Advisory Opinion No. 98-133

Re: The Honorable Beatrice A. Lanzi

QUESTION PRESENTED

The Petitioner, a legislator serving as State Representative, a state elected position, who also is president of White Nights Trading, Inc., a private importing company, requests an advisory opinion as to whether her company may place items on consignment at Custom Casuals, a gift shop that rents space in the basement of the Rhode Island State House.

RESPONSE

It is the opinion of the Rhode Island Ethics Commission that the Petitioner, a legislator serving as State Representative, a state elected position, who also is president of White Nights Trading, Inc., may place her company’s items on consignment at Custom Casuals, a gift shop that rents space in the basement of the Rhode Island State House, given that she does not exercise any decision making authority with regard to the shop’s lease.

The Petitioner, a State Representative who also is President of White Nights Trading, Inc., a private importing company, advises that her company wishes to place jewelry and other gift items on consignment at Custom Casuals, a gift shop located in the basement of the Rhode Island State House. Custom Casuals is operated by Joanne Monahan, a private party who rents the space in the State House. The Rhode Island Department of Administration retains control over the lease. The Petitioner indicates that her company will receive payment only when an item is sold at the shop. Under the Code of Ethics, the Petitioner may not participate in any matter in which she has an interest, financial or otherwise, which is 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). She also is prohibited from using her public office or confidential information received through her office to obtain financial gain, other than that provided by law, for herself or a business associate. See R.I. Gen. Laws § 36-14-5(d).

Here, the State entered into a lease agreement with a private party pursuant to an open and competitive bidding process. As the shop owner, Mrs. Monahan retains discretionary authority over all items placed for sale. The Petitioner is neither a party to the lease, nor does she exercise any decision making authority over the lease or matters concerning the shop’s operation. Accordingly, the Commission concludes that the Petitioner may place White Nights’ items on consignment at the gift shop located in the State House. However, any signs accompanying such items should not individually identify as their source the Petitioner in her capacity as a State Representative as it would constitute the use of the her public office to advertise for private financial gain.

Code Citations:

36-14-5(a)

36-14-5(d)

36-14-7(a)

Related Advisory Opinions:

98-4

97-5

96-43

96-31

Keywords:

Business interest