Advisory Opinion No. 2005-49

Re:  Raymond P. Cooney

QUESTION PRESENTED:

The petitioner, the City Solicitor of Central Falls, a municipal appointed position, requests an advisory opinion regarding whether he is permitted to rent office space in a building that is owned by the Mayor of Central Falls.

RESPONSE:

It is the opinion of the Rhode Island Ethics Commission that the petitioner, the City Solicitor of Central Falls, a municipal appointed position, is permitted to rent office space in a building that is owned by the Mayor of Central Falls.

The petitioner is the City Solicitor of the City of Central Falls, a part-time position that is appointed by the Mayor and confirmed by the City Council.  He represents that he is interested in renting professional office space in a building in which the Mayor has an ownership interest.  The petitioner asks whether the Code of Ethics permits him to enter into such a landlord/tenant relationship with the Mayor, his appointing authority.

The Code of Ethics prohibits a public official such as the petitioner from having an interest, or engaging in any business or transaction, or incurring any obligation of any nature, which is in substantial conflict with the proper discharge of his duties or employment in the public interest and of his responsibilities as prescribed in the laws of this state, as defined in section 36-14-7 of the Code.  R.I. Gen. Laws § 36-14-5(a).  Pursuant to section 36-14-7(a), the petitioner will have such a conflict of interest if he has reason to believe or expect that he, a family member, employer or business associate will derive a direct monetary gain or suffer a direct monetary loss by reason of his official activity.

The Commission has previously determined that a landlord and tenant are considered to be business associates under the Code.  See A.O. 2002-70 (member of North Kingstown Town Council is business associate of person from whom she rents retail space, and may not participate in Council matters that would financially impact her landlord); A.O. 2001-57 (Central Falls City Councilor could not participate in matters that would have a financial impact upon his tenants, who are his business associates under the Code of Ethics); A.O. 98-16 (Chief Judge of Family Court may enter into lease with Rhode Island Juvenile Officer’s Association, but must recuse when Association's Board of Directors appear before him).  Accordingly, upon entering into a landlord/tenant relationship, the petitioner and the Mayor will be considered as business associates under the Code.

Nothing in the Code of Ethics prohibits the petitioner, a City Solicitor, from becoming the business associate of his appointing authority, the Mayor.  However, both the petitioner and the Mayor should be aware of and consider that although the Code does not prohibit the relationship, it does regulate the manner and extent that business associates can interact with one another in their official and public capacities.  Upon entering into a landlord/tenant relationship, both the petitioner and the Mayor will be required to recuse from taking any official action that is likely to result in a financial benefit or detriment to the other.  The petitioner and the Mayor are strongly encouraged to seek further advice from the Commission and its staff as to whether recusal is required in specific instances.

Code Citations:

36-14-2(3)

36-14-5(a)

36-14-6

36-14-7(a)

Related Advisory Opinions:

2002-70

2001-57

98-16

97-9

97-30

96-24

Keywords:

Business associate

Business interest