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HomeMy WebLinkAbout94-639 WagnerDear Mr. Wagner: STATE ETHICS COMMISSION 309 FINANCE BUILDING P.O. BOX 11470 HARRISBURG, PA 17108 -1470 TELEPHONE (717) 783 -1610 ADVICE OF COUNSEL December 6, 1994 Anthony E. Wagner Deputy Secretary for Administration Commonwealth of Pennsylvania Department of Agriculture 2301 North Cameron Street Harrisburg, PA 17110 -9408 94 -639 Re: Former Public Employee; Section 3(g); Executive -Level State Employee; Section 3(i); Deputy Secretary for Administration; Department of Agriculture. This responds to your letter of November 9, 1994, in which you requested advice from the State Ethics Commission. Issue: Whether the Public Official and Employee Ethics Law presents any restrictions upon employment of the Deputy Secretary for Administration of the Commonwealth of Pennsylvania, Department of Agriculture following termination of service with the Department of Agriculture. Facts: As the Deputy Secretary for Administration for the Commonwealth of Pennsylvania, Department of Agriculture, you request an advisory from the State Ethics Commission as to any prohibitions or restrictions of the Ethics Law which would be applicable to you should you resign your present post and assume employment with the Pennsylvania State University, College of Agricultural Sciences as Director of Legislative Relations. The principal duties and responsibilities of the Director of Legislative Relations include serving as the Dean of the College of Agricultural Sciences' liaison with the executive and legislative branches of state and federal governments. In addition, the incumbent of this position may be elected by the State Farm Products Show Commission to serve in a non - voting capacity such as Secretary to the Commission. The Commission oversees the annual State Farm Show as well as the overall operation of the Farm Show Complex. Wagner, Anthony E., 94 -639 December 6, 1994 Page 2 Based upon all of the above you request an advisory from the State Ethics Commission. Discussion: As the Deputy Secretary for Administration for the Commonwealth of Pennsylvania, Department of Agriculture (hereinafter, "Department of Agriculture "), 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. §402; 51 Pa. Code §11.1. In addition, you are an executive -level state employee as that term is defined under the Ethics Law, and hence you are subject to the requirements of Section 3(i) of the Ethics Law, infra. Before addressing your . specific inquiry, the pertinent provisions of the Ethics Law shall be set forth verbatim. 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 Wagner, Anthony E., 94 -639 December 6, 1994 Page 3 which is necessary to the performance of duties and responsibilities unique to a particular public office or position of public employment. "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. "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. "Executive -level State employee." The Governor, Lieutenant Governor, cabinet members, deputy secretaries, the Governor's office staff, any State employee with discretionary powers which may affect the outcome of a State agency's decision in relation to a private corporation or business or any employee who by virtue of his job function could influence the outcome of such a decision. 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(i) of the Ethics Law provides: Section 3. Restricted Activities (i) No former executive -level State employee may for a period of two years from the time that he terminates his State employment be employed by, receive compensation from, assist or act in a Wagner, Anthony E., 94 -639 December 6, 1994 Page 4 representative capacity for a business or corporation that he actively participates in recruiting to the Commonwealth of Pennsylvania or that he actively participated in inducing to open a new plant, facility or branch in the Commonwealth or that he actively participated in inducing to expand an existent plant or facility within the Commonwealth, provided that the above prohibition shall be invoked only when the recruitment or inducement is accomplished by a grant or loan of money or a promise of a grant or loan of money from the Commonwealth to the business or corporation recruited or induced to expand. Having set forth the above provisions, the status of your prospective employer, the Pennsylvania State University must be discussed. In McOuaide, Opinion 80 -043, the State Ethics Commission held that trustees and employees of the Pennsylvania State University were not public officials /public employees subject to coverage under the Ethics Law. In Novak, Opinion 91 -009, the Commission cited McOuaide with approval and concluded that Pennsylvania State University would be classified as a "business" under the statutory definitions contained in the Ethics Law, Act 9 of 1989. Therefore, in this case, there is no question that you would be leaving government service to work for a private employer. Under Section 3(a) of the Ethics Law quoted above, a public official /employee may not use the authority of public office/ employment or confidential information received by holding such a public position for the private pecuniary benefit of himself, a member of his immediate family, or business with which he or a member of his immediate family is associated. In applying Section 3(a) of the Ethics Law to the proffered facts, Section 3(a) would prohibit you from using the position or emoluments of your public position or confidential information to advance an opportunity of private employment with the Pennsylvania State University. Once again, it is not suggested that you have engaged in such conduct and the foregoing is provided to give a complete response to your inquiry. As to Section 3(i) of the Ethics Law, you are subject to that provision of law since you are an executive -level state employee. However, Section 3(i) would not restrict you from the position of employment with the Pennsylvania State University provided you did not actively participate in recruiting or inducing the Pennsylvania State University to open a new facility or branch in the Commonwealth or participate in inducing the Pennsylvania State Wagner, Anthony E., 94 -639 December 6, 1994 Page 5 University to expand an existing plant or facility that was accomplished by a grant or loan of money or a promise of a grant or loan of money from the Commonwealth of Pennsylvania to the Pennsylvania State University. The facts do not indicate whether you actively participated in recruiting or inducing the Pennsylvania State University to open a new facility or branch or expand through a grant or loan of money or a promise of a grant or loan of money from the Commonwealth. Conditioned upon the assumption that there has been no active participation by you in such recruitment or inducement of the Pennsylvania State University to open or expand a facility or branch through a grant or loan of money or a promise of a grant or loan of money from the Commonwealth of Pennsylvania, you would not be prohibited from accepting the position of employment with the Pennsylvania State University. Upon termination of your present public service, you would become a "former public employee "' subject to Section 3(g) of the Public Official and Employee Ethics Law. Section 3(g) of the Ethics Act provides that: 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 have been associated while working with the Department of Agriculture must be identified. Then, the scope of the 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. "Governmental 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 Wagner, Anthony E., 94 -639 December 6, 1994 Page 6 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 will have been associated upon termination of public service will be the • Department of Agriculture in its entirety, as well as all boards and commissions both within and outside of the Department of Agriculture as to which you served as Chair and /or as a member. 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. See, Sirolli, Opinion 90 -006; Sharp, Opinion 90- 009 -R; Confidential Opinion, 91 -002; Freeman, Opinion 91 -010. Therefore, within the first year after termination of service with the Department of Agriculture, Section 3(g) of the Ethics Law would apply and restrict representation of persons or new employers vis -a -vis your former governmental body as defined above. 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 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..." Legislative 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 have been associated is the Department of Agriculture in its entirety as well as all boards and commissions both within and outside of the Department of Agriculture as to which you served as Chair and /or as a member. It is noted that based upon the facts which have been Wagner, Anthony E., 94 -639 December 6, 1994 Page 7 submitted, this Advice cannot conclusively determine whether the State Farm Products Show Commission would be part of your former governmental body. It would be part of your former governmental body if it is part of the Department of Agriculture or is a commission which you serve as Chair and /or as a member. 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 not limited to, the following: personal appearances, negotiations, lobbying and submitting bid or contract proposals which are signed by or contain the name of a former public official or public employee. 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 by or contain the name of the former public official /employee; Wagner, Anthony E., 94 -639 December 6, 1994 Page 8 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. You may assist in the preparation of any documents presented to your former governmental body. However, you may not be identified on documents submitted to your former governmental body. You may also counsel any person regarding that person's appearance before your former governmental body. Once again, however, the activity in this respect should not be revealed to your former governmental body. Of course, any ban under the Ethics Law would not prohibit or preclude the making of general informational inquiries of your former governmental body 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, 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. In Confidential Opinion 93 -005, the Commission held that Section 3(g) precludes a former public official /employee from providing consulting services to his former governmental body for a period of one year after termination of service in that the prohibition against representing a person includes the former Wagner, Anthony E., 94 -639 December 6, 1994 Page 9 public official /employee representing himself. 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. Specifically not addressed herein is the Governor's Code of Conduct. Conclusion: As the Deputy Secretary for Administration for the Commonwealth of Pennsylvania, Department of Agriculture ( "Department of Agriculture "), you are to be considered a "public employee" and an executive -level state employee subject to the provisions of the Ethics Law. Under Section 3(i) of the Ethics Law, you would not be prohibited from accepting a position of employment with the Pennsylvania State University based upon the assumption that you did not actively participate in inducing or recruiting said business to open or expand a facility or branch through a grant or loan of money or a promise of a grant or loan of money from the Commonwealth of Pennsylvania. Upon termination of service with the Department of Agriculture, you would become a "former public employee" subject to Section 3(g) of the Ethics Law. The former governmental body would be the Department of Agriculture in its entirety, as well as all boards and commissions both within and outside of the Department of Agriculture as to which you served as Chair and /or as a member. 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 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 Wagner, Anthony E., 94 -639 December 6, 1994 Page 10 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 513.2(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. Sincerely, fl Vincent . Dopko Chief Counsel