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HomeMy WebLinkAbout21-520 GonzePHONE: 717-783-1610 TOLL FREE: 1-800-932-0936 To the Requester: Mr. Peter C. Gonze Dear Mr. Gonze: STATE ETHICS COMMISSION FINANCE BUILDING 613 NORTH STREET, ROOM 309 HARRISBURG, PA 17120-0400 FACSIMILE: 717-787-0806 WEBSITE: www.ethics.pa.gov ADVICE OF COUNSEL April 22, 2021 21-520 This responds to your correspondence dated March 18, 2021, received March 26, 2021, by which you requested an advisory from the Pennsylvania State Ethics Commission (Commission). Issue: Whether, pursuant to Section 1103(a) of the Public Official and Employee Ethics Act (Ethics Act), 65 Pa.C.S. § 1101 et seq., you would have a conflict of interest in your capacity as a Supervisor for Paradise Township (Township) with regard to participating in discussions, votes, or other actions of the Township Board of Supervisors in matters involving a developer's proposal for the development of a large resort on land adjacent to property owned by Trinity Episcopal Church (Church), of which you are a Member and the Treasurer? Brief Answer: You would not have a conflict of interest with regard to participating in discussions, votes, or other actions of the Township Board of Supervisors in matters involving the proposed development of land adjacent to property owned by the Church unless: (1) you would be consciously aware of a private pecuniary benefit for yourself or the Church, which is a business with which you are associated in your capacity as the Treasurer; (2) your action(s) would constitute one or more specific steps to attain that benefit; and (3) neither of the statutory exclusions to the definition of "conflict" or "conflict of interest" as set forth in the Ethics Act, 65 Pa.C.S. § 1102, would be applicable. t 1 Action having a de mznzmzs economic impact or which affects to the saine 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 mermber of his hmnediate family or a business with which he or a member of his irmnediate family is associated, does not constitute a conflict of interests. Gonze, 21-520 April 22, 2021 Page 2 Facts: You request an advisory from the Commission based upon the following submitted facts: You are a Supervisor for the Township, which is located in Monroe County, Pennsylvania. A developer (Developer) proposes to construct a large resort (the Developer's Project) in the Township that would include hotels, cabins, a conference center, a spa, and attendant facilities. A sketch plan for the Developer's Proj ect is currently before the Township Planning Commission for review. It is anticipated that the Developer's Project will eventually come before the Township Board of Supervisors for a conditional use hearing and land development approval. The Developer's Project would be adjacent to property owned by the Church. You state that the Developer's Project may or may not have an impact on the Church's property. You are a Member of the Church, and you serve as the Church Treasurer, in which capacity you are an officer of the Church. You receive no payment for serving as the Church Treasurer, and you are not a decision -maker on secular Church business or policy. You seek guidance as to whether the Ethics Act would impose prohibitions or restrictions upon you with regard to participating in discussions, votes, or other actions of the Township Board of Supervisors that may affect the Developer's Project. In particular, you pose the following questions: Whether you would be permitted to participate in discussions or votes on a conditional use application for the Developer's Project; 2. Whether you would be permitted to participate in discussions or votes regarding improvements that may be proposed in the Developer's Project; Whether you would be permitted to review the land development plan, the conditional use application, or other documents involving the Developer's Project; and 4. Whether you would be permitted to participate in the review and subsequent approval or disapproval of the Developer's Project. Discussion: Pursuant to Sections 1107(10) and 1107(11) of the Ethics Act, 65 Pa.C.S. §§ 1107(10), (11), advisories are issued to the requester based upon the facts that the requester has submitted. In issuing the advisory based upon the facts that the requester has submitted, the Commission does not engage in an independent investigation of the facts, nor does it speculate as to facts that have not been submitted. It is the burden of the requester to truthfully disclose all the material facts relevant to the inquiry. 65 Pa.C.S. §§ 1107(10), (11). An advisory only affords a defense to the extent the requester has truthfully disclosed all the material facts. Gonze, 21-520 April 22, 2021 Page 3 Sections 1103(a) and 11030) of the Ethics Act provide: § 1103. Restricted activities (a) Conflict of interest. -- No public official or public employee shall engage in conduct that constitutes a conflict of interest. 0) 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 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(a), 0). The following terms related to Section 1103(a) 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 Gonze, 21-520 April 22, 2021 Page 4 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. "Business." Any corporation, partnership, sole proprietorship, firm, enterprise, franchise, association, organization, self-employed individual, holding company, joint stock company, receivership, trust or any legal entity organized for profit. "Business with which he is associated." Any business in which the person or a member of the person's immediate family is a director, officer, owner, employee or has a financial interest. 65 Pa.C.S. § 1102. Subject to the statutory exclusions to the Ethics Act's definition of the term "conflict" or "conflict of interest," 65 Pa.C. S. § 1102, 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. The use of authority of office is not limited merely to voting but extends to any use of authority of office including, but not limited to, discussing, conferring with others, and lobbying for a particular result. Juliante, Order 809. In each instance of a conflict of interest, a public official/public employee would be required to abstain from participation, which would include voting unless one of the statutory exceptions of Section 11030) of the Ethics Act would be applicable. Additionally, the disclosure requirements of Section 11030) of the Ethics Act would have to be satisfied in the event of a voting conflict. Per the Pennsylvania Supreme Court's decision in Kistler v. State Ethics Commission, 610 Pa. 516, 22 A.3d 223 (2011), in order to violate Section 1103(a) of the Ethics Act, a public official/public employee: ... must act in such a way as to put his [office/public position] to the purpose of obtaining for himself a private pecuniary benefit. Such directed action implies awareness on the part of the [public official/public employee] of the potential pecuniary benefit as well as the motivation to obtain that benefit for himself. Gonze, 21-520 April 22, 2021 Page 5 Kistler, supra, 610 Pa. at 523, 22 A.3d at 227. To violate Section 1103(a) of the Ethics Act, a public official/public employee "must be consciously aware of a private pecuniary benefit for himself, his family, or his business, and then must take action in the form of one or more specific steps to attain that benefit." Id., 610 Pa. at 528, 22 A.3d at 231. Conclusion: In applying the above provisions of the Ethics Act to the instant matter, you are advised as follows: As a Township Supervisor, you are a public official subject to the provisions of the Ethics Act. The Church is a business with which you are associated in your capacity as an officer (i.e., Treasurer). As a public official, you are restricted from using the authority of your public office for the private pecuniary (financial) benefit of yourself, a member of your immediate family, or a business with which you or a member of your immediate family is associated, such as the Church. You are advised that would not have a conflict of interest under Section 1103(a) of the Ethics Act with regard to participating in: (1) discussions or votes on a conditional use application for the Developer's Project; (2) discussions or votes on improvements that may be proposed in the Developer's Project; (3) the review of the land development plan, the conditional use application, or other documents involving the Developer's Project; or (4) the review and subsequent approval or disapproval of the Developer's Project, UNLESS you are consciously aware that by engaging in any of the foregoing (discussions/votes/reviews/approvals/etc.) you are furthering a financial benefit that is beyond de minimis and/or would not constitute a class/subclass exception, to yourself, your immediate family, and/or to the Church. If you are aware or have a reasonable expectation that a financial benefit as described above would occur, you are required to abstain from participation, which would include voting unless one of the statutory exceptions of Section 11030) of the Ethics Act would be applicable. Additionally, the disclosure requirements of Section 11030) of the Ethics Act would have to be satisfied in the event of a voting conflict. 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, this advisory does not address any applicability of the Second Class Township Code. Gonze, 21-520 April 22, 2021 Page 6 Pursuant to Section 1107(11) of the Ethics Act, 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 requester 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 § 13.2(h). 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, rian D. Ja isi Chief Coun