Comments by Eric Epstein
Image Concepts by Gene Stilp
May 27, 2014
The plot is always the same and the ending is never a surprise. Political scandal followed by public outrage. Politicians pander, meander and do nothing. The sad reality is that the public has been conditioned to accept the outrageous behavior by Pennsylvania politicians as the norm.
Once again we are the crossroads of outrage and opportunity.
This year we have a sting operation without a bite, liquor control Board executives exercising no self-control and Turnpike Commission appointees being prosecuted for conducting business as usual.
Gifts are being showered on all three branches of Pennsylvania government in broad day light– from the orchestra pits in Philadelphia to the Pennsylvania Turnpike Building to the Consol Energy Center, across the country from Pebble Beach to New York City to Rhode Island and off shore to Asia, the Caribbean, Europe, the Middle East and South America.
This raises the obvious question: How did we get here? What has been attempted to stop the corruption?
On May 5, 2006, a coalition of nine organizations seeking to improve state government endorsed a series of reforms referred to as the “Roadmap for Reform.” The groups focused on “transparency,” “competition” and “comprehensive constitutional change.”
The first item on the Roadmap was:
“Ban gifts and entertainment.” *
No action was taken by Governor Ed Rendell (D-Philadelphia) or the legislature.
In January 2007, Dennis O’Brien (R-Philadelphia) was elected as Speaker of the House of Representatives. He presided over a chamber that supposedly contained 50 newly minted reformers.
Then the PHEAA scandal broke.
In early 2007, records were released under court order revealing that board members spent $768,000 on trips to high-end resorts, like Greenbriar and Nemicolon, from 2000 to 2005.
Expenses included culinary classes, “escape pedicures,” facials, falconry lessons, fly fishing, “golfers glow” and $25 cigars.
Still, the Governor did not act.
The legislature – which controls and provides funding to PHEAA – failed to pass legislation banning gifts and gratuities.
The much heralded Speaker’s Commission on Legislative Reform (2007-2008) was created on January 12, 2007 by the newly installed Speaker of the House, Dennis O’Brien. The Commission was populated with twelve democrats and twelve republicans, and included six pay-jackers** and per diem princes. {{1}}
Speaker of the House Dennis O’Brien guided the reform panel to consider numerous issues including: campaign finance reform, reorganizing the Legislature House Ethics Committee, developing a “Member Code of Conduct,” creating a policy for bonuses for legislative staff, term limits and updating the state’s Open Records laws.
The Commission promulgated “internal” rules – many of which have already been broken – and did not attempt to ban cash, gifts or gratuities for its members. However, the legislature applied bipartisan body blows to substantive Commission recommendations with a succession of anti-reform jabs.
The Commission voted to recommend a change in how the eight members of the Ethics Committee are chosen. The proposal allowed for each party’s leader to retain the ability to name two representatives to the Ethics Committee. However, two other members from each party would be chosen at random from a pool of all the representatives who volunteered for service on the Committee. The House rejected that proposal 103-93.
The House Ethics Committee, under the leadership of Run Buxton (D- Harrisburg), met once during the legislative session– which was one more meeting than the Senate held. Though, it really does not matter how many times the Committee meets since the meetings are secret and there are no recorded minutes.
The following year, on January 14, 2008, a coalition of eleven organizations advocating for higher standards of public integrity asked Gov. Ed Rendell to call a Special Session on Integrity.
Mr. Rendell rejected the request.
However, a brief glimmer of hope appeared. On April 10, 2008, Senator Piccola (R-Dauphin) – Chairman of the Senate’s State Government Committee – proposed a bill to ban lobbyists from giving gifts, meals and entertainment to lawmakers, their staff, the governor or executive branch officials.
Several months later – on July 17, 2008 – Sen. Jeffrey Piccola (R-Dauphin), Rep. Eugene DePasquale (D-York) and seven members of the House and Senate, along with the Commonwealth Foundation, Democracy Rising, the League of Women Voters and Rock the Capital, began a petition drive to compel Gov. Rendell to call a Special Session on Ethics Reform.
Mr. Piccola stated that the Special Session would address a ban on lobbyists giving any amount at all in gifts, trips, sporting tickets, dinners and drinks to lawmakers.
The initiative – also referred to as a special session on Governmental and Ethics Reform – was in response to Presentments, including 289 criminal charges, handed down by Attorney General Tom Corbett (R-Allegheny) a week earlier.
Gov. Ed Rendell stated he would not call a Special Session until his policy agenda was passed by the General Assembly. The Governor had called Special Sessions on energy and property taxes.
Democratic and Republican leadership in the House of Representatives and Senate did nothing as numerous high-ranking legislators were tried, convicted and sentenced to prison for misappropriating tax payer dollars.
After stonewalling a Special Session on Ethics Reform, Mr. Rendell announced a solution that would supposedly save money, restore the public’s confidence in government and restrict governmental field trips.
On September 16, 2008, Governor Ed Rendell announced a ban on out-of-state travel. Governor Rendell’s press release stated: “The governor is prohibiting out-of-state travel by commonwealth employees, board members and commissioners, effective immediately.”
However, a Patriot-News analysis found that “on average, 81 employees from those agencies traveled each week on state time to places outside Pennsylvania during the first 15 months the so-called ban was in effect. Their destinations landed them in nearly every U.S. state and nearly two dozen other countries, including Argentina, Canada, Japan, Russia, Switzerland and Australia.” (Patriot News, Jan Murphy, February 28, 2010.)
There was another problem: the ban did not apply to Mr. Rendell. Governor Rendell, who was the outgoing Chair of the National Governors’ Association, left the state to attend a conference in Mississippi from July 17- 20, 2009 to “discuss a yearlong initiative aimed at repairing and improving state’s infrastructure.”
In 2010, Governor Ed Rendell received $2,158 from MSNBC for four hotel stays in New York and Washington D.C. so he could leave the state to appear on “Meet the Press” and “Morning Joe.” Governor Rendell also accepted orchestra tickets valued at $1,600, as well as over $23,000 in other travel and lodging expenses.
Candidate Tom Corbett announced he was going to put an end to the ‘schmozeapalooza’ culture. Mr. Corbett ran for governor on a reform platform, and claimed he wanted to end “the perks and special privileges” in Harrisburg. Candidate Corbett promised to “work swiftly with the General Assembly on any reforms needing legislative approval.”
Governor Corbett sent a video tape of his reform platform to the media. Mr. Corbett – before accepting gifts, lodging, travel and vacations – offered a tepid gesture to regulate gifts and gratuities:
“Ban Gifts During the Procurement Process.”
At that time, 66% of Pennsylvania voters favored banning all public officials from accepting gifts and gratuities.
In 2010, Mr. Corbett claimed $6,865 in gifts including a weekend jaunt to the Pennsylvania Society and $530 for a “trophy” from the Pittsburgh Penguins.
That same year, Rep. Babette Josephs (D-Philadelphia) proposed legislation to limit gifts to $650 a year, and ban campaign donations from being used to pay for golf outings, junkets and luxury lodging.
In 2012, Governor Corbett and his wife changed the way Harrisburg pays to play by accepting $18,500 in gratuities from special interests. The Governor and First Lady received a free trip to France valued at $10,856 for airfare, food and lodging. Corbett also accepted $550 worth of gifts, including a $250 fountain pen presented to him when he visited France. Corbett also accepted two Turkish robes.
Supreme Court Justices also require care and maintenance from taxpayers including car washes, fine wine, lavish office space, “unvouchered expenses” and upscale automobiles.
As we have come to learn, there is no taxpayer gift too small for a Supremes. The highest court in the state has demonstrated the need to bill taxpayers $3 for a bag of peanuts, $3.21 for a Famous Amos cookie and $7 in reimbursements for two king-size boxes of M&Ms.
Judges are allowed to receive gifts as long as they disclose who gave the gratuities to the jurists, their spouses or their “dependent children.” Jurists must also disclose the value of the gifts.
Although the same requirements are in place for travel, lodging and other expenses, judges – like legislators – are not required to provide itemized descriptions of the reimbursements.
Supreme Court Chief Justice Ronald Castille (R-Philadelphia) routinely accepts gifts worth thousands of dollars from lawyers and law firms appearing before him as chief justice. They include paid trips to the Pennsylvania Society weekend at the Waldorf Astoria in New York City, innumerable rounds of golf at some of the best golf courses in the nation, and air travel.
From January 26-28, 2012, Chief Justice Castile and Justice Tom Saylor (R-Cumberland County) traveled on a judicial junket to the Hilton Caribe in San Juan, Puerto Rico. Both were guests of the Pennsylvania State Bar Association.
Mr. Castille reported receiving $1,464 in gifts, travel and hospitality from the state bar. In addition, Mr. Saylor reported accepting $2,717 from the lawyers’ group that tries cases before the Supreme Court.
Mr. Castille and Mr. Saylor see no conflict of interest embedded in accepting gifts from folks who try cases before the Supreme Court.
Not to be outdone by Governor Corbett, PHEAA, or the Pennsylvania Supreme Court, three executives at the Pennsylvania Liquor Control Board routinely accepted free golf outings and other gifts.
Wine & Spirits lured former CEO Joe Conti away from his full-time job and persuaded him to join the 2010 Pro-Am Tournament. The deal included a photo book, shirts, food and beverages, and other gifts. Mr. Conti’s ticket was provided by Bacardi.
Another PLCB client gave Mr. Conti a bottle of Johnnie Walker Blue whiskey with a message on the $300 bottle that read: “to the Super CEO.”
Former LCB Board Chairman P.J. Stapleton hosted the Keystone Weekend which featured thousands of dollars in free booze, courtesy of PLCB vendors.
Mr. Stapleton played in pro-am golf events in 2010 and 2011 paid for by vendors. He also accepted gifts.
Merchandising director James H. Short Jr. also feasted at golf outings, including an August 2010 trip to Pebble Beach in California. W.J. Deutsch, a wine and spirit marketer, paid his tab. In another instance, Short accepted a round of golf from Southern Wine and Spirits while on state time.
Capital Wine & Spirits provided Mr. Short with six bottles of wine and a bottle of bourbon while vacationing on Hilton Head Island in June 2011.
The State Ethics Commission documented a culture at the LCB where executives accepted gifts from vendors and failed to disclose the perks. But the SEC not did not disturb a single vendor’s contract, and the gift thieves were allowed to keep their pensions.
For the record, the Pennsylvania Ethics Act prohibits gifts that are given or solicited to influence a public official.
No person shall offer or give to a public official, public employee, or nominee or candidate for public office or a member of his immediate family or a business with which he is associated, anything of monetary value, including a gift, loan, political contribution, reward or promise of future employment based on the offeror’s or donor’s understanding that the vote, official action, or judgment of the public official or public employee or nominee or candidate for public office would be influenced thereby. {{2}}
Public officials must disclose gifts that are worth $250 or total $650 for hospitality, entertainment and lodging.
This year was remarkable, even by Pennsylvania standards. We witnessed pay to play prosecution of Turnpike big wigs, the return of “ghost employees,” a tirade from a Senator, revelations of still-to-be-publicly viewed-tapes showing four Philadelphia politicians accepting cash, as well as LCB executives reporting to “work” at golf clubs around the nation.
How do we rank? As usual, Pennsylvania is at the bottom of the barrel. Pennsylvania is one of 13 states with no limits on what individuals, political parties or political-action committees can give candidates.
Based on data compiled by the National Conference of State Legislatures, ten states have full bans on gifts for politicians while 31 states have spending limits in place.*
For example, Iowa has a $3 non-monetary limit per calendar day. {{3}} The Iowa statute further states, “A legislator or his spouse shall not solicit, accept, or agree to accept anything of value from a legislative agent or an employer.”
In Texas, “A [lobbyist] may provide one or more gifts to a state officer or state employee, or to immediate family or guests invited by a state officer or employee, up to a maximum expenditure total of $500 per offier, [sic] employee, immediate family, or guest during a calendar year.” {{4}}
California’s law limits lobbyists’ gifts: “It shall be unlawful for a lobbyist, or lobbying firm, to make gifts to one person aggregating more than ten dollars ($10) in a calendar month.” California Code also restricts annual contributions from a single source to $250. {{5}}
Kentucky establishes a clear boundary: “A legislator or his spouse shall not solicit, accept, or agree to accept anything of value from a legislative agent or an employer.” {{6}}
Rules and voluntary restrictions clearly do not work with the Harrisburg crowd. All three branches of government are incapable of policing themselves. Action must come in the form of legislation with real enforcement.
June is the month when lawmakers go on a per diem splurge. Most legislators start their day with breakfast fundraises, then honker down for a slush fund lunch, and spend the rest of the day waiting for leadership to make sausage.
It is time to shame Pennsylvania’s ruling class to end this disgusting habit of rewarding themselves. It is time to pass a statutory ban on gifts and gratuities for all branches of Pennsylvania government.
If not now, when?
* Copies are available at the press conference and upon request.
** Rep. David Argall, (R-Schuylkill), Rep. Mark Cohen, (D-Philadelphia), Rep. Phyllis Mundy, (D-Kingston), Rep. Chris Sainato (D- Lawrence), Rep. W. Curtus Thomas (D-Philadelphia) and Rep. Jewell Williams (D-Philadelphia).
*** Copies of the National Conference of State Legislatures review of “Legislator Gift Restrictions” were provided at the press conference and can be accessed here.
[[1]]Five House Democratic members who took “unvouchered expenses” and did not pay the money back or “donated” the “unconstitutional” income to charities were rewarded with leadership positions, job promotions, or committee chairmanships and assignments to the Speaker’s Commission on Legislative Reform.
House Republicans also rewarded pay jackers with leadership positions, job promotions and committee chairmanships. Dethroned Speaker John Perzel was awarded the title Speaker Emeritus, and Rep. David Argall was appointed to the Speaker’s Commission on Legislative Reform.[[1]]
[[2]]Pennsylvania
Title 65 Pa.C.S.A. Public Officers, Chapter 11, Ethics Standards and Financial Disclosure.
Title 65 Pa.C.S.A. Public Officers, Chapter 13A, Lobby Regulation and Disclosure.
Definitions
“Gift”. Anything which is received without consideration of equal or greater value. The term shall not include a political contribution otherwise reported 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
(b) No person shall offer or give to a public official, public employee, or nominee or candidate for public office or a member of his immediate family or a business with which he is associated, anything of monetary value, including a gift, loan, political contribution, reward or promise of future employment based on the offeror’s or donor’s understanding that the vote, official action, or judgment of the public official or public employee or nominee or candidate for public office would be influenced thereby.
(c) No public official, public employee or nominee or candidate for public office shall solicit or accept anything of monetary value, including a gift, loan, political contribution, reward, or promise of future employment based on any understanding of that public official, public employee or nominee that the vote, official action, or judgment of the public official or public employee or nominee or candidate for public office would be
“Hospitality.” Includes all of the following:
(1) Meals.
(2) Beverages.
(3) Recreation and entertainment.
The term shall not include gifts, transportation or lodging.[[2]]
[[3]]Iowa 68B.22
A legislator or his spouse shall not solicit, accept, or agree to accept anything of value from a legislative agent or an employer
A public official, public employee, or candidate, or that person’s immediate family member shall not, directly or indirectly, accept or receive any gift or series of gifts from a restricted donor. A public official, public employee, candidate, or the person’s immediate family member shall not solicit any gift or series of gifts from a restricted donor at any time.
4. Notwithstanding subsections 1 and 2, the following gifts may
be received by public officials, public employees, candidates, or
members of the immediate family of public officials, public
employees, or candidates:
j. Non monetary items with a value of three dollars or less
that are received from any one donor during one calendar day.
8. Except as otherwise provided in subsection 4, an organization
or association which has as one of its purposes the encouragement of
the passage, defeat, introduction, or modification of legislation
shall not give and a member of the general assembly shall not receive
food, beverages, registration, or scheduled entertainment with a per
person value in excess of three dollars.[[3]]
[[4]]Texas Government Code 305.024
Penal Code 36.02
Penal Code 36.07-.10
A [lobbyist] may provide one or more gifts to a state officer or state employee, or to immediate family or guests invited by a state officer or employee, up to a maximum expenditure total of $500 per offier, [sic] employee, immediate family, or guest during a calendar year.[[4]]
[[5]]Government Code 86201
CA Government Code 86203
CA Government Code 86204
CA Government Code 89503
It shall be unlawful for a lobbyist, or lobbying firm, to make gifts to one person aggregating more than ten dollars ($10) in a calendar month.
It shall be unlawful for any person knowingly to receive any
gift which is made unlawful by Section 86203.
No elected state officer, elected officer of a local government agency, or other individual specified in Section 87200 shall accept gifts from any single source in any calendar year with a total value of more than two hundred fifty dollars ($250).
(Per guidelines of the Fair Political Practices Commission, the gift limit is raised slightly every year. For 2013-2014, it is $440.)[[5]]
[[6]]Kentucky 6.611 & 6.751
A legislator or his spouse shall not solicit, accept, or agree to accept anything of value from a legislative agent or an employer.[[6]]