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HomeMy WebLinkAbout02-618 HornbergerGary Hornberger, Controller Schuylkill County Courthouse 401 North Second Street Pottsville, PA 17901 ADVICE OF COUNSEL November 18, 2002 02 -618 Re: Conflict; Public Official /Employee; County; Controller; Purchase of Real Estate at County Tax Sale; Contract. Dear Mr. Hornberger: This responds to your letter of October 14, 2002, by which you requested advice from the State Ethics Commission. Issue: Whether the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Ha.G.S. § 1101 et seq., would present any prohibition or restrictions upon a county controller with regard to his prospective purchase of property at a county tax sale. Facts: As the Controller for the County of Schuylkill ( "County "), you seek an advisory from the State Ethics Commission based upon the following submitted facts. As Controller, your functions include supervision of the fiscal affairs of the County. You have submitted copies of Sections 1702 through 1706 of the County Code describing your duties. You have also submitted a copy of the County's organizational chart, which chart is incorporated herein by reference. Until recently, Section 1806 of the County Code specifically prohibited elected or appointed county officers from directly or indirectly purchasing any property sold at a tax or municipal claim sale. Section 1806 was amended on December 22, 2000, to read as follows: "Restrictions on the involvement of elected and appointed county officers in any county contract shall be as prescribed in 65 Pa.C.S. Ch. 11 (relating to ethics standards and financial disclosure)." 16 P.S. § 1806. Given the above amendment, you ask whether you would now be permitted to purchase real estate at an "upset sale' conducted by the County in compliance with the Pennsylvania Real Estate Tax Sale Law. You note that prior to an upset sale, delinquent tax properties are publicly advertised. You further state that such properties are made available for sale at a public auction. Hornberger, 02 -618 November 18, 2002 Page 2 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. It is further initially noted that the Commission, in the exercise of its jurisdiction, is limited to making determinations under the Ethics Act. In making such determinations, it is necessary at times to review other laws to determine whether a given benefit is authorized so that the Commission may conclude whether a public official /employee is receiving a private pecuniary benefit contrary to the Ethics Act. However, it is beyond the scope of the Ethics Act and the function of the Commission to make determinations as to other state laws, regulations or Constitutions. Accordingly, the scope of this advisory is necessarily limited to applying the Ethics Act to your inquiry. As Controller for Schuylkill County, you are a public official subject to the provisions of the Ethics Act. Section 1103(a) of the Ethics Act provides: § 1103. Restricted activities (a) Conflict of interest. - -No public official or public employee shall engage in conduct that constitutes a conflict of interest. 65 Pa.C.S. § 1103(a). The following terms are defined in the Ethics Act as follows: § 1102. 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. The term 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 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 particular public office or position of public employment. Hornberger, 02 -618 November 18, 2002 Page 3 "Contract." An agreement or arrangement for the acquisition, use or disposal by the Commonwealth or a political subdivision of consulting or other services or of supplies, materials, equipment, land or other personal or real property. The term shall not mean an agreement or arrangement between the State or political subdivision as one party and a public official or public employee as the other party, concerning his expense, reimbursement, salary, wage, retirement or other benefit, tenure or other matters in consideration of his current public employment with the Commonwealth or a political subdivision. 65 Pa.C.S. § 1102. In addition, Sections 1103(b) and 1103(c) of the Ethics Act 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 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. Section 1103(f) of the Ethics Act provides as follows: § 1103. Restricted activities (f) Contract. - -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 responsibility 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 the making of the contract or subcontract. 65 Pa.C.S. § 1103(f). Section 1103(f) does not operate to make contracting with the governmental body permissible where it is otherwise prohibited. Rather, where a public official /public employee, his spouse or child, or a business with which he, his spouse or child is associated, is otherwise appropriately contracting with the governmental body, or subcontracting with any person who has been awarded a contract with the governmental body, in an amount of $500.00 or more, Section 1103(f) requires that an open and public process" be observed as to the contract with the governmental body. Pursuant to Section 1103(f), an "open and public process" includes: (1) prior public notice of the employment or contracting possibility; Hornberger, 02 -618 November 18, 2002 Page 4 (2) sufficient time for a reasonable and prudent competitor /applicant to be able to prepare and present an application or proposal; (3) public disclosure of all applications or proposals considered; and (4) public disclosure of the contract awarded and offered and accepted. Section 1103(f) of the Ethics Act also requires that the public official /employee may not have any supervisory or overall responsibility as to the implementation or administration of the contract with the governmental body. Section 1103(j) of the Ethics Act provides as follows: § 1103. Restricted activities (j) Voting conflict. - -Where voting conflicts are not otherwise addressed by the Constitution of Pennsylvania or by any law, rule, regulation, order or ordinance, the following procedure shall be employed. Any public official or public employee who in the discharge of his official duties would be required to vote on a matter that would result in a conflict of interest shall abstain from voting and, prior to the vote being taken, publicly announce and disclose the nature of his interest 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 a matter before it because the number of members of the body required to abstain from voting under the provisions of this section makes the majority or other legally required vote of approval unattainable, then such members shall be permitted to vote if disclosures are made as otherwise provided herein. In the case of a three - member governing body of a political subdivision, where one member has abstained from voting as a result of a conflict of interest and the remaining two members of the governing body have cast opposing votes, the member who has abstained shall be permitted to vote to break the tie vote if disclosure is made as otherwise provided herein. 65 Pa.C.S. § 1103(j). In each instance of a conflict, Section 1103(j) requires the public official/ employee to abstain and to publicly disclose the abstention and reasons for same, both orally and by filing a written memorandum to that effect with the person recording the minutes or supervisor. In the event that the required abstention results in the inability of the governmental body to take action because a majority is unattainable due to the abstention(s) from conflict under the Ethics Act, then voting is permissible provided the disclosure requirements noted above are followed. See, Mlakar, Advice 91- 523 -S. In applying the above provisions of the Ethics Act to the instant matter, pursuant to Section 1103(a) of the Ethics Act, a public official /public employee is prohibited from using the authority of public office /employment or confidential information received by holding such a public position for the private pecuniary benefit of the public official /public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. Hornberger, 02 -618 November 18, 2002 Page 5 The Commission recognizes that public concern and criticism may arise if a public official or public employee who serves a governmental body receives benefits under a program or process which that governmental body administers. On the other hand, the Ethics Act was not enacted nor should it be interpreted to preclude public officials or public employees from participating in programs or processes which might otherwise be available to them as citizens, as long as the restrictions of the Ethics Act are observed. Wolff, Opinion 89 -030; Woodrinq, Opinion 90 -001. In the instant matter, you are advised that Section 1103(a ) of the Ethics Act would not preclude you from bidding on and purchasing real estate at an upset sale conducted by the County in compliance with the Pennsylvania Real Estate Tax Sale Law conditioned upon the assumptions that: (1) there would be no use of the authority of your office as County Controller or confidential information accessed by being in that position for a private pecuniary benefit as prohibited by Section 1103(a) of the Ethics Act; and (2) there would be no improper influence /understanding as prohibited by Section 1103(b) or Section 1103(c) of the Ethics Act. Section 1103(f) of the Ethics Act would apply as to any contract between you and the County which would be valued at $500 or more. Section 1103(f) would prohibit you in your capacity as a public official from having any supervisory or overall responsibility for the implementation or administration of such a contract. 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 County Code or the Real Estate Tax Sale Law. Conclusion: As the Controller for the County of Schuylkill "County "), you are a public official subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. Section 1103(a) of the Ethics Act would not preclude you from bidding on and purchasing real estate at an upset sale conducted by the County in compliance with the Pennsylvania Real Estate Tax Sale Law conditioned upon the assumptions that: (1) there would be no use of the authority of your office as County Controller or confidential information accessed by being in that position for a private pecuniary benefit as prohibited by Section 1103(a) of the Ethics Act; and (2) there would be no improper influence /understanding as prohibited by Section 1103(b) or Section 1103(c) of the Ethics Act. Section 1103(f) of the Ethics Act would apply as to any contract between you and the County which would be valued at $500 or more. Section 1103(f) would prohibit you in your capacity as a public official from having any supervisory or overall responsibility for the implementation or administration of such a contract. Lastly, the propriety of the proposed conduct has only been addressed under the Ethics Act. 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. 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. Hornberger, 02 -618 November 18, 2002 Page 6 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