Subchapter II. Financial Disclosure

§5811. Findings.

The General Assembly finds and declares that:

(1) In our democratic form of government, persons serving in state
government hold positions of public trust which require rigorous adherence
to the highest standards of honesty, integrity and impartiality.

(2) In order to insure propriety and preserve public trust, a public
official or employee should refrain from acting in his official capacity on
any matter wherein he has a direct or indirect personal financial interest
that might reasonably be expected to impair his objectivity or independence
of judgment, and should avoid even the appearance of impropriety.

(3) A disclosure of the personal financial interests of public officials
will serve to guard against conduct violative of this public trust and to
restore the public's faith and confidence in representatives of its
government. (64 Del. Laws, c. 110, §1.)

§5812. Definitions.

(a) "Public officer" shall mean:

(1) Any person elected to any state office; and

(2) Any person appointed to fill a vacancy in an elective state office; and

(3) Any candidate who has filed for any state office; and

(4) The Research Director and Controller General of the Legislative
Council; and

(5) The Chief Justice and Associate Justices of the Supreme Court; and

(6) The Chancellors and Vice-Chancellors of the Court of Chancery; and

(7) The President Judge and Associate Judges of Superior Court; and

(8) The Chief Judge and Associate Judges of Family Court; and

(9) The Chief Judge and Resident Judges of the Court of Common Pleas; and
(10) The Chief Magistrate and Justices of the Peace; and

(11) The State Court Administrator and the administrators of Superior
Court, Family Court, the Court of Common Pleas, and the Justice of the
Peace Courts; and

(12) The Public Guardian, the Executive Secretary of the Violent Crimes
Compensation Board, the Executive Director of the Child Placement
Review Board; and

(13) All Cabinet Secretaries and persons of equivalent rank within the
Executive Branch; and

(14) All division directors and persons of equivalent rank within the
Executive Branch; and

(15) The State Election Commissioner and the Administrative Directors and
Assistant Administrative Directors of the Department of Elections; and

(16) The State Fire Marshal and the Director of the State Fire School; and

(17) The Adjutant General of the Delaware National Guard.

Elected and appointed officials of political subdivisions of the State,
public school districts of the State and state institutions of higher
learning shall not be deemed to be public officers within the meaning of
this subchapter.

(b) "Constructively controlled" means:

(1) A financial interest in the name of another which is controlled by a
public officer by virtue of any relationship of the public officer to
another person and which directly benefits the public officer;

(2) Any financial interest of a public officer held jointly with the spouse
or child of such public officer;

(3) Any financial interest of the spouse or minor child of a public
officer.

(c) "Instrument of ownership" includes, but is not limited to, common or
preferred stock, rights, warrants, articles of partnership, proprietary
interest, deeds and debt instruments, if convertible to equity instruments.

(d) "Position of management" means officer, director, partner, proprietor
or other managerial position in a business enterprise.

(e) "Fair market value" means, if a security, the quoted price as of
January 1 of the year in which the report required by §5813 of this title
is filed, or, if not a security, the price at which the public officer
would sell as of January 1 of the year in which the report required by
§5813 of this title is filed.

(f) "Equity instrument" means any ownership interest in a corporation or
other legal entity giving rights to the holder upon liquidation of the
entity.

(g) "Time or demand deposits" means checking and savings account in banks
or deposits or share in savings and loan institutions, credit unions or
money market funds.

(h) "Debt instrument" means bonds, notes, debentures, mortgages or other
securities having a fixed yield if not convertible to equity instruments.

(I) "Professional organization" means an individual engaged in, or an
association organized pursuant to, federal or state law for the practice of
medicine, law, accounting, engineering or other profession.

(j) "Income for services rendered" means income from a single source and
includes salary, wages, consulting fees and professional services.

(k) "Capital gain" means capital gains required to be reported to the
Internal Revenue Service pursuant to federal internal revenue laws.

(l) "Reimbursement for expenditures" means any payments to a public officer
for expenses incurred by that public officer.

(m) "Honoraria" means fees received for speeches, written articles and
participation in discussion groups and similar activities, but does not
include reimbursement for expenses.

(n) "Business enterprise" means corporation, partnership, sole
proprietorship or any other individual or organization carrying on a
business or profession.

(o) "Gift" means a payment, subscription, advance, forbearance, rendering
or deposit of money, services or anything of value unless consideration of
equal or greater value is received. "Gift" shall not include a political
contribution otherwise reported as required by law, a commercially
reasonable loan made in the ordinary course of business, or a gift received
from a spouse or any relative within the 3rd degree of consanguinity of the
person or person's spouse or from the spouse of any such relative. (64 Del.
Laws, c. 110, §1; 64 Del. Laws, c. 223, §1; 67 Del. Laws, c. 418, §1.)

(p) "Commission" means the State Public Integrity Commission. (64 Del.
Laws, c. 110, §1; 64 Del. Laws, c. 223, §1; 67 Del. Laws, c. 418, §1; 69
Del. Laws, c. 467, §20.)

§5813. Report disclosing financial information.

(a) Every public officer as defined in §5812 of this title shall file a
report disclosing financial interests, as hereinafter provided. Each report
shall be on a form prescribed by the Commission, shall be signed by the
public officer, shall be notarized and shall include at least the following
information:

(1) The name and position of the public officer; and

(2) The name, instrument and nature of ownership, and any position of
management held by, or constructively controlled by, the public officer in
any business enterprise in which legal or equitable ownership is in excess
of $5,000 fair market value or from which income of more than $5,000 was
either derived during the preceding calendar year or might reasonably be
expected to be derived during the current calendar year. Time or demand
deposits in a financial institution, or any debt instrument having a fixed
yield shall not be listed unless convertible to an equity instrument; and

(3) The name, address and type of practice, without reference to the
identity of any individual clients served, of any professional organization
in which the public officer is the sole practitioner, officer, director or
partner, or serves in any advisory capacity, or which is constructively
controlled by the public officer, from which income of more than $5,000 was
either derived during the preceding year or might reasonably be expected to
be derived during the current calendar year; provided, however, that any
such organization construed as a business enterprise and reported pursuant
to paragraph (2) of this subsection need not be reported under this
subsection; and

(4) The source of each of the following items received during the preceding
calendar year, or reasonably expected to be received during the current
calendar year:

a. Any income derived for services rendered exceeding $1,000 from a single
source, unless such income is otherwise identified pursuant to paragraph
(2) or (3) of this subsection; or

b. Any capital gain exceeding $1,000 from a single source other than from
the sale of a residence occupied by the public officer; or

c. Any reimbursement for expenditures exceeding $1,000 from a single
source; or

d. Any honoraria; or

e. Any gift with a value in excess of $250 received from any person,
identifying also in each case the amount of each such gift. For purposes of
compliance with this gift reporting obligation, the recipient may rely in
good faith upon the representation of the source of the gift as to the
gift's value.

(5) Each creditor to whom the public officer was indebted for a period of
90 consecutive days or more during the preceding calendar year in an
aggregate amount in excess of $1,000.

(b) Each report required by this section shall contain a sworn
certification by the public officer that he has read the report, and that
to the best of his knowledge and belief it is true, correct and complete,
and that he has not and will not transfer any assets, interests or property
for the purpose of concealing it from disclosure while retaining an
equitable interest therein.

(c) Not later than 14 days after becoming a public officer as defined in
§5812 of this title, the report required by this subchapter shall be filed.
Thereafter, the report shall be filed on February 15 of each year.

(d) Each report required by this Section shall be filed with the
Commission.

§5814. Retention of reports.

(a) The Commission shall keep the reports required by this subchapter on
file for so long as the person submitting such report is a public officer
of this State, as defined in §5812 of this title, and for at least 5 years
thereafter. All reports on file with agencies other than the Commission as
of January 15, 1995 shall be transferred to the Commission by April 15,
1995.

(b) The reports filed pursuant to this subchapter shall be made available
at reasonable hours for public inspection and copying pursuant to Chapter
100 of this title.

§5815. Violations; penalties; jurisdiction of Superior Court.

(a) Any public officer who willfully fails to file a report in violation of
§5813 of this title shall be guilty of a class B misdemeanor.

(b) Any public officer who knowingly files any report required by §5813 of
this title that is false in any material respect shall be guilty of a class
A misdemeanor.

(c) The Commission may refer to the Commission Counsel for investigation
and/or may refer any suspected violation of this subchapter to the Attorney
General for investigation and prosecution; provided however, that the
Commission shall refer any suspected violation of this subchapter by a
member of the General Assembly or the Judiciary to the Attorney General,
who shall have the exclusive authority to investigate and prosecute or
otherwise recommend remedies or sanctions for such suspected violation. (69
Del. Laws, c. 467, §25.)

(d) Superior Court shall have jurisdiction over all offenses under this
subchapter. (64 Del. Laws, c. 110, §1.)

§5816. Protection of confidentiality.

Nothing contained in this subchapter shall be construed as requiring the
disclosure of any fact the confidentiality of which is protected by any
applicable federal or state law. (64 Del. Laws, c. 110, §1.)