HomeMy WebLinkAbout684 MeraMr. Joseph Mera
605 Shawnee Street
Hanover Township, PA 18702
Re: 88 -054 -C
Dear Mr. Mera:
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._ The individual allegations,
conclusions, and findings on which those conclusions
are based are as follows:
I. Allegation! That you, a former Commissioner for Hanover
Township, Luzerne County, violated the followin g
Ethics Act (Act 170 of 1978), when the township paid for oBluef the
Cross /Blue Shield benefits on your behalf:
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. Code §403(a).
A. Findings:
1 . You served as a Commissioner for Hanover Township, a First Class
Township, from 1976 through 1987.
2. W. Edward Latinski, Secre tary /Administrator for Hanover Townshi
provided the following information from township records: p '
a. Regular Township employees are provided Blue Cross and Blue
Shield coverage.
b. First Class Township Code prohibits Township Commissioners
from receiving any compensation other than a set payment for
attending meetings.
.atr is ciris4:a CviviMiSS1ON
308 FINANCE BUILDING
HARRISBURG, P ENNSYLVANIA 17120
ORDER OF THE COMMISSION
ORDER NO. 684
DATE DECIDED: .1.122%gberiLlaga
DATE MAILED: . e�mhE,r 1 S � 9RQ
Ntt. Jospeh Mera
Page 2
3. Township records disclosed the following payments were made to
Blue Cross and Blue Shield for the coverage provided for you:
1985 1986 1987
Jan„ $167.94 $153.64 $170.20
Feb 167.94 153.64 170.20
Mar 161.59 153.64. >170.20
Apr 161.59 153.64 170.20
May 161.59 153.64 170.20
Jun, 161.59 153.64 170.2 0
Jul 153.64 156.94 155.00
Aug 153.64 156.94 155.00
Sep 153.64 156.94 155.
Oct 153.64 156.94 170-20
Nov 153.64 156.94 170.20
Dec 153.64 156.94 17.0.20
$1,904.08 $1,863.48 $1996.80
Total: $5,764.36
4. W. Edward Latiriski, Secretary /Administrator.. for Hanover Township,
Luzerne County, stated the following:
a., He has been Secretary/Adininjstrator since January of 1987.
b. Hanover Township is_a First Class Township.
c. Hanover Township records indicate that you were a township
Commissioner from April ' 1 1976 `to December ,31, 1987.
d. Hanover Township records indicate that .. the township paid for
Blue Cross and Blue Shield major medical coverage that was
provided to you in the years 1985, 1986 and 1987.
e. The cost of that Blue Cross and ",Blu Shield coverage totaled
$5,764.34 for the 3 years.
f. The cost of the Blue Cross and Blue Shield premiums, for
1987, that was to be paid for the coverage provided all
township employees, including the Commissioners, was
approved at the Commissioners° meeting in December of 1986.
5. Peter Solicitor for Hanover Township, stated the
following:
a. He has held the position of `Solicitor for approximately 5
ye
Mr. Jospeh Mera
C .
a .
b.
Page 3
b.
c .
d.
e.
f.
g.
6. Emily
following
a.
b.
He was instructed by the board of Commigsidners, in
of 1988, to review the,practice of township commissib rs
being provided with Blue Cross and Blue Shield covera
paid for by Township. ;
He infqrmed the Commissioners, in JanuarEY of
practia* was improper. . 1*
1988, tat the
';•
,• 7,
The Board of CommissioneFs toi.request that the
Commissioners who rec4ve&the benefits, hake restitution to
the township,
You were notified in April of 1988, ofthe'lamount of
that thetownship paid your Blue Ctoss-and'Bluel'JShield
coverage.
When you were iorMed of thaciunf=
nt iiiti:n--
_
was being requested, you questioned your liability in the
matter and informed the CommAsskPmerssthat Ethics
Commission infoill6d'iriiii'that you may not have to make
restitution. - •
He was never request'd to make a.2foxmal inquiry the
legality-Of the for Blue CrOss. and -Bide 'Shield
benefitfor the until January of 1988.
Metcalf, former SeCre tary - tor,Hanover2Town5hi,'Stated the
_
•
•.
She was Secretary for Hanover TowpshipIfor 44 years,
retiringAn Dec4Mber of 19s6: The question question of the propriety:of ,the9paymentS-forthe
CommissiOners' CiOss an4-Blue; researched, by
her, in 1985 - Srieli,eas informed py of
Township SuperviSois that_the-matterswas_tinregoIir6d.
That the Township Comm i
issoners did,Dnotldidcuvs5th&
at any meeting and did not seek her advice on the mati
7. You provided the fol10144g,imformaitonAn7relattonItcOttais.
situation:-
You were a Commissioner in Hanover Township for 16 years.
You served from 1967 to 1971 and from 1976 to December 31,
1987.
The Township paid for Blue Cross and Blue Shield coverage,
for you, for the last eight years you were in office.
_ _
Mr. Jospeh Mera
Page 4
c. The present Township Commissioners informed you, in April of
1988, that the cost of the coverage, paid by the Township,
was $5,800 and they requested that you repay the cost.
d. The matter of the Commissioners being entitlee to the
coverage never came up while you wc'e in offi ^e.
e. You felt that since you were i-i - f f ice re oeiv ° wr t.,e Blue
Cross and Blue Shield benefits when the law was changed to
prohibit such compensation, then you should be rvrand
fathered into the law, making is legal fox: ycs co receive
the benefits.
B. Discussion: As a first class township commissione: :, you are a
public official within the purview of the State Ethics Act. 65 P.S.
402; Dodds, 84 -011; Hanlon, 400 -R. As such, yo ur conrIu7t must
cgrform to the requirements of the State Ethics Act.
`Trader Section 3(a) quoted above, this Commission .',gas de'Lermined
that t. -rs of office by a public official to obtain a fi gain for
himself cr a member of his immediate family or a busin - ss with which
he is associated which is not - provided for in lac_ tra::sgresses the
above provision of law. Thus, use of office by a publi: .official to
obtin a financial gain which is not authorized as part of his
compensation is prohibited by Section 3(a): Hoak /M::Crtcheon Orders
No. 126, 129, affirmed McCutcheon v. State Ethics Commission, 77
Co . nv . Ct. 529, 466 A.2d 283 (1983) ; Yacobet, Order 2:o. 4112 -R,
affirmed Yacobet. v. State Ethics Commission, 109 Pa. Commw. Ct. 432,
5:1 A.2d 536 (1987). Similarly, Section 3(a) of the Ethics Act would
prohibit a public official /employee from using public office to
advance his own interests; Koslow, Order 458 -R, affirmed Koslow v.
Scate Ethics Commission, Pa. Commw. Ct. p 540 A.2d 1374 0.938).
Likewise, a public official /employee may not use the status or
position of public office for his own personal advantage; Huff,
(pinion 84 -015.
The State Ethics Commission has previously reviewed the question
of whether insurance coverage for municipal officials constitutes a
financial gain within the above provision of law. See Krane, Opinion
84 -001 and Davis, Opinion 84 -012. In Krane and Davis, wherein this
Commission determined that such benefits constituted financial gain.
See also Svnoski v. Hazel Township, 93 Pa. Commw. Ct. 168, 500 A.2d
1282, (1985); In Re Appeal of the Aud'.to_ Report of Muncy Creek
Township, 103 Pa. Commw. Ct. 168, 520 1241, (1987).
The analysis in• those Opinioas is adopted as applicable herein;
the question is whether this insurance 'verage is "provided by law"
within the township code.
Mr. Jospeh Mera
Page 5
This issue specifically, has been previously considered in
relation to First Class Township Commissioners. See Hanlon, Order
400 -R; Dombroski, Order 401 -R.
The First Class Township Code provides in part that Commissioners
may:
... make contracts of insurance with any
insurance company, or nonprofit hospitalization
corporation, or nonprofit medical service
corporation, authorized to transact business
within the Commonwealth, insuring its employes, or
any class or classes thereof, or their dependents,
under a policy or policies of group insurance
covering life, health, hospitalization, medical
and surgical service or accident insurance, ...
As used in this clause, the terms "employe"
and "employes" shall include township
commissioners, if the commissioner works on a
full -time basis in his capacity as superintendent,
road master, laborer or secretary for the
township. Such commissioners eligible for
inclusion in such plans must meet the same
requirements, including hours of employment, as
other full -time employes of the township. Other
commissioners shall be eligible for inclusion
under a policy or policies of group insurance
covering life health hospitalization, medical and
surgical service or accident insurance only if
they pay their pro rata share of the premiums.
Such insurance shall be uniformly applicable to
those covered and shall not give eligibility
preference to or improperly discriminate in favor
of, commissioners. As used in this clause, the
terms "employee" and "employes" exclude
independent contractors and all township engineers -
and solicitors. Any life, health,
hospitalization, medical service or accident
insurance coverage contract entered into by a
township between January 1, 1959, and December 31,
1984, that includes or provides coverage for
commissioners shall not be void or unlawful solely
because of such inclusion of commissioners; nor
shall any penalty, assessment, surcharge of
disciplinary action of any kind occur as a result
of such participation by such commissioners; and
insurance benefits payable to insureds or their
beneficiaries arising out of or on account of
Mr. Jospeh Mera
Page 6
deaths, injuries, accidents or illnesses occurring
prior to the effective date of this amendatory act
shall remain the property of the insureds or their
beneficiaries.
This Commission has previously ruled that a commissioner in a
township of the first class could not receive or secure for himself,
through his office, compensation, whether considered monthly
payments, salary or the value of insurance premiums paid for by the
township in excess of the compensation allowed and limited by law.
See Beeler, Order 560, et. seq.
The township code provides that township commissioners may
receive certain health, medical, life and insurance benefits if they
are also employed by the township in certain capacities.
Additionally, the amended First Class Township Code provides that
insurance coverage for the years 1959 and December 31, 1984, shall not
be void and said commissioner shall not be charged, or assessed any
other penalty as a result of his participation in that plan.
The "amnesty" provision in the township code, however, does not
go beyond December 31, 1984. - As a result, any benefits paid after
that period of time on behalf of township commissioners could be
subject to assessment under the State Ethics Commission.
Further, even if these benefits had been received in good faith
without any intent to violate the Ethics Act, such a defense is of no
avail. Yocabet v. State Ethics Commission, supra. Good faith receipt
of such benefits, however, will not alleviate the necessity of a
public official reimbursing his governmental body for the receipt of
compensation for which he was not entitled. See Allegheny County v.
Grier, 179 Pa. 639, 36 A. 353 (1879), Kestler Appeal, 66 Pa. Commw. 1,
444 A.2d 761 (1982).
The amount of township funds expended on your behalf for the
benefits totaled $5,764.36. This Commission has been authorized to
afford public officials who receive a financial gain in violation of
the Act the opportunity to divest themselves of that gain and
thereafter take no further action. McCutcheon v. State Ethics
Commission, supra; 65 P.S. 5407 9(iii). Yocabet v. State Ethics
Commission, supra.
You are hereby directed to forward a check within thirty days in
the amount of $5,764.36 to the State Ethics Commission payable to the
order of Township. Failure to comply will result in the
referral of this matter to the appropriate law enforcement authority
for further action.
Mr. Jospeh Mera
Page 7
C. Conclusion and Order:
1. As a township commissioner in Ha:iover Township, you are a
public official subject to the provisions of the State
Ethics Act.
2. You. violated Section 3(a) of the Ethics Act when you
received township paid insurance benefits in the amount of
$5,764.36 which was the receipt of a financial gain other
than compensation provided by law.
3. You are hereby directed to forward a check to the State
Ethics Commission in the amount of $5,764.36 payable to the
order of Hanover Township within thirty days of the date of
this order.
4. Failure to comply with the provisions of paragraph three
will result in the referral of this matter to the
appropriate law enforcement authority.
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 and 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 S2.38. 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
proceeding 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 Commission,
Joseph W. Marshall, III
Chairman
Dear Mr. Mera:
JJC /na
cc: Public Binder
STATE ETHICS COMMISSION
308 FINANCE BUILDING
P.O. BOX 11470
HARRISBURG, PA 17108 -1470
TELEPHONE (717) 783 -1610
January 19, 1989
Mr. Joseph Mera
605 Shawnee Street
Hanover Township, PA 18702
Re: Order No. 684, File No. 88 -054 -C
On January 13, 1989, the State Ethics Commission received
your payment for reimbursing Hanover Township as required by
Order No. 684.
We have forwarded your check No. 16- 371217220 dated January
12, 1989 in the amount of $5,764.36 to Hanover Township.
This letter will be made part of the Order and a public
record as such.
Sin
ntTh.
Execu ve Director