45 Calvert Street, 3rd Floor
Annapolis, MD 21401
410-260-7770
Toll Free 1-877-669-6085
http://ethics.gov.state.md.us
BOARD AND COMMISSION MEMBERS
(Pursuant to the Public Ethics Law, Md. Code Ann., State Gov’t Article, Title 15 (Supp. 2005)
and Code of Maryland Regulations (“COMAR”) 19A.03.01)
A MESSAGE TO THOSE WHO ARE REQUIRED TO FILE DISCLOSURE STATEMENTS
These instructions apply only to members of boards, commissions and similar bodies filing disclosure statements on Ethics Commission Form No. 2. The information required on this form focuses on interests or activities having connections with your board and establishes minimum levels of interests below which disclosure is not required. You are encouraged to use the electronic form as it is programmed to display directions of each schedule and to provide access to the glossary of terms throughout the process. It will also direct the filer toward completion of all of the required information, thus making it unnecessary for the Commission to write to you for additional information. It will also make completion in future years much easier as it will require you to enter only changes occurring during that filing period. If you have no information to report, you are required to complete the "No Interest" certification on the last page of the form (both the electronic form and the paper form). If you have chosen to file electronically, your submission of the form through that process is under oath or affirmation and penalty of perjury. If you file the paper form, you will need to have the form notarized.
Please read the instructions and definitions carefully and be sure to disclose all information requested for each interest you list on your statement. Your careful attention to submission of a complete and legible (if you choose to submit a printed form) statement will make it unnecessary for the Commission to write to you for additional information and will make it easier for you to complete your report in future years. If you choose to submit the electronic form, the process itself will guide you to appropriate completion of the form.
Financial disclosure statements are public records that may be examined or copied by the public. Upon request, the Commission will send you the names and addresses of any persons who have examined or copied your statement.
As always, if you have any questions with regard to completion of the form, please contact this office and our staff will be happy to assist you.
Thank you for your cooperation.
A. Persons Required to File Statements
In response to a written request, the State Ethics Commission may exempt from the financial disclosure provisions any State board or commission and may modify the disclosure requirements applicable to public officials on boards or commissions if it finds (1) because of the nature of the board or commission, the application of the requirements would constitute an unreasonable invasion of privacy and would significantly reduce the availability of qualified persons for public service, and (2) filing would not be necessary to preserve the purposes of the Public Ethics Law. See Public Ethics Law § 15-209(a).
B. When to File
1. Persons serving as of January 1st of a given calendar year must file this disclosure statement on or before April 30th of that year for the previous calendar year.
2. A person who does not have a current financial disclosure statement on file and who is appointed to fill a vacancy on a non-exempt board or commission or a person on a board whose status has changed from exempt to non-exempt shall file a statement within 30 days after appointment, or 30 days after the designation of that board as non-exempt.
3. If a person on a non-exempt board leaves the board after January 1 but prior to filing the regular annual statement due April 30th, he or she must file the annual statement (for the preceding calendar year), and, in addition, identify it as a termination statement for the part of the current year served. Persons leaving boards after filing the statement for the preceding calendar year (due April 30th each year) must file a termination statement for the portion of the current year served. You must file a termination statement within 60 days of leaving the board.
C. Reporting Period
The reporting period for any filing is the preceding calendar year (the period covered by the 2007 submission is January 1 to December 31, 2006). However, if you are filing a termination report and have filed a report for the previous calendar year, the reporting period will be from January 1st of the current calendar year until the last day of service on the board. See Public Ethics Law § 15-602.
D. Where to Get Forms and Where to File
You may access both the electronic form and the paper/downloadable version of the form on our web site, http://ethics.gov.state.md.us, or from our office. The Commission recommends that you complete and submit the form electronically, but if you do choose to complete the paper form, you will need to submit it notarized, to the State Ethics Commission, 45 Calvert Street, 3rd Floor, Annapolis, Maryland 21401 no later than April 30th of each calendar year.
E. Advisory Opinions
At the written request of any person subject to the Law, the State Ethics Commission will issue an advisory opinion concerning the application of the Public Ethics Law. To the extent possible, the published opinion will not contain material identifying the person who is its subject. Requests for advisory opinions should be in writing and addressed to the State Ethics Commission, 45 Calvert Street , 3rd Floor, Annapolis, Maryland 21401.
F. General Definitions See Public Ethics Law § 15-102.
"Board or commission" includes the filer's board or commission and any unit administered, governed or subject to appellate review by the board or commission.
"Business or business entity" means any corporation, general or limited partnership, limited liability corporation, limited liability partnership, sole proprietorship (including a private consulting operation that engages in business), joint venture, unincorporated association or firm, institution, trust, foundation or other organization, whether or not operated for profit, regardless of form.
"Doing business with" means:
(1) being a party to any one or any combination of sales, purchases, leases or contracts to, from, or with the filer's board or commission, involving consideration of at least five thousand dollars ($5,000) on a cumulative basis during the calendar year for which a required statement is filed (as of the awarding or execution of a contract or lease, the total then ascertainable consideration committed to be paid shall be included, regardless of the period of time over which such payments are to be made) (note that the Commission maintains a substantial list of businesses that do business with the State);
(2) being a lobbyist or lobbyist employer registered to lobby before the filer's board or commission (note that a list of registered lobbyists is maintained by the Commission);or
(3) being regulated by the filer's board or commission.
"Gift" means the transfer of anything of economic value regardless of the form without adequate and lawful consideration. "Gift" does not include the solicitation, acceptance, receipt, or regulation of political campaign contributions regulated in accordance with the provisions of the Elections Article of the Annotated Code of Maryland, or any other provision of State law regulating the conduct of elections or the receipt of political contributions.
"Immediate family" means spouse and dependent children.
"Interest" means any legal or equitable economic interest, whether or not subject to an encumbrance or a condition, which was owned or held, in whole or in part, jointly or severally, directly or indirectly. Interest does not include:
(1) an interest held in the capacity of a personal representative, agent, custodian, fiduciary or trustee, unless the holder has an equitable interest in the subject matter;
(2) an interest in a time or demand deposit in a financial institution;
(3) an interest in an insurance or endowment policy or annuity contract under which an insurer promises to pay a fixed amount of money either in a lump sum or periodically for life or a specified period; or
(4) a common trust fund or trust that forms part of a pension or a profit-sharing plan that has more than 25 participants and which is determined by the Internal Revenue Service to be a qualified trust or college savings plan under the Internal Revenue Code.
"Official" means either a State or public official (including members of boards and commissions).
"Person" includes an individual or business entity.
"Political contribution" means contributions as that term is defined in §1‑101 of the Election Law Article of the Annotated Code of Maryland.
"Regulated by" the filer's board or commission does not include the mere act of approval or authorization of a corporate or business name by a board or commission.
“Tenants by the Entirety” means an undivided equal ownership interest with survivorship rights in real property with one’s spouse.
G. Attributable Interest
Section 15-608 of the Public Ethics Law provides that certain property and business interests not directly held by a filer are nonetheless attributed to the filer and must be reported by him or her. (See Schedules A, B, and C, questions on "Nature" of interest.) The circumstances under which attribution occurs are as follows:
1. If you owned a 30% or greater equity interest in any business entity during the reporting period and that business entity holds a property or business interest which you would have to report on Schedule A, B, or C if you owned it directly, the interest is attributable to you and must be reported on the appropriate Schedule. This limited attribution does not reduce or affect in any way the requirement for disclosure on Schedule A of real property held by a partnership even if the filer holds less than a 30% interest in the partnership.
2. If your spouse or child holds a property or business interest which you would have to report on Schedule A, B, or C if you owned it directly, and if you exercised direct or indirect control over that interest at any time during the reporting period, the interest is attributable to you and you must report it on the appropriate Schedule.
3. If at any time during the reporting period you (a) held a reversionary interest in a trust or estate or (b) were the beneficiary of a trust or estate or (c) were the settlor of a revocable trust, any interest held by the trust or estate which you would have to report on Schedule A, B, or C if you owned it directly is attributable to you and you must report it on the appropriate Schedule. A trust, within the meaning of this section, does not include a common trust fund or a trust which forms part of a pension or profit‑sharing plan having more than 25 participants and is a qualified trust in accordance with §§401 and 501 of the Internal Revenue Code.
H. Unknown Information
COMAR 19A.03.01.03J provides that board and commission members must disclose information if the "member knows or should be reasonably expected to know [it]."
FORM INSTRUCTIONS
Identifying Information
If you choose to file a paper form, print or type your complete name and identify the board or commission on which you serve. If you are filing electronically, respond to the questions in the space or “field” provided. State your position on the board or commission (i.e., Chairman, member, alternate, etc.) and provide the complete current business address of the board or commission. Fill in the year of the reporting period. If this report is for only part of a year because you are terminating your service on a board or commission, then the reporting period will cover from January 1 of the current calendar year until your last day of service on the board or commission.
Signature and Notarization
If you choose to file electronically, at the end of the form you will be asked to check a box indicating that you understand that your submission of the form is under oath or affirmation and under the penalty of perjury. You will not be able to submit the electronic form until you have completed the verification process. If you choose to file a paper form, you must sign and date the form and have it properly notarized. Forms submitted without proper notarization will not be accepted. The Commission will not consider your financial disclosure statement to be filed until the properly notarized statement is resubmitted.
SCHEDULE A. Real Property
Report real property interests held during the reporting period either by the filer or a partnership in which the filer has an interest, if the interest in the real property meets any one of the following criteria: a) it is subject to a lease or other contract with your board or commission; b) it is the subject of a lease or other contract with an entity if the entity has a contract with the board or commission, or is regulated or licensed by it; c) if a co‑owner has a contract with your board or commission, or is regulated or licensed by it; d) if it was negotiated for sale or lease or was sold or leased to your board or commission during the reporting period; e) if it was held during the reporting period, and you plan to offer it for lease or sale to your board or commission during the current calendar year; f) if you purchased from or sold to a person having a contract with your board or commission, or who is regulated or licensed by it; g) if it is regulated by your board or commission. You must disclose property you own whether or not you have constructed improvements on it. Schedule A deals with real property interests only; do not report here your interests in business entities. If real property is held by a corporate or non‑partnership entity attributable to you or is held by a partnership, list the real property on this Schedule, and report your interest in the entity on Schedule B, C, or H (whichever is appropriate).
IF YOU ARE REQUIRED TO COMPLETE THIS SCHEDULE BECAUSE YOU HOLD A REAL ESTATE INTEREST DESCRIBED ABOVE, please answer questions 1 through 7B as appropriate. The State Ethics Commission’s regulations require you to disclose the address and nature of the property; the nature and extent of your ownership and any co-owners; and its acquisition value. The regulations also require you to disclose any transfers of all or part of the property during the reporting period.
SCHEDULE B. Interests in Corporations (Including Limited Liability Corporations (LLCs))
Report interests in corporations you held during the reporting period, if the interest meets any one of the following criteria: a) interests of greater than 1 percent in entities regulated or licensed by your board or commission; b) interests of greater than 1 percent in entities negotiating a contract or having a contract with your board or commission that involves doing business with the State in the amount of $5,000 or more annually; c) interests of greater than 1 percent in entities that do business with your board or commission; d) interests of 20 percent or greater in entities in which an interest is also owned by a person regulated by, contracting with (in an amount of $5,000 or more annually), licensed by, or lobbying before your board or commission; or e) interests of 20 percent or greater in entities that own a direct financial interest in another entity regulated by, contracting with (in an amount of $5,000 or more annually), licensed by, or lobbying before your board or commission. Filers are not required to disclose holdings in an Internal Revenue Service qualified trust or college savings plan. This would include the State of Maryland § 401(a), § 401(k) and § 457 (deferred compensation) plans. This would also include Maryland College Savings Plans, such as 529 investment accounts. Other possible qualified retirement accounts include 403(b) plans. The filer must determine whether the plan in which they participate meets the requirements for exemption from disclosure. (See definition of “interest” in glossary of terms.)
IF YOU ARE REQUIRED TO COMPLETE THIS SCHEDULE BECAUSE YOU HOLD AN INTEREST IN CORPORATIONS DESCRIBED ABOVE, please answer questions 1 through 8B as appropriate. The State Ethics Commission’s regulations require you to disclose the address and nature of the interest; the nature and extent of your ownership and any co-owners; and its value. The regulations also require you to disclose any transfers of all or part of the interest during the reporting period.
SCHEDULE C. Interests in Non‑Corporate Business Entities
Report interests in non‑corporate business entities (including limited liability partnerships (LLPs)) you held during the reporting period if the interest meets any one of the following criteria: a) interests of greater than 1 percent in entities regulated or licensed by your board or commission; b) interests of greater than 1 percent in entities negotiating a contract or having a contract with your board or commission that involves doing business with the State in the amount of $5,000 or more annually; c) interests of greater than 1 percent in entities that do business with your board or commission; d) interests of 20 percent or greater in entities in which an interest is also owned by a person regulated by, contracting with (in an amount of $5,000 or more annually), licensed by, or lobbying before your board or commission; or e) interests of 20 percent or greater in entities that own a direct financial interest in another entity regulated by, contracting with (in an amount of $5,000 or more annually), licensed by, or lobbying before your board or commission.
IF YOU ARE REQUIRED TO COMPLETE THIS SCHEDULE BECAUSE YOU HOLD AN INTEREST IN CORPORATIONS DESCRIBED ABOVE, please answer questions 1 through 6B as appropriate. The State Ethics Commission’s regulations require you to disclose the address and nature of the interest; the nature and extent of your ownership and any co-owners; and its value. The regulations also require you to disclose any transfers of all or part of the interest during the reporting period.
SCHEDULE D. Gifts
Report each gift received by you or by any other person at your direction in excess of $50 in value, or a series of gifts from any one person totaling $100 or more, from or on behalf of, directly or indirectly, any person who does business with or is regulated by your board or commission, or is registered or required to register before your board or commission under the lobbying title of the Public Ethics Law. See General Instructions for the definition of "gift." You need not report the following gifts:
1. From your spouse, children, and parents.
2. Campaign contributions that are regulated in accordance with the election laws and political contributions.
SCHEDULE E. Offices, Directorships & Salaried Employment
Report all offices, directorships, and salaried employment you, your spouse, or dependent children held at any time during the reporting period with any business entity doing business with your board or commission. Also list on this Schedule any other similar interest (such as being a partner) not otherwise disclosed that you, your spouse, or dependent child held at any time during the reporting period with an entity that does business with your board or commission. See the definition of "doing business with" in the General Instructions.
Report offices, appointments, and employment, etc. you held in corporate or non‑corporate entities, including partnerships. For example, you must report the presidency of a corporation or a joint venture or employment as an engineer in a consulting firm that is a partnership.
IF YOU ARE REQUIRED TO COMPLETE THIS SCHEDULE BECAUSE YOU OR A MEMBER OF YOUR IMMEDIATE FAMILY HOLD EMPLOYMENT, OFFICES, OR DIRECTORSHIPS DESCRIBED ABOVE, please answer questions 1 through 5 as appropriate. The State Ethics Commission’s regulations require you to disclose the address and nature of the business entity; the title of the office held; and to identify the immediate family who held the position.
SCHEDULE F. Debts
Report all debts you owed during the reporting period to any person or entity doing business with your board or commission. Exclude retail credit accounts including store and bank charge accounts. Include installment loans, mortgages, car loans, or other time debts.
SCHEDULE G. Family Members Employed by Board or Commission
List in Schedule G all members of your immediate family (spouse and dependent children) who were employed by your board or commission in any capacity at any time during the reporting period. Include the name of the person, their relationship to you, and a description of the person's position.
SCHEDULE H. Employment and Business Ownership
List the name and address of: 1) places of employment your spouse or dependent child held; 2) business entities wholly owned by you, your spouse, or dependent child, and from which income was earned during the reporting period and 3) business entities partially owned by you, your spouse or dependent child that did business with your board or commission. You must report employment whether or not the entity did business with your board or commission. A variety of activities are reportable in this Schedule, including, for example, employment with a corporation, individual consulting activities, private practices, and business activities involving income‑producing real property (such as ownership and management of rental apartment units). Provide the name and address of the entity, whether the interest is employment or ownership, and whether you, your spouse or dependent child held it.
SCHEDULE I. Other
The general conflict of interest provisions in Subtitle 5 of the Public Ethics Law apply to board and commission members. Subtitle 5 of the Public Ethics Law includes disqualification and employment interest prohibitions, gift solicitation and acceptance limitations, representational limits, and provisions relating to misuse of office and official confidential information. You should be aware that some interests or activities could be violations of the conflict of interest provisions even though you might not be required to disclose them in Schedules A through H. Thus, the filer should also disclose on this Schedule any additional interests, not otherwise disclosed, that the filer believes may create a conflict of interest between the filer's personal interest and the filer’s duties as a member of the board or commission.
NO REPORTABLE INTEREST OR ACTIVITIES
This certification may be completed if you have nothing to report on any Schedule. It should be used, however, only if you have thoroughly reviewed each Schedule and the Instructions and are certain that you have no interests or activities to report. Most filers will not be able to use this certification because there is usually a disclosure required on Schedule H. Note that, if you choose to file a paper form, you must also complete page one including the notarization requirement.
Alternate formats will be provided upon request for persons with disabilities.
October 1, 2007