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ADVICE OF COUNSEL
February 28, 2018
To the Requesters:
FACSIMILE: 717- 787 -0806
WEBSITE: www.ethics.oa.aov
18 -509
This responds to your letter dated January 10, 2018, by which you requested a
confidential advisory from the Pennsylvania State Ethics Commission ( "Commission ").
Issue: Whether the Public Official and Employee Ethics Act "Ethics Act "), 65
PS. § 1101 et seg., would require A, who has been or will be to C as a D in
various [type of proceedings], including but not limited to an E in an F G his former
employer, to disclose on his Statement of Financial Interests: (1) Hs that his former
employer would pay for roviding him with I in connection with his J as a D at such [type
of proceedings]; and (2) travel expenses that his former employer would pay in
connection with his travel to the state where the E will take place.
Facts: You have been authorized by A to request a confidential advisory from the
emission on his behalf. You have submitted facts, the material portion of which may
be fairly summarized as follows.
Prior to A's service in his current public position, he worked for number] years in
K for [name of entity] ( "the Entity "). A has been or will be B to C as a in various [type
of proceedinggs], including but not limited to an F seeking Ls that was G the Entity by an
M. A is not N, either O or P.
A will be B to C as a D in an E in the F because he has Q. The E will take place
in [name of state] during the [time period].
The Entity has provided/will provide A with I in connection with the aforesaid
[type of proceedings), including his J as a D at the E, and will pay the Hs associated
with the I. The Entity will also pa A's travel expenses, including airfare, hotel, and
meals, associated with his travel to name of state] to C at the E.
Based upon the above submitted facts, the following questions are presented:
(1) Whether A would be required to disclose on his Statement of Financial
Interests as a gift the Hs that the Entity would ay for providing him with I
in connection with his J as a D at the aforesaid Flype of proceedings]; and
(2) Whether A would be required to disclose on his Statement of Financial
Interests as transportation, lodging or hospitality the travel expenses that
Confidential Advice, 18 -509
February 28, 2018
Page 2
the Entity would pay in association with his travel to [name of state] to C at
the E.
You assert that the answer to both of your questions should be in the negative.
You contend that the Entity, not A, is the R receiving the benefit of the Hs that the Entity
would pay for providing A with the aforesaid I. You further contend that the travel
expenses that the Entity would pay in association with A's travel to [name of state] to C
at the E would not be reportable because they would not be received in connection with
A's public office.
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 en age 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.
A is a public official subject to the provisions of the Ethics Act, including the
requirements for filing Statements of Financial Interests.
Section 1104(a) of the Ethics Act provides that each public official /public
employee must file a Statement of Financial Interests for the preceding calendar year,
each year that he holds the position and the year after he leaves it.
Section 1105 of the Ethics Act sets forth the substantive disclosure requirements
for Statements of Financial Interests. Section 1105(b) of the Ethics Act provides, in
pertinent part, as follows:
§ 1105. Statement of financial interests
(b) Required information.- -The statement shall include
the following information for the prior calendar year
with regard to the person required to file the
statement:
(6) The name and address of the source and the
amount of any gift or gifts valued in the
aggregate at $250 or more and the
circumstances of each gift. This paragraph
shall not apply to a gift or gifts received from a
spouse, parent, parent by marriage, sibling,
child, grandchild, other family member or friend
when the circumstances make it clear that the
motivation for the action was a personal or
family relationship. However, for the purposes
of this paragraph, the term "friend" shall not
include a registered lobbyist or an employee of
a registered lobbyist.
(7) The name and address of the source and the
amount of any payment for or reimbursement
of actual expenses for transportation and
lodging or hospitality received in connection
with public office or employment where such
Confidential Advice, 18 -509
February 28, 2018
Page 3
actual expenses for transportation and lodging
or hospitality exceed $650 in an aggregate
amount per year. This paragraph shall not
apply to expenses reimbursed by a
governmental body or to expenses reimbursed
by an organization or association of public
OK or employees of political subdivisions
which the public official or employee serves in
an official capacity.
65 Pa.C.S. § 1105(b)(6) -(7).
The Ethics Act defines the terms "gift" and "hospitality" as those terms are
defined in Section 13A03 of Pennsylvania's lobbying disclosure law ( "Lobbying
Disclosure Law "), 65 Pa.C.S. § 13A03 (see, 65 Pa.C.S. § 1102):
§ 13A03. Definitions.
"Gift." Anything which is received without
consideration of equal or greater value. The term shall not
include a political contribution otherwise reportable as
required by law or a commercially reasonable loan made in
the ordinary course of business. The term shall not include
hospitality, transportation or lodging.
"Hospitality." Includes all of the following:
(1) Meals.
(2) Beverages.
(3) Recreation and entertainment.
The term shall not include gifts, transportation or lodging.
65 Pa.C.S. § 13A03.
In ap 1ying the above provisions of the Ethics Act to the instant matter, you are
advised as faliows.
The Hs that the Entity would pay for providing A with I in connection with his J as
a D at the aforesaid [type of proceedings would constitute a "gift" to A and would be
reportable as such on his Statement of Financial Interests if the reporting threshold
($250 in the aggregate for the calendar year) would be met. Byy its very nature, I is
something of value, and based upon the submitted facts, A would be receiving it without
providing consideration of equal or greater value.
You are further advised that A would not be required to disclose on his Statement
of Financial Interests the travel expenses that the Entity would pay in association with
his travel to [name of state] to C at the E because such travel expenses would not
constitute "transportation and lodging or hospitality received in connection with public
office or employment" and therefore would not be subject to disclosure pursuant to
Section 1105(b)(7) of the Ethics Act.
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
Confidential Advice, 18 -509
February 28, 2018
Page 4
code of conduct other than the Ethics Act has not been considered in that they do not
involve an interpretation of the Ethics Act.
Conclusion: A is a public official subject to the provisions of the Public Official
and EmpFTy-ee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et sec-., including the
requirements for filing Statements of Financial Interests. Based upon the submitted
facts that: (1) prior to A's service in his current public position, he worked for [number]
years in K for name of entity] ( "the Entity "); (2 A has been or will be B to C as a D in
various [type of proceedings], including but not limited to an F seeking Ls that was G the
Entity by an M; (3) A is not N, either O or P; (4) A will be B to C as a D in an E in the F
because he has Q; (5) the E will take place in [name of state] during the [time period];
(6) the Entity has provided /will provide A with 1 in connection with the aforesaid [type of
proceedings l, including his J as a D at the E, and will pay the Hs associated with the I;
and (7) the Entity will also pay A's travel expenses, including airfare: hotel, and meals,
associated with his travel to [name of state] to C at the E, you are advised as follows.
The Hs that the Entity would pay for providing A with I in connection with his J as
a D at the aforesaid [type of proceedings] would constitute a "gift" to A and would be
reportable as such on his Statement of Financial Interests if the reporting threshold
($250 in the aggregate for the calendar year) would be met. A would not be required to
disclose on his Statement of Financial Interests the travel expenses that the Entity
would pay in association with his travel to [name of state] to C at the E because such
travel expenses would not constitute "transportation and lodging or hospitality received
in connection with public office or employment" and therefore would not be subject to
disclosure pursuant to Section 1105(b)(7) of the Ethics Act.
Lastly, the propriety of the proposed conduct has only been addressed under the
Ethics Act.
Pursuant to Section 1107(11) of the Ethics Act, 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 writingg and must be actually
received at the Commission within thirty (30) days of the date of this
Advice pursuant to 51 Pa. Code § 73.2(h). The appeal may be
received at the Commission by hand delivery, United States mail,
delivery service, or by FAX transmission (717-787-080 fi }, Failure to
file such an appeal at the Commission within thirty (30) days may
result in the dismissal of the appeal.
Sin rely,
Robin M. Hittie
Chief Counsel