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HomeMy WebLinkAbout87-566 SullivanMr. Eugene Sullivan 6243 Marsden Street Philadelphia, PA 19135 STATE ETHICS COMMISSION 308 FINANCE BUILDING P.O. BOX 11470 HARRISBURG, PA 17108 -1470 TELEPHONE (717) 783 -1610 May 14, 1987 ADVICE OF COUNSEL Re: Statements of Financial Interests, Reporting Requirements Dear Mr. Sullivan: 87 -566 This responds to your letter of April 18, 1987, wherein you requested the advice of the State Ethics Commission. Issue: Whether certain individuals who serve in police departments are required to file statements of financial interest and whether certain items must be reported on such statements. Facts: You have requested the advice of the State Ethics Commission regarding certain aspects of the statements of financial interest filing requirement. Specifically, you have requested advice as to whether police inspectors in the Philadelphia Police Department are required to file statements of financial interest. You also request advice regarding whether proceeds received from governmental entities and proceeds received from rental property not involving the government are required to be reported. You further request information as to whether income from municipal bonds is required to be filed. You also ask if the amount of income is required to be reported or just the source of such income. Finally, you have requested advice as to the location of filing by a municipal employee. Discussion: The questions posed in your letter of request have generally been addressed by this Commission on a prior occasion. Generally, the State Ethics Act requires a filing of a statement of financial interest by all public employees at the local and state levels. 65 P.S. §404(a). Said statement is to be filed no later than May 1 of each year in which the individual is employed and for the year following the termination of such employment. Generally, this Commission has ruled that the following categories of individuals serving within the police department in the city of Philadelphia are to be considered public employees and therefore required to file statements of financial interest as set forth in the Ethics Act: police staff inspectors; police inspectors; chief police inspectors; police captains; police unit commanders. Coyle, 82 -013. Thus, in response to your specific question, individuals serving in the capacity of inspector in the Philadelphia Mr. Eugene Sullivan May 14, 1987 Page 2 Police Department must file statements of financial interest in accordance with the law. In addition to the foregoing, the Ethics Act also provides that the statement of financial interest must include the following: Section 5. Statement of financial interests. (b) The statement shall include the following information for the prior calendar year with regard to the person required to file the statement and the members of his immediate family: (3) Any direct or indirect interest in any real estate which was sold or leased to the Commonwealth, any of its agencies or political subdivisions; purchased or leased from the Commonwealth, any of its agencies or political subdivisions; or which was the subject of any condemnation proceedings by the Commonwealth, any of its agencies or political subdivisions. (5) The name and address of any person who is the direct or indirect source of income totalling in the aggregate of $500 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. Additionally, the regulations of the Commission provide as follows: §5.5.Real estate. (a) The person required to file shall list the names and address of any direct or indirect interests in real estate of the person, his spouse, and minor dependent children as follows: (1) Any real estate sold or leased to Commonwealth, or any of its agencies or political subdivisions. (2) Any real estate purchased or leased from the Commonwealth, or any of its agencies or political subdivi sions. (3) Any real estate which is subjected to any condemnation proceedings by the Commonwealth or its agencies or political subdivisions. 51 Pa. Code 5.5(a). Mr. Eugene Sullivan May 14, 1987 Page 3 §5.7.Income disclosure. (a) The name and address of the person, including employers, who is the direct or indirect source of income totaling in the aggregate of $500 or more for the person required to file, his spouse, minor dependent children shall be listed unless otherwise limited as set forth in this section. 51 Pa. Code 5.7(a). (b) Professionals, whether acting as individuals or members of a business, are required to disclose as sources of income those persons who have paid fees for services related to matters before the governmental body with which the public official or public employe is or, if a candidate, would be associated. In all other cases only the name of their firm or business is to be listed. 51 Pa. Code 5.7(b). (d) If the income from the securities of a particular business equals or exceeds $500 or if the sum of capital gains and dividends - not offset by losses - from stock or bonds equals or exceeds $500, disclosure is required. Only the name of publicly traded securities, stocks, or bonds must be listed. 51 Pa. Code 5.7(d). (e) If the total income to the person required to file, his spouse, or minor dependent children received from any mutual fund equals or exceeds $500, the name of the mutual fund shall be reported. Reference should be made to subsection (g). The names of individual securities held by that fund need not be reported. 51 Pa. Code 5.7(e). Reviewing the above provisions of law, it is clear, that income from rental property regardless of where located, if in excess of $500 even of such property is not related to any governmental entity, must be reported. Additionally, income received from mutual funds or municipal bonds even where the individual has no connection with the issuer must be reported. In this respect it is clear that the Ethics Act requires the reporting of all sources of income in excess of $500. It should be noted, however, that the reporting requirement only relates to the source of said income and does not require reporting of the actual amounts received. In addition to the foregoing, and in relation to the location for the filing of said statements, the regulations of the Ethics Commission provide as follows: Mr. Eugene Sullivan May 14, 1987 Page 4 §4.1.Public employes. (a) Each public employe employed by the Commonwealth shall file a Statement of Financial Interests, Form SEC -1, for the preceding calendar year with the department, agency, or bureau with which he is employed no later than May 1 of each year that he holds such a position, and of the year after he leaves such a position. 51 Pa. Code 4.1(a). (d) The governing authority of the political subdivisions will designate the location of the Statements of Financial Interests for their employes. 51 Pa. Code 4.1(d). As can clearly be seen from the above, the governing authority of a local political subdivision may designate the location for the filing of statement of financial interest. As such, said statements are not required to be filed with the State Ethics Commission for local public employees. Said statements are to be filed at the designated location as set forth by the governing authority. Conclusion: The State Ethics Act requires the reporting of financial interest by public officials and public employees as set forth in the State Ethics Act. The specific filing requirements and the location for the statements of financial interest are specifically delineated in the provisions of the Act and in the regulations promulgated by the State Ethics Commission. The specific requirements as outlined above have been set forth by the Commission through the regulations of this agency as well as through opinions issued interpreting the provisions of the State Ethics Act. 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. Mr. Eugene Sullivan May 14, 1987 Page 5 Finally, if you disagree with this Advice or if you have any reason to challenge sane, 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. ti . Actin eneral Counsel