Advisory Opinion No. 2018-30 Rhode Island Ethics Commission Advisory Opinion No. 2018-30 Approved: May 15, 2018 Re: Gregory Laboissonniere QUESTION PRESENTED: The Petitioner, a member of the Coventry Town Council, a municipal elected position, requests an advisory opinion regarding whether the Code of Ethics prohibits him from participating in the Town Council’s discussions and decision-making relative to the reappointment of the Coventry Municipal Court Judge, given that both are members of the Board of Directors of Gabriel’s Trumpet Christian Book Store, Inc. RESPONSE: It is the opinion of the Rhode Island Ethics Commission that the Petitioner, a member of the Coventry Town Council, a municipal elected position, is prohibited by the Code of Ethics from participating in the Town Council’s discussions and decision-making relative to the reappointment of the Coventry Municipal Court Judge, given that both are members of the Board of Directors of Gabriel’s Trumpet Christian Book Store, Inc. The Petitioner was first elected to the Coventry Town Council (“Town Council”) in November 2012. He states that, in 1999, he and four others formed Gabriel’s Trumpet Christian Book Store, Inc. (“Gabriel’s Trumpet” or “Bookstore”), a non-profit corporation that operates a Christian bookstore, and elected themselves to serve on its Board of Directors (“Board”). The Petitioner represents that he was elected by his fellow officers to serve as Treasurer and Arthur Capaldi, the Coventry Municipal Court Judge since 1990 (“Judge Capaldi”), was elected as Secretary. The Petitioner informs that the Board sets policy for the operation and continuity of the Bookstore by the volunteer managers and store clerks, and convenes at annual board meetings to review the Bookstore’s operations, tax filings, and annual donations.[1] He states that his duties as Treasurer include signing checks to pay bills for the store’s operation. The Petitioner represents that the Bookstore occasionally receives donations but is otherwise financially self-sustaining, deriving revenue through its sales of Christian books, videos, and religious gifts. He represents that no one, including the Board members, is paid for his or her volunteer service rendered to or on behalf of Gabriel’s Trumpet. The Petitioner represents that the Town Council will soon be voting on Judge Capaldi’s reappointment as the Coventry Municipal Court Judge. The annual compensation for the Coventry Municipal Court Judge is $15,000. Given his relationship with Judge Capaldi as Board members of Gabriel’s Trumpet, the Petitioner seeks formal guidance from the Ethics Commission regarding whether he may participate in the Town Council’s discussions and vote to reappoint Judge Capaldi. Under the Code of Ethics, a public official may not participate in any matter in which he has an interest, financial or otherwise, which is in substantial conflict with the proper discharge of his duties in the public interest. See R.I. Gen. Laws § 36-14-5(a). A substantial conflict of interest exists if an official has reason to believe or expect that he, his business associate, or an employer will derive a direct monetary gain or suffer a direct monetary loss by reason of his official activity. Section 36-14-7(a). The Code of Ethics also prohibits a public official from using his public office or confidential information received through his public office to obtain financial gain for himself, his family, his business associate, or any business by which he is employed or which he represents. Section 36-14-5(d). A “business associate” is defined as an individual or business entity joined together with another person to achieve a common financial objective. Section 36-14-2(3). In the past, the Commission has found that those who are fellow officers in an organization, or who are in leadership positions which permit them to affect the financial directives of an organization, are business associates. Specifically, the Commission has opined that while an organization may pursue various objectives that are not financial, the existence of a financial component is sufficient to qualify an official and his fellow officers as business associates. See, e.g., A.O. 2014-03 (opining that a member of the Tiverton Board of Canvassers, who was also the Vice Chair of the Tiverton Democratic Town Committee, could not participate in Board of Canvassers matters that involved the Tiverton Democratic Town Committee or its other officers); A.O 2006-50 (opining that an officer of the Smithfield Republican Town Committee was a business associate of the Committee and his fellow Committee officers); A.O. 2004-01 (opining that a member of the West Warwick Zoning Board of Review, who was also the Vice-Chairman of the West Warwick Democratic Town Committee (“WWDTC”), could not participate in Zoning Board matters in which the Chairman of the WWDTC acted as an attorney, as the petitioner served as an officer in the WWDTC and thus was a business associate of the Chairman); A.O. 99-33 (opining that, although the Democratic Town Committee, of which the petitioner, a Johnston Town Councilor, was a member, pursued various objectives that were not financial, the existence of a financial component was sufficient to qualify the petitioner and his fellow committee members as business associates). Here, based on all of the Petitioner’s representations and applying the reasoning of the prior advisory opinions to the instant question presented, it is the opinion of the Ethics Commission that, given the existence of a financial component in the functions and operations of Gabriel’s Trumpet, the Petitioner and Judge Capaldi, as fellow officers of its Board, are business associates. Therefore, the Petitioner is required to recuse from participating in discussions related to and voting on the reappointment of Arthur Capaldi as the Coventry Municipal Court Judge. Notice of recusal must be filed with the Ethics Commission consistent with the provisions of section 36-14-6. This Advisory Opinion is strictly limited to the facts stated herein and relates only to the application of the Rhode Island Code of Ethics. Under the Code of Ethics, advisory opinions are based on the representations made by, or on behalf of, a public official or employee and are not adversarial or investigative proceedings. Finally, this Commission offers no opinion on the effect that any other statute, regulation, ordinance, constitutional provision, charter provision, or canon of professional ethics may have on this situation. Code Citations: § 36-14-2(3) § 36-14-5(a) § 36-14-5(d) § 36-14-6 § 36-14-7(a) Related Advisory Opinions: 2014-03 2006-50 2004-01 99-33 98-42 Keywords: Business Associates