HomeMy WebLinkAbout1400 Hallman, IIIIn Re: Harold M. Hallman, III
File Docket: 05 -016
X -ref: Order No. 1400
Date Decided: 5/31/06
Date Mailed: 6/12/06
Before: Louis W. Fryman, Chair
John J. Bolger, Vice Chair
Donald M. McCurdy
Paul M. Henry
Raquel K. Bergen
Nicholas A. Colafella
Reverend Scott Pilarz
This is a final adjudication of the State Ethics Commission.
Procedurally, the Investigative Division of the State Ethics Commission conducted
an investigation regarding a possible violation of the Public Official and Employee Ethics
Act, Act 9 of 1989, P.L. 26, 65 P.S. § 401 et seq., as codified by Act 93 of 1998, Chapter
11, 65 Pa.C.S. § 1101 et seq., by the above -named Respondent. At the commencement of
its investigation, the Investigative Division served upon Respondent written notice of the
specific allegations. Upon completion of its investigation, the Investigative Division issued
and served upon Respondent a Findings Report identified as an "Investigative Complaint."
An Answer was not filed and a hearing was waived. The record is complete. A Consent
Agreement and Stipulation of Findings were submitted by the parties to the Commission for
consideration. The Stipulation of Findings is quoted as the Findings in this Order. The
Consent Agreement was subsequently approved.
Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter
11 of Act 93 of 1998, 65 Pa.C.S. § 1101 et seq., which essentially repeats Act 9 of 1989
and provides for the completion of pending matters under Act 93 of 1998.
This adjudication of the State Ethics Commission is issued under Act 93 of 1998
and will be made available as a public document thirty days after the mailing date noted
above. However, reconsideration may be requested. Any reconsideration request must be
received at this Commission within thirty days of the mailing date and must include a
detailed explanation of the reasons as to why reconsideration should be granted in
conformity with 51 Pa. Code § 21.29(b). A request for reconsideration will not affect the
finality of this adjudication but will defer its public release pending action on the request by
the Commission.
The files in this case will remain confidential in accordance with Chapter 11 of Act
93 of 1998. Any person who violates confidentiality of the Ethics Act is guilty of a
misdemeanor subject to a fine of not more than $1,000 or imprisonment for not more than
one year. Confidentiality does not preclude discussing this case with an attorney at law.
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ALLEGATION:
That Harold Hallman, 111, a public official /public employee, in his capacity as
Supervisor for West Pikeland Township, violated Section 1103(a) provisions
of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. §1103(a) when he used
the authority of his office for the private pecuniary benefit of a member of his
immediate family and /or a business with which a member of his immediate
family is associated including but not limited to, authorizing purchases from
Hallman's General Store, a business owned by his father, and when he
participated in actions of the board of supervisors to approve payments to
his father's business.
II. FINDINGS:
1. Harold Hallman, 111 has served as a Supervisor for West Pikeland Township from
January 2002 to the present.
a. Hallman has served as chairman of the board of supervisors since 2002.
b. West Pikeland Township is a second class township.
2. As a supervisor for West Pikeland Township, Hallman performs the following duties.
a. Attends monthly board of supervisors meetings.
b. Reviews and approves monthly treasurer's reports.
c. Hiring /firing of road department employees.
d. Review and approval of monthly meeting minutes.
3. Hallman also serves as the Roadmaster for the Township of West Pikeland, a
position he has held since January of 2004.
a. Hallman has been employed as Roadmaster on a part -time basis.
4. As Roadmaster, Hallman has the following responsibilities and duties.
a. Overseeing and directing the daily activities of the township's road
employees.
b. Determines which township roads need to be repaired.
c. Reviews and approves the road employee's timecards.
d. Reviews and approves all road employee purchases.
5. Hallman 111 resides at 1600 Pikeland Road, Chester Springs, PA 19425, on the
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Hallman family's farm.
a. Hallman's residence has the same mailing address as Hallman's General
Store, and the residence of Hallman, Jr, Hallman III's father.
6. Hallman's General Store was started in approximately 1928 by Hallman III's
grandfather, Harold Hallman Sr.
a. The store was passed down to Hallman, Jr. in approximately 1950.
b. The store is operated by Hallman Jr. as a sole proprietorship.
7 Hallman, III currently has no direct business interest in Hallman's General Store nor
does he receive any compensation from the store.
8. According to Federal Tax Forms for Profit or Loss from a Sole Proprietorship,
Hallman's father, Harold Hallman Jr., is the sole -owner of Hallman's General Store.
a. The store is a convenience store which sells everyday necessities, small car
parts, grocery items, and Kerosene.
b. The store also sells gasoline and diesel fuel from pumps on the property.
c. The store's physical location is at the intersection of Pikeland Road and
Rout 113.
d. The store's mailing address is 1600 Pikeland Road, Chester Springs, PA
19425, telephone number (610) 827 -7721.
e. Hallman's General Store is not registered with the Pennsylvania Department
of State.
9. Hallman's General Store has had an ongoing business relationship with West
Pikeland Township since the store was built and run by Hallman, Sr.
10. Hallman's General Store utilized a tab system with the township based on their
continual business relationship.
a. Township purchases made from the store including merchandise or fuel are
added on to the tab /receipt.
b. The tab /receipt is periodically signed off on by the township manager, or
Hallman III, when either visits the store.
11. In the case of merchandise that is bought from Hallman's General Store, the store
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sends the invoices accumulated on the tab to the township for payment at the end
of each month, similar to a monthly bill.
a. Bills submitted from Hallman's General Store to the township are processed
the same way as the other township bills.
12. West Pikeland Township Board of Supervisors Meetings are held on the first and
third Mondays of the month.
a. During summer months only, one meeting a month is held.
13. Minutes from the West Pikeland Board of Supervisors meetings reflect the following
activities typically occur during a meeting:
a. The prior month's meeting minutes are read and approved.
b. The following reports are read and approved.
1. Police Report
2. Park and Recreation Report
3. Road Report
4. Building /Zoning Report
5. Treasurer's Report
c. Announcements are made.
d. Public comment is heard.
14. In preparation for the Supervisors monthly meeting, bills to be paid by the township
are gathered and reviewed by all three supervisors, in order to sign the payment
checks.
a. This review would include bills from Hallman's General Store, and Voyager
Fleet Systems, Inc.
b. This review occurs prior to the formation of a formal bill list and treasurer's
report.
c. The township issues checks to pay all bills that are received for purchases,
utilities, and other expenditures.
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15. Following the review of bills, the payment checks are signed by one supervisor and
the treasurer, and the payment stub is signed by another supervisor.
a. A majority of all township checks and payment stubs were signed by
supervisor Linda Glaum and William Caracass.
b. Hallman Ill's signature does not appear on any township checks.
c. The final approval of township checks occurs at monthly supervisors
meetings.
16. The Treasurer's Report is given generally during the second meeting of the month.
a. This Treasurer's Report details the balances in each township account, as
well as a reading of the bill list.
b. Township bill list includes all expenditures for that month, including the
check amount, check number, description of purchase, and recipient.
c. The bill lists include monthly checks for merchandise purchases from
Hallman's General Store.
d. The bill lists include monthly checks to Voyager Fleet Systems, Inc. which
includes gas purchases of the township at Hallman's General Store.
17. A copy of the bill list is provided to each supervisor along with the prior months
meeting minutes for review before the supervisors vote to approve them at the
meeting.
18. Hallman's General Store continued it's business relationship with West Pikeland
Township throughout Hallman 111 tenure as Supervisor.
a. Purchases from the store from January 2002 through December 2003 were
made prior to the township establishing its own road department.
b. No purchases made from the store between January 2002 and December
2003 exceeded $500.00 in value.
19. Between January 2002 and December 2003 West Pikeland purchases from
Hallman's General Store included but may not have been limited to the following.
a. Food and drinks.
b. Small tools.
c. Duct tape
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d. Keys
e. Batteries
f. Light bulbs
20. West Pikeland Township records reflect $1,494.43 worth of business was
transacted with Hallman's General Store from January 2002 through December
2003.
a. Purchases were made by various township employees and authorized by
Township Manager, Norman Long.
b. Payments were approved following standard township protocol detailed in
this report.
21. From January 2002 through December 2003 Hallman 111 in his official capacity as
Supervisor was aware of and voted to approve $1,494.43 worth of merchandise
purchased by West Pikeland Township from Hallman's General Store.
a. The following is a breakdown, by check, of payments issued to the store.
Check
Date Number Amount
2/19/2002 3726 $19.75
4/1/2002 3824 $81.36
5/20/2002 3943 $49.37
7/15/2002 4091 $4.48
8/12/2002 4163 $74.44
9/9/2002 4242 $1.99
9/9/2002 210 $52.99
10/7/2002 4344 $34.09
11/18/2002 4462 $15.97
12/16/2002 4567 $36.49
12/30/2002 4612 $191.80
2002 Total $562.73
2/3/2003 4708 $100.43
3/17/2003 4824 $6.34
4/14/2003 4901 $25.95
6/16/2003 5080 $30.54
7/14/2003 5165 $65.12
8/11/2003 5235 $20.67
10/20/2003 5440 $202.60
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11/3/2003 6028
12/15/2003 6156
12/29/2003 6237
2003 Total
$182.18
$148.71
$149.16
$931.70
22. During the supervisors' November 17, 2003 meeting, a resident made a public
comment pertaining to a possible conflict of interest on the part of Hallman III by
approving purchases from his father's store.
a. This was addressed by the township manager, who stated that the
guidelines for a conflict of interest are under the State Ethics Commission.
b. Hallman III is not on record as having any comment.
23. Since December 2003 West Pikeland Township has seen an increase in the
amount purchased from Hallman's General Store.
a. The increase in purchases is attributed to the formation of a township road
department.
24. Prior to approximately November 2003, West Pikeland Township bid out their road
maintenance and snow removal work to different local contractors.
a. Contractors used by West Pikeland Township included David Monteith
Construction Co. and R.W. Fetters.
25. As a result of continual problems with contractors not providing desired services in
a timely manner and budgetary issues, the township began to take steps to perform
their own road maintenance around November 2003.
a. These problems were reported to the township by the township manager and
Hallman III.
26. In and around November 2003, West Pikeland Township Supervisors, including
Hallman III, voted to approve measurers to handle snow removal and other road
work.
a. During a supervisor's meeting on July 24, 2003, Hallman stated that he
would like to authorize the township manager to purchase a dump truck for
the township.
b. Two dump trucks with plows and a heavy duty truck with a plow were
successfully bid on and purchased.
c. At a November 3, 2003, supervisor's meeting, Hallman III expressed his
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desire for the township to initiate a snow removal program due to its cost
effectiveness.
d. Various discussions ensued at supervisor's meetings in which Hallman 111
was a part of, on the need for a township road department.
e. Road salt and other road materials were approved and purchased.
f. Part -time road employees were hired.
27. At the townships reorganization meeting held on January of 2004, Hallman 111 was
appointed roadmaster for the township.
a. As roadmaster, Hallman assumes the duties of supervising the road
department and directing the road employees.
b. Prior to this time, the contracted road maintenance companies dealt with the
township manager since there wasn't a roadmaster.
28. Under the direction of Hallman 111, the township began to purchase necessary tools
and equipment to operate a road department.
a. These tools and equipment, which included shovels, tarps, windshield wiper
fluid, brooms, and Kerosene, were not bid out or bought in bulk.
b. These items were purchased on an as needed basis.
29. Hallman 111 admitted to SEC investigators that he directed his road workers to
purchase the equipment in this manner.
a. Hallman further stated to SEC investigators that his motto in regards to the
as needed purchase of equipment by the road department was one shovel
at a time."
30. Road department employees were directed by Hallman 111 to make any necessary
road department purchases from Hallman's General Store.
a. This directive was in addition to the purchase of necessary equipment and
tools on an as needed basis.
31. From the time the road department was brought in house around December 2003
until the present, the West Pikeland Township Road Department employees,
including Hallman 111, have purchased their equipment and supplies almost entirely
from Hallman's General Store on an as needed basis.
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a. The township did not seek bids for these items or buy in bulk.
32. Hallman allowed any road department employee to make a purchase of equipment
or tools from Hallman's General Store when it was needed, provided that Hallman's
approval was obtained prior to the purchase.
33. Purchases made by the road department, from Hallman's General Store, included
minor car parts, tools, rock salt, sand bags, batteries, tapes, road maps, and
kerosene.
a. Invoices reflect that purchases were made on nearly a daily basis.
b. Kerosene, which is purchased daily during the winter, exclusively from
Hallman's General Store, was used by the road department for space
heaters at the township garage.
34. From January of 2004 through March 2005 the township issued monthly checks
payable to Hallman's General Store for merchandise totaling $6,575.96. These
checks are as follows:
Check
Date Number Amount
2/9/2004 6377 $502.32
3/8/2004 6428 $238.83
4/19/2004 6552 $631.56
5/3/2004 6608 $270.87
6/14/2004 6720 $152.40
7/12/2004 6805 $252.34
8/23/2004 6946 $586.10
9/7/2004 6977 $343.13
10/18/2004 7117 $294.39
11/29/2004 7288 $447.82
2004 Total $3,719.76
1/12/2005 7446 $660.47
2/24/2005 7592 $1,147.99
3/9/2005 7639 $1,047.74
2005 Total $2,856.20
35. Hallman III advised SEC Investigators that purchases from Hallman's General Store
were made on an as needed basis instead of in bulk for the road crew as a matter
of convenience.
a. The township's administrative employees and police department purchase
supplies in bulk.
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b. The administrative employees purchase office supplies and necessities from
either online vendors or at local Staples or Sam's Club store.
c. The police department purchase their office supplies and equipment in the
same manner.
36. The West Pikeland Township building is within five (5) miles of the following
discount and wholesale stores where necessary items could be purchased in bulk.
a. Office Supply Stores
1. Staples, 105 E. Swedesford Rd., Exton, PA 19341 4.2 miles
2. Office Depot, 103 E. Swedesford Rd., Exton, PA 19341 4.2miles
3. Office Max, 101 Iron Lane Blvd, Exton, PA 19341 4.5miles
b. Hardware Stores
1. Home Depot, 690 Lancaster Ave., Frazer, PA 19355 4.7 miles
2. Lowe's, 120 N. Pottstown Pike, Exton, PA 19341 4.6miles
c. Grocery Stores
1. Superfresh, 501 Rt 113, Chester Springs, PA 19425 2.3miles
2. Giant, 1E. Uwchlan Ave., Exton, PA 19341 2.3miles
3. Genuardi's, 260 Eagleview Blvd., Exton, PA 19342 3.4miles
d. Wholesale Clubs
1. Sam's Club, 280 Indian Run Street, Exton, PA 19341 5.0 miles
37. In addition to the purchase of equipment, the road department, under Hallman III's
direction, also purchased a significant amount of fuel to run their trucks and
equipment.
a. From January 2002 through December of 2003, prior to the road department
being under the direction of Hallman III, the township purchased $2,048.17
of fuel from Hallman's General Store.
b. These purchases were made using one of the township Voyager cards.
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38. Voyager card receipts on file with West Pikeland Township include the following
total purchases made from Hallman's General Store on a monthly basis prior to
their in house road department.
Invoice Card Invoice Card
Ending Date Number Amount Ending Date Number Amount
1/27/2002 300002 $0.00 6/24/2002 300001 $0.00
300003 $0.00 300002 $0.00
300004 $0.00 300003 $0.00
2/24/2002 300001 $0.00 300004 $0.00
300002 $0.00 7/26/2002 300002 $0.00
300003 $0.00 300004 $0.00
300004 $0.00 8/26/2002 300001 $0.00
300005 $0.00 300002 $0.00
3/25/2002 300001 $0.00 300004 $0.00
300002 $0.00 300005 $0.00
300003 $0.00 9/23/2002 300001 $0.00
300004 $0.00 300004 $0.00
300005 $0.00 300005 $0.00
4/25/2002 300002 $0.00 10/23/2002 300003 $0.00
300003 $0.00 300004 $0.00
300004 $0.00 300005 $0.00
5/27/2002 300001 $0.00 11/24/2002 300003 $49.40
300002 $0.00 300004 $25.65
300003 $0.00 300005 $0.00
300004 $0.00 12/24/2002 300003 $0.00
300004 $25.11
2002 Total $100.16
1/24/2003 300003 $0.00 7/24/2003 600001 $26.38
300004 $97.57 600002 $22.20
2/24/2003 300003 $0.00 600003 $0.00
300004 $0.00 600004 $50.90
600003 $0.00 600005 $0.00
600004 $154.38 8/24/2003 600001 $0.00
3/24/2003 300004 $0.00 600002 $0.00
600002 $26.21 600003 $0.00
600003 $0.00 600004 $73.66
600004 $50.06 600005 $0.00
600005 $0.00 9/24/2003 600001 $0.00
600007 $0.00 600002 $0.00
4/24/2003 600002 $69.66 600003 $0.00
600003 $0.00 600004 $101.25
600004 $70.00 600005 $0.00
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600005 $0.00 600007 $99.05
5/24/2003 600001 $29.97 10/24/2003 600001 $26.31
600002 $66.19 600002 $0.00
600003 $52.81 600003 $0.00
600004 $71.14 600004 $71.76
600005 $33.58 600007 $47.60
600007 $28.20 11/24/2003 600001 $0.00
6/24/2003 600001 $0.00 600003 $131.78
600002 $0.00 600004 $0.00
600004 $0.00 600006 $0.00
600007 $24.60 600007 $157.55
12/24/2003 600001 $0.00
600003 $168.95
600004 $0.00
600006 $111.37
600007 $84.88
1. 600001
2003 Total $1,948.01
39. In the case of fuel that is bought from Hallman's General Store, the township
manager pays off the township's tab periodically by using a Voyager Fleet System
card.
a. Voyager Fleet System then bills the township monthly for payment of the
township's fuel purchases.
40. The Voyager Fleet System, which has been used by the township for several years,
allows the township to purchase fuel from vendors without paying the tax.
a. This system uses cards, which like credit cards, records the purchase of gas
on the card, when gas is purchased.
b. The township then receives a bill which is produced for payment.
c. The card records all information on the purchase including location, time,
type of fuel, gallons pumped, vehicle odometer, and cost.
41. West Pikeland township has used roughly eleven different Voyager cards since
2002.
a. Since 2003, the township has used only six cards with the following ID
numbers.
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2. 600002
3. 600003
4. 600004
5. 600006
6. 600007
42. The six Voyager card accounts currently in use are assigned to only certain
employees of the township for their use.
a. Card numbers 600001, 600002, 600003, and 600004 belong to the police
department and are stored in each patrol vehicle.
b. Card number 600006 is assigned to the police chief.
c. Card number 600007 is assigned to the township manager.
d. Neither Hallman 111 nor any other road employee is assigned a card.
43. The township manager's card, number 600007, is used to pay off the tab at
Hallman's General Store for road department fuel purchases.
a. Voyager invoices for card number 600007 show purchases of diesel fuel and
odometer readings belonging to road department vehicles.
44. The township vehicles have several different options when it comes to vendors to
purchase fuel from.
a. Cards belonging to the police department show purchases made at Sunoco
A Plus, 904 Rt 113, Chester Springs, PA 19425; Sunoco A Plus, 850 N.
Pottstown Pike, Exton, PA 19341; and Hallman's General Store.
b. The card belonging to the township manager shows purchases made
predominately at Hallman's General Store.
45. Hallman 111 as roadmaster, directed road department employees to purchase fuel for
their road department vehicles from Hallman's General Store.
a. Hallman 111 admitted to SEC Investigators that he directed the road
department to purchase their fuel from Hallman's General Store.
46. After the formation of the road department, under the direction of Hallman 111 in
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January 2004, the amount of fuel purchased from the store increased considerably
when compared to the amount of fuel purchased from Hallman's General Store in
2002 and 2003.
47. According to township Voyager records, covering the period January 2004 through
March 2005, with Hallman III as roadmaster, the township purchased $10,525.77 of
fuel from Hallman's General Store. Monthly purchases occurred as follows:
a.
Invoice
Ending Date Card Number
1/24/2004 600001
600003
600006
600007
2/24/2004 600001
600003
600007
3/24/2004 600001
600003
600006
600007
4/24/2004 600001
600003
600006
600007
5/24/2004 600001
600003
600006
600007
6/24/2004 600001
600003
600006
600007
1/24/2005 600001
600003
600006
600007
2/24/2005 600001
Amount
$0.00
$23.90
$163.51
$325.43
$0.00
$347.22
$476.93
$24.15
$26.31
$158.73
$231.37
$0.00
$0.00
$118.18 10/24/2004
$47.10
$0.00
$0.00
$113.46
$301.47 11/24/2004
$115.47
$0.00
$183.58
$503.87 12/24/2004
$0.00
$51.26
$81.46
$400.05
$80.55
Invoice
Ending Date
7/24/2004
600001
600003
600006
600007
8/24/2004 600001
600003
600006
600007
9/24/2004 600001
600003
600004
600006
600007
600001
600003
600004
600006
600007
600001
600003
600004
600006
600007
600001
600003
600006
2004 Total 600007
Card
Number Amount
$167.57
$0.00
$95.22
$451.58
$85.55
$19.43
$151.47
$525.47
$54.11
$0.00
$0.00
$218.53
$558.21
$0.00
$14.57
$29.30
$236.12
$519.82
$0.00
$0.00
$62.46
$118.36
$439.95
$0.00
$0.00
$150.34
$379.74
$7,438.48
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600003 $0.00
600006 $149.15
600007 $1,045.97
3/24/2005 600001 $0.00
600003 $0.00
600004 $0.00
600006 $268.42
600007 $1,010.43
Through
2005 Total 3/24/05 $3,087.29
48. From January 2002 through March of 2005, Hallman 111 routinely voted to approve
the Treasurer's Report which includes payment of bills on the bill list at every
meeting that he was in attendance.
49. Hallman 111 never abstained from voting to approve the Treasurer's Report, bill list,
and purchases from Hallman's General Store.
a. At every meeting in which Hallman 111 attended, he voted to approve the
reading of the prior months meeting minutes.
b. Hallman 111 never made changes to minutes that pertained to bill lists or
purchases from Hallman's General Store.
c. All votes were unanimous and Hallman was never the deciding vote.
50. Hallman 111 indicated to SEC Investigators that no actions were taken by him
throughout this time to direct township employees and purchases to other
businesses.
a. Hallman 111 indicated to SEC investigators that he took no action, throughout
his time as supervisor and roadmaster, to excuse himself from the approval
roles.
51. From January of 2002 through March 2005, Hallman 111 in his official capacity as
supervisor and roadmaster for West Pikeland Township, directed township
employees and took actions to approve township purchases from his father's
business, Hallman's General Store, that totaled $20,644.33.
a. The township's purchase total is based on the following totals:
1. 1/2002 - 12/2003 Merchandise $ 1,494.43
2. 1/2002 - 12/2003 Fuel $ 2,048.17
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3. 1/2004 - 3/2005 Merchandise
4. 1/2004 - 3/2005 Fuel
$ 6,575.96
$10,525.77
$20,644.33
52. Profit or loss from Business Tax forms, Federal Tax Form 1040, for Hallman's
General Store from 2002 to 2004 indicate an average gross profit margin on the
business of 10 %.
a. The profit margin on individual items and fuel sold at Hallman's General
Store range from 9% to 40 %.
53. As a result of Hallman's direction and official actions as supervisors and roadmaster
for West Pikeland Township, Hallman's General Store received approximately
$2,064.43 in profit from the sale of goods to West Pikeland Township.
a. Profit from townships business is based on the following:
$20,644.33 Total of Township Purchases From 1/2002 — 3/2005 multiplied
by a 10% Average Profit Margin = $2,064.43 profit from Township Business.
54. Hallman did not have an interest in Hallman's General Store or receive any income
therefrom.
55. Hallman has abstained from all votes regarding his father's store since June 14,
2005.
III. DISCUSSION:
At all times relevant to this matter, the Harold Hallman, III, (Hallman), has been a
public official subject to the provisions of the Public Official and Employee Ethics Law, Act
9 of 1989, Pamphlet Law 26, 65 P.S. § 401, et seq., as codified by the Public Official and
Employee Ethics Act, Act 93 of 1998, Chapter 11, 65 Pa.C.S. § 1101 et seq., which Acts
are referred to herein as the "Ethics Act."
The allegations are that Hallman, as a West Pikeland Township Supervisor, violated
Section 1103(a) of the Ethics Act when he authorized purchases from Hallman's General
Store, a business owned by his father, and when he participated in actions of the board of
supervisors to approve payments to his father's business.
Pursuant to Section 3(a)/1103(a) of the Ethics Act, a public official /public employee
is prohibited from engaging in conduct that constitutes a conflict of interest.
The term "conflict of interest" is defined under Act 9 of 1989/Act 93 of 1998 as follows:
Section 1102. Definitions
"Conflict" or "conflict of interest." Use by a public
official or public employee of the authority of his office or
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Page 17
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. "Conflict" or "conflict of interest" 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.
Section 1103(a) of the Ethics Act prohibits a public official /public employee 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.
facts.
Having noted the issues and applicable law, we shall now summarize the relevant
Hallman has served as a West Pikeland Township Supervisor since January 2002
and as Roadmaster since January 2004. Hallman's personal residence is at the same
address as Hallman's General Store (Store), which is also his father's residence. The
Store is a sole proprietorship of Hallman's father. Hallman has no direct business interest
in the Store nor does he receive any compensation from that business.
The Store has an ongoing business relationship with the Township whereby
purchases are regularly made and debited through the utilization of a tab system. The
Store on a monthly basis sends an invoice as to the purchased items that are on the
Township tab. Prior to the monthly meeting of the Supervisors, all bills that are to be paid
are reviewed by all three Supervisors. Checks are prepared and signed by the Treasurer
and one of the Supervisors. Hallman's signature did not appear on any Township checks.
The final approval for the issuance of Township checks occurs at the monthly
Supervisors' meeting.
From January 2002 through December 2003, no purchases from the Store
exceeded $500. In that two year period, the Township records reflect that $1,494.43 in
business was transacted with the Store. During that time, Hallman as Supervisor
participated by voting to approve the payment of those purchases.
From December 2003, the Township increased the amount of purchases from the
Store, which occurred as a result of the formation of the Township road department. The
road department was created due to continuous problems with contractors who did not
provide specified services. After Hallman was appointed Roadmaster, the Township
began to purchase tools and equipment for the road department under his direction. Tools
and equipment were purchased on an as needed basis as per directives from Hallman to
the road workers. Even though the Township's administrative employees and police
department purchased supplies in bulk, the Township did not seek bids or purchase bulk
items needed by the road department.
Hallman directed road department employees to make purchases at the Store. The
Township purchases also included minor vehicle parts, tools, rock salt, sand bags,
batteries, tape, road maps and kerosene. Between January 2004 and March 2005, the
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Township purchased merchandise totaling $6,575.96 from the Store even though the
Township building is located within five miles of several discount and wholesale stores.
Hallman also directed that fuel for the Township's truck and equipment be
purchased from the Store. Such Township purchases from the Store between January
2002 and December 2003 totaled $2,048.17. The Township fuel purchases were made on
Township Voyager cards. The Township has six Voyager cards that are assigned to
certain individuals in the Township, such as the Police Chief and the Township Manager.
Neither Hallman nor road employees have Voyager cards. The Township manager
periodically paid for the final purchases by using his card. From January 2004, the amount
of fuel purchased from the Store increased considerably. Between January 2004 and
March 2005, while Hallman was Roadmaster, the Township purchased $10,525.77 of fuel
from the Store.
Hallman did not abstain from voting to approve bill lists that included purchases
from the Store. From the period of January 2002 through March 2005, Hallman as
Supervisor and Township Roadmaster, directed Township employees to make purchases
from the Store and took action to approve Township purchases from that Store totaling
$20,644.33. See, Fact Finding 51. Through the application of a profit margin factor, the
Store received approximately $2,064.43 in profit through sales to the Township. See, Fact
Findings 51, 52, 53. Since June 14, 2005, Hallman has abstained on all votes that involve
the Store.
Having summarized the above relevant facts, we must now determine whether the
actions of Hallman violated Section 1103(a) of Act 9 of 1989.
The parties' Consent Agreement sets forth a proposed resolution of the allegations.
The Consent Agreement proposes that this Commission find the following:
"3. The Investigative Division will recommend the following in relation to the
above allegations:
a. That a violation of Section 1103(a) of the Public Official and Employee
Ethics Law, 65 Pa.C.S. §1103(a) occurred in relation to Hallman's
authorization of purchases from Hallman's General Store, a business
owned by his father; and
b. That a technical violation of Section 1103(a) of the Public Official and
Employee Ethics Law, 65 Pa.C.S. §1103(a) occurred when Hallman
participated in actions of the board of supervisors to approve payments
to his father's business, as all such approvals were unanimous.
4. The Investigative Division will recommend that the State Ethics Commission
take no further action in this matter, and make no specific recommendations
to any law enforcement or other authority to take action in this matter. Such,
however, does not prohibit the Commission from initiating appropriate
enforcement actions in the event of Respondent's failure to comply with this
Agreement or the Commission's Order or cooperating with any other
authority who may so choose to review this matter further.
5. Hallman agrees to make payment in the amount of $2,000 in settlement of
this matter payable to the Commonwealth of Pennsylvania and forwarded to
the Pennsylvania State Ethics Commission within thirty (30) days of the
issuance of the final adjudication in this matter."
6. In the future, Hallman agrees to abstain from voting on any issues that
involve members of his immediate family or any matter wherein he or
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members of his immediate family have an interest, except when such votes
are permitted and /or required by law."
Consent Agreement, ¶ ¶3 -6.
In applying Section 1103(a) of the Ethics Act to the above facts, there were uses of
authority of office on the part of Hallman. But for the fact that Hallman was a Supervisor,
he could not have participated in the bill approval process as to the Store. Similarly, as a
Supervisor and Roadmaster, Hallman was in a position to direct the Township employees
to purchase tools, equipment, gasoline and other materials from the Store. Such actions
were uses of authority of office. See, Juliante, Order 809. Such uses of authority of office
resulted in private pecuniary benefits to the Store. In that the Store is owned by Hallman's
father, it is a business with which an immediate family member is associated.
Hallman violated Section 1103(a) of the Ethics Act when he used the authority of
office by authorizing Township purchases from Hallman's General Store, a business with
which Hallman's father is associated. Hallman technically violated Section 1103(a) of the
Ethics Act when he used the authority of office as to his participation in the approval
process of bills for Hallman's General Store, a business with which Hallman's father is
associated.
The foregoing findings are consistent with numerous precedents of this Commission
that actions by a public official, in using public office for financial gains to a business with
which he or an immediate family member is associated, are violative of Section 1103(a) of
the Ethics Act. See, Bartholomew, Order 1196; Holvey, Order 1039; Gallen, Order 1198;
Kurtz, Order 1116.
We determine that the Consent Agreement submitted by the parties sets forth the
proper disposition for this case, based upon our review as reflected in the above analysis
and the totality of the facts and circumstances. Accordingly, Hallman is directed to make
payment in the amount of $2,000 in settlement of this matter payable to the Commonwealth
of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission within thirty
(30) days of the issuance of the final adjudication in this matter. Compliance with the
foregoing will result in the closing of this case with no further action by this Commission.
Noncompliance will result in the institution of an order enforcement action.
In the future, Hallman will abstain from voting on any issues that involve members of
his immediate family or any matter wherein he or members of his immediate family have an
interest, except when such votes are permitted and /or required by law.
IV. CONCLUSIONS OF LAW:
1. Harold Hallman, III, as a Supervisor for West Pikeland Township, is a public official
subject to the provisions of Act 9 of 1989 as codified by Act 93 of 1998.
2. Hallman violated Section 1103(a) of the Ethics Act when he used the authority of
office by authorizing Township purchases from Hallman's General Store, a business
with which Hallman's father is associated.
3. Hallman technically violated Section 1103(a) of the Ethics Act when he used the
authority of office as to his participation in the approval process of bills for
Hallman's General Store, a business with which Hallman's father is associated.
4. Hallman will abstain from voting on any issues that involve members of his
immediate family or any matter wherein he or members of his immediate family have
an interest, except when such votes are permitted and /or required by law.
In Re: Harold Hallman, III
Respondent
ORDER NO. 1400
File Docket: 05 -016
Date Decided: 5/31/06
Date Mailed: 6/12/06
1 Harold Hallman, III violated Section 1103(a) of the Ethics Act when he used the
authority of office by authorizing Township purchases from Hallman's General
Store, a business with which Hallman's father is associated.
2. Hallman technically violated Section 1103(a) of the Ethics Act when he used the
authority of office as to his participation in the approval process of bills for
Hallman's General Store, a business with which Hallman's father is associated.
3. Per the Consent Agreement, Hallman is directed to make payment in the amount of
$2,000.00 to the State Ethics Commission for forwarding to the Treasury of the
Commonwealth of Pennsylvania within thirty (30) days of the issuance of the final
adjudication in this matter.
a. Compliance with the foregoing will result in the closing of this case with no
further action by this Commission.
b. Non - compliance will result in the institution of an order enforcement action.
4. Per the Consent Agreement, in the future, Hallman will abstain from voting on any
issues that involve members of his immediate family or any matter wherein he or
members of his immediate family have an interest, except when such votes are
permitted or required by law
BY THE COMMISSION,
Louis W. Fryman, Chair