Ballot Question on Stock Trading by County Employees Awaits Voter Decision
Lackawanna County voters will soon decide on a proposed amendment to the county’s primary governing law. The amendment aims to prevent county employees from engaging in stock trading or prediction market bets using insider information gathered during their official duties.
Despite potential legal hurdles, the county Board of Elections unanimously agreed to place the question on the ballot for the upcoming November 3 election. The decision was made following guidance from county Solicitor Chris Caputo and elections board Solicitor Anthony Lomma, who indicated that their role was limited to verifying the sufficiency and timeliness of the petition signatures.
The petition, organized by Action Together NEPA, garnered 16,297 signatures, surpassing the required 8,894. Concerns about the amendment’s breadth and potential legal challenges were acknowledged, with officials suggesting that any disputes would likely be resolved in court.
Proposed Lackawanna County Nov. 3 Insider Stock Trading Ballot Question: “Shall the Lackawanna County Home Rule Charter be amended to require specifically that the Lackawanna County Conflict of Interest and Code of Ethics prohibit County elected officials and employees from engaging in individual stock trades or prediction market bets based on nonpublic information obtained in the course of their official County service and provide annual reporting of ethics complaints and stock trades involving County, state, and federal elected officials representing the County?”
Concerns Over Legal Overlap
Commissioner Chris Chermak expressed reservations, suggesting the amendment might duplicate existing state and federal regulations. “I thought all this stuff was in place already at the state and both federal levels,” he remarked, questioning the necessity of the proposed changes.
Solicitor Lomma mentioned existing laws, including the state Ethics Act and Pennsylvania Securities Law, which already address insider trading, along with federal SEC regulations. He pointed out that the county charter might not have jurisdiction over certain judicial personnel and could face preemption by these existing laws.
Reporting Requirements Under Scrutiny
The amendment also calls for an annual report detailing ethics complaints and stock trades by officials at various governmental levels. Solicitor Caputo highlighted potential issues, noting the provision could be “overly broad” and might require actions beyond the county’s authority.
Legal challenges to these reporting requirements are expected, with Caputo stating such matters would be settled by the Court of Common Pleas if contested.
Implications for Broad Range of Officials
Lomma estimated that 135 elected officials could be affected by the amendment, extending to local and state judges, congressional representatives, and even the President of the United States. Welby praised the initiative’s intent to curb insider trading but questioned the feasibility of involving federal officials.
Board Members’ Reluctant Endorsement
Despite their concerns, board members Chermak and Welby voted in favor of placing the question on the ballot, hoping any issues would be addressed in court. “The wording in this I don’t agree with, but what the reality is we have 16,000 signatures by residents of Lackawanna County that want this on the ballot,” Welby stated.
Action Together NEPA Executive Director Alisha Hoffman-Mirilovich called the board’s decision “a victory for every voter who signed a petition, talked to a neighbor, and refused to accept that corruption is just part of the job.” The group did not comment on the legal concerns but maintained confidence in the question’s thorough vetting process.
Similar efforts are underway in Luzerne County, where a comparable ballot question is being considered.
