HomeMy WebLinkAbout87-502 BinnsJames J. Binns, Esquire
300 Walnut Street
Philadelphia, PA 19106
STATE ETHICS COMMISSION
308 FINANCE BUILDING
P.O. BOX 11470
HARRISBURG, PA 17108 -1470
TELEPHONE (717) 783 -1610
January 6, 1987
ADVICE OF COUNSEL
Re: Travel Expenses, Private Business, Reporting Requirements
Dear Mr. Binns:
87 - 502
This responds to your letter of December 8, 1986, wherein you requested
the advice of the State Ethics Commission.
Issue: Whether travel expenses incurred by a public official, as part of his
private business enterprises and unrelated to any official action, must be
reported on the Statement of Financial Interests as a gift.
Facts: You currently serve as Chairman of the Pennsylvania State Athletic
Commission. You also are a licensed attorney in the Commonwealth of
Pennsylvania. In this respect, you have acted, in the past, as counsel for
the World Boxing Association. As part of your professional activities and
your representation of this association, you are invited to attend boxing
matches throughout the world. Expenses incurred in conjunction with attending
these fights are paid for by the promoter of the fight. These expenses
include, travel, lodging and meals. You advise that none of your activities,
in relation to this situation in any way, deal with your chairmanship of the
Pennsylvania Athletic Commission or any activities of that commission. Your
travel and your activities are strictly related to your private practice of
law and in relation to your representation of the World Boxing Association.
You have requested the advice of the State Ethics Commission as to whether the
reimbursement of these expenses would be reportable items on your Statement
of Financial Interests which must be filed pursuant to the provisions of the
State Ethics Act.
James J. Binns, Esquire
January 6, 1987
Page 2
Discussion: As Chairman of the State Athletic Commission, you are clearly a
public official as that term is defined in the State Ethics Act. 65 P.S.
§402. As such, your conduct must conform to the requirements thereof. The
Ethics Act requires all public officials to file Statements of Financial
Interests by May 1 of every year in which they serve and for the year
following the ternmination of such service. 65 P.S. §404(a)(d); Kremer v.
State Ethics Commission, 56 Pa. Commw. Ct. 160, 424 A.2d 968, (1981); Carter,
79 -066. The Ethics Act also provides that the Statement of Financial
Interests, that is to be filed in accordance with the provisions of the law,
must include the name and address of any person from whom a gift or gifts
valued in the aggregate of $200.00 or more were received as well as the value
and circumstances of each gift.
The Ethics Act defines gift as follows:
Section 2. Definitions.
"Gift." A payment, subscription, advance, forbearance,
rendering . or deposit of money, services or anything of
value, unless consideration of equal or greater value is
recieved. "Gift" shall not include a political
contribution otherwise reported as required by law, a
commercially reasonable loan made in the ordinary course
of business, or a gift received from a member of the
person's immediate family or from a relative within the
third degree of consanguinity of the person or of the
person's spouse or from the spouse of any such relative.
65 P.S. 402.
In the instant situation, it would not appear as though the reimbursement of
expenses incurred in your private practice of law would be considered gifts in
the above definition. This is so specifically in light of the fact that
consideration of equal or greater value would be received by the entity or
individual reimbursing your expenses. You would be traveling, we assume, for
the purpose of representing the World Boxing Association and in their dealings
with the various promoters of the fight contest which you are reviewing. In
this respect, your reimbursement for expenses would be in relation to your
private practice of law and, therefore, would not be classified as gifts.
Additionally, we are assuming, for the purpose of this advice, that the
travel which you are performing and the activities that you are accomplishing
during said travel does not relate, in any way, to your activities as chairman
of the Pennsylvania Athletic Commission. Additionally, we further assume,
that the individuals or entities that are providing the expense payments do
not and have not had any relationship with your governmental body. Based upon
these assumptions, you are advised that the reimbursement for expenses
incurred, as part of your private practice of law and in relation to your
professional activities, would not be reportable as gifts.
James J. Binns, Esquire
January 6, 1987
Page 3
Conclusion: Reimbursement of expenses paid, to a public official in relation
to that official's private business enterprises, are not reportable on the
Statement of Financial Interests as gifts. This finding is based upon the
fact that consideration of equal or greater value is being provided for the
reimbursement of travel. This finding is also based upon the assumption that
the reimbursement is not being provided by any individual or entity that has
or will have dealings with the Pennsylvania State Athletic Commission.
Pursuant to Section 7(9)(ii), this Advice is a complete defense in any
enforcement proceeding initiated by the Commission, and evidence of g•nod faith
conduct in any other civil or criminal proceeding, providing the requestor 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 availably as such.
Finally, if you disagree with this Advice or if you have any reason to
challenge same, you may request that the full Commission review this Advice. A
personal appearance before the Commission will be scheduled and a formal
Opinion from the Commission will be issued. Any such appeal must be made, in
writing, to the Commission within 15 days of service of this Advice pursuant
to 51 Pa. Code 2.12.
G'r
John J on no
Ge al Counsel