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HomeMy WebLinkAbout06-580 GreenleeConstance Greenlee 616 Lincoln Avenue Bentleyville, PA 15314 Dear Ms. Greenlee: ADVICE OF COUNSEL August 29, 2006 06 -580 This responds to your letters of July 21, 2006 and July 29, 2006, 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 an accountant who retired from employment with an authority board from being appointed to serve as an authority board member. Facts: You retired from your employment with the Pigeon Creek Sanitary Authority ( "Authority ") on January 31, 2006. You collect a pension from the Authority and receive health insurance for yourself and your spouse as part of your retirement package. In your letters, you do not identify in what capacity you were employed with the Authority. However, in a telephone conversation with Chief Counsel on August 2, 2006, you provided the following information regarding your employment with the Authority. You were employed as an Accountant with the Authority. Your duties included processing invoices, issuing checks, and making investments for the Authority. You were able to take certain independent discretionary actions and recommend courses of action to the Authority Board. The Authority was formed to include three boroughs and three townships, one of which is Somerset Township. The three townships have declined representation on the Authority Board since its inception. The current Authority Board has extended an offer to each of the three townships to appoint a representative to the Authority Board. You are a resident of Somerset Township. You responded to an advertisement in the newspaper seeking a representative from Somerset Township for the Authority Board. You would refuse monthly compensation of $35.00 if you would be appointed to the Authority Board. You seek guidance as to whether it would be a conflict of interest under the Ethics Act for you to be appointed to serve as a Member of the Authority Board. You Greenlee, 06 -580 August 29, 2006 Page 2 also seek guidance as to whether serving on the Authority Board would jeopardize your retirement or health insurance benefits. 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. In the former capacity as an Accountant for the Authority Board, you would be considered 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 submitted facts, 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; planning; inspecting; administering or monitoring grants; leasing; regulating; auditing; or other activities where the economic impact is greater than de minimis on the interests of another person. Consequently, upon termination of public service, you became a "former public employee" subject to Section 1103(g) of the Ethics Act. While Section 1103(g) does not prohibit a former public official /public employee from accepting a position of employment, it does restrict the former public official /public employee with regard to "representing" a "person" before the governmental body with which he has been associated ": § 1103. Restricted activities (g) Former official or employee. - -No former public official or public employee shall represent a person, with promised or actual compensation, on any matter before the governmental body with which he has been associated for one year after he leaves that body. 65 Pa.C.S. § 1103(g) (Emphasis added). The terms "represent," "person," and "governmental body with which a public official or public employee is or has been associated" are specifically defined in the Ethics Act as follows: § 1102. Definitions "Represent." To act on behalf of any other person in any activity which includes, but is not limited to, the following: personal appearances, negotiations, lobbying and submitting bid or contract proposals which are signed by or contain the name of a former public official or public employee. "Person." A business, governmental body, individual, corporation, union, association, firm, partnership, committee, club or other organization or group of persons. Greenlee, 06 -580 August 29, 2006 Page 3 "Governmental body with which a public official or public employee is or has been associated." The governmental body within State government or a political subdivision by which the public official or employee is or has been employed or to which the public official or employee is or has been appointed or elected and subdivisions and offices within that governmental body. 65 Pa. C. S. § 1102. The term "person" is very broadly defined. It includes, inter alia, corporations and other businesses. It also includes the former public employee himself, Confidential Opinion, 93 -005, as well as a new governmental employer. Ledebur, Opinion 95 -007. The term "representation" is also broadly defined to prohibit acting on behalf of any person in any activity. Examples of prohibited representation include: (1) personal appearances before the former governmental body or bodies; (2) attempts to influence; (3) submission of bid or contract proposals which are signed by or contain the name of the former public official /public employee; (4) participating in any matters before the former governmental body as to acting on behalf of a person; and (5) lobbying. Popovich, Opinion 89 -005. Listing one's name as the person who will provide technical assistance on a proposal, document, or bid, if submitted to or reviewed by the former governmental body, constitutes an attempt to influence the former governmental body. Section 1103(g) also generally prohibits the inclusion of the name of a former public official /public employee on invoices submitted by his new employer to the former governmental body, even though the invoices pertain to a contract that existed prior to termination of public service. Shay, Opinion 91 -012. However, if such a pre - existing contract does not involve the unit where the former public employee worked, the name of the former public employee may appear on routine invoices if required by the regulations of the agency to which the billing is being submitted. Abrams/Webster, Opinion 95 -011. A former public official /public employee may assist in the preparation of any documents presented to his former governmental body. However, the former ublic official /public employee may not be identified on documents submitted to the former governmental body. The former public official /public employee may also counsel any person regarding that person's appearance before his former governmental body. Once again, however, the activity in this respect should not be revealed to the former governmental body. The Ethics Act would not prohibit or preclude making general informational inquiries to the former governmental body to secure information which is available to the general public, but this must not be done in an effort to indirectly influence the former governmental body or to otherwise make known to that body the representation of, or work for the new employer. Section 1103(g) only restricts the former public official /public employee with regard to representation before his former governmental body. The former public official/ public employee is not restricted as to representation before other agencies or entities. However, the "governmental body with which a public official /public employee is or has been associated" is not limited to the particular subdivision of the agency or other governmental body where the public official /public employee had influence or control but extends to the entire body. See, Legislative Journal of House, 1989 Session, No. 15 at 290, 291; Sirolli, Opinion 90 -006; Sharp, Opinion 90- 009 -R. The governmental body with which you were associated upon termination of public service is the Authority in its entirety. Greenlee, 06 -580 August 29, 2006 Page 4 Per State Ethics Commission precedents, Section 1103(g) of the Ethics Act does not prohibit the appointment /rehiring of a former public official /public employee to a public office or position of public employment with the former governmental body. Confidential Opinion, 93 -005; Confidential Opinion, 97 -008; Long, Opinions 97 -010 and 97- 010 -R; McGlathery, Opinion 00 -004. Therefore, you are advised that Section 1103(g) of the Ethics Act would not prohibit you from being appointed to serve as a Member of the Authority Board. If you would be appointed to serve as a Member of the Authority Board, you would in that capacity once again become subject to the Ethics Act, and Section 1103(g) of the Ethics Act would cease to apply to you with respect to the Authority. If you would not be appointed to serve as a Member of the Authority Board, Section 1103(g) of the Ethics Act would apply to restrict you for the full one -year period following your retirement from the position of Accountant for the Authority. As to whether serving on the Authority Board would jeopardize your retirement or health insurance benefits, such is beyond the jurisdiction of the State Ethics Commission and cannot be addressed in this Advice. Based upon the facts which have been submitted, this Advice has addressed the applicability of Section 1103(g) only. It is expressly assumed that there has been no use of authority of office for a private pecuniary benefit as prohibited by Section 1103(a) of the Ethics Act. Further, you are advised that Sections 1103(b) and 1103(c) of the Ethics Act provide in part that no person shall offer to a public official /public employee and no public official /public employee shall solicit or accept anything of monetary value based upon the understanding that the vote, official action, or judgment of the public official /public 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. Lastly, 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 Municipality Authorities Act. Conclusion: In the former capacity as an Accountant with the Pigeon Creek Sanitary Authority ( "Authority "), you would be considered a "public employee" as defined in the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. Upon termination of service with the Authority, you became a "former public employee" subject to Section 1103(g) of the Ethics Act. The former governmental body is the Authority in its entirety. Section 1103(g) of the Ethics Act does not prohibit the appointment /rehiring of a former public ( official /public employee to a public office or position of public employment with the former governmental body. Thus, Section 1103(g) of the Ethics Act would not prohibit you from being appointed to serve as a Member of the Authority Board. If you would be appointed to the Authority Board, you would in that capacity once again become subject to the Ethics Act, and Section 1103(g) of the Ethics Act would cease to apply to you with respect to the Authority. If you would not be appointed to the Authority Board, Section 1103(g) of the Ethics Act would apply to restrict you for one year following your retirement from your position as an Accountant with the Authority. Act. The propriety of the proposed conduct has only been addressed under the Ethics Further, should service be terminated, as outlined above, the Ethics Act would require that a Statement of Financial Interests be filed by no later than May 1 of the year after termination of service. Greenlee, 06 -580 August 29, 2006 Page 5 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