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HomeMy WebLinkAbout83-564 KudyMr. Benjamin Kuby Klovsky, Kuby & Harris Independence Mall 431 Chestnut Street Philadelphia, PA 19106 At Mailing Address STATE ETHICS COMMISSION P.O. BOX 1 179 HARRISBURG, PA 17108 TELEPHONE: (717) 783 -1610 June 20, 1983 ADVICE OF COUNSEL RE: Outside Income Reporting, Section 405(b)(5) Dear Mr. Kuby: 83 -564 This responds to your letter of May 26, 1983, in which you, as Attorney for Doctor Leonard B. Finkelstein, requested advice from the State Ethics Commission. Issue: You ask whether your client, Doctor Finkelstein, properly listed the sources of his outside income on his Financial Interest Statement. Facts: You represent Doctor Leonard B. Finkelstein, Superintendent of Schools of the Cheltenham Township School District in Montgomery County. Doctor Finkelstein, as a Science Educator, served on the Energy Education Advisory Council hereinafter, the Council, was formed and is funded by the Philadelphia Electric Company. In connection with the service on the Council, Doctor Finkelstein also engaged in staff development consultation work for ' Philadelphia Electric. All such services were performed on Doctor Finkelstein's own time and without use of School District personnel. For both his services on the Council and his work as a consultant, Doctor Finkelstein was paid directly by the Philadelphia Electric Company. You indicate that prior to Doctor Finkelstein's employment by the Cheltenham School District, his activities with Philadelphia Electric were disclosed to the then President of the School Board, but recently, questions have been posed to Doctor Finkelstein by certain Cheltenham Township School Board members, concerning whether he properly listed the sources of his income on his Financial Interest Statement. :You, therefore, have requested a ruling from the State Ethics Commission in this regard. State Ethics Commission • 308 Finance Building • Harrisburg, Pennsylvania Mr. Benjamin Kuby June 20, 1983 Page 2 Discussion: The Pennsylvania State Ethis Act, 65 P.S. 401 et seq., was enacted to insure the public that "the financial interests of holders of or candidates for public office present neither a conflict nor the appearance of a conflict with the public trust." As Superintendent of Schools in Cheltenham Township, your client is a "public employee" subject to the provisions of the Ethics Act. See 65 P.S. 402. In order to insure that the goals of the Act are promoted, Section 405(b)(5) of the Act provides that the Statement of Financial Interest shall include, with regard to the filer and his immediate family, (5) The name and adress of any person who is the direct or indirect source of income totalling in the aggregate of $500 or more .... 65 P.S. 405(b)(5). As such, the Act requires that the filer report: a. Not the amount, but the fact, of income totalling in the aggregate of $500 or more, and b. The direct or indirect source of that income. Based on the facts as you present, it can be stated that Doctor Finkelstein's participation as a member of the Energy Education Advisory Council constitutes the activity nhich generated income. However, the source of that income, whether direct or indirect, is the Philadelphia Electric Company. You indicate that the Philadelphia Electric Company was also the source of remuneration for Doctor Finkelstein's services as a consultant. Therefore, the Philadelphia Electric Company was the source, direct or indirect, of the income from both activities, and it is not accurate to list the Energy Education Advisory Council as the source of income rather. than the Philadelphia Electric Company. With regard to the adequacy of the information disclosed by Doctor Finkelstein on his Financial Interest Statement, while his listing of the Energy Education Advisory Council indicates the activity undertaken, the listing of the Council as a source of income is not entirely correct. Proper reporting under the Ethics Act requires him to report the Philadelphia Electric Company as the source of income from both the Advisory Council activities and a consultant. Should Doctor Finkelstein prefer to list the Philadelphia Electric Company as the source of income for his consulting work and as a separate source of income for his work on the Advisory Council for whatever reasons, he is at liberty to do so, but it should be pointed out that the Act requires disclosure of the name and address of any person who is the source of income totalling in the aggregate of $500 or more -- in this case Mr. Benjamin Kuby June 20, 1983 Page 3 CW /rdp Enclosure Philadelphia Electic Company. The Act does not require your client to list the actual sums received but only the fact that he has received $500 or more from a particular source. Doctor Finkelstein should correct the Financial Interest Statements he has filed which may not reflect Philadelphia Electric as a source of income. Conclusion: Under 65 P.S. 405(b)(5), Doctor Finkelstein should indicate the name and address of the person, in this case, the Philadelphia Electric Company, which is the source of direct or indirect income totalling in the aggregate of $500 or more. In this case, participation on the Energy Education Advisory Council is merely the activity which gave rise to Doctor Finkelstein's income, while the Philadelphia Electric Company is the actual source of that income. In this regard, Doctor Finkelstein should file amendments to his Financial INterest Statement which list the Philadelphia Electric Company rather than the Energy Education Advisory Council as a source of income. 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 will be scheduled and a formal Opinion from the Commission will be issued. Any such appeal must be made, in writing, to the Commission within 15 days of service of this Advice pursuant to 51 Pa. Code 2.12. Sincerely, andra S. Chr stianson General Coun el