HomeMy WebLinkAbout06-004 deYoungOPINION OF THE COMMISSION
Before: Louis W. Fryman, Chair
John J. Bolger, Vice Chair
Donald M. McCurdy
Paul M. Henry
Raquel K. Bergen
Nicholas A. Colafella
Reverend Scott Pilarz
DATE DECIDED: March 29, 2006
DATE MAILED: March 30, 2006
Re: Challenge to Nomination Petition of Marie deYoung
To The Honorable Mary Hannah Leavitt, Judge of the Commonwealth Court of
Pennsylvania:
This Opinion is issued in response to an Order of the Commonwealth Court of
Pennsylvania dated March 23, 2006, at docket number 140 M.D. 2006, directing this
Commission to issue and file a disposition with the Court's Prothonotary on or before
March 30, 2006, at 4:00 p.m., as to the following issues.
ISSUES:
(1) Whether, pursuant to the Public Official and Employee
Ethics Act ( "Ethics Act "), 65 Pa. C.S. §1101, et seq., a
candidate who has filed a Statement of Financial
Interests identifying her "direct or indirect source of
income" as "Self- employed: Marie deYoung community
minister, writer, consultant" has complied with the
financial disclosure requirements of Section 1105(b)(5)
of the Ethics Act or must also identify each customer,
client or parishioner as a source of income;
Whether the aforesaid disclosure, if insufficient to
comply with Section 1105(b)(5) of the Ethics Act,
constitutes an amendable or fatal defect; and
Whether a more stringent standard should be applied to
Statements of Financial Interests filed in conjunction
with nomination petitions as opposed to those filed for
other purposes when determining whether a Statement
of Financial Interests complies with the Ethics Act and
(2)
(3)
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deYoung, 06 -004
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Page 2
whether a defect is amendable.
II. FACTUAL BASIS FOR DETERMINATION:
This matter arises from a lawsuit filed in the Commonwealth Court of Pennsylvania
challenging the nomination petition of Marie deYoung (deYoung) as a Democratic
Candidate for State Representative for the 163 Legislative District, which lawsuit was file
by Harry M. Riley, IV (Riley), a registered Democrat and qualified elector of the 163
District. The procedural history of this case is as follows.
On March 3, 2006, deYoung filed her nomination petition with the Commonwealth of
Pennsylvania Department of State together with a copy of her Statement of Financial
Interests for the 2005 calendar year. We take administrative notice of the fact that
deYoung's original Statement of Financial Interests was filed with this Commission on
March 3, 2006.
On March 14, 2006, Riley filed a Petition to Set Aside Nomination Petition of
deYoung in the Commonwealth Court of Pennsylvania. On March 17, 2006, the Court
scheduled a hearing on the Petition for March 23, 2006, and ordered both parties to file a
memorandum of law addressing the issue of whether the doctrine of primary jurisdiction
requires that the State Ethics Commission determine whether Respondent has filed a
deficient Statement of Financial Interests.
On March 23, 2006, Bruce H. Bikin, Esquire, Counsel for deYoung, and Michael L.
Maddren, Esquire, Counsel for Riley, appeared before the Honorable Mary Hannah
Leavitt, Judge, at which time Counsels each submitted a Memorandum of Law and jointly
submitted a Stipulation of Facts. It is noted that the Stipulation of Facts included, inter
alia, the following:
4. Respondent deYoung inadvertently omitted a source of
income, earned during calendar year 2005, in excess of
$1300.00 from her Statement of Financial Interests.
5. The source of income Ms. deYoung omitted from her
Statement of Financial Interests was of the type
required to be disclosed thereupon under the rules for
completing the statement and the Public Official and
Employee Ethics Act.
Stipulation of Facts, paragraphs 4 -5.
Following the hearing, Judge Leavitt entered an order dated March 23, 2006, setting
forth the following facts and issues.
DeYoung is seeking to have her name placed on the ballot for the 2006 primary
election as a Democratic candidate for State Representative for the 163 Legislative
District. As required by law, deYoung attached a Statement of Financial Interests to her
nomination petition. In Block 6 of the Statement of Financial Interests, deYoung indicated
that her occupation or profession was that of a "community minister, writer, consultant." In
Block 10, requiring disclosure of direct or indirect sources of income, deYoung wrote,
"Self- employed: Marie deYoung /community minister, writer, consultant."
Riley filed a lawsuit challenging deYoung's nomination petition. Riley asserts that
deYoung's response in Block 10 of her Statement of Financial Interests is insufficient. In
particular, Riley contends that deYoung's entry in Block 10 does not disclose the persons
who made a payment to deYoung for her community ministering, writing or consulting.
DeYoung concedes that in the course of her self - employment in 2005, she did receive 1
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March 30, 2006
Page 3
(one) payment in the amount of $2,000, which exceeds the $1,300 reporting threshold.
Riley argues that deYoung was required to disclose but did not disclose this single
payment, and therefore, her candidacy must be stricken.
DeYoung argues that she is the "source" of her income, which she disclosed on her
Statement of Financial Interests, and therefore, she correctly completed the form.
DeYoung further argues that it is clear from the face of her Statement of Financial Interests
that her income was derived from the activities that she listed as part of her self -
employment. DeYoung contends that even if she were required to identify all those who
engaged her services, her failure to disclose those individuals is an amendable defect.
Riley asserts that the defect is not amendable, and that because the Election Code
requires strict enforcement, a Statement of Financial Interests filed in conjunction with a
nomination petition is subject to a narrow and strict enforcement standard. Because of
this, Riley argues that deYoung is precluded from amending her Statement of Financial
Interests. Finally, Riley contends that a Statement of Financial Interests filed by a
candidate is subject to a higher or stricter standard of compliance than one filed in any
other context in which it is required by the Ethics Act.
While retaining jurisdiction, Commonwealth Court transferred the matter to this
Commission directing that we issue and file a disposition with the Court's Prothonotary on
or before 4:00 p.m., March 30, 2006, responding to the aforesaid three questions.
The Commonwealth Court record was forwarded to this Commission. The transcript
of the March 23, 2006, proceedings establishes that the particular payment in question is a
consulting fee paid by a check in the amount of $2,000 from Dr. Paul Scoles payable to
deYoung. (3/23/06 Tr. at 10 -12). At the March 23, 2006, hearing in Commonwealth Court,
Counsel for deYoung acknowledged that disclosure of the source of this particular
payment was not subject to confidentiality /privilege. (3/23/06 Tr. at 30).
On March 27, 2006, Counsels for deYoung and Riley each filed with this
Commission a Memorandum of Law.
Candidate deYoung first argues that a self - employed individual who acts as a sole
proprietor and adequately describes the nature and character of her activities as such
should not be required to reveal more than an individual who operates his own business as
a corporation or partnership. DeYoung contends that to hold a sole proprietor to a
different standard is unfairly discriminatory, arbitrary and a denial of equal protection.
DeYoung further argues that by fully identifying her self - employment activities as
encompassing "community minister, writer, consultant," she provided as much information
as any sole corporate proprietor would have been required to offer and satisfied the Ethics
Act's purpose, which she maintains is to give the general voting public a fair summary of
her sources of income.
DeYoung next argues that if her response in Block 10 of her Statement of Financial
Interests is indeed insufficient, she should be permitted to amend. DeYoung asserts that
the purpose of the Statement of Financial Interests is to publicly disclose any financial
activities or transactions that might give a voter "pause" before casting a ballot for that
candidate. DeYoung asserts that in order for the purpose of the Ethics Act to "best be
effectuated," such disclosure need only be accomplished prior to the actual voting by the
electorate. DeYoung contends that there is no substantive difference between providing
the required financial information in an original filing versus an amended filing, as long as
the disclosure is accomplished well before the actual vote occurs.
DeYoung further argues that it is improper to analogize the reasoning for the
applicability of a Fatality Rule to Nominating Petitions to alleged defects in Statements of
Financial Interests. DeYoung maintains that strict compliance with the signature
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requirements under the Election Code is necessary to assure that the signor is indeed the
person so registered to vote with the County Board of Election and aids in review and
examination of the signatures on a challenged petition, but strict compliance with the
Ethics Act filing requirements is not necessary to accomplish the Ethics Act's purpose in
requiring full public disclosure prior to the vote of the electorate. DeYoung contends that
"otherwise qualified candidates" should be provided "every opportunity" to comply with the
requirements of the Ethics Act, and that an objector suffers no detriment by permitting an
amendment to the challenged candidate's Statement of Financial Interests.
In addition, deYoung argues that the error on her Statement of Financial Interests, if
it indeed exists, is "de minimis" as that term is defined in the Ethics Act at 65 Pa.C.S. §
1102. While deYoung acknowledges that the cited definition might not have been
intended to be applied as to a candidate's defective Statement of Financial Interests, she
contends that the recognition by the General Assembly of such a concept indicates that
there is less than "Bright Line" clarity in identifying and classifying certain financial
transactions. She contends that the potential sanction of the fatality of her nomination
petitions would be a greater penalty than should be provided for her failure to disclose the
source of one $2,000 payment.
Finally, deYoung argues that permitting a candidate to amend an erroneous or
incomplete Statement of Financial Interests furthers the objective of the Ethics Act without
unfairly punishing potential candidates for clerical errors or what deYoung describes as
"de minimis" errors in their Statements of Financial Interests.
Challenger Riley argues that entering "self- employed" on a Statement of Financial
Interests is not sufficient to satisfy the requirements of the Ethics Act and the Regulations
of this Commission. Riley points out that the Statement of Financial Interests form's
instructions for Block 10 require filers to "include the source name and address, not the
dollar amount, of any payment, fee, salary, expense, allowance, forbearance, forgiveness,
interest income, dividend, royalty, rental income, capital gain, reward, severance payment,
prize winning, and tax exempt income." Statement of Financial Interests form Instructions,
at 2 (Emphasis added). Riley contends that listing "self- employed" in Block 10 of the form
does not satisfy the requirements of the Ethics Act because it fails to disclose to the reader
the source from which the payment originated. Riley contends that such a listing therefore
constitutes a facial defect.
Riley further asserts that the defect to deYoung's Statement of Financial Interests is
fatal to her nomination petition. Citing Section 1104(b)(3) of the Ethics Act, Riley argues
that the Ethics Act prohibits a candidate from appearing on the primary election ballot if the
candidate fails to file the Statement of Financial Interests form in accordance with all of the
requirements of the Ethics Act. Thus, Riley contends that if the candidate's Statement of
Financial Interests, when filed, does not comply with the provisions of the Ethics Act, it
constitutes a fatal defect to the candidate's nomination petition. In the instant case, Riley
contends that deYoung failed to disclose a $2,000 payment from Dr. Paul Scoles for
consulting services despite the fact that there was no statute, professional code or
common law privilege preventing her from disclosing Dr. Scoles as a source of income.
Therefore, Riley contends that based upon the Pennsylvania Supreme Court's decisions in
In re Nomination Petition of Benninghoff, 578 Pa. 402, 852 A.2d 1182 (2004) and In re:
Nominating Petitions of Braxton, 583 Pa. 35, 874 A.2d 1143 (2005), this Commission must
find that deYoung's omission of Dr. Scoles as a source of income constitutes a fatal defect
to deYoung's nomination petition.
Finally, Riley contends that the standard for Statements of Financial Interests filed
in conjunction with a candidate's nomination for office does not differ from the standard for
Statements of Financial Interests filed for other purposes, but the penalties for non-
compliance do differ. Citing Benninghoff, Riley asserts that the Supreme Court did not
rule that Benninghoff's Statement of Financial Interests was properly submitted; it found
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that the Statement of Financial Interests was defective, but amendable because it
substantially complied with the requirements of the Ethics Act. Thus, Riley argues that the
standard for whether there is a defect in a Statement of Financial Interests is the same
regardless of the purpose for which it is filed. Despite the uniform standard, Riley argues
that candidates, unlike public officials and public employees, are not permitted to amend
defective Statements of Financial Interests and may not appear on the ballot if they do not
file a Statement of Financial Interests in accordance with the provisions of the Ethics Act.
By letters dated March 24, 2006, Bruce H. Bikin, Esquire, Counsel for deYoung, and
Michael L. Maddren, Esquire, Counsel for Riley, were notified of the date, time and
location of the public meeting at which this matter would be considered.
At the public meeting on March 29, 2006, Attorney Bikin, deYoung, and Attorney
Maddren appeared and offered to answer any questions from this Commission.
III. DISCUSSION
Before we begin our analysis of the three questions posed by Commonwealth Court,
we initially note that the Court has not directed us to consider as part of our analysis any
impact of the parties' factual stipulations whereby deYoung has admitted that she
inadvertently omitted from her Statement of Financial Interests a source of income in
excess of $1,300 that was earned during calendar year 2005, which source was of the type
required to be disclosed on the Statement of Financial Interests form. Stipulation of Facts,
paragraphs 4 -5. The impact of such admissions is properly for the Commonwealth Court
to determine, and we only note the admissions in order to provide a complete recitation of
the facts.
We begin our analysis of the three questions posed by Commonwealth Court by
reviewing the relevant provisions of the Ethics Act. Sections 1104 and 1105 of the Ethics
Act provide, in pertinent part, as follows:
§ 1104. Statement of financial interests required to be
filed
(b) Candidate.- -
(1) Any candidate for a State -level public
office shall file a statement of financial interests for the
preceding calendar year with the commission on or
before the last day for filing a petition to appear on the
ballot for election. A copy of the statement of financial
interests shall also be appended to such petition.
(3) No petition to appear on the ballot for
election shall be accepted by the respective State or
local election officials unless the petition has appended
thereto a statement of financial interests as set forth in
paragraphs (1) and (2). Failure to file the statement in
accordance with the provisions of this chapter shall, in
addition to any other penalties provided, be a fatal
defect to a petition to appear on the ballot.
§ 1105. Statement of financial interests
(a) Form. —The statement of financial interests filed
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pursuant to this chapter shall be on a form prescribed by the
commission. All information requested on the statement shall
be provided to the best of the knowledge, information and
belief of the person required to file and shall be signed under
oath or equivalent affirmation.
(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:
(5) The name and address of any direct or
indirect source of income totaling in the aggregate
$1,300 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 or common law privileges.
65 Pa.C.S. §§ 1104(b)(1), (3); 1105(a), (b)(5). Section 1105(b)(5) of the Ethics Act
requires the filer to disclose the name and address of any direct or indirect source of
reportable income.
The following key terms pertaining to disclosure under Section 1105(b)(5) of the
Ethics Act are defined in the Ethics Act as follows:
§ 1102. Definitions
"Income." Any money or thing of value received or to
be received as a claim on future services or in recognition of
services rendered in the past, whether in the form of a
payment, fee, salary, expense, allowance, forbearance,
forgiveness, interest, dividend, royalty, rent, capital gain,
reward, severance payment, proceeds from the sale of a
financial interest in a corporation, professional corporation,
partnership or other entity resulting from termination or
withdrawal therefrom upon assumption of public office or
employment or any other form of recompense or any
combination thereof. The term refers to gross income and
includes prize winnings and tax - exempt income. The term
does not include gifts, governmentally mandated payments or
benefits, retirement, pension or annuity payments funded
totally by contributions of the public official or employee, or
miscellaneous, incidental income of minor dependent children.
"Source." Any person who is a provider of an item
reportable under section 1105 (relating to statement of
financial interests).
"Person." A business, governmental body, individual,
corporation, union, association, firm, partnership, committee,
club or other organization or group of persons.
"Business." Any corporation, partnership, sole
proprietorship, firm, enterprise, franchise, association,
organization, self - employed individual, holding company, joint
deYoung, 06 -004
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stock company, receivership, trust or any legal entity
organized for profit.
65 Pa.C.S. § 1102.
We initially note that the Ethics Act is remedial legislation. Phillips v. State Ethics
Commission, 470 A.2d 659 (Pa. Cmwlth. 1984). The Ethics Act is specifically designed to
restore public confidence in government, and to that end, the Preamble of the Ethics Act
directs:
In order to strengthen the faith and confidence of the people of
this Commonwealth in their government, the Legislature further
declares that the people have a right to be assured that the
financial interests of holders of or nominees or candidates for
public office do not conflict with the public trust. Because
public confidence in government can best be sustained by
assuring the people of the impartiality and honesty of public
officials, this chapter shall be liberally construed to promote
complete financial disclosure as specified in this chapter.
65 Pa.C.S. § 1101(a) (Emphasis added).
The first question posed by the Commonwealth Court is whether, pursuant to the
Ethics Act, a candidate who has filed a Statement of Financial Interests identifying her
"direct or indirect source of income" as "Self- employed: Marie deYoung community
minister, writer, consultant" has complied with the financial disclosure requirements of
Section 1105(b)(5) of the Ethics Act or must identify each customer, client or parishioner
as a source of income. Through a straightforward application of Section 1105(b)(5) and
the related definitions set forth above, we determine that the candidate's aforesaid
disclosure would be insufficient to comply with Section 1105(b)(5) of the Ethics Act as to
reportable income, for the following reasons.
First, although a self - employed individual is one of the forms of businesses included
within the Ethics Act's broad definition of the term "business," the self - employed individual
as a form of business has no legal identity separate from that of the individual himself or
herself. In this regard, the self - employed individual is significantly different from a
corporation, the latter of which generally is an entity separate and distinct from its
shareholders. See, e.g., In re Erie Drug Company, 416 Pa. 41, 204 A.2d 256 (1964).
For purposes of reporting direct or indirect sources of income under the Ethics Act,
the self - employed individual and his business are indistinguishable as recipients of
business income. Therefore, a payment to a self - employed individual constitutes direct or
indirect income to the individual from the payor. The foregoing result stands in sharp
contrast to that of the example of a shareholder of a corporation. Because a corporation
has a legal identity that is separate and distinct from the shareholders, for purposes of
reporting sources of income under the Ethics Act, corporate shareholders generally need
not disclose on their Statements of Financial Interests customers, clients, or other sources
that have issued payments to the corporation.
In the instant matter, Dr. Scoles issued a check in the amount of $2,000 payable to
deYoung. The payment was a consulting fee, and it constituted income to deYoung. Dr.
Scoles, as the payor, was a direct or indirect source of that income to deYoung.
Based upon the above analysis, we determine that pursuant to Section 1105(b)(5)
of the Ethics Act, it was insufficient for deYoung as a self - employed individual to merely
disclose her self - employment as a source of income. Rather, a self - employed individual
who has disclosed his or her self - employment as a source of income must disclose on the
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Page 8
Statement of Financial Interests form each customer, client, or other non - confidential
source from which reportable income in the aggregate of $1,300 or more has been
received. This conclusion is consistent with the legislative intent and directive that the
Ethics Act be liberally construed to promote complete financial disclosure as specified in
Sections 1104 and 1105 of the Ethics Act. 65 Pa.C.S. § 1101(a).
The above conclusion is also consistent with case law. See, In re: Nominating
Petitions of Braxton, 583 Pa. 35, 874 A.2d 1143 (2005). In Braxton, supra, the candidate's
nomination petition was challenged on the basis that the candidate failed to properly
complete blocks 9, 10, 13 and 14 of his Statement of Financial Interests. One deficiency
related to rental income, for which the candidate's disclosure consisted merely of the
statement "Rental property in my name," without disclosure of the names of tenants or
addresses of the rental properties. The lower court (Philadelphia Court of Common Pleas)
opined that the candidate himself was the source of such income. (In re: Nominating
Petitions of Braxton, Philadelphia Court of Common Pleas, No. 1407 (April 11, 2005)). On
appeal, Commonwealth Court issued an Order affirming the decision of the lower court.
(In re: Nominating Petitions of Braxton, 660 C.D. 2005 (April 19, 2005)). On further appeal
to the Pennsylvania Supreme Court, the decision of Commonwealth Court was reversed.
(In re: Nominating Petitions of Braxton, 583 Pa. 35, 874 A.2d 1143 (2005)). In a per
curiam Order, the Pennsylvania Supreme Court concluded, inter alia, that the candidate
had not disclosed on his Statement of Financial Interests the sources of his rental income.
While the Court cited In re Nomination Petition of Benninghoff, 578 Pa. 402, 852 A.2d
1182 (2004) for the principle that a Statement of Financial Interests form is not fatally
defective and can be amended if there has been substantial compliance such that the
required disclosures can be facially determined from the provided information, Candidate
Braxton was not permitted to amend his form. Rather, his form was fatally defective, and
his failure to disclose the sources of his rental income was one of the omissions that
resulted in his removal from the ballot. Cf., Heck, Order 1251, affirmed by Order of
Commonwealth Court at docket 38 C.D. 2003 on October 16, 2003 (Holding that Heck, a
Public Utilities Commission analyst who obtained income from real estate that he owned
and rented, violated Section 1105(b) of the Ethics Act when he failed to list each tenant
and address as a source of income on his Statements of Financial Interests).
Similarly, in the instant matter, deYoung failed to disclose Dr. Scoles on her
Statement of Financial Interests as a direct or indirect source of the aforesaid $2,000
consulting fee.
This leads us to the second question posed by the Commonwealth Court: Whether
the aforesaid insufficient disclosure by deYoung constitutes an amendable or fatal defect.
We would initially clarify that no one is ever prohibited from amending his or her Statement
of Financial Interests. However, such an amendment occurring after the applicable filing
deadline has passed will not cure a fatal defect to a candidate's petition to appear on the
ballot. In the instant matter, the applicable filing deadline for deYoung's petition to appear
on the ballot and her related Statement of Financial Interests form has passed. Therefore,
an amendment to her Statement of Financial Interests at this point in time, though
permissible, will not cure a fatal defect to her petition to appear on the ballot. In applying
the "four corners of the document" approach adopted by the Supreme Court in In re
Nomination Petition of Benninghoff, supra, the necessary conclusion is that the aforesaid
insufficient disclosure by deYoung as to a reportable direct or indirect source of income
does indeed constitute a fatal defect to deYoung's petition to appear on the ballot. None
of the information contained within deYoung's Statement of Financial Interests form would
reveal that Dr. Scoles was a direct or indirect source of reportable income to deYoung.
Turning to the third question posed by Commonwealth Court, specifically, whether a
more stringent standard should be applied to Statements of Financial Interests filed in
conjunction with nomination petitions as opposed to those filed for other purposes when
determining whether a Statement of Financial Interests complies with the Ethics Act and
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March 30, 2006
Page 9
whether a defect is fatal, we are constrained to conclude that there is no basis in the Ethics
Act for applying any different standard to a candidate than to any other filer. A form is
either in compliance with the Ethics Act or it is not. The Ethics Act does not provide for
different standards, and this Commission as an administrative agency lacks the power to
legislate them. The Pennsylvania Supreme Court has stated that "administrative agencies
may exercise only the powers and authority conferred on them either expressly, or by
necessary implication, by the Legislature." Rivera v. Philadelphia Theological Seminary of
St. Charles Borromeo, 510 Pa. 1, 18, 507 A.2d 1, 10 (1986). Consistent with this
principle, this Commission has been mindful to administer the Ethics Act within the
statutory limitations established by the General Assembly and to avoid drawing a
distinction or creating an exception that does not exist by statute. See, e.g., Richardson,
Opinion 93 -006. In that the Legislature has not granted us the power to apply a more
stringent standard to Statements of Financial Interests filed in conjunction with nomination
petitions as opposed to Statements of Financial Interests filed for other purposes, there is
only one uniform standard as to such reporting, and we apply that same standard to all
filers in determining whether a given Statement of Financial Interests has been filed in
accordance with the provisions of the Ethics Act. However, as noted above, a candidate is
uniquely impacted by the consequence that failure to file the Statement of Financial
Interests in accordance with the provisions of the Ethics Act "shall, in addition to any other
penalties provided, be a fatal defect to a petition to appear on the ballot." 65 Pa.C.S. §
1104(b)(3).
We reject the arguments advanced by deYoung in her Memorandum of Law filed
with this Commission.
First, we reject deYoung's contention that to hold a sole proprietor to a different
standard than may be applicable to a filer with an ownership interest in some other form of
business is unfairly discriminatory, arbitrary and a denial of equal protection. As a matter
of law, there are significant differences between various forms of businesses and the
resulting application of various laws to individuals who own or hold stock in such
businesses. It was deYoung's decision to be a self - employed individual, and therefore
deYoung cannot now be heard to complain that she is not being afforded the advantages
flowing to stockholders of corporations.
DeYoung's characterization of the purpose of the Ethics Act — specifically, to give
the general voting public a "fair summary" of her sources of income —is an attempt to re-
write the statute and is a completely unfounded assertion that flies in the face of the stated
purpose of the Ethics Act and the case law favoring full financial disclosure in furtherance
of the public's interests.
DeYoung's various assertions that candidate statutory filing deadlines may
essentially be ignored and that full disclosure on the candidate's Statement of Financial
Interests form need only be accomplished prior to the actual voting by the electorate are
complete misstatements of the law. They are directly contradicted by the clear statutory
mandates that a candidate's Statement of Financial Interests must be filed on or before the
deadline for filing his or her petition to appear on the ballot and that the candidate's failure
to properly file the Statement of Financial Interests is a fatal defect to such petition. 65
Pa.C.S. § 1104(b).
DeYoung's argument that the error on her Statement of Financial Interests, if it
exists, is "de minimis," seeks to interject a completely inapplicable definition pertaining to
conflicts of interest under Section 1103(a) of the Ethics Act into Sections 1104 and 1105 of
the Ethics Act pertaining to Statements of Financial Interests, the latter being an area
where such definition or concept has no applicability whatsoever. The General Assembly
has legislated the threshold for disclosure under Section 1105(b)(5) of the Ethics Act.
As for deYoung's perceptions that the sanction she faces, specifically the fatality of
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March 30, 2006
Page 10
her nomination petition, is too severe, we would note that the public's interest in
enforcement of the Ethics Act as remedial legislation designed to restore public confidence
in government and to protect the public trust is of far greater importance than deYoung's
interest in avoiding the consequences of her failure to comply with the requirements for
filing Statements of Financial Interests pursuant to the Ethics Act.
Given our above disposition, we need not further address the arguments that have
been raised by Riley.
The questions posed by the Commonwealth Court of Pennsylvania have only been
addressed under the Ethics Act.
IV. CONCLUSION:
Pursuant to Section 1105(b)(5) of the Public Official and Employee Ethics Act
("Ethics Act "), 65 Pa. C.S. §1105(b)(5), a self - employed individual must disclose on the
Statement of Financial Interests form any direct or indirect source of reportable income,
including each customer, client, or other non - confidential source from which reportable
income in the aggregate of $1,300 or more has been received. A candidate who indicates
on her Statement of Financial Interests that she is "self- employed" as a community
minister, writer, and consultant, but who fails to disclose anywhere on her Statement of
Financial Interests the name and address of any customer, client, or other non - confidential
source from which she received reportable income totaling in the aggregate of $1,300 or
more, has failed to file her Statement of Financial Interests in accordance with the
requirements of Section 1105(b)(5) of the Ethics Act. Such failure constitutes a fatal defect
to a petition to appear on the ballot. When determining whether a Statement of Financial
Interests complies with the Ethics Act and whether a defect is fatal, there is only one
uniform standard as to such reporting, and there is no basis in the Ethics Act for applying
any different standard to a candidate than to any other filer.
The questions posed by the Commonwealth Court of Pennsylvania have only been
addressed under the Ethics Act.
This letter is a public record and will be made available as such.
By the Commission,
Louis W. Fryman
Chair
Commissioner Nicholas A. Colafella dissents.