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HomeMy WebLinkAbout79-050 WalkerSamuel S. Walker 17 Pine Tree Road Lock Haven, PA 17745 STATE ETHICS COMMISSION HARRISBURG, PA. September 5, 1979 OPINION OF THE COMMISSION RE: Effect of Act 170 on elected official as former owner of business sold to his daughter. FACTS: Samuel S. Walker is .a candidate for Lock Haven City Council. He has an adult daughter, who, with her husband, own Walker Hardware Store in Lock Haven. Samuel S. Walker still owns the realty, leases it to his daughter and son -in -law, and receives regular payments from the sale of the business. DISCUSION: The store is the only hardware store in Lock Haven. 79 -050 Section 3(c) requires in part: "No public employee or member of his immediate family or any business in which the person or member of the person's immediate family is a director, officer, owner or holder of stock exceeding 5% of the equity at fair market value of the business shall enter into any contract valued at $500 or more with a governmental body unless the - contract has been awarded through an open and public process, including prior public notice and subsequent public disclosure of all proposals considered and contracts awarded." The State Ethics Act defines "immediate family" to be 1 ' a spouse residing in the person's household and minor dependent children Since Mr: Walker's daughter is not a minor; she is .not d member of his immediate family as that term is used in Act 179. Her ownership with her husband - of the hardware store would not place the limitations of Section 3(c) on the Lock Haven City Council if her father is elected to the body. s .. However, Mr. Walker's prior ownership of the store may create the _appearance of conflict. The Commission suggests that Mr walker should give public notice that he no longer has an interest in the store. CONCLUSION: Samuel S. Walker Page Two While this request did not specifically raise the issue of the difficulty of conducting local governmental affairs when only one vendor or contractor is available within the jurisdiction of the governmental body and when emergencies arise, the Commission wishes to give notice that the open and public-process of Act 170 was not meant to inhibit needed governmental responses to emergencies. If you desire a formal opinion from the Commission on this issue, please write to this office requesting an opinion. Pursuant to Sections 7(9)(ii), 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. There is no conflict in having Samuel S. Walker take office on the City Council of Lock Haven, even though that City Council will make purchases from the Walker Hardware Store, since Mr. Walker has no direct interest in the Walker Hardware Store. Because the name, Walker Hardware Store is associated with Mr. Walker, he should avoid the appearance of conflict by declining to take part on City Council discussions relating to the purchase of items from the hardware store. aul J i'bmith- Chairman