HomeMy WebLinkAbout89-010 SmithDear Mr. Smith:
1989.
I. Issue:
STATE ETHICS COMMISSION
. 3021 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
OPINION OF THE COMMISSION
Before: Helena G. Hughes, Chair
W. Thomas Andrews
G. Sieber Pancoast
Dennis C. Harrington
Michael J. Washo
DATE DECIDED: Julv 24, 1989
DATE MAILED: August 8. 1989
Mr. Gordon S. Smith 89 -010
Commonwealth of Pennsylvania
Department of Community Affairs
Erie Regional Office
3rd Floor - Rothrock Building
121 West 10th Street
Erie, Pennsylvania 16501
Re: Conflict, Public Employee, Housing and Community Development
Analyst II, DCA, Membership on National Committee for Housing
Costs and Rural Housing, Membership with Home Builders
Association, Realtors
This Opinion is issued in response to your request of 28,
Whether a housing and community development analyst-in the
Department of Community Affairs under the Public Official and Employee
Ethics Law may continue to serve as a volunteer on a national
committee for housing and rural housing and also continue to serve as
a non - voting liaison between a home builders association and realtors
and the Department of Community Affairs.
II. Factual Basis For Determination:
Prior to your appointment to the Department of Community Affai3
(DCA) as a Housing and Community Development 'Analyst TI,, you were a
land developer, home builder and active realtor. You.served on the
Board of Directors of the Home Builders, Association of Northwest
Pennsylvania and the State PRA Committees. You also acted as a
liaison between the Home Builders and Realtors in 'Northwest
Pennsylvania on matters concerning housing, mortgaging, environmental
Mr. Gordon S. Smith
Page 2
laws and other topics of common interest to the two organizations.
In addition, you were appointed on a national level to the.Prgsident'a
Special Committee for Housing Costs and Rural Housing and have served
in a volunteer uncompensated capacity for the past nine Years, -After
noting that you have not been active at any level since coming.to
Commonwealth employment,, you indicate that you would like to continue
serving on the Special Committee without cost to the Commonwealths of
Pennsylvania so that you ay provide input on housing needs in
when asked to do so and also to obtain current updated
data to review from the national level. ,In addition, you would like
to continue as a non - voting liaison between the Home Builders
Association and Realtors, and possibly DCA, to offer input and receive
data of importance concerning housing, land development laws, DER
requfations, mortgage programs fair housing and homeless problems in
Pennsylvania since all three organizations deal with these common
problems. After noting that your superiors in Harrisburg and in the
regional office are aware of your involvement with these committees,
you enclose a job description and ask whetiier your duties and
responsibilities would create a conflict under the Ethics Law.
The job description for a Housing and Redevelopment Analyst II
provides for the following responsibilities:
"Review entitlement applications and initiate PERC's f¢r those
that are approvable; identify deficiencies in entitlement
applications and communicate these to applicants ftir resolution;
review competitive applications and recommend those pro3ects
worthy of approval ;, receive and process grantee requests for
budget revisions and program. amendments; receive and review
grantee program and financial status reports; identify projects
that are not being implemented in a timely manner and recommend
t r�
technical assistance or remedial action; as needed, provide
assistance to other Central /Regional Analysts and grantees in
various areas of prograd compliance; conduct on -site technical
assistance and project reviews, and report results to grantees;
determine when projects are ready for the initiationof, closeout
and coordinate and the closeout procedureSfforms ;,
performs other duties assigned by the Housing/Redevelopment
Manager."
III. Discussion=
As a Housing Redevelopment Analyst If in DCA you are a public
employee as that term is defined under the Public Official and
Employee Ethics Law of June 26, 1989, Act_9'of 1989. Accordingly, you
are subject to the provisions of the Ethics Law and the restrictions
therein are applicable to you.
Section 3(a) ' of the Ethics Law provides:
Nr. Gordon S. Smith
Page 3
Section 3. Restricted Activitie$.
(a) No public official or public employee
shall engage in conduct that constitutes a
conflict of interest.
The following terms are defined under the Ethics Law:
Section 2. 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.
"Conflict" or "conflict of interest" 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 member or 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 with which he is associated." Any
business in which the person or a member of the
person's immediate family is a director, officer,
timer, employee or has a financial interest.
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 or no public official /employee shall solicitor
accept any thing of monetary value based upon the understanding that
the vote, official action, or judgement of the public
official /employee would be influenced thereby.
Initially this Commission must determine whether any of these
organizations to which you are a member is considered a business with
which you are associated as that term is defined under the Ethics Act.
As to the President's Special Committee for Housing Costs and Rural
Mr. Gordon S. Smith
Page 4
Housing, it is clear that such a federal governmental committee is not
a business with which you are associated as that term is defined under
the Ethics Law. As to the Home Builders Associations of Northwest
Pennsylvania, you are a member of the board of directors of that
association, and hence that is a business with which you are
associated under the Ethics Law. Lastly, as to the Realtors, you have
not specified your relationship with that entity and consequently we
cannot determine based upon the limited information as to whether that
is a business with which you are associated.
As a general rule, the Ethics Law would prohibit a public
official/employee from serving with a business or entity over which
the public official or employee would have responsibilities as to
regulating, inspecting, auditing, administering, licensing or some
other activity which would be considered to be adverse to the position
that he would hold as public official /employee. If the public
official/employee is not in a position with some business or entity
which is adverse, the Ethics Law would not per se preclude that
individual from serving or being employed by the other entity or
business provided there is no statutory or inherent incompatibility.
The Ethics Law might be implicated if the public official/employee as
a member or employee of the entity or business with which he is
associated would somehow come in contact with his governmental body
in an official capacity.
In the instant matter, based upon a review of your job
description, it does not appear that your position in the DCA is
adverse to your position with the Home Builders Association or the
Realtors and, as such, there is no per se conflict. Therefore, under
the Ethics Law you may continue with your service on the President's
Special Committee for Housing Costs and Rural Housing because it is
not a business with which you are associated under the Ethics Law.
In addition, you may serve with the. Home Builders Association and
Realtors since your service with those agencies does not appear to be
adverse to that of your position with DCA. However, if a situation .
arises where either the Home Builders Association or Realtors would
enter into some type of contractual negotiations with DCA or in
situations where DCA and the other parties would become adverse to
each other, you in your capacity as a Housing and Community
Development Analyst II must remove yourself from that process and you
must disclose the nature of your interest in a written memorandum to
your superior.
Lastly, the propriety of the proposed conduct has only been
addressed under the Ethics Law; 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.
Mr. Gordon S. Smith
Page 5
IV. Conclusion:
As a Housing and Community Development Analyst II wi the
Department of Community Affairs, you are a public employee subject to
the provisions of the Ethics Law. Under Section 3(a) of the Ethics
Law, you'would not be precluded from serving on the President's
Special Committee for Housing Costs and Rural Housing and you would
not be precluded from membership on the Home Builders Association or
with the Realtors. However, if either, the Home Builders or Realtors
enter into contractual relations with DCA or become involved in some
type of adversarial situation, you must remove yourself from that
process and disclose your conflict in a written memorandum to your
superior. Lastly, the propriety of the proposed conduct has only
been addressed under the Ethics Law.
Pursuant to Section 7(9)(i), this. Opinion is a complete defense
in any enforcement proceeding initiated by the Commission, and
evidence of good faith conduct in any civil or criminal proceeding,
providing the requestor has disclosed truthfully all the material
facts and committed the acts complained of in reliance of the evidence
of the advice given.
such.
This letter is a public record and will be made available as
Finally, any person may request the Commission to reconsider its
Opinion. The reconsideration request must be received at this
Commission within fifteen days of the mailing date of this Opinion.
The person requesting reconsideration should present a detailed
explanation setting forth the reasons why the Opinion requires
reconsideration.
By t e Commies o
elena.G. Hughes
Chairman