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HomeMy WebLinkAbout01-515 McCrayJulia M. McCray P.O. Box 306 Tionesta, PA 16353 ADVICE OF COUNSEL February 13, 2001 01 -515 Re: Conflict; Public Official /Employee; Simultaneous Service; Borough; Administrative Assistant; Council Member; Vote; Class /Subclass; Candidate Dear Ms. McCray: This responds to your letter of January 11, 2001, by which you requested advice from the State Ethics Commission. Issue: Whether the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa. .S. §1101 et seq., presents any prohibition or restrictions upon a borough administrative assistant, who may run for borough council, and if elected, simultaneously serving as a borough council member. Facts: You are currently the Administrative Assistant for Tionesta Borough, Forest ounty. You have submitted a job description, which is incorporated herein by reference. In the May 2001, primary election, you wish to run for the Tionesta Borough Council, which consists of seven members. You state, "I understand that section 1104 of the Borough Code allows me to do so in a Borough of Tess than 3,000." You further state that Tionesta Borough has a population of 734. You add that the Borough Administrator holds the offices of Secretary, Treasurer, Manager, Pension Trustee and Zoning Officer. You list the following as your duties as Administrative Assistant: 1. Handling accounts payable, accounts receivable, payroll, utility billing, bank deposits and transfers; 2. Taking and typing minutes of Council meetings; 3. Overseeing the operation and maintenance of the computer systems; and 4. Purchasing office supplies. McCray, 01 -515 February 13, 2001 Page 2 You state that you also supervise one employee in the office. Some of your more significant job duties as set forth in your job description include the following: 1. Preparing and entering fund transfers on computer; 2. Co- signing checks; 3. Preparing end -of -month quarterly and yearly reports; 4. Reconciling bank statements; 5. Preparing miscellaneous billings; 6. Collecting information for local and state audits; 7. Advising the Administrator and /or Council of financial needs or concerns; 8. Posting penalties for water bills; 9. Preparing State and Federal reports on a monthly and quarterly basis and paying taxes on monthly and quarterly basis; 10. Preparing and mailing W -2 forms; 11. Billing the Recreation Board for its employees and miscellaneous expenses; 12. Overseeing the part -time office employee with regard to training, assignments and scheduling; 13. Preparing miscellaneous financial reports for the Administrator; and 14. In the absence of the Administrator, answering questions from the public regarding ordinances and zoning. Given the above facts, you ask what conflicts you would have if you would hold the positions of Borough Administrative Assistant and Borough Council Member simultaneously. You also ask what matters would require you to abstain from voting. Finally, you ask whether you would be required to exclude yourself from any discussions during meetings. Discussion: It is initially noted that pursuant to Sections 1107(10) and 1107(11) of the Ethics Act, 65 Pa.C.S. § §1107(10), (11), advisories are issued to the requestor based upon the facts which the requestor has submitted. In issuing the advisory based upon the facts which the requestor has submitted, the Commission does not engage in an independent investigation of the facts, nor does it speculate as to facts which have not been submitted. It is the burden of the requestor to truthfully disclose all of the material facts relevant to the inquiry. 65 Pa.C.S. §1107(10), (11). An advisory only affords a defense to the extent the requestor has truthfully disclosed all of the material facts. As Administrative Assistant for Tionesta Borough, you are a public employee as that term is defined in the Ethics Act, and hence you are subject to the provisions of that Act. This conclusion is based upon the job description, which when reviewed on an objective basis, indicates clearly that the power exists to take or recommend official action of a non - ministerial nature with respect to one or more of the following: contracting; procurement; planning; inspecting; administering or monitoring grants; leasing; McCray, 01 -515 February 13, 2001 Page 3 regulating; auditing; or other activities where the economic impact is greater than de minimis on the interests of another person. Section 1103(a) of the Ethics Act provides: $1103. Restricted activities. (a) Conflict of interest. - -No public official or public employee shall engage in conduct that constitutes a conflict of interest. 65 Pa.C.S. §1103(a). The following terms are defined in the Ethics Act as follows: $1102. Definitions. "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. The term 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 employee, a member of 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. 65 Pa.C.S. §1102. Section 1103(j) of the Ethics Act provides as follows: $1103. Restricted activities. (j) Voting conflict. - -Where voting conflicts are not otherwise addressed by the Constitution of Pennsylvania or by any law, rule, regulation, order or ordinance, the following procedure shall be employed. Any public official or public employee who in the discharge of his official duties would be required to vote on a matter that would result in a conflict of interest shall abstain from voting and, prior to the vote being taken, publicly announce and disclose the nature of his interest as a public record in a written memorandum filed with the person responsible for recording the minutes of the meeting at which the vote is taken, provided that whenever a governing body would be unable to take any action on a matter before it because the number of members of the body required to abstain from voting under the provisions of this section makes the majority or other legally required vote of approval unattainable, then such members shall be permitted McCray, 01 -515 February 13, 2001 Page 4 to vote if disclosures are made as otherwise provided herein. In the case of a three - member governing body of a political subdivision, where one member has abstained from voting as a result of a conflict of interest, and the remaining two members of the governing body have cast opposing votes, the member who has abstained shall be permitted to vote to break the tie vote if disclosure is made as otherwise provided herein. 65 Pa.C.S. §1103(j). In each instance of a conflict, Section 1103(j) requires the public official /employee to abstain and to publicly disclose the abstention and reasons for same, both orally and by filing a written memorandum to that effect with the person recording the minutes or supervisor. In the event that the required abstention results in the inability of the governmental body to take action because a majority is unattainable due to the abstention(s) from conflict under the Ethics Act, then voting is permissible provided the disclosure requirements noted above are followed. See, Mlakar, Advice 91- 523 -S. In applying the above provisions of the Ethics Act to the question of whether you, as the Borough Administrative Assistant, would be permitted to simultaneously serve as a member of Borough Council, it is initially noted that the General Assembly has the constitutional power to declare by law which offices are incompatible. Pa.Const.Art. 6, §2. A conflict exists under the Ethics Act where a pecuniary benefit or financial gain results from holding incompatible positions simultaneously. The Commission has determined that if a particular statutory enactment prohibits an official from receiving a particular pecuniary benefit or financial gain, then that official's receipt of the same, through the authority of public office, is unauthorized in law and therefore, is contrary to Section 1103(a) of the Ethics Act. In this case, in order to determine whether simultaneous service in the positions in question is precluded, the Borough Code, 52 P.S. § 45101 et seq. ( "Code ") must be reviewed. 53 P.S. §46104. Appointments; incompatible offices Unless there is incompatibility in fact, any elective or appointive officer of the borough shall be eligible to serve on any board, commission, bureau or other agency created by or for the borough, or any borough office created or authorized by statute and may accept appointments thereunder, but no mayor or councilman shall receive compensation therefor. No elected borough official of a borough with a population of 3,000 or more may serve as an employe of that borough. Where there is no incompatibility in fact, and subject to the foregoing provisions as to compensation, appointees of council may hold two or more appointive borough offices, but no mayor or member of council may serve as borough manager or as secretary or treasurer. . Nothing herein contained shall affect the eligibility of any borough official to hold any other public office or receive compensation therefor. McCray, 01 -515 February 13, 2001 Page 5 Pursuant to Section 46104 of the Code, if a borough council member were to accept compensation not authorized in law for performing certain duties, such compensation would be considered a private pecuniary benefit contrary to section 1103(a) of the Ethics Act. In boroughs having a population of 3,000 or more, Section 1103(a) would prohibit a council member from also serving as a borough employee. You state that the population of Tionesta Borough is 734. Therefore, assuming you would run for a seat on borough council and win the election, it would appear that, for purposes of applying the Ethics Act to your circumstances, your receipt of compensation as the Borough Administrative Assistant would not be prohibited under Section 1103(a) of the Ethics Act. Turning to your specific question as to what matters you would be required to abstain from voting on as a Council member, you are advised that pursuant to Section 1103(a) of the Ethics Act, a public official /public employee is prohibited from using the authority of public office /employment or confidential information received by holding such a public position for the private pecuniary benefit of the public official /public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. Generally speaking, Section 1103(a) of the Ethics Act would restrict you as a Council member from voting on matters before Borough Council that would result in a financial gain to yourself, such as voting to give the Administrative Assistant a raise when you are the Administrative Assistant. In such instances of a conflict of interest, you would be required to abstain and observe the disclosure requirements of Section 1103(j) of the Ethics Act as set forth above. Not only would Section 1103(a) of the Ethics Act prohibit you from voting on matters that would result in a financial gain to yourself, you would also be precluded from participating in discussions related to such matters. This is true because the use of authority of office is more than the mere mechanics of voting. It encompasses all of the tasks needed to perform the functions of a given position. See, Juliante, Order No. 809. Use of authority of office includes, for example, discussing, conferring with others, and lobbying for a particular benefit. Section 1103(a) of the Ethics Act would not preclude you from participating in matters that would financially impact upon you if you would fall within the exclusion to the statutory definition of "conflict of interest" known as the class /subclass exclusion. In order for that exclusion to apply, you would have to be in a class /subclass consisting of more than just one person and would have to be affected to the same degree as the other members of the class /subclass. See, Van Rensler, Opinion 90 -017. Under the facts that you have submitted, it would appear that you are the only Administrative Assistant in the Borough. Thus, in matters before the Borough that would have a financial impact upon you alone as the Administrative Assistant, the class /subclass exception to the definition of conflict of interest would not apply, and you, as a Council member, would have to abstain and observe the disclosure requirements of Section 1103(j) of the Ethics Act. On the other hand, where a matter would come before Borough Council that would financially impact all Borough employees" to the same degree, such as an across -the- board salary increase, and you, as an Administrative Assistant, would be considered to be one of two or more Borough employees, the class /subclass exclusion to the definition of conflict of interest would apply, and you would not be precluded from voting on that matter. The propriety of the proposed conduct has only been addressed under the Ethics Act; 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 Act. Specifically not addressed herein is the applicability of the respective municipal code. McCray, 01 -515 February 13, 2001 Page 6 Conclusion: As Administrative Assistant for Tionesta Borough, you are a public employee subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act'), 65 Pa.C.S. §1101 et seq. Assuming you run for a seat on Borough Council and win the election, subject to the restrictions and qualifications noted above, you may, consistent with Section 1103(a) of the Ethics Act, simultaneously serve in the positions of Borough Administrative Assistant and Borough Council Member for Tionesta Borough, which has a population of under 3,000. Assuming you are the only Administrative Assistant, the class /subclass exception to the definition of conflict of interest would not apply and you, as a Council member, would have a conflict of interest as to matters related to the Administrative Assistant position that would result in a financial gain to yourself. In each instance of a conflict, you would be required to abstain from participation and to fully satisfy the disclosure requirements of Section 1103(j) of the Ethics Act as set forth above. On the other hand, where a matter would come before the Borough that would financially impact all Borough employees" to the same degree, such as an across - the -board salary increase, and the Administrative Assistant would be considered to be one of two or more Borough employees, the class /subclass exclusion to the definition of conflict of interest would apply, and you, as a Council member, would not be precluded from voting on or participating in that matter. Lastly, the propriety of the proposed conduct has only been addressed under the Ethics Act. Pursuant to Section 1107(11), an Advice is a complete defense in any enforcement proceeding initiated by the Commission, and evidence of good faith conduct in any other civil or criminal proceeding, provided 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, if you disagree with this Advice or if you have any reason to challenge same, you may appeal the Advice to the full Commission. A personal appearance before the Commission will be scheduled and a formal Opinion will be issued by the Commission. Any such appeal must be in writing and must be actually received at the Commission within thirty (30) days of the date of this Advice pursuant to 51 Pa. Code §13.20. The appeal may be received at the Commission by hand delivery, United States mail, delivery service, or by FAX transmission (717 - 787 - 0806). Failure to file such an appeal at the Commission within thirty (30) days may result in the dismissal of the appeal. Sincerely, Vincent J. Dopko Chief Counsel