Minutes October 8, 2019 MINUTES OF THE OPEN SESSION OF THE RHODE ISLAND ETHICS COMMISSION October 8, 2019 The Rhode Island Ethics Commission held its 12th meeting of 2019 at 9:00 a.m. at the Rhode Island Ethics Commission conference room, located at 40 Fountain Street, 8th Floor, Providence, Rhode Island, on Tuesday, October 8, 2019, pursuant to the notice published at the Commission offices, the State House Library, and electronically with the Rhode Island Secretary of State. The following Commissioners were present: Ross Cheit, Chair Timothy Murphy Marisa A. Quinn, Vice Chair Kyle P. Palumbo Arianne Corrente, Secretary Emili B. Vaziri J. Douglas Bennett The following Commissioner(s) were not present: M. Therese Antone and Robert A. Salk. Also present were Herbert F. DeSimone, Jr., Commission Legal Counsel; Jason Gramitt, Commission Executive Director; Katherine D’Arezzo, Senior Staff Attorney; Lynne Radiches, Staff Attorney/Education Coordinator; Staff Attorneys Teresa Giusti and Teodora Popova Papa; and Commission Investigators Steven T. Cross; Peter J. Mancini; and Gary V. Petrarca. At 9:01 a.m., the Chair opened the meeting. The first order of business was: Approval of minutes of the Open Session held on September 24, 2019. Upon motion made by Commissioner Murphy and duly seconded by Commissioner Bennett, it was VOTED: To approve the minutes of the Open Session held on September 24, 2019. AYES: Ross Cheit; J. Douglas Bennett; Arianne Corrente; Timothy Murphy; Kyle P. Palumbo; and Emili B. Vaziri. ABSTENTIONS: Marisa A. Quinn. The next order of business was: Advisory Opinions. The advisory opinions were based on draft advisory opinions prepared by 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: Carolyn Medina, a member of the Bristol Board of Tax Assessment Review, requests an advisory opinion regarding whether she qualifies for a hardship exception to the Code of Ethics’ prohibition on appearing before her own board to appeal the tax assessment of her personal residence. Staff Attorney Radiches presented the Commission Staff recommendation. The Petitioner was present. In response to Commissioner Bennett, the Petitioner stated that she owns her home with her husband. In further response to Commissioner Bennett, the Petitioner represented that when she was appointed to the Board in 2017, she had no reason to believe that her home assessment would increase so much so as to necessitate her appeal. Upon motion made by Commissioner Bennett and duly seconded by Commissioner Corrente, it was unanimously VOTED: To issue an advisory opinion, attached hereto, to Carolyn Medina, a member of the Bristol Board of Tax Assessment Review. The next advisory opinion was that of: Samantha Borden, PhD, MPH, a Public Health Epidemiologist in the Division of Behavioral Healthcare at the Rhode Island Department of Behavioral Healthcare, Developmental Disabilities and Hospitals, requests an advisory opinion regarding whether the Code of Ethics prohibits her from accepting a position as an adjunct faculty member at the University of Rhode Island. Executive Director Gramitt presented the Commission Staff recommendation. The Petitioner was present. In response to Commissioner Quinn, the Petitioner explained that her role at URI would be to utilize her epidemiologist expertise to write grant applications. Commissioner Quinn expressed concern about URI applying for a grant and competing with the Petitioner’s state agency (“BHDDH”) for the same or the Petitioner using confidential information she obtained in her public role at BHDDH to assist URI. Executive Director Gramitt stated that, in those situations, the Petitioner must either recuse from working on the grant application or seek another advisory opinion. In response to Commissioner Murphy, Executive Director Gramitt informed that, if the Petitioner teaches a student at URI who she supervises while that same student interns at BHDDH, she will not be paid by URI for both activities which are independent of each other. Executive Director Gramitt stated that the Petitioner represented that while working at URI, she would decline to mentor or serve on the evaluation committee for any URI student who is currently working or interning at BHDDH. In response to Chair Cheit, the Petitioner stated that she could become a member of the thesis committee at URI. Chair Cheit stated that the Petitioner should seek another advisory opinion if her duties or roles change. Upon motion made by Commissioner Quinn and duly seconded by Commissioner Corrente, it was unanimously VOTED: To issue an advisory opinion, attached hereto, to Samantha Borden, PhD, MPH, a Public Health Epidemiologist in the Division of Behavioral Healthcare at the Rhode Island Department of Behavioral Healthcare, Developmental Disabilities and Hospitals. The next advisory opinion was that of: Seth Yurdin, a member of the Providence City Council, requests an advisory opinion regarding whether the Code of Ethics prohibits from: (i) responding to the request of the City Plan Commission for support in his capacity as City Councilman of an application by the Providence Preservation Society to expand the Providence Historic District Zoning Overlay in the district he represents; and (ii) participating in the City Council’s discussions and decision-making relative to the reaffirmation of the existing Zoning Overlay, and its proposed expansion, given that the Petitioner would be one of the affected residents within the proposed extension. Staff Attorney Radiches presented the Commission Staff recommendation. The Petitioner was present. In response to Chair Cheit, the Petitioner represented that the standard requirement is that a minimum of 50 percent of property owners within the district must support the expansion. The Petitioner stated that only 45 percent have thus far expressed support which prompted him to seek this advisory opinion. In response to Commissioner Murphy, Chair Cheit noted that the Commission has previously applied the class exception to groups smaller than 90. In response to Commissioner Bennett, the Petitioner stated that this is his primary residence and he does not own any other properties. In response to Commissioner Palumbo, Executive Director Gramitt stated that the class exception can also be applied to abutters. Commissioner Palumbo noted a correction to a typographical error on the last page of the draft opinion. Upon motion made by Commissioner Quinn and duly seconded by Commissioner Murphy, it was unanimously VOTED: To issue an advisory opinion, as corrected and attached hereto, to Seth Yurdin, a member of the Providence City Council. The next advisory opinion was that of: Samuel W. Bell, a legislator serving as a member of the Rhode Island Senate, requests an advisory opinion regarding whether the Code of Ethics prohibits him from participating in Senate discussions and decision-making concerning legislation that would extend an existing state lottery contract, and/or amended legislation that would allow for open bidding on a new lottery contract, given that his spouse is employed by a company that has a business association with another company that is expected to bid on the lottery contract if open bidding is allowed. Staff Attorney Radiches presented the Commission Staff recommendation. The Petitioner was present. Chair Cheit noted that all but the last factor on page 3 of the draft opinion are speculative. Commissioner Bennett queried how the Commission can determine the financial impact to the Petitioner’s spouse if the latter’s remuneration is uncertain. The Petitioner stated that he requested the advisory opinion to understand how the Code of Ethics applies when a person does not know the applicable compensation structure. In response to Commissioner Bennett, the Petitioner stated that his understanding of his spouse’s company’s bonus structure is that the amount is based on overall brand performance, i.e., the performance of Monopoly machines at the casinos. Commissioner Corrente noted that, as part of the legislative process, if inferences are made that the contract should be awarded to Scientific Games, the Petitioner’s obligation to recuse under the Code of Ethics would be clearer. Commissioner Corrente further noted that where the Petitioner’s participation in the legislative process is limited to the open-bidding process, a conflict of interest would be unlikely because he has no control over how the open-bidding process is carried out and to whom the contract is ultimately awarded. Commissioner Bennett advised the Petitioner to proceed with caution. In response to Commissioner Palumbo, Staff Attorney Radiches stated that the draft opinion will be amended to change “any bonuses his spouse might receive from Hasbro would in no way directly depend on whether Scientific Games is awarded a state lottery contract” on page 2 to reflect that it is the Petitioner’s understanding that any bonuses his spouse might receive would not directly depend on whether Scientific Games is awarded a state lottery contract. Upon motion made by Commissioner Corrente and duly seconded by Commissioner Quinn, it was unanimously VOTED: To issue an advisory opinion, as amended and attached hereto, to Samuel W. Bell, a legislator serving as a member of the Rhode Island Senate. The next advisory opinion was that of: Richard Epstein, the Vice-Chairman of the Rhode Island Real Estate Commission, requests an advisory opinion regarding what limitations, if any, the Code of Ethics places upon him, given that he is privately employed by Residential Properties Ltd., a real estate company which is expected to apply to the Real Estate Commission for a license to open and operate a real estate school. Staff Attorney Popova Papa presented the Commission Staff recommendation. The Petitioner was not present. Discussion ensued regarding any financial impact to his employer and how many similar schools are in operation in the state. Staff Attorney Popova Papa informed that there is no cap on the number of schools that can operate in the state and students can decide which real estate school to attend. Commissioner Bennett noted that the Petitioner must understand that he cannot participate in or vote on any matter that involves or affects his employer. Commissioners Palumbo and Quinn expressed concern with whether the Petitioner’s votes against issuing licenses to his employer’s competitors would be a conflict under the Code of Ethics. Chair Cheit stated that, given the Commissioners’ questions and concerns, this matter should be continued to a future meeting which the Petitioner can attend to address said questions and concerns. Executive Director Gramitt noted that this and the next advisory opinion draft for the same Petitioner will be continued to the next Commission meeting. Executive Session. At 10:05 a.m., uponmotion made by Commissioner Murphy and duly seconded by Commissioner Quinn, it was unanimously VOTED: To go into Executive Session, to wit: 1. Motion to approve minutes of Executive Session held on September 24, 2019, pursuant to R.I. Gen. Laws \§ 42-46-5(a)(2) & (4). 2. In re: Jonathan N. Savage, Complaint No. 2019-1, pursuant to R.I. Gen. Laws § 42-46-5(a)(2) & (4). 3. Litigation update re: Francis X. Flaherty v. Rhode Island Ethics Commission et al., Superior Court C.A. No. PC-2019-5088, pursuant to R.I. Gen. Laws § 42-46-5(a)(2). 4. Motion to return to Open Session. At 10:46 a.m., the Commission reconvened in Open Session. The next order of business was: Report on actions taken in Executive Session. Chair Cheit reported that the Commission took the following actions in Executive Session: 1. Voted (6-0) to approve the minutes of the Executive Session held on September 24, 2019. [Reporter’s Note: The vote was as follows: AYES: Ross Cheit; J. Douglas Bennett; Arianne Corrente; Timothy Murphy; Kyle P. Palumbo; and Emili B. Vaziri. ABSTENTIONS: Marisa A. Quinn.] 2. Voted (6-0) in the matter of In re: Jonathan N. Savage, Complaint No. 2019-1, to find that probable cause does not exist to believe that the Respondent violated the Code of Ethics and to dismiss the Complaint. [Reporter’s Note: The vote was as follows: AYES: Ross Cheit; J. Douglas Bennett; Arianne Corrente; Timothy Murphy; Maria A. Quinn; and Emili B. Vaziri. RECUSALS: Kyle P. Palumbo.] 3. Received a litigation update in Francis X. Flaherty v. Rhode Island Ethics Commission et al., Superior Court C.A. No. PC-2019-5088. The next order of business was: Motion to seal minutes of Executive Session held on October 8, 2019. Upon motion made by Commissioner Murphy and duly seconded by Commissioner Corrente, it was unanimously VOTED: To seal the minutes of the Executive Session held on October 8, 2019. The next order of business was: Education program update. Education Coordinator Radiches reviewed the Ethics Training FY 2019 hand-out and stated that she has conducted a fair balance of training of both state and municipal bodies. She informed that she provides training days and evenings, based on the public body’s need, and plans to train each public body every two or three years. Education Coordinator Radiches informed that the goal for 2020 is to develop a seven-module system for online ethics training. She stated that the seven modules would likely consist of an introduction and sections on nepotism, conflicts of interest, prohibited activities, advisory opinions, complaints, and financial disclosure. She further stated that online training will be intended to supplement and not replace live, in-person training. In response to Commissioner Murphy, Education Coordinator Radiches noted that it is unlikely that online training would become mandatory. Commissioner Corrente suggested that online training also be language accessible. In response to Commissioner Palumbo, Education Coordinator Radiches informed that she has searched how online ethics training is conducted in Massachusetts and will expand her search to include other states. In response to Commissioner Quinn, Education Coordinator Radiches stated that she includes some fire districts in the respective town’s ethics training sessions but intends to provide the fire districts with their own training. The next order of business was: Overview of outstanding fines and collection efforts. Staff Attorney Giusti informed the Commission of the recent establishment of the Central Collections Unit (“CCU”) within the Department of Revenue and its purpose to assist state agencies in the collection of their unpaid fines. She further informed the status of unpaid fines to the Commission as of December 2018, explaining that there were 16 cases referred to the CCU for collection with a total outstanding balance of $138,005. Staff Attorney Giusti further explained the CCU’s efforts to collect those debts, informing that three cases had paid in full, two were on payment plans, and the remaining were in litigation. She stated that the Commission referred three new cases to the CCU over the summer. She informed that the CCU has thus far collected $6,910 in fines owed to the Commission. In response to Commissioner Bennett, Executive Director Gramitt stated that information regarding the status of fines is not available online but can be provided if someone requests it. In response to Commissioner Palumbo, Staff Attorney Giusti explained that if a person is consistently making payments to the Commission directly pursuant to a payment plan, the CCU is unlikely to take the case. She further explained that the CCU’s purpose is to collect unpaid fines from delinquent persons. In response to Commissioner Murphy, Staff Attorney Giusti stated that, once a case is referred to the CCU, interest on the fine accrues at 18% under the applicable statute. The next order of business was: Election of Officers. Upon motion made by Commissioner Corrente and duly seconded by Commissioner Quinn, it was VOTED: To elect Ross Cheit as Chair. AYES: J. Douglas Bennett; Arianne Corrente; Timothy Murphy; Kyle P. Palumbo; Marisa A. Quinn; and Emili B. Vaziri. ABSTENTIONS: Ross Cheit. Upon motion made by Chair Cheit and duly seconded by Commissioner Bennett, it was VOTED: To elect Marisa A. Quinn as Vice Chair. AYES: Ross Cheit; J. Douglas Bennett; Arianne Corrente; Timothy Murphy; Kyle P. Palumbo; and Emili B. Vaziri. ABSTENTIONS: Marisa A. Quinn. Upon motion made by Commissioner Quinn and duly seconded by Commissioner Bennett, it was VOTED: To elect Arianne Corrente as Secretary. AYES: Ross Cheit; J. Douglas Bennett; Timothy Murphy; Kyle P. Palumbo; Marisa A. Quinn; and Emili B. Vaziri. ABSTENTIONS: Arianne Corrente. The final order of business was: Director’s Report: Status report and updates. a.) Complaints and investigations There are six complaints pending. b.) Advisory opinions There are nine advisory opinions pending. c.) Access to Public Records Act requests since last meeting Five APRA requests were received since the last meeting, all of which were granted within one business day. At 11:13 a.m., upon motion made by Commissioner Bennett and duly seconded by Commissioner Quinn, it was unanimously VOTED: To adjourn. Respectfully submitted, _____________________________ Arianne Corrente Secretary