HomeMy WebLinkAbout702 CochranMrs. V. J. Cochran
509 North Avenue
Box 165
Midway, PA 15060
Re: 88 -109 -C
Dear Mrs. Cochran:
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
ORDER OF THE COMMISSION
ORDER NO. 702
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 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 former 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. 5404(a).
Mrs. V. J. Cochran
Page 2
A. Findings:
54.4. 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 54.4(a).
1. You are a former member of the Fort Cherry
of Directors, McDonald, Pennsylvania.
a. You have served in this position for
years.
School District Board
approximately eight
b. You resigned for two years due to health reasons in 1982 and
1983.
c. You were then elected to serve another term.
d. You served until December of 1987.
2. Records of the Pennsylvania State Ethics Commission relating to
Statements of Financial Interests indicate that a Statement of
Financial Interests is on file for you regarding your status as a
candidate for the office of Fort Cherry School District board member
during the election of 1983.
a. The Statement is dated December 6, 1983, and was filed for
your. position as a candidate for Fort Cherry School Board.
b. Direct source of income in excess of $500 is listed as
Washington Steel Corporation. (This information is
identified as the income of your spouse).
c. Creditors in excess of $500 is listed as Washington Steel
Credit Union.
d. All other categories of Financial Interests are identified
as none.
3. Records of the Fort Cherry School District indicate that
Statements of Financial Interests are on file for you as follows:
Mrs. V. J. Cochran
Page 3
a. Filing date - April 23, 1986
For the year - 1985
Source of Income - none.
All other financial interest categories - none.
b. Filing date - December 6, 1983'
For the year - undated
Source of Income - Washington Steel Corp.
Creditors - Washington Steel Credit Union, 12%
All other financial interest categories - none.
c. Filing date - November 10, 1981
For the year - N/A
Source of Income - none.
All other financial interest categories - none.
d. Filing date - September 30, 1979
For the year - N/A
Source of Income - Washington Steel Co.
All other financial interest categories - none.
4. 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.
5. 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.
Mrs. V. J. Cochran
Page 4
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
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.
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.
g.
h. The resolutions 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.
6. 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.
Mrs. V. J. Cochran
Page 5
7. 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
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.
8. You provided the following information in relation to the instant
situation:
a. You served on the Fort Cherry School Board of Directors for
approximately eight years.
b. You resigned your position for two years in 1982 and 1983
due to health reasons but were subsequently elected to serve
another term.
c. The only time and place that you were informed about the
filing of Statements of Financial Interests was at the Board
of Elections in the county.
d. You believe that the board members were wrong for not filing
the Statement of Financial Interests annually.
Mrs. V. J. Cochran
Page 6
e. You recall that the cover sheet for the form indicated that
such filing was to be on an annual basis.
f. You believed that the directors had filed as a group in
1987.
You advised the board members that they should be filing
the Statement of Financial Interests when you went to the
County Board of Elections. You were told by other board
members that because you were filing the Statement of
Financial Interests when you went to the county board of
elections. You were told by other board members that
because you received no salary, they were not required to be
filed every year.
h. You did not recall the resolution that had been passed by
the board of directors regarding the specific individuals
that were required to file Statements of Financial Interests
on an annual basis.
g.
i. More recently, the school board solicitor, Mr. McTiernan,
advised the members of the board that they were not required
to file the Statements of Financial Interests on an annual
basis.
j
. You admit that you did not file Statements of Financial
Interests except for the years which a Statement was on file
with the school district.
9. On February 7, 1989, the State Ethics Commission received
Statements of Financial Interests for you as follows:
a. Statement Date - February 2, 1989
For calendar year - 1980
Source of Income in excess of $500 - Washington Steel Corp.
(Husband's employer).
All other financial interests categories - none.
b. Statement Date - February 2, 1989
For calendar year - 1982
Source of Income in excess of $500 - Washington Steel Corp.
(Husband's employer).
All other financial interests categories - none.
c. Statement Date - February 2, 1989
For calendar year - 1984
Source of Income in excess of $500 - Washington Steel Corp.
(Husband's employer).
All other financial interests categories - none.
Mrs. V. J. Cochran
Page 7
d. Statement Date - February 2, 1989
For calendar year - 1985
Source of Income in excess of $500 - Washington Steel Corp.
(Husband's employer).
All other financial interests categories - none.
e. Statement Date - February 2, 1989
For calendar year - 1987
Source of Income in excess of $500 - Washington Steel Corp.
(Husband's employer).
For calendar year - 1987
All other financial interests categories - none.
f. Statement date - February 2, 1989.
For calendar year - 1988.
Source of Income in excess of $500 - Washington
Steel Corp. (Husband's Employer).
Office or Directorship or Employment in any business -
N.E.E.D. (Non - profit Status Applied for), Position Held -
Director.
All other financial interests categories - None.
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, with
the exception of the 1982 and 1983 year wherein you resigned for
reasons of health. The records of the school district reflect that
you filed the following Statements of Financial Interests: April 23,
Mrs. V. J. Cochran
Page 8
1986 for the 1985 year, December 6, 1983 for an undated year,
November 10, 1981 for an undated year and September 30, 1979 for an
undated 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. However, you have filed Statements of Financial Interests for
calendar years 1980, 1982, 1984, 1985, 1987 and 1988, all of which
are dated February 2, 1989. 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 a
Statement of Financial Interests for the calendar year 1986 within
thirty days of the issuance of this Order.
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 1986 calendar year 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 S2.38.
Mrs. V. J. Cochran
Page 9
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 the Commissio
elena G. Hughes
Chair