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HomeMy WebLinkAbout82-503 PealeMr. Michael O'Hara Peale, Jr. 12 East Butler Avenue P.O. Box 119 Ambler, PA 19022 Dear Mr. Peale: Mailing Address: STATE ETHICS COMMISSION P.O. BOX 1 179 HARRISBURG, PA 17108 TELEPHONE: (717) 783 -1610 January 22, 1982 ADVICE OF COUNSEL 82 -503 RE: Applicbility of Act 170 to Treasurer - Third Class School District - Section 4 This letter responds to your request of November 10, 1981, as solicitor of the Wissahickon School District, for advice from the State Ethics Commission. Issue: Is a treasurer of a Third Class School District a public employee or public official under the Ethics Act and is he or she thus required to file a Statement of Financial Interests? Facts: The Wissahickon School District, for which you are solicitor, is a third class school district. As stated in the Public School Code of 1949, 24 P.S. §4 -439, the duties of the treasurere include receiving all state appropria- tions, district school taxes, and other school district funds. The tresurere makes payments upon approval of the Board, using order prepared and signed by the secretary and the president of the Board. The payments apply amounts owing under any contracts that have been approved previously by the Board. The treasurer also deposits funds in the depository and reports monthly to the school controller and the secretary of the Board. All deposits are entered in the name of the School District. The Board may authorize the treasurer to make particular investments of school district funds. 24 P.S. §4- 440.1. The treasurer's accounts are audited _ annually; his or her compensation is set by the School Board. State Ethics Commission • 308 Finance Building • Harrisburg, Pennsylvania Mr. Michael O'Hara Peale, Jr. January 22, 1982 Page 2 An elected officer of the School Board, the treasurer of a third class school district is chosen by the school directors and may be a member of the Board. 24 P.S. §4.404 Board approval of the treasurer's bond is a pre - requisite to his or her taking office. 24 P.S. §4 -436. Discussion: A school district treasurer of a Third Class District is not a "public employee" as defined by Section 3 of Act 170. The treasurer is, however, a "public official" within the meaning of Act 170 and regulations promulgated thereunder and is thus subject to all requirements and restrictions imposed by the Act. See 51 Pa. Code §1.1, definition of "public official." Among the requirements is that of filing a Statement of Financial Interests. 65 P.S. §401 et seq. As permitted by 24 P.S. §4 -404, the Third Class School District Treasurer may be a member of the District Board of School Directors. If this occurs, the Treasurer is a public official by virture of his or her directorship as well as by his or her office. Separate from this consideration, the treasurer also falls within the definition of public official through the Section 440.1 power to make temporary investment of school district funds. Using that investment power, the treasurer "exercises the power of the state or any political subdivi- sion thereof," 65 P.S. §402, vis -a -vis his or her elected office. Finally, the treasurer's position as a public official within the meaning of Act 170 is further confirmed upon receiving Board selection /approval under 24 P.S. §436. That section conditions the performance of his or her official duties on the Board's approval of a bond. Conclusion: The treasurer of the Wissahickon School District is a public official for purposes of the Ethics Act. As a public official, the treasurer must comply with the Act's provisions, that are set forth in 65 P.S. §401 et seq. Thus, he must file a Statement of Financial Interests with the governing authority at the local level. He must file a statement for each year in which he serves as treasurer, no later than May of each year. He must also file before May 1 of the year after he weaves his office as treasurer. Mr. Michael O'Hara Peale, Jr. January 22, 1982 Page 3 Pursuant to Section 7(9)(ii), this Advice is a complete defense in any enforcement proceeding initiated by the Commission, and evidence of good faith conduct in any other civil or criminal proceeding, providing the requestor has disclosed truthfully all the material facts and committed the acts complained of in reliance on the Advice given. This letter is a public record and will be made available as such. Finally, if you disagree with this Advice or if you have any reason to challenge same, you may request that the full Commission review this Advice. A personal appearance before the Commission may be scheduled and a formal Opinion from the Commission will be issued. You should make such a request or indicate your disapproval of this Advice within the next 30 days. BF /rdp S'ncerely, WAX ....0 I andra S. ' ristianson General Counsel