HomeMy WebLinkAbout94-501 PealeMichael O'Hara Peale,
Timoney Knox Hasson
STATE ETHICS COMMISSION
309 FINANCE BUILDING
P.O. BOX 11470
HARRISBURG. PA 17108 -1470
TELEPHONE (717) 783 -1610
ADVICE OF COUNSEL
January 11, 1994
Jr., Esquire
& Weand
400 Maryland Drive
P.O. Box 7544
Fort Washington, PA 19034 -7544
Re: Conflict, Public Official /Employee
Authority of Office or Confidential
Participating in Meetings and
Bargaining Agreement, Budget, Vote,
94-501
, School Director, Use of
Information, Negotiating,
Discussions, Collective
Immediate Family, Mother.
Dear Mr. Peale:
This responds to your letter of December 3, 1993 in which you
requested advice from the State Ethics Commission.
Issue: Whether the Public Official and Employee Ethics Law
presents any prohibition or restrictions upon a member of a school
boaad, whose mother is an employee and member of the bargaining
unit, from participating in budget and collective bargaining
agreement negotiations and voting on the budget and agreement.
Facts: As Solicitor for the Wissahickon School District, you have
been instructed by Mrs. Donna Leadbeater, a Member of the
Wissahickon School Board, to request an advisory on her behalf.
You state that Mrs. Leadbeater was recently elected to the
Board of Directors of the Wissahickon School District. Her mother
is employed by the School District as a school nurse and is a
member of the Wissahickon Education Association, the professional
employees' bargaining unit. Mrs. Leadbeater has lived in a
separate household from her mother for approximately twenty years
and she and her mother are financially independent.
The School District is about to engage in collective
bargaining under the Public Employee's Relations Act with the
bargaining unit of which Mrs. Leadbeater's mother is member. The
School District is in the process of preparing its budget. You
raise specific questions which are as follows:
Michael O'Hara Peale, Jr., Esquire
January 11, 1994
Page 2
1. May Mrs. Leadbeater participate, in any way, in the collective
bargaining with the Wissahickon Education Association?
2. May Mrs. Leadbeater attend executive sessions where
information and strategy concerning negotiations will be
discussed?
3. May Mrs. Leadbeater participate in discussions concerning the
adoption of a proposed budget?
4. May Mrs. Leadbeater, once the proposed budget has been adopted
by the Board and becomes a matter of public record,
participate in discussions concerning the budget? May she
vote on the adoption of a final budget?
5. Is the answer to #4 different if the proposed budget contains
no figures for anticipated professional employee salaries?
6. May Mrs. Leadbeater vote to approve or disapprove the
Collective Bargaining Agreement with the Bargaining Unit?
7. Is there any action, or disclosure, that Mrs. Leadbeater could
take which would permit her to have greater participation in
either the budgetary or negotiating process?
Based upon the above, you request an advisory from the State
Ethics Commission.
Discussion: It is initially noted that pursuant to Sections 7(10)
and 7(11) of the Ethics Law, 65 P.S. §S407(10), (11), advisories
are issued to the requestor based upon the facts which the
requestor has submitted. In issuing the advisory based upon the
facts which the requestor has submitted, the Commission does not
engage in an independent investigation of the facts, nor does it
speculate as to facts which have not been submitted. It is the
burden of the requestor to truthfully disclose all of the material
facts relevant to the inquiry. 65 P.S. §S407(10), (11). An
advisory only affords a defense to the extent the requestor has
truthfully disclosed all of the material facts.
It is further noted that your request for advice may only be
addressed with regard to prospective conduct. A reading of
Sections 7(10) and 7(11) of the Ethics Law makes it clear that an
opinion or advice may be given only as to prospective (future)
conduct. If the activity in question has already occurred, the
Commission may not issue an opinion or 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 Law violations
by a person who is subject to the Ethics Law.
Michael O'Hara Peale, Jr., Esquire
January 11, 1994
Page 3
As a Director for the Wissahickon School District, Mrs. Donna
Leadbeater is a public official as that term is defined under the
Ethics Law, and hence she is 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 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.
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 anything of monetary value based upon the
understanding that the vote, official action, or judgement of the
Michael O'Hara Peale, Jr., Esquire
January 11, 1994
Page 4
public official /employee would be influenced thereby. Reference is
made to these provisions of the law not to imply that there has
been or will be any transgression thereof but merely to provide a
complete response to the question presented.
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
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 and to publicly disclose the
abstention and reasons for same, both orally and by filing a
written memorandum to that effect with the person recording the
minutes or supervisor.
In the event that the required abstention results in the
inability of the governmental body to take action because a
majority is unattainable due to the abstention(s) from conflict
Michael O'Hara Peale, Jr., Esquire
January 11, 1994
Page 5
under the Ethics Law, then in that event participation is
permissible provided the disclosure requirements noted above are
followed. See, Mlakar, Advice 91- 523 -S.
It is clear in this case that under the Ethics Law, Mrs.
Leadbeater's mother is a member of her "immediate family ". The
seminal Commission decision which applies Section 3(a) under
similar facts is van Rensler, Opinion 90 -017. The issue in Van
Rensler was whether the Ethics Law prohibited school board
directors from participating on a negotiating team and voting on a
collective bargaining agreement when members of their immediate
families were school district employees represented by the
bargaining units. The Commission concluded that the Ethics Law
would not restrict the school board directors from voting on the
finalized agreement, but that the school board directors could not
take part in the negotiations leading to the finalized agreement.
In reaching this conclusion, the Commission held that the school
board directors could vote on the finalized agreement because of
the exclusion in the definition of "conflict or conflict of
interest" which applies if the immediate family member is a member
of a subclass consisting of an industry, occupation or other group
containing more than one member and the family member would be
affected exactly as the other members of the subclass. The
Commission held that if these two prerequisites for applying the
exclusion were met, the school directors could vote on the final
collective bargaining agreement.
However, the Commission held that the Ethics Law precluded the
participation of the directors in the negotiation process. Citing
prior opinions under former Act 170 of 1978, the Commission
recognized the underlying reasoning of those prior opinions with
the purpose of insuring that public officials are impartial and
that their interests are sufficiently separated from their
responsibility to the public. Van Rensler, at 4. The Commission
cited the definition of "conflict of interest" in Act 9 of 1989 as
specifically prohibiting a public official or employee from using
confidential information relating to the family members' bargaining
units. The risk of disclosure of that information was held to
preclude the school board directors from participating in
negotiations where family members are part of the bargaining unit.
In so holding, the negotiation process would be free of any
influence of such a school board director and the potential for the
use of confidential information would be "minimized if not
eliminated ". Id, at 4 -5. Thus, a fundamental basis for the Van
Rensler Opinion was precluding the use of confidential information
obtained through the public office as school board director to
defeat the bargaining process.
The exclusion that exists within the definition of conflict
regarding use of authority of office applies when such use affects
Michael O'Hara Peale, Jr., Esquire
January 11, 1994
Page 6
to the same degree a class or sub -class consisting of an occupation
or other group which would include a member of the public
official's immediate family. This concept is set forth in Val
Rensler and the advisories which follow it. The instant matter
requires special consideration since Mrs. Leadbeater's mother is a
school nurse for the School District, rather than a teacher as was
the case in Van Rensler. In order for the exclusion within the
definition of conflict to apply, it is necessary that her mother be
part of a sub -class of school nurses, that is, there must be more
than one school nurse. In addition, her mother could not be
affected any differently from any other school nurse.
Alternatively, her mother could be in another subclass, within a
group of people with a certain number of years experience, for
example. The key factors are that she is in a subclass consisting
of more than just one person and that each member of that subclass
is treated equally. This result reflects the legislative intent
that a public official does not have a conflict as to himself, a
member of his immediate family or business with which he is
associated when he, a member of his immediate family or the
business is not affected any differently from the class or
subclass. See, Davis, Opinion No. 89 -012 (School director's father
was school district police officer).
By applying the above provisions of the Ethics Law and the Van
Rensler and Davis decisions to this case, your inquiries will be
responded to seriatim.
First, Mrs. Leadbeater may not participate in the collective
bargaining with the Wissahickon Education Association for the
reasons set forth above in Van Rensler and Davis.
Second, Mrs. Leadbeater may not attend executive sessions
where information and strategy concerning negotiations will be
discussed for the reasons set forth- in Van Rensler and Davis.
Attending executive sessions, as with participating in the
collective bargaining, presents the risk of disclosure of
confidential information that the Ethics Law prohibits.
Accordingly, such attendance at executive sessions would be
prohibited.
Third, Mrs. Leadbeater may not participate in discussion
concerning the adoption of a proposed budget. Again, as set forth
in the above paragraphs, this activity would be comparable to
negotiating since she would be actively participating in a process
whereby confidential information could be used to affect the
outcome.
As to the fourth posed question, reference must be made to
Mattie, Advice No. 91 -508. In Mattie, the focus of concern was
upon the receipt of certain specific information as to the proposed
Michael O'Hara Peale, Jr., Esquire
January 11, 1994
Page 7
budget at a point where it was confidential information and could
impact upon the collective bargaining process. Therefore, its
receipt by the school director who had the conflict would
contravene the Ethics Law. The Advice specifically stated:
Once the proposed budget is a matter of public
record, it is no longer confidential
information. The school board director may
gain access to the proposed budget and may
vote on the proposed budget without
transgressing the Ethics Law assuming as a
first condition that the proposed budget first
becomes a matter of public record.
Mattie, Advice No. 91 -508 at 4 -5.
In this case, conditioned upon the assumption that the
collective bargaining agreement would have been finally approved,
it would presumably become a matter of public record.
Additionally, there would be no further potential for official
participation as to that agreement if it had been finalized. Thus,
the concerns raised in Mattie would not apply to restrict Mrs.
Leedbeater's access to information which is no longer confidential
after a collective bargaining agreement has been finally approved.
However, information which would remain confidential, such as
information which would reveal the strategy used in negotiations
(e'en if reflected in confidential budgetary information) , could
not be accessed by Mrs. Leadbeater. After the budget has been
adopted, whether she may receive specific budget information on the
cost of various provisions, salaries or elements of the collective
bargaining agreement in current and prior years hinges upon the
confidentiality of such information. To the extent the specific
budget information sought is a matter of public record, Mrs.
Leadbeater, as well as any other member of the public, may have
acxes to it. To the extent it remains confidential information
and could impact upon pending or future collective bargaining
agreements, she may not have access to it. See also, Wise, Advice
No. 93 -545. Mrs. Leadbeater may, however, in accordance with Van
Ressler and Davis, vote on the adoption of a final budget.
Fifth, the answer to question 4 is not different if the budget
contains no figures regarding salaries. The crucial factor is the
ccfidential information and the guidelines set forth in the
response to question 4 above must be followed.
Sixth, Mrs. Leadbeater may vote to approve or disapprove the
collective bargaining agreement. Again, based on the Commission's
Opinion in Van Rensler and the Davis Advice, such vote is permitted
provided the exclusion under the conflict of interest definition
applies whereby the immediate family member is a member of a
Michael O'Hara Peale, Jr., Esquire
January 11, 1994
Page 8
subclass consisting of an occupation or other group and that
individual would be affected exactly as other subclass members.
Seventh, there is no other action or disclosure Mrs.
Leadbeater could take to permit her to have more participation in
the process. The above comprehensively covers the restrictions and
prohibitions under which she must act and it is those guidelines
which must be followed. There is no allowance for further
flexibility or exception under the Ethics Law.
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 not addressed
herein is the applicability of the Pennsylvania Public School Code.
Conclusion: As a Director for the Wissahickon School. District,
Mrs. Donna Leadbeater is a public official subject to the
provisions of the Ethics Law. The Ethics Law would not prohibit
Mrs. Leadbeater from voting on a final budget or contract when a
member of her immediate family is an employee of the Wissahickon
School District as long as her mother is a member of a subclass
consisting of more than just her mother and each member in that
subclass is treated equally. However, she may not participate in
negotiations or attend meetings where the contract or budget is
being discussed. After the collective bargaining agreement has
been approved, Mrs. Leadbeater may receive specific budgetary
information, conditioned upon the assumption that such information
is no longer confidential. The prohibitions and restrictions
regarding her actions as set forth above must be followed. 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
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.
Michael O'Hara Peale, Jr., Esquire
January 11, 1994
Page 9
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).
7 ncerely,
,,,,
Vincent J. Dopko
Chief Counsel