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HomeMy WebLinkAbout14-007 Confidential OPINION OF THE COMMISSION Before: John J. Bolger, Chair Nicholas A. Colafella, Vice Chair Raquel K. Bergen Mark R. Corrigan Roger Nick Kathryn Streeter Lewis Maria Feeley DATE DECIDED: 9/30/14 DATE MAILED: 10/8/14 14-007 This Opinion is issued in response to your letter of June 20, 2014, by which you requested a confidential advisory from this Commission. I.ISSUE: Whether the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq., would impose prohibitions or restrictions upon a State Legislator serving in the A with regard to: (1) entering into a contract with a publisher for the purpose of authoring a non-fiction book which would be an account of his public and private life; or (2) receiving payment under the contract for authoring such book. II.FACTUAL BASIS FOR DETERMINATION: You have been authorized by State Legislator B to request a confidential advisory from this Commission on his behalf. You have submitted facts that may be fairly summarized as follows. State Legislator B is a resident of \[name of county\], Pennsylvania, and he was first elected to the A in \[month, year\]. Prior to his election to the A, State Legislator B earned a bachelor’s degree in C with a minor in D from \[name of educational institution\]. You state that State Legislator B grew up in an E and was F in a G with Hs. Both as an I and a J, State Legislator B was an active K of the L. On \[date\], State Legislator B \[performed a certain action\] as an M. State Legislator B is \[number\] of \[number\] N Members of the A. State Legislator B was approached by a number of publishers requesting that he enter into a contract to author a non-fiction book which would be an account of his life in Confidential Opinion, 14-007 October 8, 2014 Page 2 an O, his experiences as a P M, and the impact that being N has had on him, both personally and professionally. You state that portion(s) of the proposed book would relate to his experiences as a State Legislator but would not include any confidential information received through his holding public office. You further state that State Legislator B would not use legislative resources such as personnel, equipment, supplies, facilities, and the like to prepare the proposed book. State Legislator B would receive compensation for his efforts pursuant to the contract. Based upon the above submitted facts, you pose the following questions: (1) Whether the Ethics Act would prohibit State Legislator B from entering into a contract with a publisher for the purpose of authoring a non-fiction book which would be an account of his public and private life; and (2) Whether any payment or compensation that State Legislator B would receive from a publisher pursuant to a contract for authoring such book would be considered an honorarium prohibited by the Ethics Act. By letters dated August 12, 2014, and September 22, 2014, and by email dated September 26, 2014, you were notified of the date, time and location of the executive meeting at which your request would be considered. On September 11, 2014, this Commission received your letter brief, in which you present the following points. You contend that any payment or compensation State Legislator B would receive for authoring the aforesaid book would be consideration for the value of his services. You represent that the portions of the book relating to State Legislator B’s experiences as a State Legislator would be only a fraction of the overall work encompassing both his public and private life and that in those portions, the General Assembly would be more like a “backdrop” against which he would describe his interactions with Members of the General Assembly and staff on a personal and professional level than the story itself. You contend that any payment or compensation State Legislator B would receive for authoring the book would be excluded from the Ethics Act’s definition of the term “honorarium.” At the executive meeting on September 30, 2014, you appeared for the purpose of answering any questions of this Commission. III.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, this 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 this regard, it is noted that the submitted facts do not include the contractual terms by which State Legislator B would be compensated. In his capacity as a State Legislator serving in the A, State Legislator B is a public official subject to the provisions of the Ethics Act. Section 1103(a) of the Ethics Act provides: § 1103. Restricted activities Confidential Opinion, 14-007 October 8, 2014 Page 3 (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 related to Section 1103(a) 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 whichhe or a member of his immediate family is associated. "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. 65 Pa.C.S. § 1102. Subject to the statutory exclusions to the Ethics Act’s definition of the term “conflict” or “conflict of interest, 65 Pa.C.S. § 1102, a public official/public employee may not use the authority of his public position--or confidential information obtained by being in that position--for the advancement of his own private pecuniary benefit or that of a business with which he is associated. To the extent the activities of a state legislator would relate to “legislative actions” (introducing, considering, debating, voting, enacting, adopting, or approving legislation), they would be constitutionally controlled and exempt from the purview of the Ethics Act and the State Ethics Commission. See, Corrigan, Opinion 87- 001. Section 1103(d) of the Ethics Act provides as follows: § 1103. Restricted activities. (d) Honorarium.-- No public official or public employee shall accept an honorarium. 65 Pa.C.S. § 1103(d). The Ethics Act defines the term “honorarium” as follows: § 1102. Definitions "Honorarium." Payment made in recognition of Confidential Opinion, 14-007 October 8, 2014 Page 4 published works, appearances, speeches and presentations and which is not intended as consideration for the value of such services which are nonpublic occupational or professional in nature. The term does not include tokens presented or provided which are of de minimis economic impact. 65 Pa.C.S. § 1102. Section 1103(d) of the Ethics Act is an absolute prohibition against accepting honoraria. The question of whether a given payment is an honorarium prohibited by Section 1103(d) is determined by an application of the statutory definition set forth in the Ethics Act, not by the mere label that may have been attached to the payment. Fiorello, Order No. 1363; Confidential Opinion, 01-001. The statutory definition of "honorarium" generally includes payments that are made in recognition of speaking engagements/presentations, appearances, and published works, but excludes such payments if: (1) they are legitimately intended as consideration for the value of such services; and (2) they are undertaken in the public official's/public employee's private professional or occupational capacity and are not related to the public position. Fiorello, supra; Confidential Opinion, 01-001. Having established the above general principles, you are advised as follows. Based upon the totality of the submitted facts, and subject to the condition that the transaction in question would be an “arms-length” marketplace transaction for commercially reasonable terms, the compensation that State Legislator B would receive from such publisher for authoring the aforesaid book about his public and private life would not constitute an honorarium because it would not be “payment made in recognition of published works, appearances, speeches and presentations and which is not intended as consideration for the value of such services which are nonpublic occupational or professional in nature.” 65 Pa.C.S. § 1102 (definition of “honorarium”). Based upon the totality of the submitted facts and subject to the aforesaid condition, you are advised that the Ethics Act would not preclude State Legislator B from entering into a contract with such publisher for the purpose of authoring the aforesaid book about his public and private life or receiving payment from such publisher for authoring the aforesaid book about his public and private life. 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. IV.CONCLUSION: As a State Legislator serving in the A, State Legislator B is a public official subject to the provisions of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq. Based upon the submitted facts that: (1) State Legislator B is a resident of \[name of county\], Pennsylvania, and he was first elected to the A in \[month, year\]; (2) prior to his election to the A, State Legislator B earned a bachelor’s degree in C with a minor in D from \[name of educational institution\]; (3) State Legislator B grew up in an E and was F in a G with Hs; (4) both as an I and a J, State Legislator B was an active K of the L; (5) on \[date\], State Legislator B \[performed a certain action\] as an M; (6) State Legislator B is \[number\] of \[number\] N Members of the A; (7) State Legislator B was approached by a number of publishers requesting that he enter into a contract to author a non-fiction book which would Confidential Opinion, 14-007 October 8, 2014 Page 5 be an account of his life in an O, his experiences as a P M, and the impact that being N has had on him, both personally and professionally; (8) portion(s) of the proposed book would relate to his experiences as a State Legislator but would not include any confidential information received through his holding public office; (9) the portions of the book relating to State Legislator B’s experiences as a State Legislator would be only a fraction of the overall work encompassing both his public and private life, and in those portions, the General Assembly would be more like a “backdrop” against which he would describe his interactions with Members of the General Assembly and staff on a personal and professional level than the story itself; (10) State Legislator B would not use legislative resources such as personnel, equipment, supplies, facilities, and the like to prepare the proposed book; and (11) State Legislator B would receive compensation for his efforts pursuant to the contract, you are advised as follows. Based upon the totality of the submitted facts and subject to the condition that the transaction in question would be an “arms-length” marketplace transaction for commercially reasonable terms, the compensation that State Legislator B would receive from such publisher for authoring the aforesaid book about his public and private life would not constitute an honorarium because it would not be “payment made in recognition of published works, appearances, speeches and presentations and which is not intended as consideration for the value of such services which are nonpublic occupational or professional in nature.” 65 Pa.C.S. § 1102 (definition of “honorarium”). Based upon the totality of the submitted facts and subject to the aforesaid condition, you are advised that the Ethics Act would not preclude State Legislator B from entering into a contract with such publisher for the purpose of authoring the aforesaid book about his public and private life or receiving payment from such publisher for authoring the aforesaid book about his public and private life. The propriety of the proposed conduct has only been addressed under the Ethics Act. Pursuant to Section 1107(10) of the Ethics Act, the person who acts in good faith on this Opinion issued to him shall not be subject to criminal or civil penalties for so acting provided the material facts are as stated in the request. This letter is a public record and will be made available as such. By the Commission, John J. Bolger Chair