HomeMy WebLinkAbout699 WhiteMr. Richard White
R.D. #1
Hickory, PA 15340
Re: 88 -083 -C
Dear Mr. White:
IS`
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
�.
ORDER OF THE COMMISSION
ORDER NO. 699
DATE DECIDED: April 19, 1989
DATE MAILED: April 28. 1989
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 not filed and a hearing was deemed 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:
Section 4. Statement of financial interests
required to be filed.
(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. Richard White
Page 2
64.4. Incumbent and former public 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 for approximately eight
years.
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 in the
1987 municipal election.
4. Records of the Fort Cherry School District indicate the following
Statements of Financial Interests on file for you:
a. Filing date - March 2, 1987.
For the year - 1986.
Source of Income - Washington Federal Savings and Loan.
Creditors - Pittsburgh National Bank, variable 8 -10 %.
Office or Directorship - Washington Federal Savings & Loan -
Director and President.
All other financial interests categories - none.
b. Filing date - March 30, 1986.
For the year - 1985.
Source of Income - Washington Federal Savings and Loan.
Creditors - Pittsburgh National Bank, variable.
Office or Directorship - Washington Federal Savings & Loan -
Director and President.
All other financial interests categories - none.
Mr. Richard White
Page 3
c. Filing date - March 4, 1983.
For the year - 1982.
Source of Income - Washington Federal Savings and Loan.
Creditors - Pittsburgh National Bank, 12 %.
Office or Directorship - Washington Federal Savings & Loan
Senior Vice - President.
All other financial interests categories - none.
d. Filing date - April 20, 1982.
For the year - unk.
Source of Income - Washington Federal Savings and Loan.
Creditors - Pittsburgh National Bank, unk.
Office or Directorship - Washington Federal Savings & Loan
Senior Vice President, Sec. to unk.
All other financial interests 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.
Mr. Richard White
Page 4
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
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.
h. 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. By way of letter dated October 31, 1988, to the State Ethics
Commission from Robert L. McTiernan, Mr. McTiernan indicates that
based upon 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 employees to file Statements of
Financial 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.
Mr. Richard White
Page 5
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
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 aware of the availability of the advisory opinion
letters that could be obtained from the State Ethics
Commission or the Commission's General Counsel.
f. He did not pursue the issue any further because he did not
believe it was necessary to do so based upon his own
analysis.
9. You provided the following information in relation to the instant
situation:
a. You have served on the Fort Cherry School District Board of
Directors for approximately eight years.
b. You were originally appointed to the board and were later
elected to a four year term and a six year term which you
are currently serving.
c. You are employed by Washington Federal Savings and Loan
Company.
d. You filed Statements of Financial'Interests in 1982, 1983,
1986 and 1987.
e. You did not file any other statements with the school
district.
f. Questions have continuously arisen regarding the filing
requirements.
Mr. Richard White
Page 6
Board members were always advised that no annual filing was
required.
h. The instructions on the form were not clear regarding this
requirement.
g.
B. Discussion:
As a member of the Fort Cherry School District Board 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); Jersey Shore Area School District v. Bittner, 81 Pa. Commw.
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 to 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 for approximately the last 8 years. The
records of the school district reflect that you filed the following
Statements of Financial Interests: March 2, 1986, March 30, 1986 for
1985, March 4, 1983 for 1982 and April 20, 1982 for an unspecified
year. It would appear that your filings were for those years in which
you were a candidate for the office of school director or when you ran
for reelection. In 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.
Since 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. Since it does not appear that your failure to file was
occasioned by any conscious action or attempt to conceal or realize
prohibited financial gain or interest on your part, this Commission
will take no further action provided you file Statements of Financial
Interests for the calendar years 1983, 1984 and 1987 within thirty
days of the issuance of this Order.
Mr. Richard White
Page 7
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. You are directed to file a Statement of Financial Interests for
the 1983, 1984 and 1987 calendar years within thirty days of the
issuance of this order.
4. Failure to comply with paragraph 3 of this order will result in
the referral of this matter to the appropriate law enforcement
authority.
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 $1,000 or imprisoned for not more than one year or both, 65 P.S.
409(e).
By th 'Commission,
Helena G. Hughes
Chair