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HomeMy WebLinkAbout02-607 ConfidentialADVICE OF COUNSEL October 16, 2002 02 -607 Re: Former Public Official /Public Employee; Section 1103(g); Executive -Level State Employee; Section 11030); A; B. This responds to your letters of September 6, 2002, and September 13, 2002, by which you requested a confidential advice from the State Ethics Commission. Issue: Whether the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq., presents any restrictions upon employment of an A following termination of service with the B. Facts: You currently serve as A in the B, a position that was created by Governor Tom Ridge in [date]. You state that the goal of your position was to C. Reporting directly to the Governor, you provide advice on the D. You have submitted a letter dated September 13, 2002, outlining your principal duties and responsibilities, which letter is incorporated herein by reference. Per your September 13 letter, your major job responsibilities include the following: E. You are considering accepting employment in a full -time staff position in the F at G University, [City], Pennsylvania. You state that immediately upon accepting this position, you would resign from your current employment with the B. You describe G University as an H university of [number] students and [number] faculty and researchers. Founded in [date] by I, you state that G University is recognized as the leading J school in the country. You state that G University is a decentralized institution, that is, while G University itself does not receive state funding to conduct its operations or provide its services, individual centers and departments within G University may apply for state funding from specific funding sources and utilize the same as directed by such state funding sources. You further state that individual centers and departments within G University have received funding from the Commonwealth in this fashion for decades. In your prospective position, you would be involved in the development of K's. You state that G University believes such K's will facilitate and enhance the development of programs and services and the commercialization of G University initiatives. If you would accept this position, you would report directly to the L of G Confidential Advice 02 -607 October 16, 2002 Page 2 University, who is generally charged with the M of G University, and who reports directly to the N of G University. You state that during your employment with the Commonwealth, the F has neither sought nor received Commonwealth funding. You further state that your prospective position will not be funded with state monies. You provide the following history of your Commonwealth employment. From [date] through [date], and immediately prior to your current position, you served as 0 in P, reporting directly to the Q of P. In this position, you provided direct oversight to the R of P, including S. You also provided overall coordination of major initiatives of P on behalf of the Q. From [date] through [date], you served as T in P. In this position, you assisted both the U and the Q of P in developing V. You reported to the U and the Q. From the commencement of your Commonwealth service to date, you state that you were involved with the following funding arrangements between the Commonwealth and the University: W. You state that based upon your roles in each of the funding arrangements described above, you did not actively participate in recruiting or inducing G University to open a new facility or branch in the Commonwealth, or participate in inducing G University to expand an existing facility that was accomplished by a grant or loan of money or a promise of a grant or loan of money from the Commonwealth to G University. You assure that you will not use your positions with the P or with the B or emoluments of public office or confidential information that you gained therein for your private pecuniary gain or the pecuniary gain of G University, and of the departments or other entities within G University, or any personnel of the same. You state that you will not represent any person, with promised or actual compensation, on any matter before P, including any P program or initiative, or the B for one year after you leave the B. Discussion: It is initially noted that pursuant to Sections 1107(10) and 1107(11) of the Ethics Act, 65 Pa.C.S. §§ 1107(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 Pa.C.S. §§ 1107(10), (11). An advisory only affords a defense to the extent the requestor has truthfully disclosed all of the material facts. As A in the B, you would be considered a public employee and an "executive - level State employee" subject to the Ethics Act and the Regulations of the State Ethics Commission. See, 65 Pa.C.S. § 1102; 51 Pa.Code § 11.1. Consequently, upon termination of public service, you would become a former public employee and a former executive -level State employee subject to the restrictions of Section 1103(g) and Section 11030) of the Ethics Act. Section 11030) restricts former executive -level State employees as follows: Confidential Advice 02 -607 October 16, 2002 Page 3 § 1103. Restricted activities (i) Former executive -level employee. - -No former executive -level State employee may for a period of two years from the time that he terminates employment with this Commonwealth be employed by, receive compensation from, assist or act in a representative capacity for a business or corporation that he actively participated in recruiting to this Commonwealth or that he actively participated in inducing to open a new plant, facility or branch in this Commonwealth or that he actively participated in inducing to expand an existent plant or facility within this Commonwealth, provided that the above prohibition shall be invoked only when the recruitment or inducement is accomplished by a grant or loan of money or a promise of a grant or loan of money from the Commonwealth to the business or corporation recruited or induced to expand. 65 Pa.C.S. § 11030). Section 11030) restricts the ability of a former executive -level State employee to accept employment or otherwise engage in business relationships following termination of State service, under certain narrow conditions. The restrictions of Section 11030) apply even where the business relationship is indirect, such as where the business in question is a client of the new employer, rather than the new employer itself. See, Confidential Opinion No. 94 -011. However, Section 11030) would not restrict you from being employed by, receiving compensation from, assisting, or acting in a representative capacity for G University provided and conditioned upon the assumptions that you did not actively participate in recruiting G University to Pennsylvania, and that you did not actively participate in recruiting or inducing G University to open or expand a plant, facility, or branch in Pennsylvania, through a grant or loan of money or a promise of a grant or loan of money from the Commonwealth of Pennsylvania to G University. Unlike Section 11030), Section 1103(g) does not prohibit a former public official /public employee from accepting a position of employment. However, it does restrict the former public official /public employee with regard to "representing" a "person" before "the governmental body with which he has been associated ": § 1103. Restricted activities (g) Former official or employee. - -No former public official or public employee shall represent a person, with promised or actual compensation, on any matter before the governmental body with which he has been associated for one year after he leaves that body. 65 Pa.C.S. § 1103(g) (Emphasis added). The terms "represent," "person," and "governmental body with which a public official or public employee is or has been associated" are specifically defined in the Ethics Act as follows: § 1102. Definitions "Represent." To act on behalf of any other person in any activity which includes, but is not limited to, the following: personal appearances, negotiations, lobbying and Confidential Advice 02 -607 October 16, 2002 Page 4 submitting bid or contract proposals which are signed by or contain the name of a former public official or public employee. "Person." A business, governmental body, individual, corporation, union, association, firm, partnership, committee, club or other organization or group of persons. "Governmental body with which a public official or public employee is or has been associated." The governmental body within State government or a political subdivision by which the public official or employee is or has been employed or to which the public official or employee is or has been appointed or elected and subdivisions and offices within that governmental body. 65 Pa.C.S. § 1102. The term "Person" is very broadly defined. It includes, inter alia, corporations and other businesses. It also includes the former public employee-hiimself, Confidential Opinion, 93 -005, as well as a new governmental employer. Ledebur, Opinion 95 -007. The term "representation" is also broadly defined to prohibit acting on behalf of any person in any activity. Examples of prohibited representation include: (1) personal appearances before the former governmental body or bodies; (2) attempts to influence; (3) submission of bid or contract proposals which are signed by or contain the name of the former public official /employee; (4) participating in any matters before the former governmental body as to acting on behalf of a person; and (5) lobbying. Popovich, Opinion 89 -005. Listing one's name as the person who will provide technical assistance on a proposal, document, or bid, if submitted to or reviewed by the former governmental body, constitutes an attempt to influence the former governmental body. Section 1103(g) also generally prohibits the inclusion of the name of a former public official/ public employee on invoices submitted by his new employer to the former governmental body, even though the invoices pertain to a contract that existed prior to termination of public service, Shay, Opinion 91 -012. However, if such a pre - existing contract does not involve the unit where the former public employee worked, the name of the former public employee may appear on routine invoices if recurred by the regulations of the agency to which the billing is being submitted. Abrams/Webster, Opinion 95 -011. A former public official /public employee may assist in the preparation of any documents presented to his former governmental body. However, the former public official /public employee may not be identified on documents submitted to the former governmental body. The former public official /public employee may also counsel any person regarding that person's appearance before his former governmental body. Once again, however, the activity in this respect should not be revealed to the former governmental body. The Ethics Act would not prohibit or preclude making general informational inquiries to the former governmental body to secure information which is available to the general public, but this must not be done in an effort to indirectly influence the former governmental body or to otherwise make known to that body the representation of, or work for the new employer. Section 1103(g) only restricts the former public official /public employee with regard to representation before his former governmental body. The former public official /public employee is not restricted as to representation before other agencies or entities. However, the "governmental body with which a public official /public employee is or has been associated" is not limited to the particular subdivision of the agency or Confidential Advice 02 -607 October 16, 2002 Page 5 other governmental body where the public official /employee had influence or control but extends to the entire body. See, Legislative Journal of House, 1989 Session, No. 15 at 290, 291; Sirolli, Opinion No. 90 -006; Sharp, Opinion 90- 009 -R. The governmental body with which you would be associated upon termination of public service would be the B in its entirety, which includes, but is not limited to the X, Y, and Z. Therefore, for the first year after termination of your service with the B, Section 1103(g) of the Ethics Act would apply and restrict "representation" of "persons" before the B. Having set forth the restrictions of Section 1103(g) and Section 11030) of the Ethics Act, you are advised that although the Ethics Act would not preclude you from accepting employment with G University, it would restrict your conduct in your new position to the extent that such conduct would constitute prohibited representation before the B. Based upon the facts which have been submitted, this Advice has addressed the applicability of Sections 1103(9) and 11030) only. It is expressly assumed that there has been no use of authority of office for a private pecuniary benefit as rohibited by Section 1103(a) of the Ethics Act. Further, you are advised that Sections 11 and 1103(c) of the Ethics Act provide in part that no person shall offer to a public official /employee and no public official /employee shall solicit or accept anything of monetary value based upon the understanding that the vote, official action, or judgment 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. Lastly, the propriety of the proposed conduct has only been addressed under the Ethics Act; 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. Specifically not addressed herein is the applicability of the Governor's Code of Conduct. Conclusion: Upon termination of service as A in the B, you would become a former public employee and a former executive -level State employee subject to the restrictions of Section 1103(g) and Section 11030) of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. Under Section 11030) of the Ethics Act, you would not be prohibited from being employed by, receiving compensation from, assisting, or acting in a representative capacity for G University based upon the assumptions that you did not actively participate in recruiting G University to Pennsylvania, and that you did not actively participate in recruiting or inducing G University to open or expand a plant, facility, or branch in Pennsylvania through a grant or loan of money or a promise of a grant or loan of money from the Commonwealth of Pennsylvania. With regard to Section 1103(g), the restrictions as outlined above must be followed. The former governmental body would be the B in its entirety, which includes, but is not limited to the X, Y, and Z. The propriety of the proposed conduct has only been addressed under the Ethics Act. Further, should service be terminated, as outlined above, the Ethics Act would require that a Statement of Financial Interests be filed by no later than May 1 of the year after termination of service. Pursuant to Section 1107(11), an 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, provided the requestor has disclosed truthfully all the material facts and committed the acts complained of in reliance on the Advice given. Confidential Advice 02 -607 October 16, 2002 Page 6 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 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 thirty (30) days of the date of this Advice pursuant to 51 Pa. Code § 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). Failure to file such an appeal at the Commission within thirty (30) days may result in the dismissal of the appeal. Sincerely, Vincent J. Dopko Chief Counsel