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HomeMy WebLinkAbout94-549 NavishDear Ms. Navish: STATE ETHICS COMMISSION 309 FINANCE BUILDING Pb. BOX 11470 HAIRISBURC, PA 17108-1470 TELEPHONE (717) 783 -1610 ADVICE OF COUNSEL- April 12, 1994 Eileen M. Navish Borough of East Pittsburgh 516 Bessemer Avenue East Pittsburgh, PA 15112 94 - 549 Re: Conflict, Public Official /Employee, Borough Secretary, Private Business or Employment, Certified Public Accountant, Use of Authority of Office or Confidential Information, Receipt of Private Office Space from Borough. This responds to your letter of March 13, 1994 in which you requested advice from the State Ethics Commission. Issue: Whether the Public Official and Employee Ethics Law presents any prohibition or restrictions upon a Borough Secretary from receiving office space at no cost from the Borough for use in her private business. Facts: In February, 1994 you were appointed by the Borough Council of East Pittsburgh to the position of Borough Secretary. The position requires 20 hours per week at a salary of $13,000.00 per year. At this time, the Borough is declared financially distressed and is in a recovery plan under Act 47. The Borough is not able to provide you with financial compensation for overtime you provide, nor is it able to provide you with a benefits package of health insurance, pension plan, etc., that was provided to a former Borough Secretary, since retired. In addition, the Borough does not have a computer and is not budgeted to buy a computer. You are using your own computer equipment to type letters, minutes, labels, 'etc. You are a self - employed Certified Public Accountant licensed to practice in the Commonwealth of Pennsylvania. You have requested office space from Council on a no - fee or no- rent basis The fair market value if the space you requested is $'200.00 per month. Navish, Eileen M., 94 -549 April 12, 1994 Page 2 • "Conflict or conflict of interest." Use by a public official or public employee of the authority bf his office or emplayment or any confidential information received through his holding public office or employment for the private benefit of himself, a member of his immediate family or "a business with which he or a member of his immediate family his aa`soeinted . "Conflict" or "conflict of 'iIl er4 t" 'floes not include an action having a The Borough is in a building that was a school. The East Pittsburgh's Secretary's office is formerly a large classroom. One half of this room can handle comfortably Borough business. You' have asked Council if you could, partition the office thereby creating two offices. There will be an entrance to each office. Council has agreed to this arrangement, however, it was suggested that you contact the State Ethics Commission before Council makes its final decision. Based upon the above, you request an advisory from the State Ethics Commission. Discussion: It is initially noted that pursuant to Sections 7(10 and 7(11) of the Ethics Law, 65 P.S..SS407(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 P §5407(10), (11). An advisory only affords a defense to the extent the requestor has truthfully disclosed all of the material facts. As a Secretary for the Borough of East Pittsburgh, you. are a public employee as that term is defined under the Ethics Law, and hence you are subject to the provisions of that law. Section 3(a) of the Ethics LaW provides: Section 3. Restricted Activities. (a) No public official or public employee shall engage in conduct that constitutes a conflict of interest The following terms are defined in the Ethics Law as follows: Section -2 Definitions. Navish, Eileen M. 94 -549 April 12, 1994 Page 3 de min&mis economic iiiapact or which affect* tb the , same. degree a class consisting of the general public or a subclas$ consisting of an industry, occupation: or other group which includes the public official or public employee,.a, member of hit 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 ekercise of which is necessary to the performance of duties and responsibilities unique to a particular public office or position of public employment. "Business with which he is associated." Any business in . which the person br a melt of the person's immediate family is a director, officer, owner, employee or . has a financial interest. In addition, Sections 3(b) and 3(c) bf the Ethics Law provide in part that no person shall offer to a public official /employee anything of monetary value and no public official /employee shall solicit or accept anything of monetary value based upon the understanding that the vote, official action, br judgement of the public official /employee would be influenced thereby. Reference is made to these provisions of the law not to imply that there has been or will be any transgression thereof but merely to provide a complete response to the question presented. Section 3(j) of the Ethics Law provides as follows: Section 3. Restricted activities (j) 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 intere §t, as a public record in a. written memorandum filed with the person responsible f6r redardifig the minutes of the meeting at wlidh the tote • is Navish, Eileen M., 94 -549 April 12, 1994 Page 4 taken, pro'v'ided that whenever a governing body would be _uffabk8 to flake 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. If a conflict exists, Section 3(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 ina jority is unattainable due to the abstention (s) from conflict under the Ethics Law, then in that event participation is permissible provided the disclosure requirements noted above are followed. See, Mlakar, Advice 91- 523 -S. Initially, prior precedent on the general issue of office for business or personnel matters will be reviewed. Although, it is noted that some prior precedent has been decided under Act 170 of 1978 which has been amended by Act 9 of 1989, a review warranted as it relates to the underlying analysis of this issue. In McClatchv, 130, the allegation concerned whether a Representative used the House of Representatives postage meter and stationery for personal br political purposes regarding mailing letters to; constituents for the purpose of soliciting support for the candidacy of another individual seeking public office. There was violation of Section 3(a) of the Ethics Act because the mailing was designed to solicit political support for a colleague's re- election and as such could not be considered within the ambit of "official business ". It was specifically found that the mailing was personal in nature rather than legitimate legislative business and directed that the activity should not reoccur. In Dorrance, Order 456, the Commission held that there was a Navish, Eileen M., 94 -549 - April 12, 1994 Page 5 violation of the Ethics 'Law where an attorney from the ' Department of Public Welfare used:faci materials and personnel of his governmental employer to complete legal work as a private attorney. In that case, the financial gain received by the public employee was the cost of the expenditures for materials, - postage, and secretarial labor to process his private legal work. - In Rieaer, Order 680, the allegation regarded a Representative who used Commonwealth stationery, mailing systems and postage to send letters to an executive committee in his district encouraging them to support his re- election . Based upon findings of the use of Commonwealth House of Representatives letterhead, stationery, meter postage, equipment and staff t� •send out re- election materials, a violation of Section 3(a) of the Ethics Act as to such activities was found as well as a violation of Section 3(a) of the Ethics Act regarding the use of his district office for re- election campaign purposes. In Freind, Order 800, a Member of the House of Representatives violated the Ethics Law when he used, his district office and facilities including office space, telephone, utilities, supplies and postage for the purpose of conducting and aiding his private practice of law. The public official was directed to separate his private business location from his legislative district office. In Street, Opinion 81 -005, the legislative district office of a State Senator could not be used as a contact point by an independent group seeking to raise funds for his personal use because such would be compensation other than provided by law and contrary to Section 3(a) of the Ethics Act. Since the activities in the case were undertaken by an independent group without the authorization of the State Senator, no further action was taken provided such activity terminated and did not reoccur. Finally, in Cessar, Opinion .82 -002, the propriety of a Representative conducting re-election campaign activities out of his own district office was considered. The issue both under Section 3(a) of the Ethics Act and under the Preamble in Section 1 were analogous. Under Section 3(a), theuse the district office for campaign purposes to obtain funds. or capital or otherwise increase resources could be considered a: financial gain through.use of office contrary to Section 3(a) of the Ethics Act, Thereafter, the question of whether the creation of an accounting system which would pay for the proposed' use of the office for campaign purposes would be permissible under the Ethics Act was considered.. Such a payment would not dispel an appearance of conflict under the Act The Representative was required' to' separate his role: as an incumbent serving his constituents and his role_ as a candidate serving his personal interests in- campaigning' Nsvish, Eileen M., 94-549 April 12, 1994 Page 6 for re-election. As to the above adjudications wherein consideration was given to perceptions or appearances of conflict, such are not followed to the extent that they rely upon the appearance language in the Preamble of Act 170 which was deleted by Act 9 of 1989. Further, although some of the above decisions were decided under Act 170 of .1378, the undeilying rationale regarding the demarcation between the Use of public office for its stated governmental function as oppOSed to tse for private/business/political purposes has equal appildation to Act 9 of 1929. As was noted in Pancoe, Opinion 8-9-0 In applying the above provisions of the Ethics Law to ,the instant matter, we note that Section 3(a) of the Ethics Law does not prohibit public officials/employees from outside business activities; however, the public official/employee • may not use the authority of office for the advancement of his own personal financial gain. Thus, although you are not prohibited under Section 3(a) of the Ethics Law from entering into a partnership which would provide consulting or marketing services, you could not perform your private business using Commonwealth facilities or personnel. In particular you could not use the telephone,- postage, staff, equipment, research materials, personnel or any other printed/drafted material as a means, in whole or part, to carryout your private business activities. In'addition, you could not during Commonwealth working hours, solicit members of the General Assembly or others to promote or conduct your marketing and consulting business. Subject to the qualifications noted above., Section 3(a) of the Ethics Law would not prohibit you from entering into the private partnership arrangement. Id. at 4 In a public official/employee has his first loyalty to the public office rather than his private personal interests. Crisci, Opinion 89-013. In applying the provisions of Section 3(&) of the Ethics Law quoted above to the instant 'Matter', your request for.office space at no cost and subsequent provision for such space by the Borough business or personal use would be prohibited by the Ethics Law. Section 3(a) of the Ethics Law in defining conflict requires that there be a use of the authority of office to obtain a private pecuniary benefit for the public official/employee, a member of his immediate family or business with which he or a member of his Navish, Eileen M., 94 -549 April 12, 1994 Page 7 such immediate family is associated. Iin this case, the r'eque'st by you for the office space would be through the "authority of office" as defined in the Ethics Law. Second, the unambiguous language of the definition of conflict cannot be disregarded in an attempt to pursue what might be perceived to be the spirit of the ftlaicS Law. In addition, the element of the private pecuniary benefit exists because you have stated that you would not be paying for the office space but that, it would be provided to you by the Borough, 'With the necessary elements of the use of the authority of office and private pecuniary benefit, such activity would be prohibited under Section 3(a) of the Ethics Law. The propriety of the proposed conduct has only been addressed under the Ethics Law; the applicability of any otter statute, code, ordinance, regulation or other code of conduct other than the Ethics Law has not been considered in that they do not involve an interpretation of the Ethics Law. Specifically not addressed herein is the applicability of the Borough Code. Conclusion: As Secretary for the Borough of East Pittsburgh, you are a public employee subject to the provisions of the Ethics Law, Under the Ethics Law, you would be prohibited from requesting and receiving office space for your private business from the Borough at no cost as such would be the use of authority of office for the receipt of a private pecuniary benefit. Lastly, the propriety of the proposed conduct has only been addressed under the Ethics Law. Pursuant to Section 7(11), this 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, providing 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 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 fifteen (15) dugs Of the date of this Navish, Eileen X., 94 -549 April 12, 1994 Page 8 Advice pursuant to 51 PaCode §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). v►(1 Vincent Dopko. Chief Counsel