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Home My WebLink About95-554 AndersonDonald E. Anderson Bethel Park Historical Society Box 933 Bethel Park, PA 15102 Dear Mr. Anderson: STATE ETHICS COMMISSION 309 FINANCE BUILDING P.O. BOX 11470 HARRISBURG, PA 1 71 08 -1 470 TELEPHONE (717) 783 -1610 ADVICE OF COUNSEL April 19, 1995 95 -554 Re: Conflict, Public Official /Employee, Private Employment or Business, Member, School Board, Non- Profit Corporation, Land, Sale. This responds to your letter of March 23, 1995, in which you requested advice from the State Ethics Commission. Issue: Whether a school board member is prohibited or restricted by the Public Official and Employee Ethics Law from working with, being employed by or associated with a business /person in a private capacity in addition to public service. Facts: You are a member of the Bethel Park School Board and the founder and president of the Bethel Park Historical Society. On April 19, 1995, the school board will discuss the sale of an unused school building to the historical society, which may result in a sale agreement. Such agreement would lead to a deed transferring the property from a non- profit, tax exempt school district to a non - profit, tax exempt historical preservation group for use as an arts center, community landmark, and possibly a regional museum for historical artifacts. The bylaws of the historical society forbid society board members to profit from the business of the society. You seek advice from the Commission under the Ethics Law and specifically ask if you are eligible to vote on the above matter as a school board member. You also ask if you would be barred from discussing price or terms concerning the sale in your capacity as a school board member. Discussion: As a school board member for the Bethel Park School Board, you are a public official as that term is defined under the Ethics Law, and hence you are subject to the provisions of that law. Anderson, Donald E., 95 -554 April 19, 1995 Page 2 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. "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 Anderson, Donald E., 95 -554 April 19, 1995 Page 3 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. In applying the above provisions of the Ethics Law to the instant matter, it is noted that Section 3(a) of the Ethics Law does not prohibit public officials /employees from outside business activities or employment; however, the public official /employee may not use the authority of office for the advancement of his own private pecuniary benefit or that of a business with which he is associated. Pancoe, Opinion 89 -011. A public official /employee must exercise caution so that his private business activities do not conflict with his public duties. Crisci, Opinion 89 -013. Thus, a public official /employee could not perform private business using governmental facilities or personnel. In particular, the governmental telephones, postage, staff, equipment, research materials, personnel or any other property could not be used as a means, in whole or part, to carry out private business activities. In addition, the public official /employee could not during government working hours, solicit or promote such business activity. Pancoe, supra. Similarly, Section 3(a) would expressly prohibit the use of confidential information received by holding public office / employment for such a prohibited private pecuniary benefit. In the event that your private employer or business has a matter pending before the school district governmental body or if you as part of such official duties must participate, review or pass upon that matter, a conflict would exist. Miller, Opinion 89- 024. In those instances, it will be necessary that you be removed from that process. In such cases as noted above, Section 3(j) of the Ethics Law would require not only that you abstain from participation but also file a written memorandum to that effect with the person recording the minutes or your supervisor. In summary, the Ethics Law would restrict the following: 1. The use of authority of office to obtain any business in a private capacity; 2. utilization of confidential information gained through public position; 3. participating in discussions, reviews, or recommendations on matters which relate to the business /private employer which may come before the governmental body and in such cases publicly announcing the relationship or advising the supervisor as well as filing a written memorandum as Anderson, Donald E., 95 -554 April 19, 1995 Page 4 per the requirements of Section 3(j) of the Ethics Law. Brooks, Opinion 89 -023. Turning now to your specific questions under the Ethics Law, you ask whether you would be eligible to vote and participate in discussions as a member of the school board concerning the proposed land sale. As outlined above, the historical society is a business with which you are associated. As such, you would have to remove yourself from any discussion, recommendation, review, evaluation, or vote on the school board concerning the proposed sale and observe the disclosure requirements of Section 3(j) of 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 Public School Code. Conclusion: As a school board member for the Bethel Park School Board, you are a public official subject to the provisions of the Ethics Law. Section 3(a) of the Ethics Law would not preclude you from outside employment /business activity subject to the restrictions and qualifications as noted above. In the event that the employer /business has matters pending before the school district, then you could not participate in that matter and the disclosure requirements of Section 3(j) of the Ethics Law as outlined above 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 Anderson, Donald E., 95 -554 April 19, 1995 Page 5 of this Advice pursuant to 51 Pa. Code 513.2(b). The appeal may be received at the Commission by hand delivery, United States mail, delivery service, or by FAX transmission ( 787 -0806) . Failure to file such as appeal at the Commission within fifteen (15) days may result fn the dismissal of the appeal. 1 cerely, Vincent Do,ko Chief Counsel