Pennsylvania Turnpike Commission 2016 Ethics and Integrity for Vendors

Introduction The Pennsylvania Turnpike Commission’s (“PTC”) Strategic Plan was designed to ensure that the PTC continues fulfilling its Mission, Vision and Values of trust, integrity and professionalism while meeting today’s operational challenges and planning for the future. Business integrity is the cornerstone of the Strategic Plan. The PTC expects that its employees and vendors will comply with all applicable laws, regulations, PTC policies and procedures. In carrying out the Mission, Vision and Values, it is critical that employees and vendors of the PTC conduct themselves transparently, responsibly, ethically and honestly to earn the public’s trust.

The Pennsylvania Turnpike Commission (“PTC”) expects its vendors, suppliers, contractors, and business partners to share its values, comply with all applicable laws, and to act in accordance with the following principals: Comply with all applicable laws; including, but not limited, to health and safety of their employees and environmental laws; Prohibit corruption; Respect employees; Ensure compliance with the PTC’s Business Conduct Guidelines; and Strictly adhere to the policies, procedures and established protocols regarding all procurement matters.

Pennsylvania Turnpike Commission Code of Conduct Policy Letter 3.10 (required by Act 44 of 2007) – Act 44 of 2007 mandated that the Pennsylvania Turnpike Commission (“PTC”) develop a set of standards of conduct, thus PTC Policy Letter 3.10, Code of Conduct was established. Revisions in 2014 and – The 2014 amendments to the PTC Code of Conduct require that Commissioners and Commission employees attend annual Code of Conduct training. The PTC also requires its vendors to complete an annual online training. Vendors will need to be familiar and comply with the PTC Code of Conduct. – Contains provisions adopting the Governor’s 2015 Executive Order instituting a gift ban. The essence of the PTC Code of Conduct is avoiding conflicts of interest. Based on Pennsylvania Statutes, the State Ethics Act and the Adverse Interest Act – Vendors must also abide by and comply with the PA Ethics Act, the PA Adverse Interest Act, the Act 44 Standards of Conduct, and the Ethics in Public Contracting chapter from the Commonwealth Procurement Code.

PA Ethics Act The State Ethics Commission oversees and reviews the annual completion of Statements of Financial Interest (financial disclosure requirements). Issues advice and opinions; and investigates alleged violations of the Ethics Act. Public office is a public trust Personal financial interests must not conflict with public duty. Restricted activities – seeking or accepting improper influence

What is a conflict of interest and a restricted activity? Section Definitions “Conflict” or “conflict of interest.” Use by a public official or public employee of the authority of his office or employment or any confidential information received through his holding public office or employment for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his immediate family is associated... Section Restricted activities (a)Conflict of interest. – No public official or public employee shall engage in conduct that constitutes a conflict of interest. Examples of Conflicts of Interest Use of the authority of office For the private pecuniary benefit of: Himself/herself Member of his/her immediate family, or Business with which he/she or a member of his/her immediate family is associated “Immediate Family.” A parent, spouse, child, brother or sister.

What is Seeking and Accepting Improper Influence? Section Restricted activities (b) Seeking Improper Influence. - 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) Accepting improper influence. - 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 influenced thereby.

PA Ethics Act - Selected Cases A Senior Civil Engineer Manager in the Department of Conservation & Natural Resources violated the Ethics Act when he used the authority of his office for a private pecuniary benefit for himself and his spouse by accepting an all-expense paid trip to the UK from a vendor, vis-à-vis Engineer Manager’s decision to utilize the vendor’s product on a bridge repair project and continued using that product despite its drawbacks. An Acting Civil Engineer Manager (and Transportation Construction Manager III) for the Department of Transportation’s Bureau of Rail Freight, Ports and Waterways, violated the Ethics Act in relation to his receiving a private pecuniary gain by soliciting and accepting tickets to sporting events and items of clothing from companies that were being approved or recommended to receive grants or funds from the Department of Transportation. Despite claiming they were “Referral/Finder Fees,” the payments that a Commonwealth employee received were actually kickbacks to him totaling $100, from entities whom he authorized grant funding. The Commonwealth employee was ordered to make payment of the $100, plus a treble penalty of $301, for a total of $402, He was also criminally prosecuted. Another Commonwealth employee violated Section 1103 (a) of the Ethics Act when he authorized a contract between Treasury and a vendor that included 2008 World Series tickets, which tickets the Commonwealth employee obtained only as a result of his public position and which he converted for the personal use of his brother. The 2008 World Series tickets were purchased by Treasury as part of an advertising package and as such, the tickets became the property of Treasury (not for the personal use of the Commonwealth employee or his brother.)

Changes to Pennsylvania Turnpike Commission Code of Conduct and areas of difference between Code of Conduct and Ethics Act A new Section 2.2 has been added to the Code of Conduct which requires that all Members, Executive-Level Employees and Employees to complete annual ethics training as provided by the Pennsylvania Turnpike Commission (“PTC”). The PTC also requires that each vendor complete the ethics course annually. Section 4.5 of the Code of Conduct has been revised to prohibit the receipt of gifts by PTC employees; this revision incorporates the Governor’s 2015 Executive Order instituting a gift ban. The Code of Conduct and the Gift Ban are more restrictive than the Ethics Act and prohibit the acceptance or solicitation for personal use by a Member, Executive-Level Employee, other Employee or another of any discount, gift, gratuity, favor, entertainment, compensation, travel, lodging, hospitality, loan, or other thing of monetary value, including in- kind gift, directly or indirectly, from any person, facility, vendor, consultant or business (including employees of that facility, vendor, consultant or business) who: 1.Is seeking to obtain business from the PTC or has a contractual relationship with the PTC. 2.Conducts operations or activities that are regulated by the PTC. 3.Is engaged, either as a principal or attorney, in proceedings before the PTC or in court proceedings in which the PTC is an adverse party. 4.Has interests that may be substantially affected by the performance or nonperformance of the official duty of the Member, Executive-Level or other Employee.

To determine whether the solicitation or acceptance of a gift may violate Section 4.5 of the Code of Conduct, the following questions offer guidance to Pennsylvania Turnpike Commission employees and vendors to determine whether the entity offering a gift is subject to the Gift Ban. 1.Question: Who is a “person” for purposes of the Gift Ban? Answer: If the entity offering a gift falls within any of the categories listed below, the entity is covered by the Gift Ban. If not, the Gift Ban does not apply: 1. The person is seeking to obtain business from or has a contractual relationship with the Pennsylvania Turnpike Commission. 2. The person conducts operations or activities that are regulated by the Pennsylvania Turnpike Commission. 3. The person is engaged, either as a principal or attorney, in proceedings before the Pennsylvania Turnpike Commission or in court proceedings in which the Pennsylvania Turnpike Commission is an adverse party. 4. The person has interests that may be substantially affected by the performance or nonperformance of the official duty of the Member, Executive-Level Employee or other Employee. 2.Question: Does a “person” mean only an individual? Answer: No. A “person” under the Gift Ban is an individual, partnership, corporation, non-profit organization, political subdivision, or other entity.

Offsets violate the gift ban Also, vendors and their employees should be aware that offsets violate the Gift Ban (examples: “I will pay for this round of golf and you get the next round” or “I will get this check, you buy dinner next time”). If the vendor expenses the gift or compensation, then it’s a business expense and the Pennsylvania Turnpike Commission employee would be violating the Code of Conduct if offered and accepted. Even if the gift or compensation is not a business expense, it would violate the Code of Conduct if the vendor is a covered entity for purposes of the Gift Ban. Moreover, vendors should be aware that such actions could be perceived as a conflict of interest and, thus, a violation of the PA Ethics Act. BOTTOM LINE Pennsylvania Turnpike Commission Employees, vendors and their employees should pay their own way and not accept anything from the other. By doing so, potential problems and issues can be avoided.

Confidentiality / Protection and Proper Use of Assets Confidentiality must be maintained at all times. Therefore, unless specifically designated as public information by the Pennsylvania Turnpike Commission (“PTC”), any confidential or proprietary materials, documents and information of the PTC that a PTC employee, vendor, supplier, contractor or business partner obtains as a result of his or her employment or contractual relationship with the PTC shall be treated as confidential information. PTC employees, vendors, suppliers, contractors and business partners are prohibited from releasing or disclosing such information to anyone who is not a PTC employee or authorized individual to receive such information. Questions regarding the release or disclosure of PTC information should be directed to the PTC’s Chief Compliance Officer or Legal Department. – Violations of confidentiality may result in discipline of PTC employees up to and including termination and/or termination of the contractual relationship with the vendor, supplier, contractor or business partner and other possible legal remedies available under the law. To ensure the protections of PTC assets, it is the duty of PTC employees, vendors, suppliers, contractors and business partners to promptly report to the PTC’s Chief Compliance Officer or to the PTC’s Tip Line ( ) known or suspected acts of fraud, waste, or abuse by PTC employees, vendors, suppliers, contractors and business partners.

Where to Get More Information: Visit the PA State Ethics Commission’s website at: Contact the PA State Ethics Commission at: Write to the PA State Ethics Commission at: 209 Finance Building, PO Box 11470, Harrisburg, PA Contact the Pennsylvania Turnpike Commission Chief Compliance Officer at: (717) Contact the Pennsylvania Turnpike Commission Legal Department: (717)

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