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HomeMy WebLinkAbout92-596Dear Colonel Holt: STATE. ETHICS COMMISSION 309 FINANCE BUILDING P.O. BOX 11470 HARRISBURG, PA 17108 -1470 TELEPHONE (717) 783 -1610 ADVICE OF COUNSEL June 12, 1992 LTC Joseph W. Holt, Director Bureau of Administrative Services Building S -0 -47 Fort Indiantown Gap Annville, PA 17003 -5002 92 -596 Re: Chairman; Commissioner; Pennsylvania Veterans' Memorial Commission; Public Official; FIS. This responds to your letter of April 29, 1992, in which you requested advice from the State Ethics Commission. Issue: Whether the Chairman and other Governor - appointed Commissioners serving on the Pennsylvania Veterans' Memorial Commission are to be considered "public officials" as that term is defined in the Public Official and Employee Ethics Law, and therefore, subject to the provisions of the Ethics Law including but not limited to the requirement to file Statements of Financial Interests. Facts: As Director of the Bureau of Administrative Services with the Commonwealth of Pennsylvania, Department of Military Affairs, you request an advisory from the State Ethics Commission regarding whether the Chairman and other Governor- appointed Members of the Pennsylvania Veterans' Memorial Commission would be required to file financial disclosures pursuant to the Ethics Law. You have enclosed a copy of the enabling legislation for the Commission, specifically the Official Advance Copy of Act 60 of 1988, which is incorporated herein by reference. You state that it is your opinion that the Chairman of the Pennsylvania Veterans' Memorial Commission, Mr. Raymond C. Mullin, should be considered to be subject to the requirement to comply with financial disclosure provisions since he is appointed by the Governor and is responsible for the expenditure of Commission funds. As for the other Commission Members, several are also appointed by the Governor. However, you have been advised that these Members are not authorized to expend funds. None of the Members are compensated for their services, but treyel expenses ITC Joseph W. Holt, 'Director :June 12, 1992 Page 2 related to Commission business are reimbursable. You conclude by stating your opinion that the Chairman of the Pennsylvania Veterans' Memorial Commission should be required to file financial disclosure statements, but that the other Members_ of the Commission in question should not be required to do so. Discussion: It is necessary to analyze the duties, functions and responsibilities of Chairman Mullin and the other Commissioners as to whom you inquire in order to determine whether they are within the definition of "public official" as set forth in the Ethics Law and the Regulations of the Commission. Philips v. State Ethics Commission 79 Pa. Commw. Ct. 491, 470 A. 2d 659 (1984). The powers or duties of the Commissioners are set forth in Section 1904 of Act 60 of 1988 which provides as follows: §1904. Duties of commission. In addition to other powers conferred by this chapter, the commission shall have the power: (1) To erect a physical monument to be located on the grounds of the Indiantown Gap National Cemetery honoring Pennsylvania veterans. (2) To receive for and on behalf of the Commonwealth, monetary gifts or bequests which shall be deposited in the' fund. (3) To accept grants.and subsidies from and enter into agreements or other transactions . with any Federal agency or agency of the Commonwealth or other entity. (4) To enter into contracts and to execute all instruments necessary or convenient for carrying on its operation. (5) To issue appropriate regulations for the implementation of this chapter. (6) To do all other things necessary or convenient to carry out the powers granted to it by this chapter. LTC Joseph W. Holt, Dir "ector June 12, 1992 Page 3 51904, Act 60 of 1988 (Official Advance Copy). It is initially noted that the above duties of the Cdimnissioners on the Pennsylvania Veterans' Memorial Cbmmission =not appear to be distinguished as to particular Members Commission, but are generally applicable to all serving on the Commission. However, because you have limited your inquiry to Chairman Mullin and the other Governor - appointed Commissioners, this .Advice may only consider whether those particular individuals are within the term "public official"' as defined in the Ethics Law and Regulations of the Commission. The Ethics Law defines the term as follows: Section .1.1 Definitions Public officials - -- An elected or appointed official in the executive, legislative or judicial branch of the government of the Commonwealth or its political subdivisions. The terms does not include a member of an advisory board who has no authority to spend public funds other than reimbursement for personal expenses or to otherwise exercise the power of the State or a political subdivision thereof. (i) The following criteria will be used to determine if the exception in this paragraph is applicable: (A) The body will be deemed to have the power to expend public funds if the body may commit funds or may otherwise make payment of monies, enter into contracts, invest funds "Public official" Any person elected by the public or elected or •appointed by a governmental body, or an appointed official in the Executive, Legislative or Judicial Branch of the State or any political subdivision thereof, provided that . it shall not include members of advisory boards that have no authority to expend public funds other than reimbursement for personal expense, or to otherwise exercise the power of the State or any political subdivision thereof. The regulations of the State Ethics Commission similarly define the term "public official" as above and also set forth that the term includes any individual: I,TC Joseph W. Holt, Director June 12, 1992 Page 4 held in reserves, make loans or grants, borrow money, issue bonds, employ staff, purchase, lease, acquire or sell real or personal property without the consent or approval of the governing body and the effect of the power to expend public funds has a greater than de minimis effect on the interest of a person. (B) The body will be deemed to have the authority to otherwise exercise the power of the State or a political subdivision if one of the following exists: (I) The body makes binding decisions or orders adjudicating substantive issues which are appealable to a body or person other than the governing authority. (II) The body . exercises a basic power of government and performs essential governmental functions. (III) The governing authority is bound by statute or ordinance to accept and enforce the rulings of the body. (IV) The body may compel the governing authority to act in accordance with the body's decisions or restrain the governing authority from acting contrary to the body's decisions (V) The body makes independent decisions which are effective without approval of the governing authority. (VI) The body may adopt, amend and repeal resolutions, rules, regulations, or ordinances. (VII) The body has the power of eminent domain, or condemnation. (VIII) The enabling legislation of the body indicates that the body is 'established for exercising public powers of the Commonwealth or apolitical subdivision. 51 Pa. Code §1.1. We must review the question you present under these .provisions LTC Joseph W. Holt, Director June 12, 1992 Page 5 of the statute and the regulations of this Commission in light of the duties and responsibilities of the Chairman other Governor - appointed commissioners in question. Our inquiry necessarily focuses on the job itself and not on the individual incumbent in the position, the variable functions of the position, or the manner in which a 'particular individual occupying a position may carry out those functions. See Philips v. State Ethics Commission, 79 Pa. Cmwlth. 491, 470 A. 2d 659 (1984); Mummau v. Ranck. 531 Fed. Supp. 402 (E.D. Pa. 1982). Also, in reviewing -your question, the Commonwealth Court in its ruling in Phillips, supra, at page 661, directs us to construe coverage of the Ethics Act broadly, rather than narrowly, and conversely, directs that•exolusions from the Ethics Act should be narrowly construed. Based upon this directive and reviewing the definition of '"public official" in the statute and the regulations and opinions of this Commission, in light of the duties and responsibilities of those serving on the Pennsylvania Veterans' Memorial Commission, we must conclude that Chairman Mullin and the other Governor - appointed ..Commissioners of the Pennsylvania Veterans' Memorial Commission are "public officials" subject to the financial reporting and disclosure requirements of the Ethics Law. As set .forth in the enabling legislation, the Chairman and the other Commissioners - including but not limited to those appointed by the Governor - have the power to erect a physical monument at the Indiantown Gap National Cemetery, honoring Pennsylvania veterans; to receive for and on behalf of the Commonwealth monetary gifts or requests, grants and subsidies; to enter into contracts or other transactions with governmental agencies or other entities; and to do all other things which would be necessary or convenient to carry out-the powers granted to the Commission under Chapter 19 of the Act.. -These activities fall within the definition of "public official" as contained in the regulations of the Commission. 51 Pa. Code 1.1. Under these circumstances and given the duties and responsibilities of the Commissioners as outlined above, the necessary conclusion is that Chairman Mullin and the Governor - appointed Commissioners of the Pennsylvania Veterans' Memorial Commission are "public officials." In light of these duties and responsibilities, the_submitted fact that Members other than the Chairman are unauthorized to expend funds would not change the above determination. Conclusion: The Chairman and other Governor- appointed Commissioners serving on the Pennsylvania Veterans' Memorial Commission are to be considered "public officials." Accordingly, pursuant to the Ethics Law, each of these individuals must file a Statement of Financial Interests for each year in which the position is held and the year following termination of this service. If they have not already done so, their Statements of LTC Joseph W. Holt, Director June 12, 1992 Page 6 Financial Interests must be filed within fifteen (15) days of this Advice. The Statement of Financial Interests would report information of the prior calendar year. Finally, it is noted that for purposes of the Ethics Law, there is no basis for distinguishing these individuals from the. other Commissioners on the Pennsylvania Veterans' Memorial Commission other than the fact the inquiry was limited to those appointed by the Governor. 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 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 request that the full Commission review this Advice. A personal appearance before the Commission will be scheduled and a formal Opinion from the Commission will be issued. Any such appeal must be in writing and must be received at the Commission within 15 days of the date of this Advice pursuant to 51 Pa. Code §2.12. v\ incent . Dopko Chief Counsel