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Home My WebLink About05-533 QuinnAnthony B. Quinn, Esquire 711 Pleasant Avenue Wyndmoor, PA 19038 Dear Mr. Quinn: ADVICE OF COUNSEL April 12, 2005 05 -533 Re: Statement of Financial Interests; Financial Disclosure Requirements; School Director; Direct or Indirect Real Estate Interest; Property Purchased at Sheriff's Sale; Agency of Commonwealth; Political Subdivision. This responds to your letter of March 11, 2005, by which you requested advice from the State Ethics Commission. Issue: Whether the financial disclosure provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. §§ 1104 -1105, would require a filer to disclose a direct or indirect interest in real estate that was purchased through a sheriff's sale and subsequently deeded directly to the filer's daughter. Facts: As a School Director for the Springfield Township School District ( "School District "), you seek an advisory from the State Ethics Commission based upon the following submitted facts. You bid on a property on a sheriff sale list. In 2004, you purchased the property, which you deeded directly to your daughter. You pose the following two questions with respect to the financial disclosure requirements of the Ethics Act: (1) Whether your purchase of the property constituted a "direct or indirect interest in real estate' given that you subsequently deeded the property directly to your daughter; and (2) Whether the purchase of the property through a sheriff's sale constituted a purchase from the Commonwealth or any of its agencies or political subdivisions. Quinn, 05 -533 April 12, 2005 Page 2 Discussion: It is initially noted that pursuant to Sections 1107(10) and 1107(11) of the Ethics Act, 65 Pa.C.S. §§ 1107(10), (11), advisories are issued to the requester based upon the facts that the requester has submitted. In issuing the advisory based upon the facts that the requester has submitted, the Commission does not engage in an independent investigation of the facts, nor does it speculate as to facts that have not been submitted. It is the burden of the requester to truthfully disclose all of the material facts relevant to the inquiry. 65 Pa.C.S. §§ 1107(10), (11). An advisory only affords a defense to the extent the requester has truthfully disclosed all of the material facts. As a School Director, you are a public official as that term is defined in the Ethics Act, and hence you are subject to the financial disclosure requirements of the Ethics Act set forth at Section 1104 and 1105 of the Ethics Act, 65 Pa.C.S. §§ 1104 -1105. Section 1104 of the Ethics Act provides, in pertinent part: §1104. Statement of financial interests required to be filed 65 Pa.C.S. § 1105(b)(3). (a) Public official or public employee. - -Each public official of the Commonwealth shall file a statement of financial interests for the preceding calendar year with the commission no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Each public employee and public official of the Commonwealth shall file a statement of financial interests for the preceding calendar year with the department, agency, body or bureau in which he is employed or to which he is appointed or elected 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 or public official shall file a statement of financial interests with the governing authority of the political subdivision by which he is employed or within which he is appointed or elected no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Persons who are full -time or part -time solicitors for political subdivisions are required to file under this section. 65 Pa.C.S. §1104 (a). Section 1105(b)(3) of the Ethics Act provides as follows: § 1105. Statement of financial interests (b) Required information. - -The statement shall include the following information for the prior calendar year with regard to the person required to file the statement: (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 or 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. Quinn, 05 -533 April 12, 2005 Page 3 The Ethics Act defines the term "political subdivision" as follows: Section 1102. Definitions. "Political subdivision." Any county, city, borough, incorporated town, township, school district, vocational school, county institution district, and any authority, entity or body organized by the aforementioned. 65 Pa.C.S. § 1102. Section 1105(b)(3) of the Ethics Act would require you to disclose on your Statement of Financial Interests any direct or indirect interest in real estate purchased from the Commonwealth, any of its agencies or political subdivisions. In response to your first question, you are advised as follows. Based upon the submitted facts, it is clear that when you purchased the property in question through a sheriff's sale, you acquired a direct interest in the property regardless of the fact that you subsequently deeded the property directly to your daughter. As for the remaining question of whether such purchase constituted a purchase from the Commonwealth, any of its agencies or political subdivisions," 65 Pa.C.S. Section 1105(b)(3), you are advised as follows. A county is a political subdivision. 65 Pa.C.S. § However, based upon the above definition and for the specific purpose of determining proper disclosure of direct or indirect interests in real estate pursuant to Section 1105(b)(3) of the Ethics Act, a sheriff conducting a sheriff's sale would neither be considered an agency of the Commonwealth nor a political subdivision. Therefore, conditioned upon the assumption that the sheriff, as grantor, conveyed title to the property through a sheriff's deed, such purchase would not constitute a purchase from the Commonwealth or any of its agencies or political subdivisions, and you would not be required to disclose your interest in the property on your Statement of Financial Interests for calendar year 2004. The propriety of the proposed conduct has only been addressed under the Ethics Act; the applicability of any other statute, code, ordinance, regulation or other code of conduct other than the Ethics Act has not been considered in that they do not involve an interpretation of the Ethics Act. Conclusion: As a School Director for the Springfield Township School District, you are a public official subject to the financial disclosure requirements of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. The Ethics Act would not require you to disclose on your Statement of Financial Interests for calendar year 2004 a direct interest in real estate purchased through a sheriff's sale, conditioned upon the assumption that the sheriff, as grantor, conveyed title to the property through a sheriff's deed. Lastly, the propriety of the proposed conduct has only been addressed under the Ethics Act. Pursuant to Section 1107(11), an 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, provided the requester 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. Quinn, 05 -533 April 12, 2005 Page 4 Finally, if you disagree with this Advice or if you have any reason to challenge same, you may appeal the Advice to the full Commission. A personal appearance before the Commission will be scheduled and a formal Opinion will be issued by the Commission. Any such appeal must be in writing and must be actually received at the Commission within thirty (30) days of the date of this Advice pursuant to 51 Pa. Code § 13.2(h). The appeal may be received at the Commission by hand delivery, United States mail, delivery service, or by FAX transmission (717 - 787 - 0806). Failure to file such an appeal at the Commission within thirty (30) days may result in the dismissal of the appeal. Sincerely, Vincent J. Dopko Chief Counsel