SPECIAL ETHICS LAW MEMO #12

TO: Maryland Judicial Officials and Employees

SUBJECT: Financial Disclosure Coverage

State Government Article Section 15-103 of the Public Ethics Law requires all officials and candidates for office as State officials, except judges, masters, examiners, commissioners, auditors and referees of the Judicial Branch, to the Public Ethics Commission file financial disclosure statements with the State Ethics Commission. An initial disclosure statement must within 30 days after appointment to a position or office subject to the Law, and, thereafter, by April 30^th of each year for the prior calendar year. An official or employee must also file a termination statement through the date of termination within 60 days of leaving a position. Judicial officials are required to file as required by the Court of Appeals.

State officials include members or members-elect of the General Assembly, judges or judges-elect of courts created by Md. Const. art. IV, §1 and as addressed in Md. Rules 16-815 and 16-816, or constitutional officers or officers-elect in the executive branch of the State government. State officials also include individuals serving as State's Attorneys, Clerks of the Circuit Court for each county and the courts of the Supreme Bench of Baltimore City, Registers of Wills and Sheriffs.

The Public Ethics Law contains the following definition of public official for judicial branch employees:

Public official.—“Public official" means:

(1) Any individual in the Judicial Branch of government, including an individual employed in the office of a clerk of court, or paid by a political subdivision to perform services in any orphans' court, a circuit court for a county, the Supreme Bench of Baltimore City, or one of its courts, any individual employed by the Attorney Grievance Commission, the State Board of Law Examiners, or the Standing Committee on Rules who:

(a) Is classified or compensated at State Grade Level 16 (Judiciary Grade J12 or T07).

(b) Is not a judge, master, commissioner, examiner, auditor or

referee.

The Law further provides that the State Ethics Commission may exclude from the requirement to file persons meeting the above criteria on recommendation of the State Court Administrator if the Commission determines that the person’s position does not have policy, policy advice, quasi-judicial or procurement functions. NOTE: Persons serving in contractual positions in the Judicial Branch are not required to file financial disclosure statements. If you have any questions with regard to this issue, contact the offices of the State Ethics Commission.

Further Explanation

The State of Maryland Judiciary Salary Structure, as of July 1, 2008 for graded employees is as follows:

Grade J12 $41,477 to $66,881

AND

Grade T07 $41,555 to $67,000

1. Are individuals with grades lower than Grade J12 or T07 required to file financial disclosure statements if they are currently compensated at a figure equal to or above a Grade J12 or T07 base?

Answer: No. The legislation was apparently aimed at reaching people with certain duties or discretion. People in grades below J12 or T07 generally have less discretion and responsibility than those at Grade J12 or T07. Those persons employed at Grades J11 or J10 and T06 or T05, regardless of current compensation, are not required to file financial disclosure statements.

2. Do people neither classified nor compensated at a pay grade have to file?

Answer: Employees with flat pay rates equal to a J12 or T07 base or above are required to file financial disclosure statements.

3. Do people who serve in State or local graded, flat rate or classified systems different from the Maryland Grade 1 to 20 program need to file financial disclosure forms?

Answer: If the base of the grade is at or above a State Grade 16 base, then they are required to file financial disclosure statements; if below, they are not. Flat rate employees under local or other special personnel systems will be required to file if the rate is equal to or higher than a State Grade 16. Employees of the judicial branch of government and certain other agencies must file with the State Ethics Commission even if they generally are treated as local government employees for payroll purposes. Specific questions involving comparability of positions and pay should be referred to the Ethics Commission.

4. Are part-time employees who are compensated at a rate at or above State Grade 16 base but, because of their part-time status, do not actually earn a salary equal to a State Grade 16 base need to file financial disclosure statements?

Answer: Yes. It is the pay rate or pay grade that governs the need for the individual to file a financial disclosure statement rather than his earned yearly income. Specific questions involving the applicability of the Ethics Law to part-time personnel should be referred to the Ethics Commission.

5. What should a person do if he or she has questions regarding financial disclosure statements or other provisions of the Public Ethics Act?

Answer: If you need any additional information regarding the application of the Public Ethics Law or questions referred to the State Ethics Commission, consult your Financial Disclosure Filer Identification Manual, or call 410-260-7770. If you need a copy of the Manual, call the State Ethics Commission and a copy will be forwarded to you.

(7/1/08)