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HomeMy WebLinkAbout26-555 Knecht 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 304 HARRISBURG, PA 17120-0400 ADVICE OF COUNSEL July 14, 2026 To the Requester: Robert M. Knecht 26-555 Dear Mr. Knecht: This responds to your letterdated June 22, 2026, received July 7, 2026, by which you requested an advisory from the Pennsylvania State Ethics Commission (“Commission”), seeking guidance as to theissue presented below: Issue: WhetherSection 1103(a) of thePublic Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1103(a), pertaining to conflict of interest, would impose prohibitions or restrictions upon an individual serving as a school director with regard to serving in a role with a community education foundation that would receive funding from the school district. Brief Answer:Because Section 1103(a) of the Ethics Act imposes restrictions upon the individual in his capacity as a school director rather than upon him in his private capacity, Section 1103(a) would not prohibit the individual from serving in a role with a community education foundation that would receive funding from the school district. However, if the individual would serve on the board of directors of the community education foundation or as an employee of the community education foundation, the community education foundation would be considered a business with which the individual is associated, and in his capacity as a school director, the individual would have a conflict of interest under Section 1103(a) of the Ethics Act in matters before the school district school board that would financially impact him or the community education foundation. Facts: Knecht,26-555 July 14, 2026 Page 2 Youare a School Director for the Coatesville Area School District (“School District”). You are in favor of the School District providing funding to begin a community education foundation (the “Foundation”). The Foundation would be organized as a Pennsylvania non-profit corporation and eventually would be recognized as a 501(c)(3) tax-exempt organization. You ask whether the Ethics Act would permit you to serve in a role with the Foundation if the School District School Board would vote to provide funding to the Foundation, where you would abstain from the vote and would not directly benefit from the funds provided by theSchool District to the Foundation. In particular, you ask whether you would be permitted to serve on the Board of Directors of the Foundation, as an employee of the Foundation, as a volunteer with the Foundation, or as an independent contractor to the Foundation. 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 1103(j) 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. (j)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 Knecht,26-555 July 14, 2026 Page 3 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), 1103(j). 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. “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,” 65 Pa.C.S. § 1102, a public official/public employee is prohibited from using Knecht,26-555 July 14, 2026 Page 4 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. The definition of the term “business” as set forth in the Ethics Act includes a non- profit organization. Rendell v. State Ethics Commission, 603 Pa. 292, 983 A.2d 708 (2009). 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 1103(j) of the Ethics Act would be applicable. Additionally, the disclosure requirements of Section 1103(j) 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 a School Director for the School District, you are a public official subject to the provisions of the Ethics Act.You would generally have a conflict of interest under Section 1103(a) of the Ethics Act in matters before the School District School Board that would financially impact you, a member of your immediate family, or a business with which you or a member of your immediate family is associated. Because Section 1103(a) of the Ethics Act imposes restrictions upon you in your capacity as a School Director rather than upon you in your private capacity, Section 1103(a) would not prohibit you from serving in a role with the Foundation if the School District School Board would vote to provide funding to the Foundation, where you would abstain from the vote and would not directly benefit from the funds provided by the School District to the Foundation. If you would serve on the Board of Directors of theFoundation or as an employee of the Foundation, the Foundation would be considered a business with which you are associated. However, if you would serve as a volunteer with the Foundation or as an independent contractor to the Foundation, the Foundation would not be considered a business with which you are associated. At such times as the Foundation would be considered a business with which you are associated, you generally would have a conflict of interest in matters before the School District School Board that would financially impact you or the Foundation. 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 1103(j) of the Ethics Act would be applicable. Additionally, the disclosure requirements of Section 1103(j) of the Ethics Act would have to be satisfied in the event of a voting conflict. Knecht,26-555 July 14, 2026 Page 5 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