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HomeMy WebLinkAbout991 BellSTATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 In Re: Edward B. Bell File Docket: 91 -018 -C Date Decided: 12/7/95 Date Mailed: 12/15/95 Before: Daneen E. Reese, Chair Austin M. Lee, Vice Chair Roy W. Wilt Allan M. Kluger John R. Showers Rev. Joseph G. Quinn Boyd E. Wolff The Investigative Division of the State Ethics Commission conducted an investigation regarding a possible violation of the State Ethics Act, Act 170 of 1978, P.L. 883. Written notice of the specific allegations was served at the commencement of the investigation. A consent agreement was submitted by the parties to the Commission for consideration which was subsequently approved. This adjudication of the Commission is hereby issued which sets forth the individual Allegations, Findings of Fact, Discussion, Conclusions of Law and Order. This adjudication is final and will be made available as a public document fifteen days after issuance. However, reconsideration may be requested which will defer public release of this adjudication pending action on the request by the Commission. A request for reconsideration does not affect the finality of this adjudication. A reconsideration request must be received at this Commission within fifteen days of issuance and must include a detailed explanation of the reasons as to why reconsideration should be granted in conformity with 51 Pa. Code §2.38. The files in this case will remain confidential in accordance with Section 8(a) of Act 170 of 1978. Any person who violates confidentiality of the Ethics Law is guilty of a misdemeanor subject to a fine of not more than $1,000 or imprisonment for not more than one year, 65 P.S. §409(e). Confidentiality does not preclude discussing this case with an attorney at law. Bell, 91 -018 -C Page 2 I. ALLEGATION: That Edward B. Bell, Director of Marketing for the Pennsylvania Lottery, violated the following provisions of the State Ethics Act (Act 170 of 1978), when he received gifts valued in the aggregate of $200.00 or more in the for of meals and drinks from Lewis, Gilman & Kynett, British American Bank Note Company and Control Data Corporation, firms having contracts with the Lottery, failed to report receipt of these gifts on his Statement of Financial Interests filed for calendar year 1988, and failed to file a Statement of Financial Interests for calendar year 1989: Section 4. Statement of financial interests required to be filed. (a) Each public employee employed by the Commonwealth shall file a statement of financial interests for the preceding calendar year with the department, agency or bureau in which he is employed no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Any other public employee shall file a statement of financial interests with the governing authority of the political subdivision by which he is employed no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. 65 P.S. 5404(a). Section 5. Statement of financial interests. (b) The statement shall include the following information for the prior calendar year with regard to the person required to file the statement and the members of his immediate family: (6) The name and address of any person from whom a gift or gifts valued in the aggregate at $200 or more were received, and the value and the circumstances of each gift. However, this provision shall not be applicable to gifts received from the individual's spouse, parents, parents by marriage, siblings, children or grandchildren. 65 P.S. 5405(b)(6). Bell, 91 -018 -C Page 3 II. FINDINGS: a. Bell held this position in 1988 and 1989. 1. Edward B. Bell serves as Director of Marketing for the Pennsylvania Lottery (Lottery). 2. One of Bell's duties as Director of Marketing for the Lottery was to participate in the approval process of contracts entered into by the Lottery. a. Bids were usually obtained through Requests for Proposals (RFP's) . b. In his position, Bell was able to recommend approval or disapproval of proposed contracts to the Executive Director of the Lottery, who in turn forwarded recommendations to the Secretary of Revenue. 3. The firm of Lewis, Gilman & Kynett (LG&K) of Philadelphia was under contract with the Pennsylvania Lottery in 1988 to provide certain advertising services. a. This contract was in effect between July 1, 1988, and June 30, 1991. b. In exchange for its services, LG&K was to receive a sum of $12.2 million dollars per year under the contract. 4. The British American Bank Note Company (BABN) was under contract with the Pennsylvania Lottery during 1988 and 1989. a. BABN was contracted to provide the Lottery with instant tickets. 5. Control Data Corporation (CDC) was under contract with the Lottery during 1988 and 1989. a. CDC was contracted to operate the Lottery's online computer system. 6. Corporate Expense Reports indicated that employees of LG&K, BABN and CDC provided Bell with meals and beverages during 1988 and 1989 calendar years. a. LG&K b. BABN 121.11 1989 Total $565.00 $266.00 $831.00 $ 77.00 $140.00 $217.00 Bell, 91 -018 -C Page 4 c. CDC $ 84.00 $390.00 $474.00 7. Receiving meals and beverages from vendors was a regular practice involving Lottery officials. a. Bell and other lottery officials received meals from LG&K, BABN and CDC. 8. Bell did not demand meals from vendors but company representatives offered and paid. a. Bell asserts that meals provided were a carry over of business meetings or discussions. b. It was an industry standard for advertising companies to take Lottery officials to dinner and /or lunch. 9. Edward B. Bell filed a Statement of Financial Interests for the 1988 calendar year on March 23, 1989. a. The form bears the signature of Edward B. Bell. b. Line 12 of the Statement of Financial Interests titled "Gifts" discloses "None." 10. Bell did not disclose gifts received from LG&K in excess of $200.00 in 1988 on his Statement of Financial Interests filed on March 23, 1989. 11. Bell did not file a Statement of Financial Interests for the 1989 calendar year. III. DISCUSSION: As Director of Marketing for the Pennsylvania Lottery, Edward B. Bell, hereinafter Bell, is a public official /public employee as defined in the Ethics Act, 65 P.S. §402; 51 Pa. Code §1.1. As such, his conduct is subject to the provisions of the Ethics Act and the restrictions therein are applicable to him. Initially, it is noted that Section 9 of Act 9 of June 26, 1989 provides, in part, as follows: This amendatory act shall not apply to violations committed prior to the effective date of this act, and causes of action initiated for such violations shall be governed by the prior law, which is continued in effect for that purpose as if this act were not in force. For the purposes of this section, a violation was committed prior to Bell, 91 -018 -C Page 5 Since effective provisions Ethics Act the effective date of this of the violation occurred the occurrences in this date of Act 9 (June 26 of Act 170 of 1978, P.L. was violated. act if any elements prior thereto. case transpired prior to , 1989), we must apply 883, to determine whether the the the Section 4(a) of the Ethics Act quoted above requires that each public employee and each public official (Kremer v. State Ethics Commission, 56 Pa. Commw. 160, 424 A.2d 968 (1981)) must file a Statement of Financial Interests each year that he holds the position and the year after he leaves the position. Section 5(b)(6) of Act 170 of 1978 requires that a public official /employee list in his Statement of Financial Interests any gift or gifts valued in the aggregate at $200.00 or more, except for gifts received from the individual's spouse, parents, parents by marriage, siblings, children or grandchildren. Where disclosure of a gift or gifts is required, such disclosure must include the name and address of the donor and the value and the circumstances of each gift. The issues before us are whether Bell violated Section 4(a) of Act 170 of 1978 regarding the allegation that he failed to file a Statement of Financial Interests for calendar year 1989, and whether Bell violated Section 5(b)(6) of Act 170 of 1978 regarding the allegation that he received gifts valued in the aggregate at $200.00 or more in the form of meals and drinks from Lewis, Gilman & Kynett(LG &K), the British American Bank Note Company(BABN), and Control Data Corporation(CDC), which gifts he failed to report on his Statement of Financial Interests filed for calendar year 1988. Factually, the parties have stipulated that receiving meals and beverages from vendors was a regular practice involving Lottery officials. Bell, as well as other Lottery officials, received meals from LG &K, BABN, and CDC. In 1988, LG &K was under contract with the Pennsylvania Lottery to provide certain advertising services. During 1988 and 1989, BABN was under contract with the Pennsylvania Lottery to provide "instant tickets," while CDC was contracted to operate the Lottery's on -line computer system. In both years, according to corporate expense reports, employees of each of these three vendors provided Bell with meals and beverages. The values of these gifts are detailed in finding 6. The meals and beverages provided to Bell by BABN were less than $200.00 for each year. The meals and beverages provided to Bell by CDC were under the $200.00 threshold in 1988 but they exceeded the threshold in 1989. LG &K provided Bell with meals and beverages valued in excess of $200.00 in both years, 1988 and 1989. Bell, 91 -018 -C Page 6 It vendors, them. provided is noted that Bell did not demand the meals from the but rather, the company representatives offered to provide Furthermore, according to Bell, the meals which were were a carryover of business meetings or discussions. Bell filed a Statement of Financial Interests for calendar year 1988 which failed to disclose the aforesaid gifts Specifically, Bell failed to disclose gifts in excess of $200.00 received from LG&K in 1988. Furthermore, Bell failed to file a Statement of Financial Interests for calendar year 1989. In applying Section 4(a) of Act 170 of 1978 to Bell's stipulated failure to file a Statement of Financial Interests for the 1989 calendar year, we find a technical violation of Section 4(a). In applying Section 5(b) (6) of Act 170 of 1978 to the above facts, we find a technical violation as to Bell's failure to disclose the aforesaid gifts from LG&K in 1988. It is clear that these gifts exceeded the $200.00 threshold and should have been disclosed. In light of the fact that Bell has voluntarily agreed to amend the Statement of Financial Interests for the 1988 calendar year to include these gifts from LG&K, and has further agreed to file a Statement of Financial Interests for calendar year 1989 which is to include a listing of meals, drinks and gifts received from LG&K and CDC in calendar year 1989, we shall take no further action. We approve the consent agreement which we believe to be the proper disposition for this case given the totality of the facts and circumstances. We specifically note the fact that Bell's failure to make the requisite disclosures was unintentional in that he was unaware that the aggregate value of the meals and drinks from these companies had exceeded $200.00 for the years in question. IV. CONCLUSIONS OF LAW: 1. As Director of Marketing for the Pennsylvania Lottery, B. Bell is a public official /public employee subject provisions of Act 170 of 1978. Edward to the 2. A technical violation of Section 4(a) of Act 170 of 1978 occurred when Bell failed to file a Statement of Financial Interests for calendar year 1989. 3. A technical violation of Section 5(b) (6) of Act 170 of 1978 occurred when Bell received gifts valued in the aggregate at $200.00 or more in the form of meals and drinks from Lewis, Gilman & Kynett and failed to report receipt of these gifts on his Statement of Financial Interests filed for calendar year 1988. Dell, 91 -018 -C Page 7 4. No violation of Section 5(b)(6) of Act 170 of 1978 occurred as to gifts in the form of meals and drinks received by'Bell from British American Bank Note Company and Control Data Corporation in calendar year 1988 in that such gifts were not valued in the aggregate at $200.00 or more. In re: EDWARD B. BELL File Docket: 91 -018 -C Date Decided: 12/7/95 . Date Mailed: 12/15/95 ORDER NO. 991 BY THE COMMISSION, 1. A technical violation of Section 4(a) of Act 170 of 1978 occurred when Edward B. Bell, Director of Marketing for the Pennsylvania Lottery, failed to file a Statement of Financial Interests for calendar year 1989. 2. A technical violation of Section 5(b) (6) of Act 170 of 1978 occurred when Bell received gifts valued in the aggregate at $200.00 or more in the form of meals and drinks from Lewis, Gilman & Kynett and failed to report receipt of these gifts on his Statement of Financial Interests filed for calendar year 1988. 3. Bell did not violate Section 5(b)(6) of Act 170 of 1978 as to gifts in the form of meals and drinks received by Bell from British American Bank Note Company and Control Data Corporation in calendar year 1988 in that such gifts were not valued in the aggregate at $200.00 or more. 4. Bell is directed within 30 days of issuance of this Order to file an amended Statement of Financial Interests for calendar year 1988 to reflect the acceptance of meals and drinks in excess of $200.00 from Lewis, Gilman & Kynett as to 1988. 5. Bell is directed within 30 days of issuance of this Order to file a Statement of Financial Interests for calendar year 1989 which Statement is to include a listing of meals, drinks and gifts received from Lewis, Gilman & Kynett and Control Data Corporation in calendar year 1989. 6. Compliance with the above will result in the closing of this case with no further action, while failure to comply with the above will result in the institution of an order enforcement action. OYCIALEPAU6 DANEEN E. REESE, CHAIR