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HomeMy WebLinkAbout94-574 BowlenThomas A. Bowlen, Esquire Bowlen, Morrison & Miele 300 Court Tower 45 East Main Street Uniontown, PA 15401 Dear Mr. Bowlen: STATE ETHICS COMMISSION 309 FINANCE BUILDING P.O. BOX 11470 HARRISBURG, PA 1 71 08 -1 470 TELEPHONE (717) 783 -1610 ADVICE OF COUNSEL June 20, 1994 94 -574 Re: Conflict, Public Official /Employee, Solicitor, Law Firm, Joint Sewage Authority, Hiring Solicitor, Hiring Business Manager, Employment of Member of Law Firm. This responds to your letter of May 16, 1994 in which 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 municipality which will be forming a joint sewer authority with other municipalities, regarding the employment of a solicitor or a business manager of that municipal authority if the person is associated with the law firm of the member. Facts: The City of Uniontown and the Township of North Union and South Union have formed a joint sewer authority with a nine member board, three of which members are appointed from each municipality. The sewage authority board is currently in the process of hiring a solicitor and possibly a business manager. Motions carry at the board by a simple majority vote. One member of the authority who is appointed by South Union Township is a partner in your law firm which does business as a professional corporation. The law firm has three attorney each of whom has an equal vote and a one -third ownership interest with equal sharing in profits and losses of the corporation. As to the professional corporation, motions are carried by simple majority vote by the shareholders who manage the professional corporation rather than a board of directors. You inquire as to whether a shareholder attorney or an associate attorney of the professional corporation, with the exception of the attorney who is on the municipal authority board, may serve as solicitor or business manager for the sewage Bowlen, Thomas A., Esquire, 94 -574 June 20, 1994 Page 2 authority. 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. §$407(10), (11). An advisory only affords a defense to the extent the requestor has truthfully disclosed all of the material facts. As Municipal Authority Board Member appointed by South Union Township, the Board Member is a public official as that term is defined under the Ethics Law, and hence he 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. Bowlen, Thomas A., Esquire, 94 -574 June 20, 1994 Page 3 "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. 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 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 Bowlen, Thomas A., Esquire, 94 -574 June 20, 1994 Page 4 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 response to your specific inquiry as to whether a shareholder attorney or an associate attorney may serve as solicitor or business manager for the sewer authority, the Ethics Law does not prohibit the employment of the members of your professional corporation from being employed in such capacities; however, the Ethics Law does prohibit the Board Member who is appointed from South Union Township and who is a partner in your law firm from using the authority of office or confidential information by participating or voting as to the hiring process of the solicitor or business manager. See Obernier, Order 852. Similarly, the Ethics Law would prohibit such member from using the authority of office by participating or voting against any competitors for the position of solicitor or business manager of the sewage authority so as to insure that the shareholder or associate attorney's position would be enhanced or insured. See Pepper, Opinion 87 -008. Therefore, the Board Member who is the attorney in your firm would have a conflict as to employment of a solicitor /business manager where a member of the business with which he is associated is applying for the position. In such a case, he could not participate or vote and must observe the disclosure requirements of Section 3(j) of the Ethics Law noted above. 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 interprbtation of the' Ethics Law. Specifically not addressed herein is the applicability of the respective municipal code or Professional Rules of Conduct. Conclusion: As Municipal Authority Board Member, the individual is a public official subject to the provisions of the Ethics Law. Although the Ethics Law would not preclude a member of a law firm from serving as solicitor or business manger of a sewage authority Bowlen, Thomas A., Esquire, 94 -574 June 20, 1994 Page 5 when one of the board members of that authority is associated with the law firm, the Ethics Law would prohibit the use of confidential information or the authority of office by that board member to participate or vote regarding the hiring of the solicitor or business manager or voting against competitors for that position. The disclosure requirements of Section 3(j) must be satisfied. 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. 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). Failure to file such an appeal at the Commission within fifteen (15) days may result in the dismissal of the appeal. cerely, .ncent Dopk Chief Cou sel