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HomeMy WebLinkAbout552 VoisenMr. M. F. Voisen R.D. 1 Springcreek Road Titusville, PA 16354 Re: 86 -087 -C Dear Mr. Voisen: a. Policy No. KSM 7307 1979 9/5 $ 82.80 $430.40 1980 7/5 $ 82.80 9/5 $552.08 STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 ORDER OF THE COMMISSION Order No. 552 DECIDED MAR 1 1 1987 I AI LED rTJ 7 The Ethics Commission has received a complaint regarding you and a possible violation of Act 170 of 1978. The Commission has now completed its investigation. The individual allegations, conclusions, and findings on which those conclusions are based are as follows: I. Allegation: That you, Eldred Township Supervisor, violated Section 3(a) of the Ethics Act which prohibits a public employee's or public official's use of office to obtain financial gain, in that you had the township pay for your medical insurance premiums from 1979 through 1981. A. Findings: 1. You have been an elected supervisor in the township of E =dred, and as such, you are subject to the provisions of the State Ethics Act. 2. Eldred Township paid Columbia Accident and Health Insurance Company and Columbia Life Insurance Company the following amounts, in the years noted, on your behalf for health and medical insurance: 3. Eldred Township paid the Blue Cross Company of Western Pennsylvania the following amount, on your behalf, for hospitalization insurance. Mr. M. F. Voisen Page 2 a. Policy No. 57342 -00: 1981 4/9 $117.39 4. Eldred Township paid the Municipal Employers Insurance Trust the following amounts, on your behalf, on the dates noted for additional insurance. a. Policy No. 7534 -00: 1981 6/5 $ 39.13 7/6 $ 39.13 8/5 $ 39.13 9/5 $ 39.13 10/5 $ 39.13 11/5 $ 39.13 12/5 $ 39.13 5. An examination of the Board of Auditors' minutes for the year 1978 through 1982 do not indicate that the auditors had approved the foregoing expenditures in writing. 6. An examination of the township pay records show that you worked full -time during the year 1979 during the months of May through November. Your earnings as a road worker /roadmaster totaled $5,480.00 for 1979. 7. You said that through an arrangement with the supervisors, you did not work the winter months due to a shortage of township funds. Supervisor Holcomb worked full -time in the winter months, you worked full -time in the spring, summer and fall months. 8. The township pay records reflect that you worked full -time on the township roads during the months May through October, 1980. Your earnings in 1980 amounted to $5,036.00. 9. You did not work in 1981 and were replaced as a supervisor in 1982 by Supervisor Keith Nichols. Mr. M. F. Voisen Page 3 10. You assert that you did not know that the township had paid for your hospitalization in 1981. a. You provided evidence that you had acquired a supplemental insurance policy to augment your Medi -care hospitalization. 11. You stated that the auditors must have known that the supervisors were receiving hospitalization insurance, in that such had been the practice since 1976, and the auditors had to see the invoices when they did the audits and reviewed the paid bills. 12. Mrs. Pat Brown, an auditor from the mid -60's until January, 1985, confirmed that although it may not have been written in the auditor minutes, hospitalization and insurance were always presumed to be part of the supervisor's package along with their pay. a. Mrs. Brown stated that you were only getting a small hourly salary, a few years ago, and that the hospitalization and insurance were given to make up for the small salary. 13. Mrs. Elizabeth Burleigh, an auditor from 1975 through January 1985, stated that the auditors always approved the hospitalization and insurance and that it was considered part of your pay. 14. Mrs. Esther Reynolds, an auditor from January, 1982 up to the present, stated that she knew immediately upon looking at the township records that the supervisors were receiving hospitalization and life insurance. Mrs. Reynolds stated that she saw nothing wrong with the supervisors receiving hospitalization insurance. B. Discussion: As a township supervisor in a second class township, you are a public official as that term is defined in the State Ethics Act. 65 P.S. §402; Sowers, 80 -050; Welz, 80 -001. Your conduct, as such must, therefore, conform to the requirements of the State. Ethics 'Act'. The State Ethics Act provides as follows: Section 3. Restricted activities. (a) No public official or public employee shall use his public office or any confidential information received through his holding public office to obtain financial gain other than compensation provided by law for himself, a member of his immediate family, or a business with which he is associated. 65 P.S. §403(a). �, Mr. M. F. Voisen Page 4 Within the above provision of law, this Commission has previously determined, on a number of occasions, that a township supervisor may not receive, at the township's expense, health, hospitalization, medical, and life insurance benefits when such supervisor acts only in the capacity of a supervisor. Krane, 84 -001; Cowie, 84 -010. Additionally, even if such a supervisor is employed by a township, as a roadmaster in accordance with the Second Class Township Code, such benefits are considered compensation and must, therefore, be fixed, as such, by the township board of auditors. See, Synoski v. Hazel Township, Pa. Commw. , 500 A.2d 1282, (1985); In re: Appeal of the Auditors' report of Muncy Creek Township, 16 Lycoming Rep. 159, (1985); Hunt, 348 -R. Any benefits received, other than as provided for above, constitute a financial gain other than the compensation provided by law and, thus, in violation of the State Ethics Act. See McCutcheon v. State Ethics Commission, 77 Pa. Commw. Ct. 529, 466 A.2d, 283, (1983); Conrad v. Exeter Township 27 D & C 3d 253, (1983). These principals of law are now well settled and constitute the law pursuant to which this situation must he reviewed. See, In re: report of Auditor of South Union Township, 47 Pa. Commw. Ct. 1, 407 A.2d 906, (1979). In the instant situation, the facts reveal that you did serve as a township roadmaster /worker for Elder Township in 1979 and 1980. Elder Township paid premiums on your behalf to various insurance companies for the receipt of hospitalization and health insurance in 1979 through 1981. As a roadmaster /worker for the township, you would have been eligible to receive these benefits in 1979 and 1980 as long as such benefits were part of the compensation provided for by law. As noted above, the Second Class Township Code is the standard for which compensation for township supervisors, who serve as township workers, is to be set. That code provides that these benefits must be fixed by the township board of auditors as part of your compensation. We have reviewed the township auditors' minutes for the years in question and have found that there was no written confirmation that these benefits were provided for you as part of your compensation as a township employee. We have, however, also received the statements of the township auditors who were in service during the years in which these payments were made. These auditors unanimously confirm that it was their intention to provide these medical and insurance benefits to you as part of your compensation as road worker for the township. Because of the fact that these auditors now confirm that they had affirmatively fixed these benefits for you, we believe that there was no violation of the State Ethics Act for the years 1979 and 1980 and that the financial gain received by you was part of the compensation fixed by law. You also received such benefits in 1981. You were not employed by the township during that year and, as such, would not have been eligible for benefits in that year. As such, your receipt, thereof, would not have been in accord with the State Ethics Act. \ Mr. M. F. Voisen Page 5 This Commission, io Vic past, has allowed a official who has received a financial gain in viclation the State Ethics Aci., to divest himself of such gain. Upon the return of such gain, the Comission has taken no further action. See, McCutcheon v. State E',hics `;orn,,:i ssion, 77 Pa. Commw. Ct. 529, 466 A.2d 283, (1983). We believe that this result is appropriate and we will, therefore, not recommend any further action if you divest yourself of the financial gain received in violation of the Act. Our findings indicate that this gain equals the amount paid by the township for your benefits in 1981, $319„30. "(See Findings 3 and 4). C. Conclusion: You did not violate the Ethics'Act when you, as a township supervisor, received hospitalization and medical benefits at the township's expense in 1979 and 1980. You were a township employee and such benefits were fixed by the township board of auditors as part of the compensation to be paid in that position. Your receipt of such benefits in 1981, however, was in violation of the Ethics Act. We will offer you the opportunity to divest yourself of the financial gain received in violation of the Act. You must, therefore, within thirty (30) days of the date of this order, forward payment made payable to Eldred Township, to the State Ethics Commission in the amount of $319.30. Upon receipt of this payment, we will take no further action in this matter. Our files in this case will remain confidential in accordance with Section 8(a) of the Ethics Act, 65 P.S. 408(a). However, this Order is final `:nd will be made available as a public document 15 days after service (defined as mailing) unless you file documentation with the Commission which justifies reconsideration and/or challenges pertinent factual findings. See 51 Pa. Code 2.38. During this 15 -day period, no one, including the Respondent unless he waives his right to challenge this Order, may violate this confidentiality by releasing, discussing or circulating this Order. Any person who violates the confidentiality of a Commission p is guilty of a misdemeanor and shall be fined not more than $1,000 or imprisoned for not more than one year or both, see 65 P.S. 409(e). By the Commi Ssioh. G Sieber Pancoast Chairman Mr. M. F. V o i s i n R,(!, 1 Springcreek Road Titusville, PI 15354 JJC /na cc: Public Binder STA7E ETHICS COMMISSION 3M FINANCE BU :;_.DING F.O. BOX 11470 HARRISBURG, PA 1 :'1O,-14 0 TELEPHONE (717) 7 €3- , : 1 0 March 27, 1987 Re: Order 552 Dear Mr. Voisin: On March 17, 1987, the State Ethics Commission received your payment for reimbursinj Eldred Township as required by Order 552. Your check no. 468 in the amount of $319.30 will be forwarded to the township when the Order is made public. This letter will be part of the Order and a public record as such. Si _. e1y, o n o ino Ex ive Director