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HomeMy WebLinkAbout98-624 FletcherLeslie R. Fletcher 3330 Dale Rd. Bensalem, PA 19020 Dear Ms. Fletcher: STATE ETHICS COMMISSION 309 FINANCE BUILDING P.O. BOX 11470 HARRISBURG, PA 17108 -1470 (717) 783 -1610 1- 800 - 932 -0936 ADVICE OF COUNSEL December 17, 1998 FAX : (717) 787 -0806 • Web Site: www.ethics.state.pa.us • e -mail: sec@state.Da.us 98 -624 Re: Conflict; Public Official /Public Employee; Senator's Chief of Staff; Private Employment or Business; Managing Partner; Consulting Services to Elected Officials. This responds to your letter of November 9, 1998, by which you requested advice from the State Ethics Commission. Issue: Whether an individual who serves as Chief of Staff for a Pennsylvania Senator is prohibited or restricted by the Public Official and Employee Ethics Act from being a managing partner in a business which provides office management consulting services to elected officials throughout the nation. Facts: You are currently employed as the Chief of Staff to Pennsylvania Senator Vincent Hughes. In your private capacity, you plan to become a managing partner in a business which provides office management consulting services to elected officials throughout the nation. You state that the services to be provided by this business are focused on organizational development and training and are not in any way related to legislative matters or issues. You do not intend to resign your current position. You ask for an advisory from the State Ethics Commission as to whether you may be involved in such private business in the Commonwealth of Pennsylvania while retaining your current position as Chief of Staff for Senator Hughes. Discussion: It is initially noted that pursuant to Sections 1107(10) and 11 07(1 1) of the Public Official and Employee Ethics Act ( "Ethics Act ") Chapter 11, Act 93 of 1998, 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. An advisory only affords a defense to the extent the requestor has truthfully disclosed all of the material facts. As Chief of Staff for Senator Vincent Hughes, you are a public employee as that term is defined under the Ethics Act, and hence you are subject to the provisions of that Act. Fletcher, 98 -624 December 17, 1998 Page 2 Section 1 103(a) of the Ethics Act provides: Section 1 103. Restricted activities. (a) Conflict of interest. - -No public official or public employee shall engage in conduct that constitutes a conflict of interest. The following terms are defined in the Ethics Act as follows: Section 1102. 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. The term 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." 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. Section 1 103(j) of the Ethics Act provides as follows: Section 1103. Restricted activities. (j) Voting conflict. - -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 Fletcher, 98 -624 December 17, 1998 Page 3 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 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. In applying the above provisions of the Ethics Act to your inquiry, you are advised that Section 1103(a) of the Ethics Act does not prohibit public officials /public employees from having outside business activities or employment; however, the public official /public employee may not use the authority of his public position — or confidential information obtained by being in that position — for the advancement of his own private pecuniary benefit or that of a business with which he is associated. Pancoe, Opinion 89 -01 1. Examples of conduct that would be prohibited under Section 1103(a) would include: (1) the pursuit of a private business opportunity in the course of public action, Metrick, Order No. 1037; (2) the use of governmental facilities, such as governmental telephones, postage, staff, equipment, research materials, or other property, or the use of governmental personnel, to conduct private business activities, Freind, Order No. 800; Pancoe, supra; and (3) the participation in an official capacity as to matters involving the business with which the public official /public employee is associated in his private capacity, such as the review /selection of its bids or proposals, Gorman, Order No. 1041. If the private employer or business with which the public official /public employee is associated would have a matter pending before the governmental body, the public official /public employee would have a conflict of interest as to such matter. Miller, Opinion No. 89 -024. In each instance of a conflict of interest, the public official /public employee would be required to abstain from participation and to satisfy the disclosure requirements of Section 1103(j). Under the facts which you have submitted, Section 1 103(a) of the Ethics Act would not preclude you from outside employment /business activity subject to the restrictions and qualifications as noted above. Your governmental body would include the Pennsylvania-Senate it its entirety as well as individual Senators and offices within the Senate. If the business with which you would be associated as managing partner would have matter(s) before your governmental body, you would have a conflict of interest in your public capacity and would be required to abstain from participation and to satisfy the disclosure requirements of Section 1103(j). This Advice is limited to addressing the applicability of Section 1 103(a) of the Ethics Act. It is expressly assumed that there has been no use of authority of office for a private pecuniary benefit as prohibited by Section 1 103(a) of the Ethics Act. Further, you are advised that Sections 1 103(b) and 1 103(c) of the Ethics Act 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 Fletcher, 98 -624 December 17, 1998 Page 4 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. The propriety of the proposed conduct has only been addressed under the Ethics Act; 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 Act. Specifically not addressed herein is the applicability of the Legislative Code of Ethics, 46 P.S. §143.1 at seq. Since your proposed conduct may be restricted by the Legislative Code of Ethics, it is suggested that you seek legal advice in that regard. Conclusion: As Chief of Staff for Senator Vincent Hughes, you are a public employee subject to the provisions of the Public Official and Employee Ethics Act, Act 93 of 1998, Chapter 11 ( "Ethics Act "). Section 1103(a) of the Ethics Act would not preclude you from outside employment /business activity subject to the restrictions and qualifications as noted above. Your governmental body would include the Pennsylvania Senate it its entirety as well as individual Senators and offices within the Senate. In the event that the business with which you would be associated would have matter(s) pending before your governmental body, you would have a conflict of interest in your public capacity and would be required to abstain and to satisfy the disclosure requirements of Section 1103(j) of the Ethics Act set forth above. Lastly, the propriety of the proposed conduct has only been addressed under the Ethics Act. Since the proposed conduct may be restricted by the Legislative Code of Ethics, it is suggested that legal advice be sought in that regard. Pursuant to Section 1107(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 §1 3.2(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. ' opko Chief Counsel 1,4