HomeMy WebLinkAbout90-004 Keiter1990.
I. Issue:
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
OPINION OF THE COMMISSION
Before: Helena G.
Robert W.
W. Thomas
G. Sieber
Dennis C.
Hughes, Chair
Brown, Vice Chair
Andrews
Pancoast
Harrington
DATE DECIDED: February 23, 1990
DATE MAILED: March 6, 1990
Mr. David C. Reiter, Esquire
Seidensticker, Keiter & Baughman
25 South Queen Street
York, PA 17403
90 - 004
Re: Conflict, Tax Collector, Second Class Township, Hospitalization
Plan, Participation at Own Expense.
Dear Mr. Keiter:
This Opinion is issued in response to your request of January 10,
Whether a tax collector in a second class township under the
Public Official and Employee Ethics Law may participate at his own
expense in the township hospitalization plan.
II. Factual Basis for Determination:
As the solicitor for Manchester Township, York County, you seek
clarification regarding the issue of whether the township tax
collector may continue to participate in the township hospitalization
plan at his own expense. The current tax collector has participated
in the township plan at his own expense for a number of years. Since
the enactment of Act 41 of 1988 which made certain amendments to the
Second Class Township Code regarding insurance coverage, you inquire
as to whether the tax collector may continue his participation in the
program at his own expense. You cite Domalakes, 85 -010, wherein we
ruled that a borough tax collector could not receive insurance
benefits at the borough's expense but could participate at his own
expense.
The State Association of Second Class Townships has taken the
position that no township official, aside from supervisors, may
participate in the insurance plan under any circumstances. You
Mr. David C. Reiter
Page 2
reference two sections of the Second Class Township Code which deal
with insurance benefits for supervisors and other second class
township officials. Non - employee supervisors may participate in the
township insurance plan at their own expense pursuant to 53 P.S.
565515. However, Section 53 P.S. 565713, which prohibits
participation by all other township officials paid in whole or part by
the township, does not address the question of participation by other
employees and officials at their own expense. You note that 53 P.S.
565713 neither prohibits nor authorizes such participation at the
individual expense of other employees /officials. You submit that the
silence of the foregoing provision of law might be construed to
indicate that the other officials and employees may not participate at
their own expense because 53 P.S. §65515 only authorizes such
participation for non - employee supervisors. Since the tax collector
is desirous of continuing to participate in the township plan at his
own expense rather than purchasing individual coverage, you inquire as
to whether such action would be permissible under Act 41.
III. Discussion
The tax collector for Manchester Township, York County, is a
public official as that term is defined under the Public Official and
Employee Ethics Law. 65 P.S. 5402; Allen, Order 612. As such, the
conduct of such an official must conform to the requirements of that
law.
Section 3(a) of the Ethics Law provides:
Section 3. Restricted Activities
(a) No public official or public employee
shall engage in conduct that constitutes a
conflict of interest.
In addition, the Ethics Law defines the following terms:
"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
Mr. David C. Keiter
Page 3
employee, a member or 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.
Section 3(b) and 3(c) of the Ethics Law provide in part that no
person shall offer to a public official /employee anything of monetary
value or no public official /employee shall solicit or accept any thing
of monetary value based upon the understanding that the vote, official
action, or judgement of the public official /employee would be
influenced thereby. Reference is made to these provisions of the law
not to imply that there has or will be any transgression thereof but
merely to provide a complete response to the question presented.
In determining whether the tax collector may participate in the
township hospitalization plan at his own expense, we cannot address
the question of whether such participation is permissible under Act 41
of 1988. Since we do not have jurisdiction to interpret the
provisions of the Second Class Township Code, our determination in
this case is limited expressly to the propriety of such participation
under the Ethics Law. Although it is beyond the scope of this
Commission to interpret laws other than the Ethics Law, it may in
certain instances be necessary for us to review certain provisions of
other laws to the extent that those laws impact upon the Ethics Law.
The Second Class Township Code provides for participation of
supervisors in township insurance plans as follows:
Supervisor - employees 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.
* * *
Supervisors and their dependents, whether or
not they are employed by the township, shall also
be eligible for inclusion in township group life,
health, hospitalization, medical service and
accident insurance plans if they pay their pro
rata share of the premium. 53 P.S. 65515(c)(1),
(4).
Mr. David C. Reiter
Page 4
The Second Class Township Code also has a general provision
regarding participation in insurance plans:
Elected officials, except township
supervisors who are provided for in section 515,
and appointed township officials who are not
employees of the township shall not be eligible
for participation in any life, health,
hospitalization, medical service or accident
insurance coverage contract paid in whole or in
part by the township. 53 P.S. 65713(d)(1).
As noted above, our determination must be based upon the
requirements of Section 3(a) of the Ethics Law. Section 3(a) of the
Ethics Law provides in part that a public official may not use the
authority of office to obtain a private pecuniary benefit for
himself. The specific question becomes whether participation by a
second class township tax collector at his own expense in the '
township hospitalization program would constitute a use of authority
of his office to obtain a private pecuniary benefit for himself.
Holding in abeyance the issue of whether there is use of authority of
office, it is clear that there would be a private pecuniary benefit.
Participation in the township group plan at one's own expense would
produce comparable coverage at a lower rate than if individual
coverage were purchased. The difference in premiums for group versus
individual coverage would constitute the amount of the private
pecuniary benefit. Since the coverage is an individual benefit, that
the pecuniary benefit would be inuring to "himself ". Having
established the second and third criteria, we must now address the
question as to whether participation at his own expense would
constitute a use of the authority of office.
Although we have not as yet under Act 9 of 1989 determined
whether such action could be a use of authority of office in this
factual context, we have rendered a decision on a similar issue under
Act 170 of 1978. In Lussi, Order 713, the issue was whether a tax
collector of a first class township violated Section 3(a) of Act 170
of 1978 when he received at township expense health care coverage.
Although in that case there was no provision in law which would
authorize a tax collector to receive township paid insurance benefits,
we found no violation because there was no showing under the facts and
circumstances of that case that the tax collector had used public
office to obtain those benefits. Although the cited Order is not
dispositive of the instant matter because Act 9 of 1989 provides a
statutory definition of the term use of authority of office, we must
conclude, based upon the reasoning in the Lussi Order, that there
would not be the requisite use of authority of office in this case if
the tax collector would participate in the township program.
Mr. David C. Reiter
Page 5
Since the program would be established by action of the board of
the township supervisors, participation by the tax collector at his
own expense would not constitute a use of authority of office under
these particular facts. Section 3(a) of the Ethics Law would not
impose any prohibition upon the participation by the tax collector.
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 Act has not been considered in that they do not
involve an interpretation of the Ethics Law. Specifically not
addressed in this opinion is whether such participation is permissible
under the Second Class Township Code.
IV. Conclusion:
A tax collector for a second class township is a public official
subject to the provisions of the Ethics Law.
Section 3(a) of the Ethics Law does not prohibit a second class
township tax collector from participating in a township group
insurance plan at his own expense. The propriety of his participation
under the Second Class Township Code has not been addressed.
Pursuant to Section 7(9)(i), this Opinion is a complete defense
in any enforcement proceeding initiated by the Commission, and
evidence of good faith conduct in any 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, any person may request the Commission to reconsider its
Opinion. The reconsideration request must be received at this
Commission within fifteen days of the mailing date of this Opinion.
The person requesting reconsideration should present a detailed
explanation setting forth the reasons why the Opinion requires
reconsideration.
By the Commission*
sue/
elena G. Hughes,
Chair