Loading...
HomeMy WebLinkAbout23-551 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 October 10, 2023 To the Requester: 23-551 This responds to your letter received September 21, 2023, by which you requested a confidential advisory from the Pennsylvania State Ethics Commission (“Commission”), seeking guidance as to the general issue presented below: Issue: Whetherthe Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq., would impose prohibitions or restrictions upon you, in your capacity as the \[Position\] for the \[Governmental Body\], with regard to accepting an offer from a vendor to cover the cost of your transportation and lodging for making a visit to the vendor’s facilities to inspect the vendor’s facilities and work product in connection with a \[Type of Project\] that the vendor is working on under a contract with the \[Governmental Body\], where you were involved in the process by which the vendor was selected for the project and awarded a contract for the project. Brief Answer: The Ethics Act would not prohibit you from accepting the vendor’s offer to cover the cost of your transportation and lodging for making a visit to the vendor’s facilities subject to the condition that there would be no understanding that your official action or judgment would be influenced thereby in contravention of Sections 1103(b)-(c) of the Ethics Act. Facts: You request a confidential advisory from the Commission based on submitted facts that may be fairly summarized as follows. You are the \[Position\] for the \[Governmental Body\]. In your role with the \[Governmental Body\], you prepared a Request for Proposals for a \[Type of Project\] (“the Project”), and you were Confidential Advice, 23-551 October 10, 2023 Page 2 involved in the process for selecting a vendor for the Project. After a contract for the Project was awarded to a vendor (“the Project Vendor”), you worked to finalize the terms and conditions of the contract, which was signed by other \[Political Subdivision\] representatives. You were ultimately appointed to oversee the performance of the Project Vendor’s work. The \[Governmental Body\] made requests to several \[Types of Entities\] for funding for the Project. The Project Vendor is engaged in \[Certain Off-Site Activities\]. The \[Public Official\] has asked you to visit the Project Vendor’s facilities to inspect the facilities and the Project Vendor’s work product. The Project Vendor has offered to cover the cost of your transportation and lodging for making the visit. A visit to the Project Vendor’s facilities would allow the \[Governmental Body\]: (1) to assess the Project Vendor’s equipment and processes and the condition of \[Certain Items\]; (2) to confirm that proper security protocols are in place to protect \[Certain Items\]from theft or unauthorized access; (3) to identify any potential inefficiencies or areas where cost savings may be achieved; and (4) to strengthen the working relationship with the Project Vendor through face- to-face interactions. A visit would further allow for \[a Method of Documenting\] the Project, which may enhance the impact of future requests made to \[Types of Entities\] for additional funding for the Project as well as demonstrate transparency in how tax dollars are being utilized. Based upon the above submitted facts, you ask whether the Ethics Act would impose prohibitions or restrictions upon you with regard to accepting the Project Vendor’s offer to cover the cost of your transportation and lodging for making a visit to the Project Vendor’s facilities. 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. 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 Confidential Advice, 23-551 October 10, 2023 Page 3 “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. 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. Per Commission precedent, the Ethics Act does not prohibit a public official/public employee from accepting “no-strings-attached” gifts, transportation, lodging or hospitality. Cf., Cooper, Opinion 92-009. Sections 1103(b) and 1103(c) of the Ethics Act, 65 Pa.C.S. §§ 1103(b), 1103(c), provide in part that no person shall offer or give to a public official/public employee anything of monetary value and no public official/public employee shall solicit or accept anything of monetary value based upon the understanding that the vote, official action, or judgment of the public official/public employee would be influenced thereby. Sections 1104(a) and 1105(b) of the Ethics Act, 65 Pa.C.S. §§ 1104(a), 1105(b), provide for the filing of annual Statements of Financial Interests by public officials/public employees. Subject to certain statutory exceptions, Section 1105(b)(7) of the Ethics Act, 65 Pa.C.S. § 1105(b)(7), requires the filer to disclose on the Statement of Financial Interests the name and address of the source and the amount of any payment for or reimbursement of actual expenses for transportation and lodging or hospitality received in connection with public office or employment where such actual expenses exceed $650 in an aggregate amount per year. Conclusion: Confidential Advice, 23-551 October 10, 2023 Page 4 In applying the above provisions of the Ethics Act to the instant matter, you are advised as follows. As the \[Position\] for the \[Governmental Body\], you are a public official/public employee subject to the provisions of the Ethics Act. Pursuant to Section 1103(a) of the Ethics Act, you generally would be prohibited from using the authority of your public position or confidential information received by holding your public position for the private pecuniary (financial) benefit of yourself, a member of your immediate family, or a business with which you or a member of your family is associated. The Ethics Act would not prohibit you from accepting the Project Vendor’s offer to cover the cost of your transportation and lodging for making a visit to the Project Vendor’s facilities subject to the condition that there would be no understanding that your official action or judgment would be influenced thereby in contravention of Sections 1103(b)-(c) of the Ethics Act. Cf., Ewald, Advice 12-524. To the extent the reporting threshold of Section 1105(b)(7) of the Ethics Act would be met, you would be required to satisfy the disclosure requirements of Section 1105(b)(7) of the Ethics Act as to the transportation and lodging received from the Project Vendor. 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 receivedat 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