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HomeMy WebLinkAbout22-539 VogelPHONE: 717-783-1610 TOLL FREE: 1-800-932-0936 To the Requester: Christopher S. Vogel Dear Mr. Vogel: 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 September 29, 2022 22-539 This responds to your email dated September 21, 2022, by which you requested an advisory from the Pennsylvania State Ethics Commission ("Commission"), seeking guidance as to the issue presented below: Issue: Whether the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1101 et seq., would impose prohibitions or restrictions upon you serving in a voluntary capacity on the Board of Directors of Tri-County Community Action, a local non-profit organization. Brief Answer: No. Section 1103(a) of the Ethics Act (pertaining to public officials/public employees and conflict of interest) would not prohibit you from serving in a voluntary capacity on the Board of Directors of Tri-County Community Action. However, Section 1103(a) of the Ethics Act would prohibit you from using the authority of your public office or using Commonwealth resources or facilities or confidential information accessed or received as a result of being in your public position in furtherance of a pecuniary benefit for yourself or Tri-County Community Action, which is a business with which you would be associated in your capacity of a Member of the Board of Directors. Facts: You request an advisory from the Commission based upon submitted facts, the material portion of which may be fairly summarized as follows. Vogel, 22-539 September 29, 2022 Page 2 You are employed as a Public Health Program Regional Manager ("Regional Manager") for the Division of Women, Infants and Children ("WIC") with the Pennsylvania Department of Health. You have submitted a copy of a position description for your job, which document is incorporated herein by reference. Per the position description, the work of the Regional Manager includes, among other things, the following duties: Description of Duties The Regional Director serves as a point of contact for all financial and administrative oversight functions within an assigned regional area of the state. Plans, develops and coordinates regional operation of the WIC program within an assigned territory and manages contractors in execution of financial management, field services, nutrition education, training/outreach, vendor monitoring, complaint/fraud management and information technology needs of the program. 2. Coordinates with the Department's Office of Legal Counsel regarding regional program planning, implementing, enforcing and negotiating settlements to actions taken against retail stores, local agencies and program participants with respect to matters of non-compliance, fraud or other contractual or ethical violations to agreements held with the program. Interacts and collaborates extensively with other local state agencies, legislators, Federal program officials, local agency administrators, participating retail store officials, municipal officials, and other public and private organizations to promote the most efficient and effective methods to operate and advance WIC services throughout an assigned region of the state. 4. Responsible for preparation of the regional contributions to the Annual WIC State Plan of Program Operations. 5. Recommends actions to the State Agency to resolve local audit findings that includes fund recovery and program corrective actions. 6. Approves agreements and sanctions of regional retailers. 7. Develops, justifies and manages a regional WIC budget. Approves expenditures and prepares and analyzes expenditure reports. Evaluates and reviews vendor execution of contract deliverables and manages contract personnel through subordinate managers, including disciplinary action and termination of regional contract staff. Vogel, 22-539 September 29, 2022 Page 3 You have been asked to serve on the Board of Directors of Tri-County Community Action, a non-profit 501(c)(3) corporation located in Harrisburg, Pennsylvania. The mission of Tri-County Community Action is to build on the strengths and resources available, provide solutions for complex issues, and empower individuals, families, and communities to move out of poverty. The Board of Directors is comprised of volunteers. Based upon the above submitted facts, you ask whether the Ethics Act would impose prohibitions or restrictions upon you serving in a voluntary capacity on the Board of Directors of Tri-County Community Action. 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 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. As a Public Health Program Regional Manager for the WIC program, you would be considered a "public employee" subject to the provisions of the Ethics Act and the Regulations of the State Ethics Commission. See, 65 Pa. C.S. § 1102; 51 Pa. Code § 11.1. This conclusion is based upon the position description and the job classification specifications, which when reviewed on an objective basis, indicate clearly that the power exists to take or recommend official action of a non -ministerial nature with respect to one or more of the following: contracting, procurement; administering or monitoring grants or subsidies; planning or zoning; inspecting; licensing; regulating; auditing; or other activity(ies) where the economic impact is greater than de minimis on the interests of another person. 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 related to Section 1103(a) are defined in the Ethics Act as follows: § 1102. Definitions Vogel, 22-539 September 29, 2022 Page 4 "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. "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. Section 1103(a) of the Ethics Act, which restricts public officials/public employees in their public capacities and not their private capacities, does not prohibit public officials/public employees from having outside business activities or employment. However, subject to the statutory exclusions to the 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/employment or confidential information received by holding such a public position for the advancement of his own private pecuniary (financial) benefit or that of a business with which he is associated. Pancoe, Opinion 89-011. The definition of the term "business" as set forth in the Ethics Act includes a non-profit corporation. Rendell v. State Ethics Commission, 603 Pa. 292, 983 A.2d 708 (2009). The use of authority of your public employment 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. In each instance of a conflict of interest, Vogel, 22-539 September 29, 2022 Page 5 a public official/public employee would be required to abstain from participation, which would include voting unless one of the statutory exceptions of Section 11030) of the Ethics Act would be applicable. Additionally, the disclosure requirements of Section 11030) of the Ethics Act would have to be satisfied in the event of a voting conflict. Sections 1104 and 1105 of the Ethics Act, 65 Pa.C.S. §§ 1104, 1105, provide for the filing of annual Statements of Financial Interests by public officials/public employees. Section 1105(b) of the Ethics Act and its subsections detail the financial disclosure that a person required to file the Statement of Financial Interests form must provide. Conclusion: In applying the above provisions of the Ethics Act to the instant matter, you are advised as follows. As a Public Health Program Regional Manager for the WIC program, you would be considered a "public employee" subject to the provisions of the Ethics Act and the Regulations of the State Ethics Commission. Section 1103(a) of the Ethics Act would not prohibit you from serving on the Board of Directors of Tri-County Community Action. If you would serve on the Board of Directors of Tri-County Community Action, then Tri- County Community Action would be considered a business with which you are associated, and pursuant to Section 1103(a) of the Ethics Act, you would generally have a conflict of interest in matters that would financially impact Tri-County Community Action. In each instance of a conflict of interest, you would be required to abstain from participation in your public capacity as a Public Health Program Regional Manager. Section 1103(a) of the Ethics Act, pertaining to conflict of interest, imposes restrictions upon public officials and public employees. Therefore, Section 1103(a) of the Ethics Act imposes restrictions upon you in your capacity as a public employee, rather than upon you in your private capacity. Section 1103(a) of the Ethics Act would prohibit you from using your status as a Public Health Program Regional Manager for the WIC program or using Commonwealth resources or facilities or confidential information accessed or received as a result of being in this public position in furtherance of a pecuniary benefit for yourself or Tri-County Community Action. As a public employee, you are required to file annual Statements of Financial Interests in compliance with Sections 1104 and 1105 of the Ethics Act. You would be required to disclose on your annual Statement of Financial Interests your membership on the Board of Directors of Tri- County Community Action as an "office, directorship or employment of any nature whatsoever in any business entity" pursuant to Section 1105(b)(8) of the Ethics Act, 65 Pa.C.S. § 1105(b)(8). Lastly, the propriety of the proposed conduct has only been addressed under the Ethics Act. Vogel, 22-539 September 29, 2022 Page 6 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, Bridget K. Guilfoyle Chief Counsel