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HomeMy WebLinkAbout92-636Mr. Leslie R. Dulaney 92 -636 R.D. 1, Box 177 Aleppo, PA 15310 Re: Conflict, Public Official /Employee, Township Auditor, Contracting, Real Estate, Sale to Township. Dear Mr. Dulaney: STATE ETHICS COMMISSION 309 FINANCE BUILDING P.O. BOX 11470 HARRISBURG, PA 1 71 08 -1 470 TELEPHONE (717) 783 -1610 ADVICE OF COUNSEL October 20, 1992 This responds to your letter of September 8, 1992 in which you requested advice from the State Ethics Commission. Issue: Whether a township auditor may, under the Public Official and Employee Ethics Law, sell a piece of real estate to the township. Facts: As a Township Auditor, you wish to sell to the Township a piece of real estate. You state that the Township is presently renting the real estate to store machinery and other items. However, the Township would like to purchase the real estate and as an Auditor and taxpayer, you state your belief that yon could sell it to the Township. You request an advisory from the State Ethics Commission in this regard. li Discussion: As a Township Auditor, you are a "publ4epfficial" as that term is defined in the Ethics Law and hence you' a)re subject to the provisions of the Ethics Law. 65 p.. S . §402; 5'1- Via,. Code Si .1. Section .3 (a) of the Ethics Law provides`•: Section 3. Restricted Activities. No public official or public employee shall 'engage in conduct that constitutes a conflict of interest The following terms ire defined under the Ethics Law: Section' . Defini.ti-ons. Mr. Leslie 11. pulaney October 20, 1992 Page 2 "Conflict or conflict of interest." Use by a public official or public employee �f 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. "Conflict" or "conflict of int@re@t" 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 emploYes, 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 Par:tiquilar. Public office or position of public WaPioraent. "COntract." An agreement oi arrangement for the acquisition, use or disposal by the ComMQnWealth or a political subdivision of consulting or other services Q: supplies, materials, equipment, land ar other personal or real property. "Contract" ehaIl not mean an agreement or arrangement between the State or political slabdivisiou as one Warty and a Public 0 or publi.c mglayee as the Other party, concerning his expense, • rei:Mbursement, salary, wage, rettremiamt or other benefit, tenure or other matters in consideration of his current pill:rile employment wIth the Commonwealth or a political • In addition, - 0_44ions, 1(b) and 3(a) at tile Ethics Law provider in Part: tha:t no of gr_... to a. putulli, affic.iallemployedeo anyt., 'ling, of monetary- value: and -no pcxx1.12m off.iicimt/employew shag so3lir-Lt or accept any thing ctf monetary - valuer based upon t ther• understanding tha:t, the, vote, official action, or judgement of the: p official/employee would be inflbenced• thereby. Reference is made, to. these provisions of the law- not to imply that there! has been op will be. any. transgression thereof but merely to provide a Mr. Leslie R. Dulaney October 20, 1992 Page 3 complete response to the question presented. Finally, contracting restrictions as to public officials/ employees are provided in Section 3(f) of the Ethics. Law as follows: Section 3. Restricted activities. (f) No public official or public employee or his spouse or child or any business in which the person or his spouse or child is associated shall enter into any contract valued at $500 or more with the governmental body with which the public official or public employee is associated or any subcontract valued at $500 or more with any person who has been awarded a contract with the governmental body with which the public official or public employee is associated, unless the contract has been awarded'through an open and public , process, including prior public notice and subsequent public disclosure of all proposals considered and contracts awarded. In such a case, the public official or public employee shall not have any supervisory or overall responsibilitx for the implementation or administration of the contract. Any contract or subcontract made in violation of this subsection shall be voidable by a court of competent jurisdiction if the suit is commenced within 90 days of making of the contract or subcontract. 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 would not be prohibited under Section 3(a) of the Ethics Law from selling a piece of real estate to the Township, you could not use the,authority of your position as Township Auditor with regard to this transaction. As to Section 3(f) of the Ethics Law quoted above, this provision of law has strict requirements whenever a public official /employee would contract with his governmental body. The term governmental body with which a public official or public employee is or has been associated" is defined as follows: Mr. Leslie R. Dulaney 'October 20, 1 ,Page 4 Section 2. Definitjions "Governmental body." Any department, authority, commission, cq rittee council, board, 1pureau, division, sprvice, aFfBice,• officer , administration, legislative body, or ,other ,establishment in the Executive, Legislative ,or Judicial ;Branch of a State, a nation, or a political subdivision thereof or an agency ,performing a governmental function. Under the above quoted definition,, it is clear that the ,governmental body with which you are associated would include the Township. Accordingly, under Section 3;(f) fof the Ethics .l.am, any contract' that you .would negotiate with the Townshi would ' to be awarded through an open and public process including prior public notice and subseguent public disclosure if the contract is $500.00 ox r ,as per the requirements of Section 3(f). Finally, if you and the Township enter into such a contract with full compliance witgi the restrictions of Section 3(f), you would be prohibited fry the uap.ementation or administration of that contract in ire capacity' as► public' official /employee, Therefore, in'order for contracting tp be allowed under the Ethics Law, strict compliance frith the ' provisions of Section 3) of the Ethics Law as outlined above must be followed Unless the restrictions of Section 3(f) of the Ethics Law are complied with, such contracting would be prohibited. Lastly, the propriety of the proposed conduct has only been addressed' under the 'Ethics Law; the applicability of any other statute; cgde, 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 Law.._ Specifically not addressed herein is the applicability of either the first Class Township Code or. the Second C Township Code. It is recommended that you seek the advice of legal counsel as to any restrictions placed 'upon you by either of the aforesaid Codes with regard to your proposed sale of real estate to the Township. Cc tcluSion,: As a Township Auditor, you are public official subject to .thee` provisions of the 'Ethics Law. Although Section 3(a) of the Ethics Law would not prohibit you from selling a piece of real estate to' thg` Township, ou, could not use the authority of office to advance such a coi�tra61 . Under Section 3(f). of the Ethios Law any contract or sub, contract between you and your governmental body must be awarded through an open and public: process,, if valued at $500.0 or more, with prior public notice, and subsequent public disclosure. In additioh, if a contract is awarded, you may not have any Mr. Leslie R. Dulaney October 20, 1992 Page 5 supervisory or overall responsibility for the implementation or administration of the contract. 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 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 52.12. ncerely, J\ Vincent . Dopko Chief Counsel