HomeMy WebLinkAbout04-003 ConfidentialOPINION OF THE COMMISSION
Before: Louis W. Fryman, Chair
John J. Bolger, Vice Chair
Daneen E. Reese
Donald M. McCurdy
Michael J. Healey
Paul M. Henry
Raquel K. Bergen
DATE DECIDED: March 11, 2004
DATE MAILED: March 26, 2004
04 -003
Re: Conflict; Public Official /Employee; Borough; Council Member; Business With Which
Associated; Motion; Second; Vote; Three - Member Board.
This Opinion is issued in response to your confidential advisory request dated January
27, 2004.
I. ISSUE:
Whether the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101
et seq., presents any prohibition or restrictions upon two members of a three - member borough
council as to making a motion, seconding a motion or voting on matters involving a business
that employs the two council members.
II. FACTUAL BASIS FOR DETERMINATION:
You represent two council members who serve on a borough council consisting of three
members. The two council members are employed by a business which is located within the
borough.
You ask whether the two council members would have a conflict of interest under the
Ethics Act as to participating on matters that would come before the borough council involving
their employer. Assuming a conflict would exist, you specifically ask whether under Section
1103(j) of the Ethics Act, and Garner, Opinion 93 -004, the two council members would be
permitted to make a motion, second a motion or vote upon matters involving their employer's
business, given that the borough council consists of only three members.
By letter dated March 1, 2004, you were notified of the date, time and location of the
executive meeting at which your request would be considered.
At the executive meeting on March 11, 2004, you appeared and offered to answer any
questions posed to you.
Confidential Opinion 04 -003
March 26, 2004
Page 2
III. 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, this 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.
The two borough council members are public officials as that term is defined in the
Ethics Act, and hence they are subject to the provisions of that Act.
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 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.
65 Pa.C.S. § 1102.
In addition, Sections 1103(b) and 1103(c) of the Ethics Act provide in part that no
person shall offer to a public official /employee anything of monetary value and no public
official /employee shall solicit or accept anything of monetary value based upon the
understanding that the vote, official action, or Judgment of the public official /employee would
be influenced thereby. Reference is made to these provisions of the law not to imply that there
has been or will be any transgression thereof but merely to provide a complete response to the
question presented.
Section 1103(j) of the Ethics Act provides as follows:
§ 1103. Restricted activities
(j) Voting conflict. - -Where voting conflicts are not
Confidential Opinion 04 -003
March 26, 2004
Page 3
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(j).
In each instance of a conflict, Section 1103(j) requires the public official/ employee to
abstain and to publicly disclose the abstention and reasons for same, both orally and by filing a
written memorandum to that effect with the person recording the minutes or supervisor.
In applying the above provisions of the Ethics Act to your inquiry, it is noted that
Section 1103(a) of the Ethics Act pertaining to conflicts of interest does not prohibit public
officials/ public employees from having outside business activities or employment; however, the
public official /public employee may not use the authority of his public position - -or confidential
information obtained by being in that position - -for the advancement of his own private
pecuniary benefit or that of a business with which he is associated. Pancoe, Opinion 89 -011.
An example of conduct that would be prohibited under Section 1103(a) would include
participation in an official capacity as to matters involving the business with which the public
official /public employee is associated in his private capacity, Gorman, Order 1041; Miller,
Opinion 89 -024; Kannebecker, Opinion 92 -010.
Under the submitted facts, the business which employs the two council members would
be considered a business with which they are associated. The two borough council members
would generally have a conflict of interest under Section 1103(a) of the Ethics Act as to
matters that would financially benefit themselves or the business that employs them. In each
instance of a conflict, the two council members would be required to abstain and to observe
the disclosure requirements of Section 1103(j) of the Ethics Act.
In response to your question of whether the two council members would be permitted to
make a motion, second a motion or vote under Section 1103(j) of the Ethics Act, we are
guided by our prior precedent in Garner, Opinion 93 -004.
In Garner, we considered the issue of whether, under Section 3(j) of the Ethics Law, a
supervisor on a three member board would be permitted to second a motion even if he had a
conflict where the two remaining supervisors would have opposing views or where one of the
remaining two members would be absent from the meeting.
We noted in Garner that seconding a motion is a use of authority of office. Hence an
individual with a conflict would not be permitted to participate, make a motion, second a motion,
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March 26, 2004
Page 4
or vote. However, we also stated:
[T]he General Assembly in enacting Section 3(j) would not have allowed
a public official /employee on a three member board who has a conflict to be able
to vote unless a second to the motion could be made so that the matter would
be in the posture for a vote. Thus, we believe that since there is a need for a
second to a motion in order to make Section 3(j ) of the Ethics Law operative,
the General Assembly intended as to three members [sic] boards for the public
official with a conflict to be allowed to second so that if the other supervisors
became deadlocked, the public official could then vote provided the disclosure
requirements are satisfied.
Garner, at 6.
In light of the foregoing, we concluded that Section 3(j) of the Ethics Law does allow a
public official on a three member board to second a motion where: (1) the two remaining
supervisors have opposing views; or (2) one of the other two supervisors is absent. We
emphasized that our ruling was expressly limited in its application to three member boards and
to the question of seconding a motion.
In the instant matter, we are presented with two new questions that go beyond our holding in
Garner: whether either of the conflicted council members may make a motion; and whether either of
two conflicted council members could second a motion as to his/her employer.
In response to the above two questions, we are reminded that the basis of our decision
in Garner was the otherwise impossibility of Section 1103(j) of the Ethics Act becoming
operative without the second to the motion. In Garner, we specifically dealt with the cases
where one supervisor was absent or where two supervisors without conflict had opposing
views. In this case, we have all three council members present with no opposing views, that
is, two council members are conflicted, leaving one council member with his/her own one view.
Applying the above logic in Garner to this case, we conclude that neither of the
conflicted council members may make the motion. Since there is one council member who
does not have a conflict, he or she may choose to make or not make a motion. There is no
authorization in the Ethics Act and no other basis to allow the two conflicted council members
to make the motion. There is certainly no impossibility present because the one non - conflicted
supervisor may make a motion.
We shall now address the issue of the second to a motion. If the non - conflicted council
member makes a motion, the two remaining council members who are conflicted would
otherwise be prohibited from making the second to the motion. The non - conflicted council
member may not second his /her own motion. In such an instance, it would be impossible to
proceed, as in Garner. Accordingly, we find that if the non - conflicted council member makes a
motion, either of the two conflicted council members, if he or she so chooses, may second the
motion.
We shall now address the remaining issue of voting on a seconded motion. Given that
borough council would be unable to take official action because the majority or other legally
required vote would be unattainable due to the two conflicted council members, they would be
permitted to vote if they would make the proper disclosures as required by Section 1103(j) of
the Ethics Act. It is noted that the two council members' participation in this regard would be
strictly limited to voting. See, Pavlovic, Opinion 02 -005.
Section 1103(j) does not give the two conflicted council members the authority to
otherwise participate, as for example, discussing or advocating as to the pending motion.
Thus, all that the two conflicted council members are permitted to do under the Ethics Act is
make a second, make the required Section 1103(j) disclosures, and then vote.
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March 26, 2004
Page 5
To summarize, when two council members on a three member board have conflicts,
only the non - conflicted council member may make a motion. Since the non - conflicted council
member may not second his /her own motion and the remaining two council members have
conflicts, it would be otherwise impossible to obtain a second to the motion. Either of the two
conflicted council members, if he or she so chooses, may then second the motion. The two
conflicted council members may not discuss or advocate as to the motion following the
second. The two conflicted council members may only vote on the motion.
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 in that they do not involve an interpretation of the
Ethics Act. Specifically not addressed herein is the applicability of the Borough Code.
IV. CONCLUSION:
Borough council members are public officials subject to the provisions of the Public
Official and Employee Ethics Act. The business which employs the council members is a
business with which the council members are associated. The borough council members
would generally have a conflict of interest under Section 1103(a) of the Ethics Act as to
matters that would financially benefit themselves or the business that employs them. In each
instance of a conflict, the council members would be required to abstain and to observe the
disclosure requirements of Section 1103(j) of the Ethics Act.
When two council members on a three member board have conflicts, the non - conflicted
council member may choose to make or not make a motion. The two conflicted council
members may not make the motion. As to the second of the motion made by the non -
conflicted council member, he or she may not second his /her own motion. With the remaining
two council members in conflict, it would be otherwise impossible for a second to occur. Either
of the two conflicted council members, if he or she so chooses, may then second the motion.
The two conflicted council members may not discuss or advocate as to the motion following
the second. The two conflicted council members may only vote on the motion.
Pursuant to Section 1107(10), the person who acts in good faith on this Opinion issued
to him shall not be subject to criminal or civil penalties for so acting provided the material facts
are as stated in the request.
This letter is a public record and will be made available as such.
Finally, a party may request the Commission to reconsider its Opinion. The
reconsideration request must be received at this Commission within thirty days of the mailing
date of this Opinion. The party requesting reconsideration must include a detailed explanation
of the reasons as to why reconsideration should be granted in conformity with 51 Pa. Code §
21.29(b).
By the Commission,
Louis W. Fryman
Chair