Advisory Opinion No. 98-76

Re: Sara Whitright

QUESTION PRESENTED

The Petitioner, a member of the Narragansett Town Council, a municipal elected official, requests an advisory opinion as to whether she may participate in a vote about whether the Town should appropriate certain funds to the Narragansett Chamber of Commerce ("Chamber") where she is a member of the Board of Directors of the Chamber.

RESPONSE

It is the opinion of the Rhode Island Ethics Commission that the Petitioner, a member of the Narragansett Town Council, a municipal elected official, may not participate in matters concerning the Narragansett Chamber of Commerce, including the upcoming vote on a possible appropriation of funds to the organization, given that she serves on its Board of Directors.

Under the Code of Ethics, the Petitioner may not participate as a member of the Town Council in any matter in which she has an interest in substantial conflict with the proper discharge of her duties in the public interest. See R.I. Gen. Laws §§ 36-14-5(a), 36-14-7(a). An interest in substantial conflict with her official duties exists if as a result of actions taken by her as a member of the Town Council it is likely that a "direct monetary gain" or a "direct monetary loss" would accrue to her, a family member, a business associate, an employer, or any business which she represents. See R.I. Gen. Laws § 36-14-7(a). A direct appropriation of funds clearly constitutes a direct monetary gain for the Chamber of Commerce and, as discussed below, the Petitioner’s relationship with that organization is a business association under the law.

Also, Section 5(f) of the Code requires the Petitioner to recuse herself from voting or otherwise participating in the consideration and/or disposition of a matter involving a business associate. See R.I. Gen. Laws § 36-14-5(f). Under R.I. Gen. Laws § 36-14-2(8), a "business associate" is defined as any individual or entity joined with a public official "to achieve a common financial objective."

Previously, this Commission has concluded that public officials are "business associates," as the term is defined in R.I. Gen. Laws § 36-14-2(8), of entities for which they serve either as members of the Board of Directors or in other leadership positions that permit them to affect the financial objectives of the organization. If an official has such a leadership position, the Commission has required the official to recuse him or herself if the interests of the organization would be affected by an action to be taken by his or her public agency. See A.O. 98-44 (opining that a Commissioner of Fire Safety Code Board of Appeal and Review could not participate in appeals involving property owned by the International Association of Firefighters (Local 799) and the Providence Firefighters Realty Corporation since the Petitioner, who held a position with both entities that would permit him to affect the financial objectives of the organization, had a business association relationship with the organizations that triggered the prohibitions set forth in R.I. Gen. Laws § 36-14-5(a)); A.O. 96-75 (advising three members of the General Assembly who also served as members of the Board of Directors of local hospitals to recuse themselves from hospital issues since they had a business association with the local hospitals); A.O. 95-59 (advising a member of the Smithfield School Committee to recuse himself from a vote concerning a community organization if the official's association with the organization allowed him to affect the financial objectives of the organization).

Here, the Petitioner, as a member of the Board of Directors, is in a position to affect the interests of the Narragansett Chamber of Commerce. In fact, the Board of Directors is the governing arm of the organization. Her relationship with the Chamber, therefore, constitutes a business association that triggers the prohibitions set forth in R.I. Gen. Laws §§ 36-14-5(a) and 5(f). To comply with the Code of Ethics the Petitioner should recuse from participating in any matters involving the Chamber of Commerce under the procedures set forth in R.I. Gen. Laws § 36-14-6, including the upcoming vote on a possible appropriation of funds to the organization.

Code Citations:

36-14-2(8)

36-14-5(a)

36-14-5(f)

36-14-7(a)

Related Advisory Opinions:

98-44

98-16

96-75

96-54

95-59

Keywords:

Business associates

Non-profit boards

memberships