HomeMy WebLinkAbout98-602 ZivkovichSTATE ETHICS COMMISSION
309 FINANCE BUILDING
P.O. BOX 11470
HARRISBURG, PA 1 71 08 -1 470
(717) 783 -1610
1- 800 - 932 -0936
ADVICE OF COUNSEL
October 1, 1998
Stephen Zivkovich
126 Edgecliff Rd.
Carnegie, PA 15106 98 -602
Re: Former Public Employee; Section 3(g); Assistant Executive Director; Department
of Public Welfare; Allegheny County Assistance Office.
Dear Mr. Zivkovich:
This responds to your faxed letter of September 8, 1998 by 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 assistant executive director of a county assistance
office following termination of service with the Department of Public Welfare.
Facts: As the Assistant Executive Director of the Allegheny County Assistance
Office of the Department of Public Welfare (DPW), you request an advisory from the
State Ethics Commission.
You plan to retire from Commonwealth employment and to seek outside
employment for which you would be qualified based upon your experience and training
as a licensed Social Worker. As an example of the jobs for which you are applying, you
have submitted a copy of an advertisement for a job opening with "Benova," a company
that contracts with the Commonwealth for mandatory enrollment of Medicaid recipients
into managed care. It is noted that the advertisement as faxed to the Commission is
illegible. However, you state that in the jobs for which you are applying, you would not
be in direct contact with the Commonwealth concerning your prospective employment.
You further state: "Any relationship with information supplied to the state would be
indirect, i.e., supplied to my employer." You state that you would not be in a position
to represent your employer with the Commonwealth, or to negotiate in any way with the
Commonwealth.
Based upon the above, you ask for an advisory from the State Ethics Commission
concerning the restrictions of the Ethics Law that would apply to you.
You have submitted a copy of your Commonwealth job description, which
document is incorporated herein by reference.
Discussion: As the Assistant Executive Director of the Allegheny County
Assistance Office of the Department of Public Welfare (DPW), you would be considered
a "public employee" subject to the Public Official and Employee Ethics Law ( "Ethics
Law ") and the Regulations of the State Ethics Commission. See, 65 P.S. §402; 51
Pa.Code § 1 1.1. This conclusion is based upon the job description, which when reviewed
FAX : (717) 787 -0806 • Web Site: www.ethics.state.pa.us • e -mail: sec@state.pa.us
Zivkovich, 98 -602
October 1, 1998
Page 2
on an objective basis, indicates clearly that the power exists to take or recommend
official action of a non - ministerial nature with respect to one or more of the following:
contracting; procurement; planning; inspecting; administering or monitoring grants;
leasing; regulating; auditing; or other activities where the economic impact is greater
than de minimis on the interests of another person.
Consequently, upon termination of public service, you would become a "former
public employee" subject to Section 3(g) of the Public Official and Employee Ethics Law.
While Section 3(g) does not prohibit a former public official /public employee from
accepting a position of employment, it does restrict the former public official /public
employee with regard to "representing" a "person" before "the governmental body with
which he has been associated ":
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 aovernmental body with which he
has been associated for one year after he leaves that body.
65 P.S. §403(g) (Emphasis added).
The terms "represent," "person," and "governmental body with which a public
official or public employee is or has been associated" are specifically defined in the
Ethics Law as follows:
65 P.S. §402.
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.
"Person." A business, governmental body, individual,
corporation, union, association, firm, partnership, committee,
club or other organization or group of persons.
"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 official or employee is
or has been appointed or elected and subdivisions and offices
within that governmental body.
The term "Person" is very broadly defined. It includes, inter alia, corporations and
other businesses. It also includes the former public employee himself, Confidential
Opinion 93 -005, as well as a new governmental employer. Ledebur, Opinion 95 -007.
Zivkovich, 98 -602
October 1, 1998
Page 3
The term "representation" is also broadly defined to prohibit acting on behalf of
any person in any activity. Examples of prohibited representation include: (1) personal
appearances before the former governmental body or bodies; (2) attempts to influence;
(3) submission of bid or contract proposals which are signed by or contain the name of
the former public official /public employee; (4) participating in any matters before the
former governmental body as to acting on behalf of a person; and (5) lobbying.
Popovich, Opinion 89 -005.
Listing one's name as the person who will provide technical assistance on a
proposal, document, or bid, if submitted to or reviewed by the former governmental
body, constitutes an attempt to influence the former governmental body. Section 3(g)
also generally prohibits 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 pertain to a contract that existed prior to termination of public
service, Shay, Opinion 91 -012. However, if such a pre- existing contract does not involve
the unit where the former public employee worked, the name of the former public
employee may appear on routine invoices if required by the regulations of the agency to
which the billing is being submitted. Abrams /Webster, Opinion 95 -01 1.
A former public official /public employee may assist in the preparation of any
documents presented to his former governmental body. However, the public
official /public employee may not be identified on documents submitted to the former
governmental body. The public official /public employee may also counsel any person
regarding that person's appearance before his former governmental body. Once again,
however, the activity in this respect should not be revealed to the former governmental
body. The Ethics Law would not prohibit or preclude making general informational
inquiries to the former governmental body to secure information which is available to the
general public, but 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.
Section 3(g) only restricts the former public official /public employee with regard
to representation before his former governmental body. The former public official /public
employee is not restricted as to representation before other agencies or entities.
However, the "governmental body with which a public official /public employee is or has
been associated" is not limited to the particular subdivision of the agency or other
governmental body where the public official /public employee had influence or control but
extends to the entire body. See, Legislative Journal of House, 1989 Session, No. 15 at
290, 291; Sirolli, Opinion No. 90 -006; Sharp, Opinion 90- 009 -R.
The governmental body with which you would be associated upon termination of
public service is the Department of Public Welfare in its entirety, including but not limited
to the Allegheny County Assistance Office. Therefore, for the first year after termination
of your service with DPW, Section 3(g) of the Ethics Law would apply and restrict
"representation" of "persons" before DPW.
Having set forth the restrictions of Section 3(g), your specific inquiry shall now
be addressed. With regard to the possible position with Benova, as noted in the facts
above, the advertisement for the position as faxed to the Commission is illegible.
However, the fact that Benova contracts with the Commonwealth with regard to the
mandatory enrollment of Medicaid recipients into managed care would not in and of itself
preclude you from accepting a position with Benova. Section 3(g) does not operate to
preclude the acceptance of a new position with a private employer merely because that
employer has contracts with the former governmental body. However, in any such
employment position which you might hold, you would be subject to the restrictions of
Section 3(g) as they have been set forth above.
Zivkovich, 98 -602
October 1, 1998
Page 4
Based upon the facts which have been submitted, this Advice has addressed the
applicability of Section 3(g) only. It is expressly assumed that there has been no use of
authority of office for a private pecuniary benefit as prohibited by Section 3(a) of the
Ethics Law. Further, you are advised that Sections 3(b) and 3(c) of the Ethics Law
provide in part that no person shall offer to a public official /public employee and no
public official /public employee shall solicit or accept anything of monetary value based
upon the understanding that the vote, official action, or judgment of the public
official /public 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.
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 Law has not been considered in that they do not
involve an interpretation of the Ethics Law.
Conclusion: As the Assistant Executive Director of the Allegheny County
Assistance Office of the Department of Public Welfare (DPW), you would be considered
a "public employee" as defined in the Ethics Law. Upon termination of service with
DPW, you would become a "former public employee" subject to Section 3(g) of the
Ethics Law. The former governmental body would be DPW in its entirety. 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 would'
require that a Statement of Financial Interests be filed by no later than May 1 of the year
after 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.
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,
Vincent J-. Dopko
Chief Counsel