Did the unanimous vote from
the Allegheny Regional Asset District Board
violate the State Ethics Code?

In order to make your own judgement we will furnish the basic facts of this issue that identify the entities involved, and provide you with the language of the State Ethics Commission's regulations.

1. The Allegheny Regional Asset District's Chairman is David M. Matter.

2. Oxford Development Corporation, a construction and management firm located in downtown Pittsburgh. The President of this corporation is also, David M. Matter.

3. The Pittsburgh Cultural Trust, one of the entities on the agenda that was being considered for 1996 RAD funding.

On Monday, December 4, 1995, the Allegheny Regional Asset Board held a public meeting for the purpose of approving the funding allocations for the 1996 calender year. This budget was unanimously approved without a formal "roll call". Included in the budget passage was a allocation of $350,000 for the Pittsburgh Cultural Trust.

One week after this vote was approved, an article was published in the Pittsburgh Tribune-Review on December 11, 1995. The report showed that the Pittsburgh Cultural Trust awarded Oxford Development of Pittsburgh the construction management contract on the "Riverfront Parks" project.

During the December meeting, Chairman Matter made no declaration of his company's interest in bidding for the Pittsburgh Cultural Trust's construction contract.

Based on the Ethic's code below, draw your own conclusions.

Note: You will find a good definition in the "Restricted Activities" section, paragraph (a.) of the code.

STATE ETHICS COMMISSION
309 Finance Building
P.O. Box 11470
Harrisburg, PA 17108-1470
1-(800) 932-0936

Pennsylvania Public Official
and
Employee Ethics Law

PUBLIC OFFICIALS/PUBLIC EMPLOYEES

Who is subject to the provisions of the law:

The State Ethics Law applies generally to public officials and public employees. Candidates and nominees for public office or employment are also subject to certain provisions in the Law. The Law defines each of the effected categories:

A. "Public Official." Any person elected by the public or elected or appointed by a governmental body, or an appointed official in the Executive, Legislative or Judicial Branch of the State or any political subdivision thereof, provided that it shall not include members of advisory boards that have no authority to expend public funds other than reimbursement for personal expense, or to otherwise exercise the power of the State or any political subdivision thereof.

B. "Public Employee." Any individual employed by the Commonwealth of a political subdivision who is responsible for taking or recommending official action of a non-ministerial nature with regard to:

(1) contracting or procurement;

(2) administering or monitoring grants or subsidies;

(3) planning or zoning;

(4) inspecting, licensing, regulating or auditing any person; or

(5) any other activity where the official action has an economic
impact of greater than a de minimus nature on the interests of any person.

"Public employee" shall not include individuals who are employed by the State or any political subdivision thereof in teaching as distinguished from administrative duties.

RESTRICTED ACTIVITIES

The Public Official and Employees Ethics Law provides certain restricted activities in which public officials and employees may not engage. These restrictions provide the basis upon which Commission rulings are issued.

(a) No public official or public employee shall engage in conduct that constitutes a conflict of interest. A conflict of interest is defined as 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. "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 or his immediate family or a business with which he or a member of his immediate family is associated.

(f) No public official or public employee or his spouse or child or any business which the person or his spouse or child is associated shall enter into any contract valued at $500 for 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 making of the contract or subcontract.

(j) 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.

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