Minutes January 23, 2007 MINUTES OF THE OPEN SESSION OF THE RHODE ISLAND ETHICS COMMISSION January 23, 2007 The Rhode Island Ethics Commission held its 2nd meeting of 2007 at 9:00 a.m. at the Rhode Island Ethics Commission conference room, located at 40 Fountain Street, 8thFloor, Providence, Rhode Island, on Tuesday, January 23, 2007, pursuant to the notice published at the Commission Headquarters and at the State House Library. The following Commissioners were present: James Lynch, Sr., Chair James V. Murray Barbara Binder, Vice Chair James C. Segovis** George E. Weavill, Jr., Secretary Frederick K. Butler Richard E. Kirby* Ross Cheit Also present were Kathleen Managhan, Commission Legal Counsel; Kent A. Willever, Commission Executive Director; Katherine D’Arezzo, Senior Staff Attorney; Staff Attorneys Jason M. Gramitt and Dianne L. Leyden; and Commission Investigators Steven T. Cross, Peter J. Mancini and Michael Douglas. At approximately 9:15 a.m., the Chair opened the meeting. The first order of business was to approve the minutes of the Open Session held on January 9, 2007. Senior Staff Attorney D’Arezzo noted a correction on page 5 regarding which members moved to approve Regulation 5018. Upon motion made by Commissioner Butler and duly seconded by Commissioner Binder, it was unanimously VOTED: To approve the minutes of the Open Session held on January 9, 2007, as corrected. The next order of business was advisory opinions. The advisory opinions were based on draft advisory opinions prepared by the Commission Staff for review by the Commission and were scheduled as items on the Open Session Agenda for this date. The first advisory opinion was that of Bruce Picard, a Charlestown Town Council member. Senior Staff Attorney D’Arezzo presented the Commission Staff recommendation. The petitioner was not present, but she informed that he had reviewed the draft opinion and stated that he was in agreement. *Commissioner Segovis arrived at 9:22 a.m. Upon motion made by Commissioner Murray and duly seconded by Commissioner Binder, it was unanimously VOTED: To issue an advisory opinion, attached hereto, to Bruce Picard, a Charlestown Town Council member. ABSTENTION: James C. Segovis. **Commissioner Kirby arrived at 9:23 a.m. Upon motion made by Commissioner Cheit and duly seconded by Commissioner Binder, it was unanimously VOTED: To go into Executive Session pursuant to R.I. Gen. Laws § 42-46-5(a)(4), to wit: a.) Motion to approve minutes of Executive Session held on January 9, 2007. b.) Motion to amend minutes of Executive Session held on December 12, 2006. c.) In re: Joseph A. Montalbano, Complaint No. 2006-4 d.) In re: Joseph A. Montalbano, Complaint No. 2006-11 e.) In re: Daniel J. McGregor, Complaint No. 2006-12 At approximately 10:13 a.m. the Commission reconvened in Open Session. Chair Lynch reported that in Executive Session the Commission took the following actions: 1) voted to approve minutes of the Executive Session held on January 9, 2007; 2) voted to amend minutes of the December 12, 2006 Executive Session; and 3) voted that Complaint No. 2006-12, In re: Daniel J. McGregor, alleges sufficient facts to support a knowing and willful violation of the Code of Ethics. Chair Lynch also reported that the Commission took no action on Complaint Nos. 2006-4 & 2006-11, In re: Joseph A. Montalbano, but may return to Executive Session to do so. The next order of business was the advisory opinion request of Suzanne J. Vadenais, a member of the Woonsocket City Council. Staff Attorney Gramitt presented the Commission Staff recommendation. The petitioner was not present. Commissioner Weavill inquired whether the Deputy Chief would assign overtime or select officers for special assignments and, if so, whether that would rise to the level of a financial nexus. Staff Attorney Gramitt replied that he thought it was one step removed, as the petitioner’s review of his contract is not related to such action. Commissioner Cheit wondered if any other Council member has a family member on the force. He expressed his discomfort with providing her safe harbor, particularly where there may be an appearance of impropriety based upon personal animosity. Commissioner Segovis stated that the petitioner has not presented sufficient information and he is concerned that there could be a financial nexus down the road. Chair Lynch suggested that the matter be tabled until the petitioner can appear to answer their questions and that the safe harbor letter be withdrawn. Commissioner Cheit concurred. Upon motion made by Commissioner Segovis and duly seconded by Commissioner Cheit, it was unanimously VOTED: To table the matter in order to obtain additional information and withdraw the safe harbor letter. The next order of business was discussion regarding potential regulatory actions for 2007. Staff Attorney Gramitt reported that he filed the regulations adopted on January 9th with the Secretary of State and they will take effect February 1st. He noted that the Nepotism regulation was filed as Regulation 5004. He outlined issues the Commission previously discussed for possible future regulatory action, including confidentiality of draft settlements, the definition of “business” as it pertains to financial disclosure, a statute of limitations for complaints and whether a public entity could be deemed a “business associate” under the Code. Staff Attorney Gramitt advised that Commissioner Cheit also raised the idea of allowing Respondents to waive the requirement that certain hearings be held in executive session. In response to Chair Lynch, Staff Attorney Gramitt recalled that the Governor suggested a proposal requiring that the identity of clients be disclosed on the financial statement. Executive Director Willever stated that two of the Governor’s proposals were addressed by regulations adopted at the last meeting. Staff Attorney Gramitt advised that he has language drafted regarding confidentiality and the definition of “business.” In response to Commissioner Weavill, he stated that any regulatory action would not impact the upcoming financial disclosure cycle, but most filers already disclose positions held on the boards of both for profit and not for profit businesses. The next order of business was the Director’s Report. Executive Director Willever reported that there are five Complaints and eight advisory opinions pending. He advised that he has contacted all of the new general officers and that the Staff will be providing ethics training to the newly elected legislators. The next order of business was New Business. There being none, at approximately 10:44 a.m., upon motion made by Commissioner Kirby and duly seconded by Commissioner Murray, it was unanimously VOTED: Toreturn to Executive Session. At approximately 12:42 p.m., the Commission reconvened in Open Session without the presence of Commissioners Murray and Segovis. The next order of business was to seal the minutes of the Executive Session held on January 23, 2007. Upon motion made and duly seconded, it was unanimously VOTED: To seal the minutes of the Executive Session held on January 23, 2007. Attorney Wistow requested copies of the transcripts from the preceding probable cause hearings. Commissioner Cheit noted that they were held in a closed Executive Session. Chair Lynch stated that Attorney Wistow should direct his inquiry to the Staff. *Commissioner Cheit left the meeting at 12:44 p.m. Chair Lynch reported that in Executive Session the Commission voted that in Complaint Nos. 2006-4 & 2006-11, In re: Joseph A. Montalbano, there exists probable cause that the Respondent violated the Code of Ethics. At approximately 12:49 p.m., upon motion made by Commissioner Weavill and duly seconded by Commissioner Binder, it was unanimously VOTED: To adjourn the meeting. Respectfully submitted, __________________ George E. Weavill, Jr. Secretary