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HomeMy WebLinkAbout24-502 MozerPHONE: 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 January 9, 2024 To the Requester: The Honorable Ron Mozer Mayor, City of Monessen Dear Mayor Mozer: 24-502 This responds to your letter dated December 18, 2023, by which you requested an advisory from the Pennsylvania State Ethics Commission ("Commission"), seeking guidance as to the issue presented below: Issue: Whether, pursuant to Section 1103(a) of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1103(a), an individual serving as a city mayor would have a conflict of interest with regard to participating in matters before the city pertaining to a non-profit organization that has been provided with city -owned property for the purpose of building low income based homes, if the individual, in his private capacity, would lease office and storage space in a building which he owns to the non-profit organization. Brief Answer: If the individual would lease office and storage space in his building to the non-profit organization, the individual's business relationship with the non-profit organization in and of itself would not form the basis of a conflict of interest for the individual in matters before the city pertaining to the non-profit organization. Accordingly, unless there would be a basis for a conflict of interest such as a private pecuniary (financial) benefit to the individual, a member of his immediate family, or a business with which he or a member of his immediate family is associated, the individual would not have a conflict of interest in his public capacity as the city mayor with regard to participating in matters pertaining to the non-profit organization. Mozer, 24-502 January 9, 2024 Page 2 Facts: You request an advisory from the Commission based on submitted facts that may be fairly summarized as follows. On January 3, 2022, you took office as Mayor of the City of Monessen ("City"). The City is a Third Class City. As the City Mayor, you are President of City Council. Westmoreland Community Action is a non-profit organization based in Greensburg, Pennsylvania. During the February 23, 2023, meeting of City Council, it was agreed that the City would make three City -owned properties available to Westmoreland Community Action to be used for building low income based homes. Two other properties owned by Westmoreland Land Bank were also provided to Westmoreland Community Action for the low income based home project. After it came to your attention that Westmoreland Community Action was interested in office space, you showed the organization several properties, including a City -owned property, but the properties were not suitable for various reasons. After exhausting as options all other known properties which Westmoreland Community Action might be interested in, you mentioned to the organization that you own a building located at 216 3rd Street in the City. Your building has a total of 6400 square feet, and you are considering leasing to Westmoreland Community Action 1600 square feet of office space, with access to a restroom and kitchen, and 1000 square feet in the basement for storage for the total price of $500 per month. The question that is posed by your advisory request is whether you would have a conflict of interest as the City Mayor in matters pertaining to Westmoreland Community Action if you would lease office and storage space in your building to Westmoreland Community Action. 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. 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. Mozer, 24-502 January 9, 2024 Page 3 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 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. Mozer, 24-502 January 9, 2024 Page 4 "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. 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. 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. In each instance of a conflict of interest, 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. Conclusion: In applying the above provisions of the Ethics Act to the instant matter, you are advised as follows. As the City Mayor, you are a public official subject to the provisions of the Ethics Act. Section 1103(a) of the Ethics Act would not prohibit you, in your private capacity, from leasing office and storage space in your building to Westmoreland Community Action. Such a business relationship with Westmoreland Community Action: (1) would not cause Westmoreland Community Action to be considered a business with which you are associated as that term is defined in the Ethics Act; and (2) would not in and of itself form the basis of a conflict of interest for you in matters before the City pertaining to Westmoreland Community Action. Accordingly, unless there would be a basis for a conflict of interest such as a private pecuniary (financial) benefit to you, a member of your immediate family, or a business with which you or a member of your immediate family is associated, you would not have a conflict of interest in your public capacity as the City Mayor with regard to participating in matters pertaining to Westmoreland Community Action. In each instance of a conflict of interest, you would be required to abstain from participation, which would include voting unless one of the statutory exceptions of Section 11030) of the Ethics Mozer, 24-502 January 9, 2024 Page 5 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. 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, r Bridget K. Guilfoyle Chief Counsel