Ethically Speaking - Statements of Economic Interests

Mark Boardman, Attorney, Boardman, Carr, Petelos, Watkins & Ogle P.C.

This edition of CLAS School Leader focuses on the Legislature. All legislators, and many others, must file Statements of Economic Interests.

The Legislature has decided that transparency promotes ethical conduct by public officials and public employees. The Alabama Legislature requires all public officials and some public employees to file Statements of Economic Interest (SEI) asking detailed information about a public official’s or public employee’s (and their family’s), income, and debts (except a residential mortgage). You probably already know whether you must file an SEI, and if you do, the rest of this article only tells you what you already know.

The Alabama Ethics Act requires the Statement of Economic Interest to be filed with the Commission no later than April 30 of each year. The Statement must cover the preceding calendar year.

The Statements are quite broad, and you can search on the Ethics Commission website for the SEI’s that have been filed with it. SEI’s can be filed electronically. A person must identify their government agency, whether they are paid any compensation, and whether they receive any compensation in any position other than their public position. The filer must state whether the filer’s spouse received compensation and the total household income, in four categories, up to $50,000, between $50,000 and $150,000, between $150,000 and $250,000, and more than $250,000 annually. The filer must also list dependents. Additionally, the filer must identify certain indebtednesses and the combined amount of indebtedness. The filer must post land owned and its fair market value. For those individuals who work in professional or consulting services, and those filers or spouses who work in professional or consulting services, the filer must identify the type of consulting service, the income during the past year, and anticipated annual retainer income.

Those required to file can be divided into three broad categories. First, candidates for political office must file within five days of filing qualifying papers. Second, public employees who earn more that $97,000 annually (effective January 1, 2023 for the 2022 SEI filings) must file. The $97,000 is base pay and applies to anybody employed by a state, county, or municipal government. This figure adjusts annually depending on inflation. The third category of filers is public officials and public employees holding certain positions. (See “Are You A Public Employee or a Public Official” CLAS School Leader; Spring Issue 2020, pg. 8.) In addition to elected or appointed public officials, other filers include:

• City and county school superintendents, school board members, school principals and administrators.

• Governmental employees who have authority to make purchases with public funds.

• Chief financial and accounting directors and grant coordinators.

• Every full-time public employee serving as a supervisor.

• Members of any appointed board or commission having statewide jurisdiction, but excluding members of some of the advisory boards.

• County, state, and municipal government leaders and administrators.

• Those employed by the government to invest public funds.

• Building inspectors and those who grant or deny development permits.

• Police and fire chiefs.

• County or municipal administrators, clerks, and managers.

• Full time, non-merit employees unless employed in maintenance, clerical, secretarial, or similar positions.

• Directors and assistant directors of state agencies.

Others who are required to file include employees of the legislature or judicial branch of government, but that does not apply to CLAS members. (If you question whether you should also file, ask a lawyer or call the Ethics Commission.)