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HomeMy WebLinkAbout23-500 Confidential PHONE: 717-783-1610 STATE ETHICS COMMISSION FACSIMILE: 717-787-0806 TOLL FREE: 1-800-932-0936 FINANCE BUILDING WEBSITE: www.ethics.pa.gov 613 NORTH STREET, ROOM 309 HARRISBURG, PA 17120-0400 ADVICE OF COUNSEL January 3, 2023 To the Requester: 23-500 This responds to your letter dated November 25, 2022, received December 2, 2022, by which you requested a confidential advisory from the Pennsylvania State Ethics Commission (Commission), seeking guidance as to the issues presented below: Issues: (1) Whether the Public Official and Employee Ethics Act (Ethics Act), 65 Pa.C.S. § 1101 et seq., would impose restrictions upon you following termination of your employment as the \[Position\] for the \[Office\] within the \[Governmental Body\]. Brief Answer: YES. During the first year following termination of your Commonwealth employment, Section 1103(g) of the Ethics Act would apply and restrict you from engaging in any activity that including but not limited to a new employer or a business before which would include: (1) the \[Divisions\]; and (2) the \[Governmental Body\] in its entirety. (2) Whether Section 1103(g) of the Ethics Act would prohibit you from serving as a Member of \[Entity 1s\] \[Board\]. Brief Answer: NO. Section 1103(g) of the Ethics Act would not prohibit you from serving as a Member of \[Entity 1s\] \[Board\] subject to the condition that in so doing, you would not engage in any activity that would constitute representation of \[Entity 1\] or its \[Board\] before your former governmental body. Facts: Confidential Advice, 23-500 January 3, 2023 Page 2 You request a confidential advisory from the Commission based upon submitted facts that may be fairly summarized as follows. You recently retired from your employment as the \[Position\] for the \[Office\] within the \[Governmental Body\]. You have submitted a copy of your official Commonwealth position document is incorporated herein by reference. The Position Description lists your job title as \[Title\] and your department as the \[Divisions\]. A copy of the job classification specifications for the position of \[Title\] (job code \[number\]) has been obtained and is also incorporated herein by reference. In your former Commonwealth position, you were the \[Type of Position\] for the \[Unit\]. You worked under \[Public Official/Public Employee 1\], who in turn reported to \[Public Official/Public Employee 2\]. You led a team that included Commonwealth employees as well as Commonwealth contractors/staff augmentation positions. You did not serve on any commissions, committees, councils, or boards of the Commonwealth as an employee, member/appointee, or designee. While you were a Commonwealth employee, you established relationships with staff of \[Entity 1\] who collaborated with the \[Governmental Body\] on \[Types of Events\]. On \[Date\], you began employment in the private sector with \[the Firm\], which does not have a contract with the Commonwealth. Some of \[the Firms\] services and products are at times purchased by governmental agencies or partnerships between various parties which may include governmental agencies. \[The Firms\] customers and clients include a myriad of governmental organizations within \[Various Geographical Locations, Including Pennsylvania\]. Before you retired from your Commonwealth employment, you received some guidance from the \[Governmental Body\] with regard to the post-employment restrictions of the Ethics Act. You state that the \[Governmental Body\] indicated, in pertinent part, that: (1) for one year after leaving public service or employment, you may not before the governmental body with which you were associated; (2) under the Ethics Act, to n behalf of another person in any activity, including personal appearances, negotiations, lobbying, and submitting bid or contract proposals containing your signature or name; (3) a separate two-year restriction on engaging in certain activities applies to former executive-level State employees; (4) based upon a review of Ethics Commission rulings, the governmental body with which you were associated would consist of the \[Governmental Body\], including the \[Office\] and the \[Unit\], and any commissions, committees, councils, and boards on which you served as an employee, member/appointee, or designee; (5) although you may not lobby your former governmental body, negotiate with your former governmental body, or sign your name to any communications with or bid proposals submitted to your former governmental body, you may assist in the preparation of documents to be presented to your former governmental body; and (6) you may request an advisory opinion from the Ethics Commission regarding your particular obligations under the Ethics Act. Based upon the above submitted facts, you pose the following questions: Confidential Advice, 23-500 January 3, 2023 Page 3 (1) Whether the description of the post-employment restrictions of the Ethics Act that was provided to you by the \[Governmental Body\] is correct and comprehensive, and whether there is any additional information that you should know; (2) Whether your former governmental body is limited to the entities named by the \[Governmental Body\], or whether your former governmental body would include any other Commonwealth agencies or entities such as agencies that utilize their own \[Resources\] over which the \[Governmental Body\] has no oversight (such as \[Specific Agencies\]) or independent agencies that utilize the \[Governmental Bodys\] \[Type of Services\] (such as \[Independent Agency 1\] or \[Independent Agency 2\]); (3) Whether you are subject to the two-year restrictions of the Ethics Act that apply to former executive-level State employees in addition to being subject to the one-year post-employment restrictions of the Ethics Act; (4) Whether you would be permitted to serve as a Member of \[Entity 1s\] \[Board\]; and (5) Whether there is any other advice and guidance that would be of value to you regarding your recent change in employment. 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 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 requester has truthfully disclosed all of the material facts. During your employment as the \[Position\] for the \[Office\] within the \[Governmental Body\], you were a t to 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 existed 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. Consequently, upon termination of your Commonwealth employment, you became a former public employee subject to Section 1103(g) of the Ethics Act. Confidential Advice, 23-500 January 3, 2023 Page 4 While Section 1103(g) does not prohibit a former public official/public employee from accepting a position of employment, it does restrict the former public official/public employee with regard to § 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). 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 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. 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. 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. Confidential Advice, 23-500 January 3, 2023 Page 5 The term person is very broadly defined. It includes, inter alia, corporations and other businesses. It also includes the former public official/public employee himself, Confidential Opinion, 93-005, as well as a new governmental employer. Ledebur, Opinion 95-007. The term represent 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/public 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 ones 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 if the invoices pertain to a contract that existed prior to termination of service with such governmental body. Shay, Opinion 91-012. However, if such a pre-existing contract does not involve the unit where a former public employee worked, the name of the former public employee may appear on routine invoices if required 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 persons 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 entitie particular subdivision of the agency or other governmental body where the public official/public 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 90-006; Sharp, Opinion 90-009-R. The governmental body with which you are deemed to have been associated upon termination of your Commonwealth employment, hereinafter collectively referred to as your s: (1) the \[Divisions\]; and (2) the \[Governmental Body\] in its entirety, including but not limited to the \[Office\]. Therefore, for the first year following Confidential Advice, 23-500 January 3, 2023 Page 6 termination of your Commonwealth employment, Section 1103(g) of the Ethics Act would apply including but not limited to your new employer, \[the Firm\] before your former governmental body. Having set forth the restrictions of Section 1103(g) of the Ethics Act, your specific questions shall now be considered. Your first and fifth questions are general and have been addressed above to the extent that they can be addressed in an advisory. In response to your second question, you are advised as follows. Your former governmental body would not include Commonwealth agencies or entities that are not part of the \[Divisions\] or the \[Governmental Body\]. Accordingly, your former governmental body would not include agencies that utilize their own \[Resources\] over which the \[Governmental Body\] has no oversight (such as \[Specific Agencies\]) or independent agencies that utilize the \[Governmental Bodys\] \[Type of Services\] (such as \[Independent Agency 1\] or \[Independent Agency 2\]). Therefore, Section 1103(g) of the Ethics Act would not prohibit you from working with agencies or entities that are not part of the \[Divisions\] or the \[Governmental Body\], such as agencies that utilize their own \[Resources\] over which the \[Governmental Body\] has no oversight or independent agencies that utilize the \[Governmental Bodys\] \[Type of Services\]. With regard to your third question, you are advised as follows. Based upon the submitted facts, during your employment as the \[Position\] for the \[Office\] within the \[Governmental Body\], -See, 65 Pa.C.S. § 1102. Accordingly, you are not subject to the two-year post-employment restrictions of Section 1103(i) of the Ethics Act, which apply only to former executive-level State employees. In response to your fourth question, you are advised that Section 1103(g) of the Ethics Act would not prohibit you from serving as a Member of \[Entity 1s\] \[Board\] subject to the condition that in so doing, you would not engage in any activity that would constitute representation of \[Entity 1\] or its \[Board\] before your former governmental body. (It is noted that \[Entity 1\] is a , cf., \[Cite\], and it purposes of the restrictions of Section 1103(g) of the Ethics Act.) 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. Conclusion: During your employment as the \[Position\] for the \[Office\] within the \[Governmental Body\], you were a Ethics Commission. Upon termination of your Commonwealth employment, you became a former public employee subject to Section 1103(g) of the Ethics Act. The governmental body with which you are deemed to have been associated upon termination of your Commonwealth Confidential Advice, 23-500 January 3, 2023 Page 7 (1) the \[Divisions\]; and (2) the \[Governmental Body\] in its entirety, including but not limited to the \[Office\]. For the first year following termination of your Commonwealth employment, Section including but not limited to your new employer, \[the Firm\] before your former governmental body. The restrictions as to representation outlined above must be followed. 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, Bridget K. Guilfoyle Chief Counsel