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HomeMy WebLinkAbout06-500 BalintDavid C. Balint, Deputy Controller Office of the Controller Greene County 93 E. High Street, Suite 110 Waynesburg, PA 15370 Dear Mr. Balint: ADVICE OF COUNSEL January 3, 2006 06 -500 Re: Conflict; Public Official /Employee; County Deputy Controller /Director of Auditing; Employee of County Tax Claim Bureau; Purchasing Property At County Judicial Sale or Tax Sale. This responds to your letter of November 30, 2005, by which you requested advice from the State Ethics Commission. Issue: Whether the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa. .S. § 1101 et seq., presents any prohibition or restrictions upon a county deputy controller /director of auditing who also serves as an appointed employee of the county tax claim bureau with regard to purchasing property at a county judicial sale or tax claim upset sale. Facts: As Deputy Controller /Director of Auditing of Greene County ( "County "), you seek an advisory as to whether the Ethics Act would prohibit you from purchasing property at a County judicial sale or tax claim upset sale. You have submitted a copy of your job description, which is incorporated herein by reference. You state that in addition to your position as County Deputy Controller /Director of Auditing, you are also an appointed employee of the Greene County Tax Claim Bureau. Your job responsibilities in this capacity include posting delinquent tax sale notices on property in the boroughs of Rices Landing and Greenesboro, and in the townships of Wayne, Whitely, Perry, Monongahela, Dunkard, and Greene. You state, "I concede this would pose a problem, and [1] would refrain from bidding on property in a Tax Claim Upset Sale that I had been involved in posting." In addition, you are also an appointed, uncompensated member of the Zoning Board of Waynesburg Borough. You are also a staff accountant at J.L. Burns & Balint, 06 -500 January 3, 2006 Page 2 Company, Treasurer of Washington St. United Methodist Church, and Treasurer of Corner Cupboard (Greene County) Food Bank. You state your belief that your position should not preclude you from participating in the public auction of property through judicial or tax upset sales in that you do not have the ability to use your position to influence the outcome of the auction. You further state that you do not have access through any of your positions to any information that is not available to the general public. You note that such auctions are advertised to the general public "openly and notoriously," and are conducted by a licensed auctioneer in a public forum. You state that insofar that Section 1103(f) of the Ethics Act would apply to the County Controller's Office's review of a contract, your supervisor, the elected Controller, would conduct such reviews and you would abstain. 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 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 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 requester has truthfully disclosed all of the material facts. As Deputy Controller /Director of Auditing for Greene County ( "County "), you are a "public official' as that term is defined in the Ethics Act, and hence you are subject to the provisions of that Act. Further, as an appointed employee of the County Tax Claim Bureau, you are a public official /public employee subject to the Ethics 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. Balint, 06 -500 January 3, 2006 Page 3 "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. "Contract." An agreement or arrangement for the acquisition, use or disposal by the Commonwealth or a political subdivision of consulting or other services or of supplies, materials, equipment, land or other personal or real property. The term shall not mean an agreement or arrangement between the State or political subdivision as one party and a public official or public employee as the other party, concerning his expense, reimbursement, salary, wage, retirement or other benefit, tenure or other matters in consideration of his current public employment with the Commonwealth or a political subdivision. 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(f) of the Ethics Act provides as follows: § 1103. Restricted activities (f) Contract. - -No public official or public employee or his spouse or child or any business in which the person or his spouse or child is associated shall enter into any contract valued at $500 or more with the governmental body with which the public official or public employee is associated or any subcontract valued at $500 or more with any person who has been awarded a contract with the governmental body with which the public official or public employee is associated, unless the contract has been awarded through an open and public process, including prior public notice and subsequent public disclosure of all proposals considered and contracts awarded. In such a case, the public official or public employee shall not have any supervisory or overall responsibility for the implementation or administration of the contract. Any contract or subcontract made in violation of this subsection shall be voidable by a court of competent jurisdiction if the suit is commenced within 90 days of the making of the contract or subcontract. 65 Pa.C.S. § 1103(f). Section 1103(f) does not operate to make contracting with the governmental body permissible where it is otherwise prohibited. Rather, where a public official /public employee, his spouse or child, or a business with which he, his spouse or child is associated, is otherwise appropriately contracting with the governmental body, or subcontracting with any person who has been awarded a contract with the governmental body, in an amount of $500.00 or more, Section 1103(f) requires that an Balint, 06 -500 January 3, 2006 Page 4 "open and public process" be observed as to the contract with the governmental body. Pursuant to Section 1103(f), an "open and public process" includes: (1) prior public notice of the employment or contracting possibility; (2) sufficient time for a reasonable and prudent competitor /applicant to be able to prepare and present an application or proposal; (3) public disclosure of all applications or proposals considered; and (4) public disclosure of the contract awarded and offered and accepted. Section 1103(f) of the Ethics Act also requires that the public official /employee may not have any supervisory or overall responsibility as to the implementation or administration of the contract with the governmental body. Section 1103(j) of the Ethics Act provides as follows: § 1103. Restricted activities (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 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 the event that the required abstention results in the inability of the governmental body to take action because a majority is unattainable due to the abstention(s) from conflict under the Ethics Act, then voting is permissible provided the disclosure requirements noted above are followed. See, Pavlovic, Opinion 02 -005. Balint, 06 -500 January 3, 2006 Page 5 In applying the above provisions of the Ethics Act to the instant matter, pursuant to Section 1103(a) of the Ethics Act, 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 private pecuniary 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 Commission recognizes that public concern and criticism may arise if a public official or public employee who serves a governmental body receives benefits under a program or process which that governmental body administers. On the other hand, the Ethics Act was not enacted nor should it be interpreted to preclude public officials or public employees from participating in programs or processes which might otherwise be available to them as citizens, as long as the restrictions of the Ethics Act are observed. Wolff, Opinion 89 -030; Woodrinq, Opinion 90 -001. In the instant matter, you are advised that Section 1103(a) of the Ethics Act would not preclude you as the County Deputy Controller /Director of Auditing or a County Tax Claim Bureau employee from bidding on and purchasing real estate at tax sales conducted by the County in compliance with the Pennsylvania Real Estate Tax Sale Law conditioned upon the assumptions that: (1) there would be no use of the authority of office or employment or confidential information for a private pecuniary benefit of yourself, a member of your immediate family, or a business with which you or a member of your immediate family is associated; and (2) there would be no improper influence /understanding as prohibited by Section 1103(b) or Section 1103(c) of the Ethics Act. Section 1103(f) of the Ethics Act would apply as to any contract between you and the County which would be valued at $500 or more. Section 1103(f) would prohibit you in your capacity as the County Deputy Controller /Director of Auditing or a County Tax Claim Bureau employee from having any supervisory or overall responsibility for the implementation or administration of such a contract. 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. This advice is also limited to the questions posed. Specifically not addressed herein is the applicability of the County Code or the Real Estate Tax Sale Law. Conclusion: As the County Deputy Controller /Director of Auditing for Greene County ("County "), you are a public official subject to the provisions of the Public Official and Employee Ethics Act ("Ethics Act "), 65 Pa.C.S. § 1101 et seq. Further, as an appointed employee of the County Tax Claim Bureau, you are a public official /public employee subject to the Ethics Act. Section 1103(a) of the Ethics Act would not preclude you as the County Deputy Controller /Director of Auditing or a County Tax Claim Bureau employee from bidding on and purchasing real estate at tax sales conducted by the County in compliance with the Pennsylvania Real Estate Tax Sale Law conditioned upon the assumptions that: (1) there would be no use of the authority of office or employment or confidential information for a private pecuniary benefit of yourself, a member of your immediate family, or a business with which you or a member of your immediate family is associated; and (2) there would be no improper influence /understanding as prohibited by Section 1103(b) or Section 1103(c) of the Ethics Act. Section 1103(f) would prohibit you in your capacity as the County Deputy Controller /Director of Auditing or a County Tax Claim Bureau employee from having any supervisory or overall responsibility for the implementation or administration of such a contract. Lastly, the propriety of the proposed conduct has only been addressed under the Ethics Act. Balint, 06 -500 January 3, 2006 Page 6 Pursuant to Section 1107(11), 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. Sincerely, Vincent J. Dopko Chief Counsel