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