
etc., which document is incorporated herein by reference.
Additional information was obtained from Bureau G.
Board A is a non - profit corporation established in Year H.
Board A was organized under Commonwealth of Pennsylvania's non-
profit corporation laws so as to make Board A eligible for state
and federal grants.
Confidential Advice No. 94 -500
January 11, 1994
Page 2
According to Board A's by -laws, the organization was created
to perform diagnostic feasibility studies, to evaluate the problems
of Area I, to determine pollutant sources, to develop and implement
a comprehensive watershed management plan, to implement best
management practices in order to control pollutant loadings, to
protect public health and welfare, and to promote environmental
consciousness within Area I. Board A has no regulatory or
enforcement powers. It functions as a source of technical
assistance and believes that voluntary compliance is the most
effective means of solving problems. On the rare occasion when
voluntary compliance is not achieved, the Board will refer the
violation to the proper regulatory agency.
Board A was set up when Act J was passed. This Board then
applied for federal money under Act K. The Board puts together a
work plan which is approved by Agency E. A contract is then put in
place with Department F. The Board, in its work plan, states what
it will spend the money on, monitoring, reporting, education, etc.,
as approved by Agency E. Agency E gives the money to Department F
and that department then, pursuant to the contract, gives it to
Board A.
Phase I, which Board A completed, consisted of a feasibility
study and the establishment of a District Board of Directors with
staff. Board A then applied for and received Phase II money from
Agency E. This money is given to Board A by Agency E through the
state, Department F. Phase II was recently completed in the end of
December, 1993. The organization has been continued by donations
from local municipalities and private concerned citizens, however,
it is not a governmental organization of any type.
Based upon the above, you request a confidential advisory from
the State Ethics Commission.
Discussion: The primary question to be answered is whether you are
to be considered a "public official" as that term is defined in the
State Ethics Law:
Section 2. 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 the State 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
Comiriclential Advice No. 94 -500
Jamnry 11, 1994
Paw 3
any political subdivision thereof.
657.S. §402.
In reviewing your question, the Commonwealth Court in its
ruling in Phillips v. State Ethics Commission 79 Pa.Commw. 491,
471 A.2d 659 (1984), at page 661, directs the Commission to
ctrue coverage of the Ethics Act broadly, rather than narrowly,
and conversely, directs that exclusions from the Ethics Act should
be narrowly construed. Based upon this directive and reviewing the
definition of "public official" in the statute and the regulations
aril opinions of this Commission, in light of the functions of Board
A, it must be concluded that you are not a "public official"
subject to the financial reporting and disclosure requirements of
the State Ethics Act.
Thus, because you do not fall within the classification of the
tern "public official," you would not be subject to the financial
reporting and disclosure requirements of the State Ethics Law.
Accordingly, you would not be required to file the Statement of
Fincial Interest for the years in which you served.
Even though you are not a public official as that term is
defined under the Ethics Law, you are subject to Section 3(b) and
3(c) of the Ethics Law which applies to everyone.
Section 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.
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 Law has not been considered in that they do not
involve an interpretation of the Ethics Law.
Conclusion: In the position of a Member of Board A, you are not to
be considered a public official as defined in the State Ethics Law.
Accordingly, you would not be subject to the reporting and
disclosure requirements of the State Ethics Law and need not file
a Statement of Financial Interests. Sections 3(b) and (c) of the
Ethics Law are applicable to everyone. Lastly, the propriety of
the proposed conduct has only been addressed under the Ethics Law.
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
Confidential Advice No. 94 -504
January 11, 1994
Page 4
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 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 writing and must be actually
received at the Commission within fifteen (15) days of the date of this
Advice pursuant 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 -787- 0806).
S incerely,
Vincent J. Dopko
Chief Counsel