Take Note: PaPUC’s Gift Ban Is Different Than The Governor’s
May 12, 2015
Governor Wolf’s first executive order revised the Governor’s Code of Conduct to implement a more stringent gift ban for employees of the executive branch. The gift ban has broad prohibitions with three exceptions, generally described as: (1) gifts from family and friends; (2) customary loans from banks or other institutions; and (3) participation in widely attended gatherings free of charge. In February, Governor Wolf urged independent agencies to follow suit. The Pennsylvania Public Utility Commission (“Commission”) opted to revise its gift ban policy, instead of replacing its policy with the provisions of the executive order. The Commission’s policy is more generous, adopting the first two executive order exceptions and expanding the third to allow attendance, as well as food and refreshment (valued at $50 or less) at “widely attended” gatherings. In contrast, the executive order policy requires executive branch employees to pay market value for such food and drink.
The Commission’s policy prohibits gifts or favors from the following: (1) PUC-regulated entities; (2) representatives of PUC-regulated entities (i.e., lawyers and lobbyists); (3) government contractors; and (4) entities “that may be substantially affected by the performance or nonperformance of the official duty of the employee.” It further provides specific prohibitions including the acceptance of food and refreshment at a private meal or reception hosted by a public utility, an organization of public utilities and certain other entities without paying market value for such food and refreshment. Acceptance of travel, lodging, and hospitality or free attendance or stipends for attendance at events held by such entities is also prohibited. Commission employees are specifically prohibited from accepting gifts of golf outings, tickets, trips and other items of value, but may pay market value for the items.
Fairly read, the policies provide that Commission employees are permitted to accept the following (that executive branch employees are prohibited from accepting):
- Attendance, meals and refreshment for the day an employee has a speaking engagement at a conference or other event
- Food and refreshment valued at $50 or less, along with travel arrangements, in the event of work meetings, off-site investigations or tours of facilities
- A gift offered as recognition or appearance of an employee at a public appearance in the employee’s official capacity
- Food and refreshments not part of a meal “such as coffee and donuts and the like”
In sum, Commission employees may be wined (in most circumstances) and dined with greater limitations. The Commission’s Gift Ban Policy is accessible here. Governor Wolf’s Executive Order is available here.
If you have any questions about the gift ban policies, please contact Dan Clearfield at (717) 237-7173 or dclearfield@eckertseamans.com.
This Eckert Seamans Energy and Utilities Blog is intended to keep readers current on matters affecting businesses and is not intended to be legal advice.