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HomeMy WebLinkAbout22-515 DawsonPHONE: 717-783-1610 TOLL FREE: 1-800-932-0936 STATE ETHICS COMMISSION FINANCE BUILDING 613 NORTH STREET, ROOM 309 HARRISBURG, PA 17120-0400 FACSIMILE: 717-787-0806 WEBSITE: www.ethics.pa.gov ADVICE OF COUNSEL March 31, 2022 To the Requester: Colleen R. Dawson Dear Colleen R. Dawson: 22-515 This responds to your correspondence dated March 24, 2022, by which you requested an advisory from the Pennsylvania State Ethics Commission ("Commission"), seeking guidance as to the general issue presented below: Issue: Would the Public Official and Employee Ethics Act ("Ethics Act''), 65 Pa.C.S. § 1101 et sec prohibit an individual serving as a county commissioner from performing work as an independent contractor to a law firm, where a partner in that law firm serves as solicitor for the county? BriefAnswer: NO. The Ethics Act would not prohibit the individual from performing work as an independent contractor to the law firm of which a law firm partner serves as the solicitor for the county. Facts: You request an advisory from the Commission based upon submitted facts, the material portion of which may be fairly summarized as follows. In January 2020, you took office as a County Commissioner for Somerset County ("County"), Pennsylvania. Before you took office as a County Commissioner, you were employed as a paralegal with the law firm of Barbera, Melvin & Svonavec, LLP (the "Law Firm"), in which capacity you specialized in real estate abstracting and title insurance. Since January 2018, Michael P. Barbera, Esquire ("Mr. Barbera"), who is a partner at the Law Firm, has served as the Solicitor for the County. The County Solicitor reports directly to the County Board of Commissioners. Dawson, 22-515 March 31, 2022 Page 2 Matthew G. Melvin, Esquire, who is also a partner at the Law Firm, recently inquired as to whether you would be willing to provide real estate abstracting and closing services to the Law Firm on an as -needed, project -by -project basis. Under the proposed arrangement, you would be engaged by the Law Firm as a non-exclusive independent contractor and would not be hired as an employee. As an independent contractor, you would be responsible for the means and methods of the performance of the work as well as the scheduling and sequencing of the work. You would perform the work at your convenience, and the work would not interfere with your obligations at the County. You would be free to contract with any other law firm or entity requesting services. You state that as a County Commissioner, matters pertaining to the engagement of the County Solicitor, such as hiring or firing a County Solicitor or setting the terms of compensation for the County Solicitor, may come before the County Board of Commissioners. You note that if you would be reelected as a County Commissioner for a new term commencing in 2024, the commencement of your term would coincide with the statutory reorganization meeting at which the County Board of Commissioners traditionally appoints the County Solicitor. You ask whether the Ethics Act would impose any prohibitions or restrictions upon you with regard to serving as an independent contractor to the Law Firm. Discussion: Pursuant to Sections 1107(10) and 1107(11) of the Ethics Act, 65 Pa.C.S. §§ 1107(10), (11), advisories are issued to the requester based upon the facts that the requester has submitted. In issuing the advisory based upon the facts that the requester has submitted, the Commission does not engage in an independent investigation of the facts, nor does it speculate as to facts that have not been submitted. It is the burden of the requester to truthfully disclose all material facts relevant to the inquiry. 65 Pa.C.S. §§ 1107(10), (11). An advisory only affords a defense to the extent the requester has truthfully disclosed all material facts. Act. As a County Commissioner, you are a public official subject to the provisions of the Ethics Sections 1103(a) and 11030) of the Ethics Act provide: § 1103. Restricted activities (a) Conflict of interest. -- No public official or public employee shall engage in conduct that constitutes a conflict of interest. 0) 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 Dawson, 22-515 March 31, 2022 Page 3 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(a), 11030). The following terms related to Section 1103(a) 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. "Business." Any corporation, partnership, sole proprietorship, firm, enterprise, franchise, association, organization, self-employed individual, holding company, joint stock company, receivership, trust or any legal entity organized for profit. Dawson, 22-515 March 31, 2022 Page 4 "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, owner, employee or has a financial interest. 65 Pa.C.S. § 1102. Subject to the statutory exclusions to the Ethics Act's definition of the term "conflict" or "conflict of interest" (i.e., the "de minimis exclusion" and the "class/subclass exclusion"), 65 Pa.C.S. § 1102, a public official/public employee is prohibited from using the authority of public office or confidential information received by holding such a public position for the private pecuniary (financial) 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. The use of authority of office is not limited merely to voting but extends to any use of authority of office including, but not limited to, discussing, conferring with others, and lobbying for a particular result. Juliante, Order 809. Per the Pennsylvania Supreme Court's decision in Kistler v. State Ethics Commission, 610 Pa. 516, 22 A.3d 223 (2011), in order to violate Section 1103(a) of the Ethics Act, a public official/public employee: ... must act in such a way as to put his [office/public position] to the purpose of obtaining for himself a private pecuniary benefit. Such directed action implies awareness on the part of the [public official/public employee] of the potential pecuniary benefit as well as the motivation to obtain that benefit for himself. Kistler, supra, 610 Pa. at 523, 22 A.3d at 227. To violate Section 1103(a) of the Ethics Act, a public official/public employee "must be consciously aware of a private pecuniary benefit for himself, his family, or his business, and then must take action in the form of one or more specific steps to attain that benefit." Id., 610 Pa. at 528, 22 A.3d at 231. Conclusion: In applying the above provisions of the Ethics Act to the instant matter, you are advised as follows. As noted above, as a County Commissioner, you are a public official subject to the provisions of the Ethics Act. Pursuant to Section 1103(a) of the Ethics Act, you generally would have a conflict of interest as a County Commissioner in matters that would financially impact you, a member of your immediate family, or a business with which you or a member of your immediate family is associated. Section 1103(a) of the Ethics Act imposes restrictions upon you in your capacity as a County Commissioner, rather than upon you in your private capacity. Therefore, Section 1103(a) of the Ethics Act would not prohibit, in your private capacity, from becoming an independent contractor to the Law Firm. If you would become an independent contractor to the Law Firm, the Dawson, 22-515 March 31, 2022 Page 5 Law Firm would not be considered a business with which you are associated because you would not be a director, officer, owner, employee, or holder of a financial interest in the Law Firm. Cf., Confidential Advice 13-554/13-1501 ("For the Firm to be considered a business with which the State Legislator is associated, the State Legislator would have to be a director, officer, owner, employee or holder of a financial interest in the Firm. Status as an independent contractor would not satisfy the Ethics Act's definition of the term `business with which he is associated.' 65 Pa.C.S. § 1102.") Id. at 6. With respect to your participation as a County Commissioner in matters involving the County Solicitor, you are advised as follows. Because the Law Firm would not be a business with which you are associated, you would not have a conflict of interest in matters before the County Board of Commissioners that would financially impact the Law Firm and not you, a member of your immediate family, or a business with which you or a member of your immediate family is associated. Therefore, absent some basis for a conflict of interest such as a financial impact upon you, a member of your immediate family, or a business with which you are associated, you would not have a conflict of interest under Section 1103(a) of the Ethics Act with regard to participating in matters before the County Board of Commissioners that would involve the Law Firm and/or Mr. Barbera in his capacity as the County Solicitor. Lastly, the propriety of the proposed conduct has only been addressed under the Ethics Act. Pursuant to Section 1107(11) of the Ethics Act, 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 requester 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. 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. Respectfully, Martin W. Harter Acting Chief Counsel