HomeMy WebLinkAbout92-625Dear Mr. Luzi:
STATE ETHICS COMMISSION
309 FINANCE BUILDING
P.O. BOX 11 470
HARRISBURG, PA 17108 -1470
TELEPHONE (717) 783 -1610
•
ADVICE OF COUNSEL-
, ; September `9, 1992
Mr. Aaanan& N. Luzi 92 -625
Borough of West Newton
112 South Water Street
West Newton, Pali 15089
Re: Conflict, Public Official /Employee, Borough Council Member,
Immediate Family, Brother -in -Law, Developer.
This responds to your letter of August 5, 1992, in which you
requested_ advice from the State Ethics Commission.
t$sue: Whether. the Public Official and Employee Ethics Law
presents any prdhibition or restrictions upon a member and
president of a borough council with regard to a development of .
which his brother -in -law is an owner and developer-.
Facts: As-President of West Newton. Borough Council in Westmoreland
County, Pennsylvania,, you request an advisory as to a potential
Conflict of interest. ` <. The Borough is in receipt of a $500,000.00
BID Grant for the purpose of laying an access road in an area known
as Riverside Plaza located in West Newton Borough. The owners and
developers of Riverside Plaza are P. Ben Stork and Harry Knopp.
Harry Knopp is married to your sister. However,.yott state that
Mrs. Knopp, your sister, is not a partner, nor does fix; name appear
on any deeds or titles to any of the Riverside prc psrties.
You state that after obtaining. a feasil k(it ,r.. by ai
engineer,: Borough Council was required tcq vote on the type of .road
to be laid out in Riverside Plaza -- a , road 6r a cul -de-
sac. Upon advice of the Borough Solicitor, you abstained from a1
discussion, executive ,sessions and voting; due to a possibh
private pecuniary benefit .to your sister. A vgte was taken on Jude
18, 1992, for a cul -de -sac, which vote was 3 -3 -2 with the mayor
casting the tie breaking vote.
You pose the following specific - .questions:
Mr. Ainia' hd N. Lu4
Sept*ber 9, 1992
Page 2
1: Whettier you could paftioipite ift any ftture vote
detei&iiring the type of rea.d to be laid out, due to the
fact that your sistee is ndt a partner r property owner;
2. If You are found to have a cOnflict as to voting on the
type of road • t� be built, 'Whether, after the vote is
taken, you could participate and vote on the construction
and activity of this piedject.
eidCustion: At A Member and Presideht of Wet Newton Borough
Council in Westmoreland Cunt, kenntylvania you are a public
official as that term is defined under: the Bthics Law, and hence
you are subject to the pfelfisidns of that law.
Section 3(a) of the Sthi dd Law provided:
Section 3. .kettridted...ACtiVitied.
) No public Official Of public
eMPloyee thall engage • in conduct hat%
aohttitutes a conflidt Of interest.
The folio:Wing terms are defined in the Ethics Law as. follows:
"donfiidt et dotiflidt Of intetest.* TYe
by a public official or public eMplyee of the
authority of his office et emptwbwit er
Calif idehtial information tedeiVe4 throuiyh hie
WA:nag i)ubila of fide Or_ eMpeymaKit tot the
bediditiairy benefit of h-i! y a **abet
of hit iithtedi&i &xnjJ of a bUtihest with
vihleh he or a meffibet of hit imtdiatt family
is iiedoiated, "ttintlitt et hteftilitt o
intereet does net inditde ah Abtibk he*Ihg a
de rainkilis economic impact *11-1 aft*Ctt to
the athe degree a class cehsidtthl the
general p*tblid dt a subelats teheittlftg of an
indUktry, oddupatibn or other vttiap which
iliblUaet the public — ofticial or pubic
eMPIOyeei a itteitbet "of his itmdriate mil
a. buOinett Lbh *)hich he cit a menibet rot his
ImMediate twhaty i% attodiated,
4t6tity Of oftide tritiplbyttretit." he
actta-i k:i6drelr provildied 1 63 -1 the 4:3L% of
whliCh is nededsary to th e petturmanee "ef
ditties and keepentibilitiet throe to a
Mr. Armand N. Luzi
September 9, 1992
Page 3
particular public office or_positian of public
employment. ,-
"Immediate family." A parent, spouse,
child, brother or sister.
"Business with which he is associated.-"
Any business in- the person or a member
of the person's- immediate family is a
director, officer, owner, employee or has a
financial interest. -
- z>
- "Financial interest." Any financial
interest in a legal entity engaged in business,
for profit which comprises more than 5% of the
equity of the business or more than 5% of the
assets of the economic interest in
indebtedness.
In addition, Sections 3(b) and 3(c) of 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, or 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.
Lc
Section 3(j) of the Ethics Law provides as follows:,
Section 3. Restricted activities.
tu
(j) Where voting conflict %„ are_ 1 Dot , ..
otherwise addressed by the ConstA ucaQ#:.d • -"
Pennsylvania or by any law, rule,:r�g 1 n
order or ordinance, the - folowing a procede ; �
shall be employed. Any public, o4f4. . t . .t4r v .. , ..�,.
public employee, who in the discharge of his - c-
official 'duties, would be required "to votf on
a matter that would result in a . conf ct- o or
interest shall abstain from opting andtit Prior ,, L
to the vote being taken, publicly an .aur . and
disclose the nature 9f his intertst,•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 Ati matter
before it because the number of members of the
Mr. Armand H. Luzi
September 9, 1992
Fage 4
body required to abstain from voting under the
provisions of this section makes " tie majority
or other legally required v e of approval
unattainable, then such mee s shall be
permitted to vote if :disclos'iire' are made as
otherwise provided herein. In -- ; e case of a
'
three- member governing body ` f a pQ1 . tica1
subdivision, where one membe has a staine
from voting as a result of a 'ogpf Vitt of
interest, and the refi tning two m* 044 of the
governing body have cast opposing v¢tes, the
member who has abstained shall be pe.tted to
vote to break the'tie vote if disclosure is
made as otherwise' pro `herein
If a conflict exists, Section 3(j) requires the public
official /employee to abstain _- afid ' to ` pub1441.y c)i the
abstention' and reasons for "sam ; both orally and by' filing a
written memorandum to that effect with the - " person recording the
minutes or supervisor. -
In applying the above rovisions of the Ethics Law tp ; the
circums which you have provisions
pursuht to Sectors 3(a) p€
the Ethics 1 a public off itial /public `eiplo se is p ohibited
from using the authority` of public -Of five %employ newt' or
confidential information ceived by h ilding such a pubric position
for the pri pe gnefit of Val public ogf"ica-al /Ru iic
employee himself, allYttld1.nber of his mane fiat ' f amity; or'. btu "
" 1 eSs
with which he or a member "of his immediate family i associated.
Turning to your specific inquiries, the se analysis of the
restrictions of the Et ics t,aw , - vmulti apply tQ tiVt.b. ' q yoilr specific
inquiries. Since the term ", nunedi.a f prim .ly" is clet1.4ed to include
a parent, spouse, child, brathet or- sibter etA since your and your
brother - - law are not in a a re1atio ' s ip elineated above,
Section 3(a) of ' the Ethths `Law liptld''r of I4 `and "restrictions
upon your prospective_ official partiCipat.io t rs p twining
to Riverside plaza. However, this Advi e i esd 5 d' c onc it .owed
upon the express assumption that neither y u, tom sister, any
other immediate family member, nor 4,51Y ,itn which you or
any immediate family member `is assgc.atFd as 4ef }nec 'In the Ethics
Law, has an interest it Riverside plaza 9r would ted eve a p; }Kate
pecuniary benefit from 'your SrQpose "c uct: g,, • B41, Opinion
09 -016; Boyer;, Advice 91;-511.--1' . .. e _
The propriety of the proposed conduct has only beery 40 ; %ssed
under the Ethics Law; the applicabilit f arty gth ktatut . cc3 e,
ordinance, regulation or other` od of konciugt` at1 e tipAR %
Ethics Law has not been consi 4ere ' in t iat t iy do 'not ` }gig$ Y
interpretation Of the Ethics Law. SPeciically not 4 exec
Mr. Armand N. Luzi
September 9, 1992
Page 5
herein is the applicability of the- Borough Code.
Conclusion: As a Member and President of West Newton Borough
Council in Westmoreland County, Pennsylvania, you are a public
official subject to the provisions of the Ethics Law. Section 3(a)
of the Ethics ,Law would not present any restrictions upon your
future official conduct in matters involving Riverside Plaza of
which your brother -in -law is an owner and developer This Advice
is based and conditioned upon the express assumption that neither
you, your sister, any other immediate family Wernher, nor any
business with which you or any immediate family member is
associated as defined in the Ethics Law, has an interest in
Riverside Plaza ox. would receive a private pecuniary benefit from
your proposed official conduct. 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 requestor has disclosed truthfully all
the material facts and committed the acts complained of in reliance
on the Advice given.
such.
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 request that the fullCommissi.pn
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
td -51 Pa . Code 52.12.
9 .ncerely,
Vincent DopkQ
Chief Counsel
-74
F
J.