HomeMy WebLinkAbout08-001 ROUZERRichard Rouzer
158 Rustic Drive
Shippensburg, PA 17257
Dear Mr. Rouzer:
2007.
I. ISSUE:
OPINION OF THE COMMISSION
Before: Louis W. Fryman, Chair
John J. Bolger, Vice Chair
Donald M. McCurdy
Paul M. Henry
Raquel K. Bergen
Nicholas A. Colafella
DATE DECIDED: 1/29/08
DATE MAILED: 2/5/08
08 -001
This Opinion is issued in response to your advisory request dated November 15,
Whether the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. §
1101 et seq., would require a school director to disclose on his Statement of Financial
Interests an inheritance received from a family member.
II. FACTUAL BASIS FOR DETERMINATION:
You are a School Director for the Shippensburg Area School District. On August 8,
2007, you received an inheritance due to the death of your father. You ask whether you
would be required to disclose on your Statement of Financial Interests the inheritance you
received from your father.
By letter dated December 10, 2007, you were notified of the date, time and location
of the public meeting at which your request would be considered.
III. 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, this Commission does not engage in an independent
Rouzer, 08 -001
February 5, 2008
Page 2
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.
As a School Director for the Shippensburg Area School District, you are a public
official subject to the provisions of the Ethics Act, including the requirements for filing
Statements of Financial Interests. Cf., Defelice, Order 1093.
Section 1104(a) of the Ethics Act provides:
§ 1104. Statement of financial interests required to be
filed
65 Pa.C.S. § 1104(a).
(a) Public official or public employee. - -Each public
official of the Commonwealth shall file a statement of financial
interests for the preceding calendar year with the commission
no later than May 1 of each year that he holds such a position
and of the year after he leaves such a position. Each public
employee and public official of the Commonwealth shall file a
statement of financial interests for the preceding calendar year
with the department, agency, body or bureau in which he is
employed or to which he is appointed or elected 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 or public official shall file a statement of financial
interests with the governing authority of the political
subdivision by which he is employed or within which he is
appointed or elected no later than May 1 of each year that he
holds such a position and of the year after he leaves such a
position. Persons who are full -time or part -time solicitors for
political subdivisions are required to file under this section.
Section 1105 of the Ethics Act sets forth the substantive disclosure requirements for
Statements of Financial Interests. Of the financial disclosure categories, the categories
pertaining to direct /indirect sources of income or gifts could arguably apply to an
inheritance. Section 1105(b) 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:
(5) The name and address of any direct or
indirect source of income totaling in the aggregate
$1,300 or more. However, this provision shall not
be construed to require the divulgence of
confidential information protected by statute or
existing professional codes of ethics or common
law privileges.
Rouzer, 08 -001
February 5, 2008
Page 3
65 Pa.C.S. §§ 1105(b)(5), (6).
65 Pa.C.S. § 1303- A/13A03.
(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.
The Ethics Act defines the term "income" as follows:
§ 1102. Definitions
"Income." Any money or thing of value received or to
be received as a claim on future services or in recognition of
services rendered in the past, whether in the form of a
payment, fee, salary, expense, allowance, forbearance,
forgiveness, interest, dividend, royalty, rent, capital gain,
reward, severance payment, proceeds from the sale of a
financial interest in a corporation, professional corporation,
partnership or other entity resulting from termination or
withdrawal therefrom upon assumption of public office or
employment or any other form of recompense or any
combination thereof. The term refers to gross income and
includes prize winnings and tax - exempt income. The term
does not include gifts, governmentally mandated payments or
benefits, retirement, pension or annuity payments funded
totally by contributions of the public official or employee, or
miscellaneous, incidental income of minor dependent children.
65 Pa.C.S. § 1102.
The Ethics Act defines the term "gift" as that term is defined in Section 1303 -A of
Pennsylvania's lobbying disclosure law ( "Lobbying Disclosure Law "), 65 Pa.C.S. § 1303 -A
/ 13A03 (see, 65 Pa.C.S. § 1102). The definition of "gift" is as follows:
§ 1303 -A. 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.
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February 5, 2008
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Section 1105(b)(5) of the Ethics Act requires the filer to include on the Statement of
Financial Interests the name and address of any direct or indirect source of income totaling
in the aggregate $1,300 or more.
Section 1105(b)(6) of the Ethics Act requires the filer to disclose on the Statement
of Financial Interests 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. The filer
is not required to disclose gifts from a family member or friend (with the term "friend"
excluding a registered lobbyist or employee of a registered lobbyist) when the
circumstances make it clear that the motivation for the action was the personal /family
relationship.
Having established the above general principles, you are advised as follows.
An inheritance received from a family member would ordinarily be considered a gift
that would not have to be disclosed on the Statement of Financial Interests as per Section
1105(b)(6) of the Ethics Act. An inheritance received from a family member would not be
considered "income" for purposes of financial disclosure under the Ethics Act unless the
inheritance would be expressly designated as a payment for, or in recognition of, services.
There are no facts before us to suggest any basis for concluding that the
inheritance you received upon the death of your father would fall under the Ethics Act's
definition of the term "income." Therefore, under the submitted facts, you are advised that
you would not be required to disclose the inheritance from your father on your Statement of
Financial Interests conditioned upon the assumption that the inheritance was not expressly
designated as a payment for, or in recognition of, services.
It is parenthetically noted that regardless of whether a given inheritance would itself
be subject to disclosure on the Statement of Financial Interests form, related information
might need to be disclosed. For example, where the investment of an inheritance would
generate income, the filer would be required to disclose on the Statement of Financial
Interests any source of such investment income in the amount of $1,300.00 or more. 65
Pa.C.S. § 1105(b)(5). As another example, receipt of an inheritance consisting of a
financial interest in a business would necessitate disclosure on the Statement of Financial
Interests of the financial interest in the business. 65 Pa.C.S. § 1105(b)(9).
Act.
Act.
The propriety of the proposed conduct has only been addressed under the Ethics
IV. CONCLUSION:
A school director is a "public official" subject to the Public Official and Employee
Ethics Act, 65 Pa.C.S. § 1101 et seq. ( "Ethics Act "), including the requirements for filing
Statements of Financial Interests. An inheritance received from a family member would
ordinarily be considered a gift that would not have to be disclosed on the Statement of
Financial Interests as per Section 1105(b)(6) of the Ethics Act. An inheritance received
from a family member would not be considered "income" for purposes of financial
disclosure under the Ethics Act unless the inheritance would be expressly designated as a
payment for, or in recognition of, services. Based upon the submitted facts, the school
director would not be required to disclose an inheritance from his father on his Statement
of Financial Interests conditioned upon the assumption that the inheritance was not
expressly designated as a payment for, or in recognition of, services.
The propriety of the proposed conduct has only been addressed under the Ethics
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February 5, 2008
Page 5
Pursuant to Section 1107(10) of the Ethics Act, the person who acts in good faith on
this Opinion issued to him shall not be subject to criminal or civil penalties for so acting
provided the material facts are as stated in the request.
This letter is a public record and will be made available as such.
Finally, a party may request the Commission to reconsider its Opinion. The
reconsideration request must be received at this Commission within thirty days of the
mailing date of this Opinion. The party requesting reconsideration must include a detailed
explanation of the reasons as to why reconsideration should be granted in conformity with
51 Pa. Code § 21.29(b).
By the Commission,
Louis W. Fryman
Chair