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HomeMy WebLinkAbout24-533 Green 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 April 18, 2024 To the Requester: Jaime Green 24-533 Dear Ms. Green: This responds to your submission received March 25, 2024, by which you requested an advisory from the Pennsylvania State Ethics Commission (“Commission”), seeking guidance as to the issue presented below: Issue: Whether an individual employed with the Pennsylvania Department of Agriculture as a Regional Program Outreach Coordinator would have a conflict of interest under Section 1103(a) of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1103(a), with regard to performing the duties of her public position, where: (1) the individual and her husband are co-founders of an indoor urban farm; (2) before the individual began employment with the Commonwealth, the indoor urban farm secured a $750,000 RACP award from the Commonwealth to build a small facility in Chester County, Pennsylvania; (3) the indoor urban farm is applying for funds from the United States Department of Agriculture to match the RACP award; (4) an award of federal funds may include federal grants managed by the Pennsylvania Department of Agriculture; and (5) the individual does not oversee, manage, or advise on grant awards in her role with the Pennsylvania Department of Agriculture. Brief Answer: The individual would not have a conflict of interest with regard to performing the duties of her position as a Regional Program Outreach Coordinator unless: (1) the individual would be consciously aware of a private pecuniary (financial) benefit for herself, her husband, or the indoor urban farm; (2) her action(s) would constitute one or more specific steps to attain that benefit;and (3) neither of the statutory exclusions to the Green, 24-533 April 18, 2024 Page 2 definition of “conflict” or “conflict of interest” as set forth in Section 1102 of the Ethics 1 Act would be applicable. Facts: Yourequest an advisory from the Commission based upon submitted facts that may be fairly summarized as follows. Since October 2023, you have been employed as a Regional Program Outreach Coordinator with the Pennsylvania Department of Agriculture. You have submitted a copy of the job classification specifications for your Commonwealth position (job code 08480), which document is incorporated herein by reference. In your role with the Commonwealth, you do not oversee, manage, or advise on grant awards. In 2019, you and your husband founded Think and Grow Farms (“the Farm”), an indoor urban farm in Philadelphia, Pennsylvania. In 2022, the Farm began doing food processing and manufacturing. Before you began your Commonwealth employment, the Farm secured a $750,000 RACP award from the Commonwealth to build a small facility in Chester County, Pennsylvania. The Farm is now applying for funds from the United States Department of Agriculture to match the RACP award. An award of federal funds may include federal grants managed by the Pennsylvania Department of Agriculture. The question that is posed by your advisory request is whether you would have a conflict of interest with regard to performing the duties of your position as a Regional Program Outreach Coordinator as a result of the Farm’s application for federal funds that may include federal grants managed by the Pennsylvania Department of Agriculture. 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 1 Action that has a de minimis (insignificant) economic impact or that 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, does not constitute a conflict of interest. Green, 24-533 April 18, 2024 Page 3 (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 “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. “Immediate family.” A parent, spouse, child, brother or sister. “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 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 Green, 24-533 April 18, 2024 Page 4 pecuniary (financial) benefit of the public official/public employeehimself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. In each instance of a conflict of interest, the public official/public employee would be required to abstain from participation. The abstention requirement would extend 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. Per the Pennsylvania Supreme Court’s decision in Kistler v. State Ethics Commission, 610 Pa. 516, 22 A.3d 223 (2011), in order to violate Section 1103(a) of the Ethics Act, a public official/public employee: … must act in such a way as to put his \[office/public position\] to the purpose of obtaining for himself a private pecuniary benefit. Such directed action implies awareness on the part of the \[public official/public employee\] of the potential pecuniary benefit as well as the motivation to obtain that benefit for himself. Kistler, supra, 610 Pa. at 523, 22 A.3d at 227. To violate Section 1103(a) of the Ethics Act, a public official/public employee “must be consciously aware of a private pecuniary benefit for himself, his family, or his business, and then must take action in the form of one or more specific steps to attain that benefit.” Id., 610 Pa. at 528, 22 A.3d at 231. Conclusion: In applying the above provisions of the Ethics Act to the instant matter, you are advised as follows. As a Regional Program Outreach Coordinator for the Pennsylvania Department of Agriculture, you are a “public employee” subject 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 job classification specifications for your Commonwealth position, 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. Your husband is a member of your “immediate family” as that term is defined inthe Ethics Act. The Farm is a business with which you and your husband are associated for purposes of the Ethics Act. Pursuant to Section 1103(a) of the Ethics Act, you generally would have a conflict of interest as a Regional Program Outreach Coordinator in matters that would financially impact you, your husband, or the Farm. The fact that the Farm is applying for federal funds that may include federal grants managed by the Pennsylvania Department of Agriculture would not in and of itself cause you to Green, 24-533 April 18, 2024 Page 5 have a conflict of interest with regard to performing the duties of your Commonwealth position. Accordingly, you are advised that you would not have a conflict of interest with regard to performing the duties of your Commonwealth position unless: (1) you would be consciously aware of a private pecuniary(financial)benefit for yourself, your husband, or the Farm; (2) your action(s) would constitute one or more specific steps to attain that benefit; and (3) neither of the statutory exclusions tothe definition of “conflict” or “conflict of interest” as set forth in the Ethics Act would be applicable. As noted above, in each instance of a conflict of interestyou would be required to abstain from participation. 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