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HomeMy WebLinkAbout03-531 YoustJ. Bradley Youst, P.E. 1362 Moravia Street Bethlehem, PA 18015 -4460 ADVICE OF COUNSEL March 24, 2003 03 -531 Re: Public Official; Statement of Financial Interests; Engineering Firm; Appointed Engineer; Consulting Engineer; Engineer Employed by Engineering Firm. Dear Mr. Youst: This responds to your letter dated February 14, 2003, by which you requested advice from the State Ethics Commission. Issue: When an engineering firm serves as an appointed engineer for a public boT or is hired to provide other engineering services to a public body, whether an engineer who performs such services as an employee of the firm is subject to the requirements of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq., for filing Statements of Financial Interests. Facts: As a licensed Professional (civil) Engineer in the Commonwealth of eennsylvania, you seek an advisory from the State Ethics Commission based upon submitted facts which may be fairly summarized as follows. You state that you are a full -time regular employee of a consulting engineering firm (the "Firm "). You are not an owner, partner or shareholder in the Firm. The Firm provides engineering services to many townships, boroughs, and utility authorities in Pennsylvania, either on an annual appointment or project- specific bid basis. Your job responsibilities include serving as engineer to multiple public bodies that appoint or hire the Firm to provide engineering services. You state that you review developers' plans for subdivisions and land developments, and applications for zoning and land use approval. You also review and make recommendations concerning the ordinances, regulations, or standard engineering practices of such public bodies. You state that since you are not a member of the public bodies, you cannot vote to approve or disapprove any particular plan or proposal. Your job responsibilities also include advising public bodies on the need for infrastructure repairs and improvements, including roads, municipal structures, storm drainage, water, sewer, and park systems. You prepare specifications for construction and rehabilitation of public infrastructure, which specifications result in public bids and contract awards for the expenditure of public funds. You state that as a consulting Youst, 03 -531 March 24, 2003 Page 2 engineer to public bodies, you cannot vote to approve the award of contracts or the expenditure of funds, which determinations are made by the public bodies. You state that even during the course of project construction, the engineer recommends payment to the contractor based upon a review of applications for payment and an objective evaluation of work performed, but does not make the final decision to pay the contract, which decision is made solely by the public body. Based upon the foregoing, you opine that you are not required to file a Statement of Financial Interests. You state your belief that given your job responsibilities as an employee of the Firm, you are not a candidate, nominee, public official, or public employee. You seek guidance from the State Ethics Commission with respect to evaluating your responsibilities in this regard. 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 administratively noted that various statutes /codes provide for the appointment of an engineer by a governmental body. See, e.q., 53 P.S. §§ 56301- 56306 (First Class Township Code); 53 P.S. §§ 66201 -66203 (Second Class Township Code); 53 P.S. § 46005(1) (Borough Code); P.S. § 36501 et seq. (Third Class City Code). The term "public official" is defined in the Ethics Act as follows: § 1102. Definitions "Public official." Any person elected by the public or elected or appointed by a governmental body or an appointed official in the executive, legislative or judicial branch of this Commonwealth or any political subdivision thereof, provided that it shall not include members of advisory boards that have no authority to expend public funds other than reimbursement for personal expense or to otherwise exercise the power of the State or any political subdivision thereof. 65 Pa.C.S. § 1102. See, also, the Commission Regulations at 51 Pa. Code § 11.1. The Commonwealth Court oennsylvania has directed that coverage under the Ethics Act be construed broadly and that exclusions under the Ethics Act be construed narrowly. Philips v. State Ethics Commission, 470 A.2d 659 (Pa. Cmwlth. 1984). In applying the first portion of the definition of "public official," a public official is a person who: (1) is elected by the public; (2) is elected or appointed by a governmental body; or (3) is an appointed official in the executive, legislative or judicial branch of the Commonwealth or a political subdivision of the Commonwealth. Muscalus, Opinion 02- 007. The remaining portion of the definition excluding members of certain advisory boards is inapplicable under the facts that you have submitted. In applying the above provisions to the facts that you have submitted, the Firm is a "person" as defined by the Ethics Act: Youst, 03 -531 March 24, 2003 Page 3 § 1102. Definitions "Person." A business, governmental body, individual, corporation, union, association, firm, partnership, committee, club or other organization or group of persons. 65 Pa.C.S. § 1102. Additionally, the public bodies appointing the Firm to engineering positions are "governmental bodies" as defined by the Ethics Act: "Governmental body." Any department, authority, commission, committee, council, board, bureau, division, service, office, officer, administration, legislative body or other establishment in the executive, legislative or judicial branch of a state, a nation or a political subdivision thereof or any agency performing a governmental function. 65 Pa.C.S. § 1102 (Emphasis added). The necessary conclusion is that the Firm would qualify as a "public official" as to those public bodies that appoint the Firm to engineering positions. As to those public bodies, if you are among the persons primarily responsible for providing such services on behalf of the Firm, you are responsible for filing Statements of Financial Interests. This requirement is clearly set forth in Section 15.2(h) of the Regulations of the State Ethics Commission, which provides: § 15.2. Public officials and public employes. (h) If a law firm or engineering firm is designated solicitor or engineer, the persons primarily responsible for providing the services in the firm are responsible for filing a Statement of Financial Interests. 51 Pa. Code § 15.2(h). Thus, you would be required to file Statements of Financial Interests as to those public bodies for which you are among the persons primarily responsible for providing engineering services on behalf of the Firm as an appointed engineer. However, when the Firm is hired to perform engineering services on a particular project - -as opposed to being appointed to an engineering position- -such work would not bring the Firm within the definition of "public official" and would not trigger the requirements for you to file Statements of Financial Interests under the Ethics Act. See, Rogers v. State Ethics Commission, 470 A.2d 1120 (Pa. Cmwlth. 1984). Conclusion: Pursuant to the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq., and Regulations of the State Ethics Commission, 51 Pa. Code § 11.1 et seq., you would be required to file Statements of Financial Interests as to those public — bodies for which you are among the persons primarily responsible for providing engineering services on behalf of your employer, an engineering firm (the 'Firm"), as an appointed engineer. When the Firm is hired to perform engineering services on a particular project - -as opposed to being appointed to an engineering position - -such work would not bring the Firm within the definition of "public official" and would not trigger the requirements for you to file Statements of Financial Interests under the Ethics Act. Youst, 03 -531 March 24, 2003 Page 4 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. 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