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Dear Mr. Davailus:
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
Mr. Edward Davailus, Member
Covington Township Planning Commission
RD #1
Gouldsboro, PA 18424
July 22, 1982
ORDER OF COMMISSION
No. 140
#81- 85- C(3 -3)
The State Ethics Commission has received a complaint regarding you and a
possible violation of Act 170 of 1978. The Commission has now completed its
investigation into these allegations and will take no action as to any viola-
tion of Act 170.
The individual allegations and findings on which our conclusion is based
I. Allegations:
1. That, as a member of the Covington Township Planning Commission, you
recommended or voted for approval of a development to be established by Eagle
Lake Corporation and that you have and do perform excavating work for said
Corporation and other companies /corporations owned by Eagle Lake Corporation,
namely Sun Construction Company and Big Bass Lake.
2. That, as a member of said planning commission, you supported all
decisions on subdivision requests and zoning /approvals for Eagle Lake Corpo-
ration and are now performing work for said Corporation.
II. Finding
1. You are a member of the Covington Township Planning Commission and
have been one for three years. This is an appointive position and you receive
no compensation for it.
2. You voted for approval of a development to be established by Eagle
Lake Corporation,
3. You are an excavation contractor and have done work for Big Bass
Lake, a company owned by Eagle Lake Corporation; this is only one of many
different developers in your area for whom we have worked.
4. You did work for both Eagle Lake Corporation and Big Bass Lake for
years before becoming a planning commission member.
Mr. Edward Davailus
July 22, 1982
Page 2
5. You state that your vote for the approval of the Eagle Lake develop-
ment /subdivision plan had nothing to do with your contract with either Eagle
Lake Corp. or Big Bass Lake. All work performed for these companies is
obtained through a bidding procedure. You have lost business in some cases to
both companies and to other development companies because your bids were not
the low Yid.
6. The development in question had to be approved by the county planning
commission prior to approval by the township planning commission and required
subsequent approval by the township supervisors.
7. The township planning commissioners only responsibility is to see
that the environmental and township specifications are being met by the
developer. You have no responsibility for zoning decisions.
III. Discussion: The initial question to be answered in your case is whether
unpaid members of a planning commission are subject to the Ethics Act so that
their conduct would be subject to the requirements of the Ethics Act. To
answer this question we reviewed the definition of "public official" in the
Act which states:
"Public official." Any elected or appointed
official in the Executive, Legislative or Judicial
Branch of the State or any political subdivision
thereof, provided that it shall not include members of
advisory boards that have no authority to expend public
funds other than reimbursement for personal expense, or
to otherwise exercise the power of the State or any
political subdivision thereof. "Public official" shall
not include any appointed official who receives no
compensation other than reimbursement for actual
expenses. 65 P.S. 402
While appointed, non - compensated persons might be said to be clearly
excluded from coverage, this definition must also be reviewed in light of the
recent ruling in Snider v. Thornburgh, Pa. , 436 A.2d 593 (198L).
In this ruling, issued September 29, 19$x, the Supreme Court appeared to alter
the definition of "public official" by removing the exclusion relating to
appointed, non - compensated persons. While this case related to school board
directors, it may affect the scope of the entire definition of "public
official 11 by including non - compensated appointed persons previously excluded
from the Ethics Act's definition of that term. The State Ethics Commission is
currently assessing the impact of this ruling and if appointed, non -
compensated persons other than school directors are to be affected by this
decision, regulations will be promulgated to implement this portion of the
Snider ruling.
Mr. Edward Davailus
July 22, 1982
Page 3
In any event, even assuming that persons such as planning commission
members, previously excluded from the "public official" definition as it stood
prior to the September 2.9, 1981 Snider ruling will eventually, by regulations,
be held within the purview of this definition, we are unwilling to apply this
Snider ruling_ retroactively to apply to and to affect your conduct during the
pe�rio3 when,you were reviewing the Eagle Lake plans for approval. During this
period you/were not covered by the Ethics Act and we will not censure your
conduct at this point when such action /conduct was undertaken at a point in
time when your inclusion within the definition of "public official" was not
clear.
We feel free to point out, however, that Section 1 of the Ethics Act
declares that "... the financial interests of holders of or candidates for
public office present neither a conflict nor the appearance of a conflict with
the public trust." Public officials and employees can avoid actual or
apparent conflicts of interest with Act 170 by either avoiding business
relationships with those they regulate, insuring that those business relation-
ships are publicly known, and abstaining from participation in any matters
which would affect the parties in that business relationship.
We suggest that if similar circumstances arrive in the future, you make a
public record of your relationship with the people submitting the subdivision
plans.
IV. Conclusion:
The State Ethics Commission will take no further action in this matter in
light of the serious question of your inclusion within the coverage of the
Ethics Act at the time the conduct /action in question occurred. This conclu-
sion is not meant to condone or condemn your conduct. Should you clearly be
within the definition of "public official" as established by the Ethics Act or
existing or future regulations of the State Ethics Commission and should you
face a similar situation in the future, you should solicit the advice of the
State Ethics Commission in relation to conforming your conduct to the require-
ments of the Ethics Act and be generally guided by our discussion above.
Our files in this case will remain confidential in accordance with --
Section 3(a) of the Ethics Act, 65 P.S. 408(a). However, this Order is final
and will become available as a public document within 15 days unless you file
documentation with the Commission which justifies reconsideration and /or
challenges pertinent fctual findings. During this 15 -day period, no one,
including the Respondent unless he waives his right to challenge tfiTsFder,
may violate this confidentiality by releasing, discussing or ciculating this
Order.
Mr. Edward Davailus
July 22, 1982
Page 4
Any person who violates the confidentiality of a Commission proceeding is
guilty to a misdemeanor and shall be fined not more than $1000 or imprisoned
for not more than one year or both, see 65 P.S. 409(e).
Sincerely,
PJS /rdp
(:)1,i4Y
Paul J Smith
Chairman