March 22, 2011

DISPOSITION AGREEMENT

The State Ethics Commission and William Schmidt ("Schmidt") enter into this Disposition Agreement pursuant to Section 5 of the Commission's Enforcement Procedures. This Agreement constitutes a consented-to final order enforceable in the Superior Court, pursuant to G.L. c. 268B, § 4(j).

The State Ethics Commission is authorized to enforce G.L. c. 268B, the Financial Disclosure Law, and in that regard to initiate and conduct adjudicatory proceedings. On November 19, 2010, the Commission found reasonable cause to believe that Schmidt violated G.L. c. 268B, § 5, and authorized the initiation of adjudicatory proceedings.

The Commission and Schmidt now agree to the following findings of fact and conclusions of law:

1. Schmidt served as the Executive Office of Health and Human Services Director of Planning and Control for more than 30 days in 2009. As the Executive Office of Health and Human Services Director of Planning and Control, Schmidt was a state employee as that term is defined in G.L. c. 268A, § 1.

2. In accordance with G.L. c. 268B and 930 CMR 2.00, Schmidt's position of Executive Office of Health and Human Services Director of Planning and Control was designated as a major policy-making position for calendar year 2009. As such, Schmidt was required to file a Statement of Financial Interests ("SFI") for calendar year 2009 by May 17, 2010, in accordance with G.L. c. 268B and 930 CMR 2.00.


3. Schmidt was informed of his obligation to file an SFI for calendar year 2009.

4. Schmidt did not file an SFI on or before May 17, 2010.

5. On June 14, 2010, the Commission sent by first class mail a Formal Notice of Lateness ("Notice") to Schmidt. The Notice advised Schmidt that his SFI had not been filed and was, therefore, delinquent. The Notice further advised Schmidt that failure to file his 2009 SFI within 10 days of receipt of such Notice would result in the imposition of civil penalties. The Commission allows three days for receipt of the Notice if sent by first class mail. Therefore, Schmidt would not incur a civil penalty if he filed his SFI by June 27, 2010.

6. Schmidt did not file an SFI with the Commission until July 26, 2010.

7. Schmidt's failure to file an SFI within 10 days of receiving the Notice was a violation of G.L. c. 268B, § 5.

8. General Laws c. 268B, § 4 authorizes the Commission to impose a civil penalty of up to $10,000 for each violation of c. 268B. [1] During the relevant time, the Commission had two schedules of penalties for SFIs filed more than 10 days after the receipt of the Notice.

For first time late submission of an SFI:

1-10 Days Late: $100

11-20 Days Late: $200

21-30 Days Late: $400

31 or More Days Late: $1,000

Non-filing of an SFI: $10,000

For the repeated late submission of an SFI:

1-10 days delinquent: $200

11-20 days delinquent: $400

21-30 days delinquent: $800

31 days or more: $2,000

Non-filing of an SFI: $10,000

9. This is the first time Schmidt submitted his SFI late.

10. Schmidt's SFI was 29 days late, and based on the Commission's fine schedule for first time late submission of an SFI, the civil penalty is $400.

In view of the foregoing violation of G.L. c. 268B, § 5 by Schmidt, the Commission has determined that the public interest would be served by the disposition of this matter without further enforcement proceedings, based on the following terms and conditions agreed to by Schmidt:

  • that Schmidt pay to the Commonwealth of Massachusetts, with such payment delivered to the Commission, the sum of $400 as a civil penalty for violating G.L. c. 268B, § 5; and

  • that Schmidt waive all rights to contest, in this or any other administrative or judicial proceeding to which the Commission is or may be a party, the findings of fact, conclusions of law and terms and conditions contained in this Agreement.

STATE ETHICS COMMISSION

___ //signed// 3/8/11_ ___ //signed// 3/22/11_
William Schmidt Date Karen L. Nober Date
Executive Director

I, William Schmidt, have personally read the above Disposition Agreement. I understand that it is a public document and that by signing it, I will have agreed to all of the terms and conditions therein, including payment of $400 to the Commonwealth of Massachusetts, with such payment delivered to the State Ethics Commission.

___ //signed// 3/8/11_
William Schmidt Date




[1] General Laws c. 268B, the Financial Disclosure Law, as amended by c. 28 and c. 105 of the Acts of 2009, authorizes the Commission to impose a civil penalty of up to $10,000 for each violation of c. 268B.