SPECIAL ETHICS LAW MEMO

 

           

FREQUENTLY ASKED QUESTIONS

REGARDING FINANCIAL DISCLOSURE

 

  1. What is Financial Disclosure?  Financial disclosure is the filing of a form, usually on an annual basis, disclosing certain financial interests that may relate to the conflict of interest provisions in the Law.
  2. Where is the Financial Disclosure Law found? Md. Code Ann., State Gov’t §§15-601 through 15-611.
  3. What is the purpose of the Financial Disclosure law?  Some of the purposes of the law are to: provide public access to documents disclosing possible conflicts of interest; provide access to documents that demonstrate to the public that financial interests are not hidden and that, generally, officials and employees are not engaging in conflicts of interest.
  4. Who is required to file a financial disclosure statement with the Ethics Commission? Members of Executive Branch boards and commissions, all State elected officials, candidates for state office, members of the General Assembly, and certain employees who are designated as public officials under standards set in the Law.  The criteria for designation as a public official may vary by branch of government and take into consideration a variety of factors, including compensation, duties or both.
  5. What information does the financial disclosure statement require?  Interests held in real property; interests in corporations and partnerships; interests in non-corporate business entities that do business with the State; gifts over $20 in value or a series of gifts totaling more than $100 received from a person doing business with the State, regulated by the State, or registered as a lobbyist; offices, directorships, salaried employment or similar interests in business entities that do business with the State, held by the official or employee or his or her immediate family; debts owed to persons doing business with the State; names and positions of family members who are employed by the State; and the name of each place of salaried employment and identification of any business entity in which the official, employee or member of their immediate family was the sole or partial owner and from which income was earned.
  6. How do I file the financial disclosure statement?   Either electronically at https://efds.ethics.state.md.us (also accessible through our web site by clicking on Electronic Filing Financial Disclosure) or; if you are unable to file electronically, by paper by downloading the form from our web site, completing it, signing it, having it notarized, and returning the completed, signed and notarized form to the State Ethics Commission, 45 Calvert Street, 3rd Floor, Annapolis, Maryland 21401.
  7. Why am I required to file a financial disclosure statement providing information for the calendar year before I was an employee or a candidate?  The law requires that a financial disclosure statement cover the calendar year immediately preceding the year of filing.  As such, if you filled a position in 2007 required to file financial disclosure, then you would need to file for the calendar year 2006 within 30 days of assuming the position.
  8. Can I file my form by fax? No. The Commission must receive either the electronic form (https://efds.ethics.state.md.us) or the original signed and notarized form.
  9. What is the filing deadline?  April 30th for incumbent employees and within 30 days of taking the position for new employees. 
  10. What is the fee for filing a financial disclosure statement?  There is no fee.
  11. I left my filing position last year.  Why do I have to file a financial disclosure statement after I leave my position?  You are required to file a statement for each year in which you hold a filing position and within 60 days after leaving your position.  Therefore, you are required to file a statement, reflecting your financial interests from January 1st of the year in which you leave your position through the last day of your employment in that position, within 60 days after you leave your position.
  12. Must the financial disclosure statement be filed under oath? Yes.  If you file electronically, you will be asked to swear or affirm under the penalties of perjury (on the Completion page).  If you are unable to file electronically, and must file a paper form, you will need to have the form notarized.  Most agencies have notaries on staff.  Additionally, our office will provide notary services to you free of charge.
  13. What happens if I fail to file a financial disclosure statement by the deadline?  The Commission may issue a complaint against you.
  14. What is the sanction imposed for failing to file a financial disclosure statement?  The Commission may assess late fees up to $250, issue a reprimand, and/or recommend censure, removal or other discipline.
  15. Are financial disclosure statements publicly available?  Yes.  The person inspecting the document must appear in person, present identification, and register his or her name, home address, and the identity of the person whose statement was inspected.  If you have noted on your form that you wish to notified if someone asks to see your form, we will notify you of the name and home address of the person who requested your form and the date on which it was requested.  Electronically submitted forms are not accessible to the public over the internet.  Electronically submitted forms are available for viewing only at our office.
  16. I invested funds through a stock brokerage firm.  Am I required to list each corporation in which I have invested through the stock brokerage firm on my financial disclosure statement?  Yes.  The electronic process will take the filer right through the process.  If you are unable to file electronically, you may attach a year-end statement from your brokerage firm which lists all of your holdings and transactions throughout the calendar year.  If you do so, be sure to black out your account number and social security number and any information that is not required (cash accounts, annuities, etc.).  We are not permitted to alter your forms after they are submitted, and it is not wise to include unnecessary information on your financial disclosure statements.
  17. If I rent an apartment and do not own any real property, must I disclose anything on Schedule A? Yes.  Schedule A requires that you disclose any interests you may have in real property, including apartment leases if you rent.  An example of the few circumstances not requiring disclosure would be if you live rent-free in a residence owned by someone else and the interest is not attributable to you pursuant to the definitions in the Public Ethics Law.
  18. Am I required to list mutual funds in which I have placed deferred compensation on Schedule B of my financial disclosure statement?  As of October 1, 2007, you are no longer required to disclose holdings in your State of Maryland §457(deferred compensation) plan.  Additionally, you are not required to disclose information on holdings in any Internal Revenue Service qualified trust or college savings plan that has at least twenty-five (25) participants.  This includes State of Maryland § 401(a) and § 401(k) plans and Maryland College Savings Plans, such as § 529 investment accounts.  Other plans excluded from the disclosure requirement may include § 403(b) plans and other plans that meet the exemption requirements of § 15-102(t)(2)(iv) of the Ethics Law.

 

 

The Ethics Commission has drafted these financial disclosure FAQs to provide general information about financial disclosure and to assist financial disclosure filers while they complete the annual statement.  The Commission encourages any person with additional questions, or a need for further assistance with the filing, to contact the Commission directly at 410-260-7770.

 

(3/31/08)