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HomeMy WebLinkAbout695 MatchettSTATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 ORDER OF THE COMMISSION ORDER NO. 695 DATE DECIDED: April 19, 1989 DATE MAILED: _April 28. 1989 Mr. Neal Matchett 400 Fifth Street McDonald, PA 15057 Re: 88 -079 -C Dear Mr. Matchett: The State Ethics Commission received a complaint regarding you and a possible violation of the State Ethics Act, No. 170 of 1978, 65 P.S. 401 et. seq. You were notified in writing as to the commencement of the investigation and as to the specific allegation(s),. The investigation has now been completed and a Findings Report was issued to you which constituted the Complaint by the Investigation Division of the State Ethics Commission. An Answer was filed and a hearing was waived. The record is now completed. This Order of the Commission is hereby issued which sets-forth the individual allegations, findings, discussion and conclusion as follows: I. Allegation: That you, a Director of the Fort Cherry School Board, Washington County, violated the following provisions of the Ethics Act (Act 170•-of 1978), when you failed to file Statements of Financial Interests with the school district: (a) Each public employee employed by the Commonwealth shall file a statement of financial interests for the preceding calendar year with the department, agency or bureau in 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. Any other public employee shall file a statement of financial interests with the governing authority of the political subdivision by 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. 65 P.S. S404(a). Mr. Neal Matchett Page 2 94.4. Incumbent and former vublic officials. (a) Incumbent officials of the Commonwealth's executive, legislative, and judicial branches and other statewide offices who are not candidates shall file their Statement of Financial Interests with the Commission and a copy with the agency in which they hold office by May 1 of each year in which they hold office. 51 Pa. Code S4.4(a). A. Findings: 1. You serve as'a member of the Fort Cherry School District Board". 'of Directors, McDonald, Pennsylvania. a. You have served in this position since December of 1987 at which time you administered the oath. of -of fice 2. You were a candidate for the office of school director, Fort Cherry School District, in the municipal election.of 1987. 3. Records of the Pennsylvania State Ethics Commission relating to Statements of Financial Interests indicate a Statement of Financial Interests is on`file. for you regarding,your status as a candidate for a member..of the Fort Cherry School District Board of Directors. a. The Statement Of Financial Interests was dated February 18, 1987, and related to your financial interests for calendar year = 1986. y b. Your occupation is listed as a CPA - Accountant. C. Direct or indirect source of income in excess of $500 is identified as PPG Industries, Incorporated. d. PPG Industries', Incorporated, is also .identified as an entity in which you hold an office or directorship/ employment position. Your position is identified as supervisor, pension plans. e. All other categories of financial interests are identified as none. Mr. Neal Matchett Page 3 4. Records of the State Ethics Commission reflect a Statement of Financial Interests filed by you for the 1987 calendar year dated February 8, 1989. a. Your occupation is listed as - Supervisor; Pension Plans, PPG Industries, Inc. (CPA). b. Direct or Indirect Sources of Income - PPG, Industries Inc. c. All other financial categories - None. 5. Minutes of the regular meeting of the Fort Cherry School District Board of Directors for September 26, 1988, indicate the following regarding the Statements of Financial Interests filings by board members: a. Mrs. Donna D'Amico, McDonald resident, commented that she had been informed that the board'members did not file Statements of Financial Interests on an annual basis. She stated that she reviewed the law and it seemed to indicate that such statements had to be filed no later than May of each year. Mrs. D'Amico was informed that the Board members filed their Statements of Financial Interests prior to the election. Mr. McCracken asked the solicitor to explain the law on filing these Statements. Mr. McTiernan, the solicitor, stated that the law provides that board members are to file prior to their election to office and that the superintendent is the only employee of the district with the discretion described in the statute to file on an annual basis. 6. Records of the Fort Cherry School District indicate the following correspondence relating to Statements of Financial Interests: a. Letter dated March 31, 1980 to Dr. J. Manion, Fort Cherry School District, from Robert T. Crothers. b. The letter indicates that a review has been made of the Ethics Act and proposed regulations of the Ethics Commission. . C. The letter indicates that the Act requires the filing of a Statement of Financial Interests no later than May 1 of 1980. d. The letter indicates that a class action suit was brought by several school members against the Governor seeking Mr. Neal Matchett Page 4 injunctive and declaratory relief and an injunction-on the filing requirement was'issued by the Pennsylvania Supreme Court thus negating the need for school board members to file at that time. e. It is recommended that the school board adopt a resolution identifying specifically.the positions of employment for which a filing is required f. It is further advised, pursuant to this letter, that all of the individuals identified as being required to file a Statement of Financial Interests be.notified of such. g• The resolution which was appended to the letter identified the following group of individuals as being required to file Statements of Financial Interests for Fort Cherry School District: Superintendent, Assistant Superintendent, Business Manager, high school and elementary principals, any employee whose duties include taking or recommending official action of a non- ministerial nature in relation to specified activities set forth in the resolution. The resolution- - identified the administrative offices of the Fort Cherry School District. as'the filing location and noted that all statements must be filed no later than May 1, 1980. 7. Byway of letter dated October 31, 1988, to the State Ethics Commission from Robert L -. McTiernan, Mr. McTiernan indicates that based upoti his review, of-•''the State Ethics Act, school board members are clearly identified as public officials and not public employees under the provisions of the law. He further indicates that the State Ethics Act only requires public emplovees to file Statements of rinahaAl Interests on an annual basis. Mr. McTiernan.further indicates that candidates for public office and public officials are only required to file Statements of Financial Interests for the year prior to filing a petition to appear on the ballot as- a.public official. 8. Robert L. McTiernan provided the following information in relation to this situation. a. He has been solicitor for the Fort Cherry School Board since approximately, 1983. b. The issue regarding the Statements of Financial Interests rose during the fall of 1988, when the business manager and board secretary indicated that a citizen had asked for and Mr. Neal Matchett Page S was provided copies of Statements of Financial Interests for the school board members. C. At a meeting in September of,1988, a citizen appeared and required information as to why board members had not filed on an annual basis. It was explained by McTiernan at that time, that after reading the Ethics Act it was his opinion that board members were not required to file on an annual basis but only required to file in the years that they were running for re- election -to public office. d. McTiernan indicated that this was his opinion and he believes that It is correct. e._ He was not letters th+ Commission f. He did not believe it analysis. aware of the availability of it could be obtained from the or the Commission's General pursue the issue any further was necessary to.do so based the advisory opinion State Ethics :ounsel. because he did not upon his own 9. You provided the following information in relation to the instant situation: a. You have been a member'of the Fort Cherry School Board since December of 1987, at which time you were sworn into office. b. You are privately employed at PPG as the supervisor of pension plans. C. You were aware of the fact that you were required to file a Statement of Financial Interests in the year that you were running for election to the office of school board member. d. You did not file for calendar year 1987, in that it seemed to be the past practice of the school board not to file except in the respective election years. e. This issue arose when a citizen came to a school board meeting and requested to know why school board members were not filing Statements of Financial Interests on an - annual basis. f. At that time, the school board solicitor advised the citizen that such was only required during years in which officials ran for election and no annual filing was required. Mr. Ideal Matchett Page 6 g. . You have had no prior experience with the State Ethics Commission. h. The only reason that you did not fjle -a Statement of Financial . Interests was that '.,you "were unaware of the .requirement to do so and you relied upon your solicitor's opinion. B. Discussion: As a member of the Fort Cherry School District Boa.rd•of Directors, you are a "public official" as that term�is defined under the Ethics Act and regulations of the Commission. 65 P.S. 402; 51 Pa. Code Section 1.1; Snyder.v. Thornburgh- 469 Pa. 159, 436 A.2d 593 (1981); J rse Shore Area School District v. Bittner, 81 Pa. Comm�r. Ct. 30, 472 A.2d 1183 (1984). = Section 4(a) of the Ethics Act, quoted above, requires that each public.employee-of the Commonwealth shall file a Statements.of Financial Interests for the preceding calendar year at the appropriate filing location on or before May 1, for the year in which he_holds the position and for the'year after he held such a position. Although Section 4(a) on its face only appears to have application to public employees, it has been decided that the financial disclosure requirements in Sections 4(a) apply not only't'o public employees but to public officials as well. See Kremer v. State Ethics Commission, 56 Pa. Commw. Ct. 160, 424 A.2d 968 (1981), affirmed, 503 Pa. 358, 469-A.2d 593 (1983) - In the instant matter, you have served as a school director for Fort Cherry School District 'since 1987. The -- record's of - -the school district reflect that you filed the following Statement of Financial Interests:. February 18, 1987: for 1986.. It would appear Lthat your filing was for the year in which you were a candidate for the office of school director.-%1n this regard, it is noted that -the solicitor for the district, Mr.. McTiernan, expressed his'view that the law would only require board members to file prior to filing a petition to appear on the ballot as a public official. Because.you.did not file the required - Statements of Financial interests for each year that you have served as a school director, this Commission finds that you violated Section 4(a) of the Ethics Act. However, you have filed a Statement of Financial Interests for the 1987 calendar year dated February 8, 1989. Since -it does -tot appear that your failure to file was occasioned by any conscious . Neal Matchett Page i action or attempt to conceal or realize prohibited financial gain or interest on your part this Commission will take no further action. C. Conclusion and Order: 1. As a director for the Fort Cherry School District, you were a public official subject to the provisions of the Ethics Act. 2. You violated Section 4(a) of the Ethics Act when you failed to file Statements of Financial Interests for each and every year in which you served as school board member. 3. Since you now have filed all requisite Statements of Financial Interests, this Commission will take no further action. This Order is final and will be made available as a public document fifteen days after issuance. However, you may request reconsideration which will defer public release of this Order pending action on your request by the Commission. A request for reconsideration, however, does not affect the finality of this Order. A reconsideration request must be received at this Commission within, fifteen days of issuance and must include a detailed explanation of your reasons as to why reconsideration should be granted in conformity with 51 Pa. Code §2.38. The files in this case will remain confidential in accordance with Section 8(a).of the Ethics Act, 65 P.S. 408(a) during the fifteen day period and no one, including yourself, unless the right to challenge this Order is waived, may violate confidentiality by releasing, discussing or circulating this Order. However, confidentiality does not preclude you from discussing this case with your attorney at -law. Any person who violates confidentiality of a Commission proceeding is guilty of a misdemeanor and shall be fined not more than $10000 or imprisoned for not more than one year or both, 65 P.S. 409(e). By t e A Commission, elena G. Hughes Chair