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