HomeMy WebLinkAbout950 BieberSTATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
In Re: Jeffrey Bieber File Docket: 93- 045 -C2
Date Decided: 12/15/94
Date Mailed: 12/27/94
Before: James M. Howley, Chair
Daneen E. Reese, Vice Chair
Roy W. Wilt
Austin M. Lee
Allan M. Kluger
The Investigative Division of the State Ethics Commission
conducted an investigation regarding a possible violation of the
State Ethics Law, Act 9 of 1989, P.L. 26, 65 P.S. §401 et seq.
Written notice of the specific allegation(s) was served at the
commencement of the investigation. A Findings Report was issued
and served upon completion of the investigation which constituted
the Complaint by the Investigation Division. An Answer was not
filed and a hearing was waived. A consent agreement was submitted
by the parties to the Commission for consideration which was
subsequently approved. This adjudication of the Commission is
hereby issued which sets forth the individual Allegations, Findings
of Fact, Discussion, Conclusions. of Law and Order.
This adjudication is final and will be made available as a
public document fifteen days after issuance. However,
reconsideration may be requested which will defer public release of
this adjudication pending action on the request by the Commission.
A request for reconsideration does not affect the finality of this
adjudication. A reconsideration request must be received at this
Commission within fifteen days of issuance and must include a
detailed explanation of the reasons as to why reconsideration
should be granted in conformity with 51 Pa. Code §21.29(b).
The files in this case will remain confidential in accordance
with Act 9 of 1989, 65 P.S. §408(h). Any person who violates
confidentiality of the Ethics Law is guilty of a misdemeanor
subject to a fine of not more than $1,000 or imprisonment for not
more than one year, 65 P.S. §409(e). Confidentiality does not
preclude discussing this case with an attorney at law.
Bieber, 93- 045 -C2
Page 2
I. ALLEGATION:
That Jeff S. Bieber, a Supervisor for Anthony Township,
Montour County, violated provisions of the State Ethics Act (Act 9
of 1989) when he purchased a private health and accident insurance
policy, which was paid for with public funds, and when he
participated in approving payments of premiums.
Section 3. Restricted Activities
(a) No public official or public
employee shall engage in conduct that
constitutes a conflict of interest.
65 P.S. §403(a).
II. FINDINGS:
1. Jeffrey Bieber has served as a Township Supervisor for Anthony
Township, Montour County, Pennsylvania since January, 1992.
a. He served as Chairman of the Board of Supervisors from
January, 1992 to December, 1993.
2. Bieber was annually appointed as road worker at reorganization
meetings of the Anthony Township Board of Supervisors.
3. Bieber's hours worked as road worker are on a part -time basis.
a. His duties consist of working on the roads and repairing
equipment.
b. The other two township supervisors also work on the roads
on a part -time basis.
4. Anthony Township does not employ full -time employees to work
on township roads.
a. The township employs part -time road workers on an as-
needed basis for snow removal and road repair projects.
5. The Anthony Township Board of Auditors have set compensation
for supervisors employed by the township as follows:
a. 2/27/92 Roadmaster -
Supervisor -
b. 2/22/93 Roadmaster -
Supervisor -
c. 1/11/94
$8.50 /hour
$8.15 /hour
$8.50 /hour
$8.15 /hour
- All supervisors - $8.50 /hour
Bieber, 93- 045 -C2
Page 3
6. During the January 7, 1992 auditor's meeting, Supervisor Dio
Shetler requested a $.50 /hour pay increase for supervisors and
some type of health insurance for supervisors.
a. The auditors deferred action.
7. At the January 4, 1993 meeting of the Anthony Township
Supervisors the following action was taken:
The board of supervisors set a policy for payment of group
medical insurance for all employees and family that qualified.
Employees must average 14 or more hours work per week or more
in the prior year to be eligible. Bills from the employees
present insurance carriers will be accepted. Motion by Dio
Shetler and seconded by Jeffrey Bieber. Jack Kirkner
abstained from voting and the other two members voted in favor
of the motion.
8. None of Anthony Township's part -time employees worked an
average of fourteen (14) hours per week in the prior year to
qualify for insurance coverage.
9. The members of the board of supervisors were the only
employees who qualified for medical insurance coverage.
10. Beginning in January, 1993, the Anthony Township Supervisors
approved payments of premiums for the private medical
insurance of Supervisors Dio Shetler and Jeffrey Bieber.
a. Supervisor Willard Kirkner did not accept payment of his
medical insurance premiums by the township.
11. Supervisor Shetler was insured privately by Capital Blue
Cross /Pennsylvania Blue Shield to Policy No. 193301241.
a. This coverage is not part of a township group plan.
b. Quarterly payments were in the amount of $1,238.10.
12. Beginning in January, 1994, Shetler switched his coverage to
the Pennsylvania Farmers Service Union to Customer No.
1933010.
a. Monthly payments were in the amount of $324.14.
13. Supervisor Jeffrey Bieber was insured privately by the
Geisinger Health Plan from January, 1993 through April, 1993
at a monthly premiums of $270.38.
a. Coverage was switched to the Pennsylvania Grange Service
effective July 1, 1993 at quarterly premiums of
Bieber, 93- 045 -C2
Page 4
a. 1993:
$1,012.40.
b. These coverages are not part of a township group plan.
14. Beginning on January 4, 1993, Anthony Township began making
payments for Bieber's private medical insurance premiums as
follows:
DATE
1/4/93
2/9/93
3/24/93.
4/22/93
*6/15/93
9/15/93
* Included payments for May through September, 1993.
b. 1994:
*12/22/93 PA Grange Service Corp. 2509 $1,012.40
15. Total paid by the township for Bieber's medical insurance:
1993: $3,816.84
1994: $1,012.44 (1st Quarter)
$4,829.24
16. All of the invoices for Bieber's premiums were approved by the
board of supervisors at regular meetings.
a. Bieber participated in approving payments of those bills.
b. Bieber signed all of the checks paid to Geisinger Health
Plan and the Pennsylvania Grange Service. (See Finding
#14) .
17. At the February 15, 1993 meeting of the Anthony Township Board
of Auditors, the auditors discussed increasing Supervisor
Willard Kirkner's salary by $1.00 /hour in lieu of his decline
to accept health insurance that was being receiving by the
other supervisors.
a. No motion was
18. In July, 1993, a
the supervisors
supervisor could
by the township.
PAYEE
Geisinger Health Plan
Geisinger Health Plan
Geisinger Health Plan
Geisinger Health Plan
PA Grange Service Corp.
PA Grange Service Corp.
CHECK NO
2320
2353
2369
2388
2419
2456
AMOUNT
$ 270.38
$ 270.38
$ 270.38
$ 301.30
$1,692.00
$1,012.40
$3,816.84
made or approved regarding this item.
township resident questioned the legality of
insurance plan and whether a township
have premiums for his medical insurance paid
Bieber, 93- 045 -C2
Page 5
a. The resident quoted the Pennsylvania State Association of
Township Supervisors' March 1993 publication of
Pennsylvania Township News which advised that the Second
Class Township Code authorizes township supervisors to
participate in township group medical programs.
Supervisors are not authorized to have individual medical
insurance policies paid for by the township.
b. The supervisors did not respond to this question.
19. At the August 3, 1993 auditors meeting, Larry Flora, Chairman
of the Board of Auditors, reported that expenditures for
private medical insurance would not be approved.
a. Flora advised that he checked with the Department of
Community Affairs and that the Geisinger Health Plan for
Supervisor Bieber and Blue Cross /Blue Shield Plan for
Shetler will not be approved.
b. Flora reported that payments were improper and would be
surcharged.
20. On August 13, 1993, Larry Flora, in his capacity as Chairman
of the Board of Auditors, wrote to Richard Brittain, Anthony
Township Solicitor requesting a written opinion regarding
medical insurance for township supervisors as follows:
a. The Supervisors have cited the SECOND CLASS TOWNSHIP
CODE, ARTICLE V, TOWNSHIP OFFICERS, (b) Township
Supervisors, Township Superintendent, and Roadmasters,
Section 515. Compensation of Supervisors (b)(7)(c)(1)
Cumulative Supplement #4 as criteria for their
qualification for Medical Insurance. Do the Supervisors
qualify for insurance per this Section?
b. The Supervisors have cited the SECOND CLASS TOWNSHIP
CODE, ARTICLE VII, GENERAL POWERS, Section 702.,
Supervisors to Exercise Powers, XIII. Insurance. D.
Cumulative Supplement #4 as the criteria to direct
payment of Health Insurance Policies. Do the Township
Supervisors have the authority to authorize payment for
two (2) different Health Insurance Policies (both
policies are group policies obtained by the supervisors
prior to entering Fiscal Year 1993 when payment of these
policies were authorized?
21. In a written opinion dated September 8, 1993, Solicitor
Richard Brittain responded to the auditors as follows:
a. The supervisors qualify for medical insurance coverage
under the Second Class Township Code.
Bieber, 93- 045 -C2
Page 6
b. This applies to full -time or part -time working
supervisors.
c. Also supervisors who may not work other than performing
administrative duties and attending meetings are
eligible.
d. Auditor approval is not required.
e. Payment of the supervisor's medical insurance premiums is
not considered to be a form of compensation.
f. The issue of the supervisors authorizing payment for two
different health insurance policies is a complex
question.
The supervisors can authorize payment of premiums for two
separate medical insurance policies.
(1) Payments are made by the township directly to the
medical insurance company.
(2) The township incurred no loss as a result of this
practice of paying medical insurance premiums.
22. At the September 13, 1993 meeting of the Anthony Township
Supervisors, the following action was taken regarding medical
insurance for township supervisors:
a. Motion by Shetler to direct the secretary- treasurer to
determine the difference in cost between the premiums of
Chairman Bieber's medical insurance policy and Supervisor
Shetler's medical insurance policy and to develop a
schedule of repayment to the township for the amount
determined. Motion seconded by Kirkner and carried by a
3 to 0 vote.
g.
23. Shetler reimbursed Anthony Township in an amount of $1,135.56
for insurance premiums.
a. This represented the difference between the amounts paid
for Shetler's medical insurance and the amount paid for
Bieber's insurance.
III. DISCUSSION:
As a Supervisor for Anthony Township, Montour County, Jeffrey
Bieber, hereinafter Bieber, is a public official as that term is
defined under Act 9 of 1989. 65 P.S. §402. As such, his conduct
is subject to the provisions of the Ethics Law and the restrictions
Bieber, 93- 045 -C2
Page 7
therein are applicable to him.
Initially, it is noted that Section 9 of Act 9 of June 26,
1989 provides, in part, as follows:
This amendatory act shall not apply to
violations committed prior to the effective
date of this act, and causes of action
initiated for such violations shall be
governed by the prior law, which is continued
in effect for that purpose as if this act were
not in force. For the purposes of this
section, a violation was committed prior to
the effective date of this act if any elements
of the violation occurred prior thereto.
Since the occurrences in this case transpired after the
effective date of Act 9 (June 26, 1989), we must apply the
provisions of Act 9 to determine whether the Ethics Act was
violated.
Under Section 3(a) of Act 9 of 1989 quoted above, a public
official /employee shall not engage in conduct that constitutes a
conflict of interest.
The term "conflict of interest" is defined under Act 9 of 1989
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 or his immediate family or
a business with which he or a member of his
immediate family is associated. 65 P.S. §402.
The issue before us is whether Bieber as an Anthony Township
Supervisor violated the conflict provision, Section 3(a) of Act 9
Bieber, 93- 045 -C2
Page 8
of 1989, regarding the receipt of township paid health and accident
insurance benefits.
Bieber served as an Anthony Township Supervisor from 1992 to
the present. In addition Bieber has served as a roadmaster on a
part time basis. The township does not employ full time employees
to work on township roads but rather hires part time employees on
an as needed basis for snow removal and road repair projects.
The Anthony Township Board of Auditors set the hourly rates of
compensation for the working supervisors and roadmasters at
reorganizational meetings. Although Shetler at the January 7, 1992
Auditors' meeting requested a $0.50 per hour increase for health
insurance benefits, the Auditors deferred on taking action.
Thereafter, at the January 4, 1993 meeting of the Anthony Township
Board of Supervisors, Shetler made a motion, seconded by Bieber,
which passed on a two to zero vote, with the third supervisor
abstaining, to have paid group medical insurance for all employees
who qualified by working an average of fourteen or more hours per
week in the prior year, 1992. Under those parameters, only the
Members of the Board of Supervisors, but no other part time
employees, met the minimum fourteen hours per week eligibility
requirement.
From January, 1993 forward the Anthony Township Supervisors
approved the payments for the premiums for the medical insurance
for Shetler and Bieber only; the third Supervisor declined to
accept payment of medical insurance premiums by the township.
Thereafter, the township began making payments for Bieber's medical
insurance premiums as delineated in Fact Finding 14. The plan in
question was not a township group plan but was an individualized
medical insurance policy for Bieber.
At the July, 1993 meeting of the Board Supervisors, a township
resident questioned the legality of such individualized insurance
plans noting an article in the Pennsylvania State Association of
Township Supervisors (PSATS) Township News, March, 1993, that
supervisors are not authorized to have individual medical insurance
paid by the township. The Supervisors did not respond to the
citizen's inquiry. Thereafter, at an August 3, 1993 Auditor's
meeting, the Chairman of the Board of Auditors reported that the
expenditures for private medical insurance would not be approved in
that the payments were improper and subject to surcharge.
The Chairman of the Board of Auditors wrote on August 13, 1993
to the township Solicitor requesting a written opinion regarding
the medical insurance for township supervisors and in particular
whether the Supervisors qualify for insurance under the Second
Class Township Code and second, whether the Supervisors have the
authority to authorize payments for two different health insurance
policies for Shetler and Bieber. The Solicitor responded in a
Bieber, 93- 045 -C2
Page 9
written opinion of September 8, 1993 advising that the supervisors
qualified for medical insurance under the Second Class Township
Code which would apply to full time or part time working
supervisors, that supervisors performing administrative duties are
eligible, that auditor approval is not required, that the payment
of supervisor's medical insurance premium is not a form of
compensation, that the issue of supervisor's authorizing payment
for two different health insurance policies is a complex question
and that supervisors may authorize payment for two separate medical
insurance policies on the basis that the payments are made by the
township directly and that the township incurred no loss as a
result of such practice.
At the September 13, 1993 meeting of the Anthony Township
Board of Supervisors, action was taken to direct the Secretary/
Treasurer to determine the cost differential between Shetler's and
Bieber's medical insurance payments and to develop a schedule of
repayment to the township. Thereafter, Shetler reimbursed the
township in the amount of $1,135.56 for the insurance premiums
which represented the difference between the amount paid for
Shetler's and Bieber's medical insurance.
In applying the provisions of Section 3 (a) of Act 9 of 1989 to
the above facts, we must conclude upon this record that there is no
violation of that provision of law. We have held that if a public
official receives compensation which is specifically authorized in
law, then the receipt of that compensation is not a private
pecuniary benefit under the Ethics Law. Confidential Opinion, 91-
001. However, " if a public official uses the authority of office to
obtain financial gain which is compensation other than provided for
by law, then such is a private pecuniary benefit in violation of
Section 3(a) of Act 9 of 1989. Hessinger, Order 931.
The issue in this case is whether the receipt by Bieber of the
township paid medical insurance is violative of Section 3(a) of Act
9 of 1989. The Second Class Township Code (Code) does provide the
following limited authorization for the receipt of such medical
benefits by supervisors:
(1) Supervisors and their dependents shall be eligible
for inclusion in group life, health, hospitalization,
medical service and accident insurance plans paid in
whole or in part by the township. . . . Participation by
supervisors shall not require auditor approval. Such
insurance shall be uniformly applicable to those covered
and shall not improperly discriminate in favor of
supervisors.
65 P.S. §65515
The Code does allow for the receipt by supervisors of medical
Bieber, 93- 045 -C2
Page 10
insurance benefits without the need for a supervisor to be in a
working position or without the need for auditor approval. The
authorization is qualified to the extent that the insurance must be
uniformly applicable and must not discriminate in favor of the
supervisors.
In the instant matter, Shetler and Bieber were the only two of
all of the township part time employees who qualified for the
receipt of the township paid medical insurance. However, without
sufficient evidence of record to establish an improper
discrimination, we must conclude that the supervisors under the
facts of this case were entitled to receive such township paid
medical insurance benefits. Accordingly, we find no violation of
Section 3(a) of Act 9 of 1989 regarding the receipt of such
township paid medical insurance benefits by Bieber.
IV. CONCLUSIONS OF LAW:
1. Jeffrey Bieber as a Anthony Township Supervisor, Montour
County, is a public official subject to the provisions of Act
9 of 1989.
2. Bieber did not violate Section 3(a) of Act 9 of 1989 regarding
the receipt of township paid medical insurance benefits.
In Re: Jeffrey Bieber File Docket: 93- 045 -C2
Date Decided: 12/15/94
Date Mailed: 12/27/94
ORDER NO. 950
1. Jeffrey Bieber as a Anthony Township Supervisor, Montour
County, did not violate Section 3(a) of Act 9 of 1989
regarding the receipt of township paid medical insurance
benefits.
BY THE COMMISSION,
JAMES M. HOWLEY,