HomeMy WebLinkAbout96-516 EleuteriOtto Eleuteri
Director
Bureau of Personnel
Department of Labor & Industry
1401 Labor & Industry Building
Harrisburg, PA 17120
Dear Mr. Eleuteri:
STATE ETHICS COMMISSION
309 FINANCE BUILDING
P.O. BOX 11470
HARRISBURG, PA 1 71 08 -1 470
TELEPHONE (717) 783 -1610
ADVICE OF COUNSEL
February 29, 1996
.. adjudicates initial claims for disability benefits filed under the Federal
Social Security Act and related Federal legislation. Work involves
evaluating medical and psychological evidence in conjunction with a
physician and, on the basis of this and relevant vocational and other
evidence, writing disability decisions with supporting rationale. Employes
exercise independent judgment in making decisions based on medical
evidence, applicable Federal laws and pertinent Federal and state
96 -516
Re: Department of Labor & Industry; Disability Claims Adjudicators; Public
Employee; FIS.
This responds to your letter dated January 26, 1996 requesting advice from the
State Ethics Commission.
Issue: You ask whether Disability Claims Adjudicators (hereinafter "DCA ") with
the Department of Labor & Industry (hereinafter "L &I "), are to be considered "public
employees" as that term is defined in the Public Official and Employee Ethics Law so
as to be required to file Statements of Financial Interests (FIS).
Facts: You question whether the activities and functions of DCA's with L &I fall
within the purview of the definition of "public employee" as that phrase is defined in
the Ethics Law and the regulations of this Commission. In order to review the question
presented, we will briefly outline the duties and responsibilities associated with that
position as contained in the job description and the classification specifications and the
August 23, 1995 memo from Howard Thorkelson which you submitted. The duties
and responsibilities, as set forth in these documents are incorporated herein by
reference.
The DCA 1 classification specification states that an employee in the position
of DCA 1:
Eleuteri, 96 -516
February 29, 1996
Page 2
regulations and standards. Work is performed under the general
supervision of an administrative supervisor and is reviewed upon
completion for accuracy and adherence to regulations and standards.
The DCA 2 classification specification states that an employee in the position
of DCA 2:
.. serves in a quality assurance unit reviewing decisions on a sample
basis, or adjudicates claims resulting from appeals, or reviews claims to
continue or cease benefits to claimants currently receiving benefits.
Employes may also serve in a medical services unit assisting in the
recruitment of, and maintenance of ongoing relationships with, medical
services providers, and to assist in resolving medical relations problems.
Work involves reevaluation of medical and other relevant evidence used
as a basis of initial decisions to ensure appropriateness of decision and
uniform application of adjudication standards and procedures. Work also
involves the procurement and evaluation of additional evidence necessary
to adjudicate claims at the appellate of continuing disability review levels,
and conferences with medical and other consultants to resolve complex
problems. Work includes the development of information necessary as
the basis for decisions by hearing examiners, Administrative Law Judges
and the appeals council. Employes exercise considerable independent
judgment in reviewing and writing decisions and in their public contact
work, based on medical evidence, applicable Federal laws and pertinent
Federal and state regulations and standards. Work is performed under
the general supervision of an administrative supervisor and is reviewed
through conferences and reports.
In his August 23, 1995 memorandum, Mr. Thorkelson notes the following:
The DCA participates in the determination of disability as a
member of an "adjudicative team." The other member is the agency
medical consultant, a physician or psychologist. All claims being
processed for disability determination are required to be reviewed by a
physician or psychologist or both, and there is no "determination" in the
absence of the appropriate form -block signatures of both the adjudicator
and the physician or psychologist. This is true of both DCA I's and DCA
I I's.
Under agency procedure and practice, DCA's may not,
independently and alone, authorize consultative examinations, for which
agency fiscal obligations are then incurred. It is the role of the
adjudicator to request the purchase of consultative examinations. Under
agency policy and practice, such requests must be routed through, and
approved by, a Disability Adjudication Supervisor as a basis for
scheduling to be initiated and fiscal obligations to be incurred for this
purpose. In addition, some consultative examination requests (i.e,
involving tests or procedures possibly presenting risk to the claimant)
require the approval of a physician.
You assert that the Thorkelson memo of August 23, 1995 was prepared
because prior information may have been misleading. Your Position Management
Eleuteri, 96 -516
February 29, 1996
Page 3
Division believes that decision making responsibility and expenditure authorization for
consultative examinations do not lie with DCA I's and II's.
You also enclosed a technical analysis as to DCA's which sets forth the
following commentary as to the amount of independent authority DCA's have to
adjudicate and pay claims and second as to their ability to spend agency funds to
obtain evidence.
Although DCA's adjudicate claims as to disability based upon evidence and other
information, no determination is complete without a physician or psychologist review,
concurrence and signature on the determination. There is a collaborative relationship
with physicians. DCA II's in performing a reconsideration review must obtain
physician concurrence just like DCA I's. Unless the physician agrees that the evidence
supports the decision of the DCA adjudicator, the physician's decision is overriding.
DCA II's are assigned to Medical Services or Quality Assurance which has a
primary function of fact - finding as to claimants or physician complaints. The Medical
Relations Program Director makes a decision as to such facts. Medical providers are
recruited through published announcement and referrals. In Quality Assurance, the
DCA II determines whether proper procedures were followed by the adjudicator; any
decision to revise the outcome is made by the Quality Assurance Program Director.
A DCA may obtain medical evidence for a fee from private providers but only
when the claim lacks sufficient evidence from the claimant's own physician. In such
cases, the DCA requests the physician to supply medical records for which the Bureau
pays $25 to each physician. After a clerical employee reviews the invoice and checks
to see if the evidence was received, payment is authorized.
In cases where medical evidence is inconclusive, the DCA may request
additional consultative examinations, the expenditures for which are approved by the
Disability Adjudication Supervisor. If the exam is specialized, the provider is selected
by a clerical employee from a list in the Medical Services Unit. A computerized
scheduling system automatically rotates vendors to avoid favoritism. Invoices are
reviewed and approved by the DCA who ascertains that the services conform to the
initial request.
The analysis concludes with a view that DCA I's and II's are insulated from
possibilities of conflict in that their recommendations must meet set standards subject
to scrutiny of supervisors, physicians and quality assurance reviews.
Discussion: The question to be answered is whether Disability Claims
Adjudicators with L &I are to be considered "public employees." The Ethics Law
defines that term as follows:
. eection 2. Definitions
"Public employee." Any individual employed by the
Commonwealth or a political subdivision who is responsible
for taking or recommending official action of a
nonministerial nature with regard to:
(1) contracting or procurement;
Eleuterj, 96 -516
February 29, 1996
Page 4
65 P.S. §402.
(2) administering or monitoring grants or subsidies;
(3) planning or zoning;
(4) inspecting, licensing, regulating or auditing any
person; or
(5) any other activity where the official action has an
economic impact of greater than a de minimis nature
on the interests of any person.
"Public employee" shall not include individ -uals who are
employed by the State or any political subdivision thereof in
teaching as distinguished from administrative duties.
The regulations of the State Ethics Commission similarly define the term public
employee as above with the additional following criteria:
(ii) The following criteria will be used, in part, to determine
whether an individual is within the definition of "public employee ":
(A) The individual normally performs his responsibility in
the field without onsite supervision.
(B) The individual is the immediate supervisor of a person
who normally performs his responsibility in the field without onsite
supervision.
office.
(C) The individual is the supervisor of a highest level field
(D) The individual has the authority to make final decisions.
(E) The individual has the authority to forward or stop
recommendations from being sent to the person or body with the
authority to make final decisions.
(F) The individual prepares or supervises the preparation of
final recommendations.
(G) The individual makes final technical recommendations.
(H) The individual's recommendations or actions are an
inherent and recurring part of his position.
(I) The individual's recommendations or actions affect
organizations other than his own organization.
(iii) The term does not include individuals who are employed
by the Commonwealth or a political subdivision of the
Commonwealth in teaching as distinguished from administrative
duties.
Eleuteri, 96 -516
February 29, 1996
Page 5
51 Pa. Code §1 1.1.
(iv) Persons in the following positions are generally
considered public employes:
(A) Executive and special directors or assistants reporting
directly to the agency head or governing body.
(B) Commonwealth bureau directors, division chiefs or
heads of equivalent organization elements and other governmental
body department heads.
(C) Staff attorneys engaged in representing the
department, agency or other governmental bodies.
(D) Engineers, managers and secretary- treasurers acting
as managers, police chiefs, chief clerks, chief purchasing agents,
grant and contract managers, administrative officers, housing and
building inspectors, investigators, auditors, sewer enforcement
officers and zoning officers in all governmental bodies.
(E) Court administrators, assistants for fiscal affairs and
deputies for the minor judiciary.
(F) School superintendents, assistant superintendents,
school business managers and principals.
(G) Persons who report directly to heads of executive,
legislative and independent agencies, boards and commissions
except clerical personnel.
(v) Persons in the following positions are generally not
considered public employes:
(A) City clerks, other clerical staff, road masters,
secretaries, police officers, maintenance workers, construction
workers, equipment operators and recreation directors.
(B) Law clerks, court criers, court reporters, probation
officers, security guards and writ servers.
(C) School teachers and clerks of the schools.
The question you present must be reviewed under these provisions of the
statute and the regulations of the Commission in Tight of the duties and obligations as
described in the job description and /or classification specifications, under which DCA
I's and II's operate. The inquiry necessarily focuses on the job itself and not on the
individual incumbent in the position, the variable functions of the position, or the
manner in which a particular individual occupying a position may carry out those
functions. See Phillips v. State Ethics Commission, 79 Pa. Commw. 491, 470 A.2d
659 (1984); and Mummau v. Ranck, 531 Fed. Supp. 402 (E.D. Pa. 1982).
Eleuteri, 96 -516
February 29, 1996
Page 6
Also, in reviewing your question, the Commonwealth Court in its ruling in
Phillips, supra, at page 661, directs that coverage of the Ethics Act bb construed
broadly, rather than narrowly, and conversely, directs that exclusions from the Ethics
Law should be narrowly construed. Based upon this directive and reviewing the
definition of "public employee" in the statute and the regulations and opinions of this
Commission, in light of the job functions and the information available to us, the
necessary conclusion is that DCA I's and II's are "public employees" subject to the
financial reporting and disclosure requirements of the State Ethics Act.
It is clear that in the capacity as a DCA, such persons have the ability to
recommend official action with respect to subparagraph (5) within the definition of
"public employee" as set forth in the Ethics Law, 65 P.S. §402. Specifically, the
DCA's have the authority to adjudicate claims which will have an action greater than
a de minimis economic impact on the claimant, notwithstanding that such decisions
may be overturned by a physician. DCA's can also cause expenditures to be made for
evidence as to a claim. These activities fall within the definition of public employee
as contained in the regulations of the Commission in Section 11.1, subparagraph (ii).
51 Pa. Code §11.1. Under these circumstances and given the duties and
responsibilities as outlined above, persons employed as DCA's are "public employees"
as that term is defined in the Ethics Law.
See also, Phillips, supra, where Commonwealth Court upheld a Commission
decision that a Claim Settlement Agent in DPW was a public employee who
investigated assistance standing vis -a -vis restitution and analyzed information as to
assistance claims for which he used discretion and judgment. In rejecting Philips'
argument that he was in a low level position, like caseworkers, with little discretion,
the Court noted:
at 494.
The Petitioner's second argument is that the Commission violated its own
regulations in holding him to be a public employee. He contends that
under the regulation which lists certain positions as generally not
considered to be public employees positions, his position must also be
excluded because it affords him Tess discretion in his duties than certain
of those listed. Specifically, he contends that police officers, detectives
and welfare caseworkers are afforded and exercise more discretion than
a C.S.A. I and because the regulation generally considers the holders of
such positions not to be considered to be a public employee.
* * *
In light of the liberal, expansive interpretation to be given the Act's
coverage provisions and the substantial evidence supportive of the
findings underpinning the Commission's conclusion that a C.S.A. I is a
public employee position we reject Petitioner's argument.
See also, Schmidt, Opinion 93 -008, where the Commission determined that a
DPW Vocational Rehabilitation Counselor, who argued that her duties were limited to
counseling /placement with no expenditure authorizations or approvals being made, was
a public employee.
Eleuteri, 96 -516
February 29, 1996
Page 7
Conclusion: Persons employed by L &I as DCA l's and II's are to be considered
"public employees." Accordingly, they must file Statements of Financial interests for
each year in which they hold the position outlined above and for the year following
termination of this service.
If they have not already done so, Statements of Financial Interests must be filed
within 30 days of this Advice. These Statements of Financial Interests would report
information of the prior calendar year.
Pursuant to Section 7(111, 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.
This letter is a public record and will be made available as such.
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 thirty (30) 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 thirty (30) days may result in the dismissal of
the appeal.
erely,
incent . Dopko
Chief Counsel