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HomeMy WebLinkAbout20-511 GalterePHONE: 717-783-1610 TOLL FREE: 1-800-932-0936 STATE ETHICS COMMISSION FINANCE BUILDING 613 NORTH STREET, ROOM 309 HARRISBURG, PA 17120-0400 ADVICE OF COUNSEL March 3, 2020 To the Requester: Mr. Gregory Galtere Dear Mr. Galtere: FACSIMILE: 717-787-0806 WEBSITE: www.ethir-s.pa.gov 20-511 This responds to your letter dated January 24, 2020, by which you requested an advisory from the Pennsylvania State Ethics Commission ("Commission"). Issue: Whether the Public Official and Employee Ethics Act ("Ethics Act"), 65 P—a-TS. § 1101 et seq., would impose prohibitions or restrictions upon a township supervisor, who Is a member of a country club that is owned by the township, witi� regard to participating in matters involving the country club. Facts: As a Supervisor for Exeter Township ("Township"), you request an aadisory, from the Commission based upon submitted facts that may be fairly summarized as follows. The Township owns the Reading Country Club ("Country Club"), which has a public golf course. With the exception of 2007, 2018, and 2019, you have been a member of the Country Club since 2006. Memberships in the Country Club were not offered in 2018 and 2019, and you purchased the Country Club's unlimited golf package for those years. You state that as a member of the Country Club, you do not benefit financially from the success or failure of the Country Club. Based upon the above submitted facts, you ask whether the Ethics Act would impose prohibitions or restrictions upon you with regard to participating in matters before the Township Board of Supervisors that would involve the Country Club. Discussion: It is initially noted that pursuant to Sections 1107(10) and 1107(11) of the EtIcs Act, 65 Pa.C.S. §§ 1107(10), (11), advisories are issued to the requester based upon the facts that the requester has submitted. In issuing the advisory based upon the facts that the requester has submitted, the Commission does not engage in an independent investigation of the facts, nor does it speculate as to facts that have not been submitted. It is the burden of the requester to truthfully disclose all of the material facts relevant to the inquiry. 65 Pa.C.S. §§ 1107(10), (11). An advisory only affords a defense to the extent the requester has truthfully discllosed all of the material facts. As a Township Supervisor, you are a public official subject to the provisions of the Ethics Act. Galtere, 20-511 March 3, 2020 Page 2 Sections 1103(a) and 11030) of the Ethics Act provide: § 1103. Restricted activities (a) Conflict of interest. --No public official or public employee shall engage in conduct that constitutes a conflict of interest. 0) 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 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. 65 Pa.C.S. §§ 1103(a), 0). The following terms related to Section 1103(a) are defined in the Ethics Act as follows: § 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 Galtere, 20-511 aiCll—rcF , 2020 Page 3 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. 65 Pa.C.S. § 1102. Subject to the statutory exclusions to the Ethics Act's definition of the term "conflict" or "conflict of interest," 65 Pa.C.S. § 1102, a public official/public employee is prohibited from using the authority of public office/employment or confidential information received by holding such a public position for the private pecuniary benefit of the public official/public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. The use of authority of office is not limited merely to voting, but extends to any use of authority of office including, but not limited to, discussing, conferring with others, and lobbying for a particular result. Juliante, Order 809. In each instance of a conflict of interest, a public official/public employee would be required to abstain from participation, which would include voting unless one of the statutory exceptions of Section 11030) of the Ethics Act would be applicable. Additionally, the disclosure requirements of Section 11030) of the Ethics Act would have to be satisfied in the event of a voting conflict. In applying the above provisions of the Ethics Act to the instant matter, you are advised as follows. Based upon the submitted facts, the Country Club is not a business with which you are associated because you are not a director, officer, owner, employee, or holder of a financial interest in the Country Club. Therefore, you would not have a conflict of interest under Section 1103(a) of the Ethics Act in matter(s) before the Township Board of Supervisors that would financially impact the Country Club but that would not financially impact you, a member of your immediate family, or a business with which you or a member of your immediate family is associated. You are advised that absent some basis for a conflict of interest such as a private pecuniary benefit to you, a member of your immediate family, or a business with which you or a member of your immediate family is associated, you would not have a conflict of interest under Section 1103(a) of the Ethics Act in your capacity as a Township Supervisor with regard to participating in matter(s) that would involve the Country Club. In light of the above, it is not necessary to determine whether the Country Club would be considered a "business" as that term is defined in the Ethics Act. 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 Second Class Township Code. Galtere, 20-511 a1Ph rc` `i ' , 2020 Page 4 Conclusion: Based upon the submitted facts that: (1) you are a Supervisor for Exeter ownship ("Township"); (2) the Townshi owns the Reading Country Club ("Count Club"), which has a public golf course; �3} with the exception of 2007, 2018, and 2019, you have been a member of the Country Club since 2006; (4) memberships in the Country Club were not offered in 2018 and 2019, and you purchased the Country Club's unlimited golf package for those years; and (5) as a member of the Country Club, you do not benefit financially from the success or failure of the Country Club, you are advised as follows. As a Township Supervisor, you are a ublic official subject to the provisions of the Public Official and Employee Ethics Act "Ethics Act"), 65 Pa.C.S. § 1101 et sere . Based upon the submitted facts, the Country lub is not a business with which you are associated because you are not a director, officer, owner, employee, or holder of a financial interest in the Country Club. Therefore, you would not have a conflict of interest under Section 1103(a) of the Ethics Act in matter(s) before the Township Board of Supervisors that would financially impact the Country Club but that would not financially impact you, a member of your immediate family, or a business with which you or a member of your immediate family is associated. Absent some basis for a conflict of interest such as a private pecuniary benefit to you, a member of your immediate family, or a business with which you or a member of your immediate family is associated, you would not have a conflict of interest under Section 1103(a) of the Ethics Act in your capacity as a Township Supervisor with regard to participating in matter(s) that would involve the Country Club. Lastly, the propriety of the proposed conduct has only been addressed under the Ethics Act. Pursuant to Section 1107(11) of the Ethics Act, an 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, provided the requester 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 writingg and must be act�uall� received at the Commission within thirty (30) days of the date of this Advice pursuant to 51 Pa. Code § w13.2(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. Sincerely, �0�- �-P- V\ t Robin M. Hittie Chief Counsel