Minutes 2-11-25
MINUTES OF THE OPEN SESSION
OF THE RHODE ISLAND ETHICS COMMISSION
February 11, 2025
The Rhode Island Ethics Commission held its 3rd meeting of 2025 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, February 11, 2025, 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:
Lauren E. Jones, Chair Emma L. Peterson
Holly J. Susi, Vice Chair Scott P. Rabideau
Matthew D. Strauss, Secretary Hugo L. Ricci, Jr.
Frank J. Cenerini
The following Commissioners were not present: Dr. Michael Browner, Jr. and Jill Harrison.
Also present were Herbert F. DeSimone, Jr., Commission Legal Counsel; Jason Gramitt, Commission Executive Director; Katherine D’Arezzo, Senior Staff Attorney; Lynne M. Radiches, Staff Attorney/Education Coordinator; Staff Attorneys Teresa Giusti and Teodora Popova Papa; and Commission Investigators Peter J. Mancini, Gary V. Petrarca, and Kevin Santurri.
At 9:03 a.m., the Chair opened the meeting.
The first order of business was:
Approval of minutes of the Open Session held on January 28, 2025.
Upon motion made by Commissioner Susi and duly seconded by Commissioner Cenerini, it was
VOTED: To approve the minutes of the Open Session held on January 28, 2025.
AYES: Lauren E. Jones; Frank J. Cenerini; Hugo L. Ricci, Jr.; Matthew D. Strauss; and Holly J. Susi.
ABSTENTIONS: Emma L. Peterson and Scott P. Rabideau.
The next order of business was:
Director’s Report: Status report and updates.
Executive Director Gramitt informed that the agenda and meeting materials, including draft advisory opinions and rulemaking documents, are available on the Commission’s website. He stated that the Open Session portion of today’s meeting is being livestreamed, and the link is also available on the Commission’s website. He explained that the livestream will be closed while the Commission convenes in Executive Session. At the conclusion of a brief Executive Session today, the Commission will resume livestreaming in Open Session and report out all actions taken in Executive Session. The report out also will be available on the Commission’s website after the meeting.
a.) Complaints and investigations pending
There are three complaints pending. Executive Director Gramitt stated that discovery in the matter of In re: James Thorsen is ongoing and that the Pennsylvania Court of Common Pleas issued a subpoena that was served or shortly will be served on the Pennsylvania witnesses in the case. In response to Chair Jones, Executive Director Gramitt informed that there may be pre-adjudication motions filed for which separate hearings may be required. Executive Director Gramitt stated that the parties in the matter of In re: Michael Colasante are meeting this week to see if an informal resolution can be reached and, if not, to schedule a mutually agreed upon date for an adjudication, likely in late March. Executive Director Gramitt informed that the matter of In re: Heidi Weston Rogers is still under investigation. He further informed that the Decision & Order will issue today in the matter of In re: Anastacia Williams.
b.) Advisory opinions pending
There are eight advisory opinions pending, three of which have been noticed for today’s meeting.
c.) Access to Public Records Act requests since last meeting
There were two APRA requests received since the last meeting, both of which were granted within one business day. One request sought historical advisory opinions dating back to 1989, and the other related to all recusals filed by a particular town council within the past six years. In response to Chair Jones, Executive Director Gramitt stated that Commission staff handles all APRA requests on an administrative basis and follows established procedures for responding. He explained that when a request is denied, which is infrequent, a letter is sent to the requester that sets forth the process for an initial appeal of the denial to the Executive Director. In further response to Chair Jones, Executive Director Gramitt informed that he would advise the Commission if he were to affirm a denial, which could result in a complaint being filed with the Attorney General or the initiation of a complaint in Superior Court.
d.) Financial disclosure
Executive Director Gramitt informed that the 2024 Financial Disclosure deadline is April 25, 2025, and the blue filing notices will be mailed in mid-March.
e.) General office administration
Executive Director Gramitt informed that the next meeting will be held on March 4, 2025. He stated that he is preparing information related to the gift limit regulation to present to the Commission at a future meeting.
Executive Director Gramitt informed that a television monitor has been positioned in the hearing room today to accommodate a petitioner’s request to participate remotely. He reminded that while Commission members may not attend meetings remotely, members of the public may do so. Chair Jones noted that this tool might be useful in adjudications involving remote witnesses.
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:
Catherine A. McMahon, the assistant director of financial and contract management for the Rhode Island Department of Administration, requests an advisory opinion regarding whether she is permitted by the Code of Ethics to participate in discussions and recommendations relating to the state’s potential use of additional credit card features offered by JPMorgan Chase, given that the Petitioner and members of her family own shares of stock in JPMorgan Chase.
Staff Attorney Radiches presented the Commission Staff recommendation. The Petitioner was present via live video recording. Staff Attorney Radiches informed the Commission that a different version of the draft advisory opinion had been presented at the last meeting, which the Petitioner was unable to attend. Staff Attorney Radiches explained that the Commission requested that the matter be continued so that the Petitioner could answer questions. Staff Attorney Radiches stated that the Petitioner has provided additional information, which has been incorporated into the new draft. The Petitioner addressed the Commission and informed that as of this morning her stock value has increased again, as it has done over the past year. In response to Commissioner Ricci, the Petitioner explained that the state has a two-year contract with JPMorgan Chase, but there is no cost to the state under the contract. She further explained that the contract provides for rebates, much like rewards or points, that are posted to the individual user agencies. Upon motion made by Commissioner Peterson and duly seconded by Commissioner Rabideau, it was unanimously
VOTED: To issue an advisory opinion to Catherine A. McMahon, the assistant director of financial and contract management for the Rhode Island Department of Administration.
The next advisory opinion was that of:
Megan Gilbert, a social caseworker employed by the Rhode Island Department of Behavioral Healthcare, Developmental Disabilities & Hospitals, who is currently on an education leave from her position in order to complete her master’s degree, requests an advisory opinion regarding whether she is prohibited by the Code of Ethics from registering as a lobbyist for the Economic Progress Institute through the end of her internship with the institute, after which she plans to return to her state position.
Staff Attorney Popova Papa presented the Commission Staff recommendation. The Petitioner was present. In response to Commissioner Cenerini, the Petitioner represented that her internship is part of her master’s degree field placement and that her state employer does not object to her field placement. In further response to Commissioner Cenerini, the Petitioner stated that upon completion of the master’s degree program, she is committed to continuing her employment with the state for a couple of years. In response to Commissioner Susi, the Petitioner stated that there is an agenda containing different items for the legislative session in which she could be involved as a lobbyist, but none will be directly related to BHDDH. Upon motion made by Commissioner Ricci and duly seconded by Commissioner Susi, it was unanimously
VOTED: To issue an advisory opinion to Megan Gilbert, a social caseworker employed by the Rhode Island Department of Behavioral Healthcare, Developmental Disabilities & Hospitals, who is currently on an education leave from her position in order to complete her master’s degree.
The final advisory opinion was that of:
Lynn Underwood Ceglie, a member of the Newport City Council, requests an advisory opinion regarding whether she is prohibited by the Code of Ethics from participating in city council discussions and decision-making relating to an application currently pending before the city council brought by the Newport Tourism Marketing Management Authority, seeking to create a tourism improvement district, given that the Petitioner serves as the city council’s liaison to the Newport Tourism Marketing Management Authority.
Staff Attorney Radiches presented the Commission Staff recommendation. The Petitioner was not present but had consented to the Commission proceeding in her absence. Upon motion made by Commissioner Rabideau and duly seconded by Commissioner Susi, it was unanimously
VOTED: To issue an advisory opinion to Lynn Underwood Ceglie, a member of the Newport City Council.
Chair Jones announced that the Commission would next consider the petition filed by Common Cause Rhode Island.
Preliminary discussion and voting on Petition for Adoption/Amendment of Regulations from Common Cause Rhode Island regarding gifts, financial disclosure, and procurement.
Common Cause Rhode Island Executive Director John Marion addressed the Ethics
Commission regarding the petition for rulemaking submitted by Common Cause in December 2024, which asks the Commission to consider and take action with respect to the gift regulation,[1] amending the financial disclosure form, and reviewing and examining the procurement statute.[2] Mr. Marion explained that Common Cause’s petition was filed as a result of a report and a legal analysis released by the R.I. State Police and the R.I. Attorney General’s Office, respectively, following a criminal investigation into Governor McGee’s decision in 2021 to award a state contract to ILO Group, a newly-established consulting firm. Mr. Marion expounded that the criminal investigation, which did not result in charges being filed, revealed that the Governor had accepted free consulting services from SKDK, a public relations firm, and that those services were paid for by Chiefs for Change, a nonprofit whose principal was the founder of ILO Group.
Mr. Marion explained Common Cause’s petition to expand the gift regulation’s definition of an “interested person” from whom gifts are limited or prohibited to include all registered lobbyists, regardless of whether or not the giver of the gift has a direct financial interest in a decision that the public official who is subject to the Code of Ethics is authorized to make. In response to Commissioner Cenerini, Mr. Marion stated that it is Common Cause’s position that a gift from any registered lobbyist should be subject to the gift regulation’s limits. He further stated that gifts from anyone, lobbyist or not, that are given to a person because of his/her public office also should be disclosed on the recipient’s financial disclosure form. Commissioner Peterson noted that the petition asks for the Commission to amend the definition of “interested person” to include lobbyists and not necessarily to create any presumption of impropriety. Executive Director Gramitt explained that most registered lobbyists are already subject to the gift regulation because they lobby for their for-profit businesses which are “interested persons.” Further discussion ensued regarding the policy behind including all registered lobbyists in the definition of an “interested person,” including lobbyists for non-profit organizations.
Mr. Marion proceeded to expand on the second item in the petition relating to the disclosure of gifts, other than travel, on financial disclosure forms. He argued that gifts given because of a person’s public office should be disclosed. Mr. Marion referred to the free consulting services received by Governor McKee that came to light because of the ILO Group investigation. In response to Commissioner Strauss, Mr. Marion stated that the value of gifts requiring disclosure would be left to the Commission’s discretion as was the travel limit amount established by the Commission when it adopted the travel regulation in 2012. Discussion ensued regarding the policy behind gift disclosure. In response to Commissioner Ricci, Mr. Marion stated that Common Cause has not provided proposed language for an amended rule. Chair Jones explained that the Commission first needs to decide if it wishes to engage in rulemaking. In response to Commissioner Strauss, Mr. Marion stated that the concern over gifts from lobbyists who do not have a financial interest is that the gifts can be corrupting. In response to Chair Jones, Mr. Marion informed that the lobbying statutes largely deal with registration and disclosure requirements.
In response to Chair Jones, Mr. Marion addressed the request for the Commission to consider whether the portion of the procurement statute that it is charged with enforcing, and which has not been amended since 1993, is sufficiently protective. Mr. Marion noted that the state Constitution singles out procurement contracts with respect to the Commission’s jurisdiction. Executive Director Gramitt explained that the procurement statute is not part of the Code of Ethics, which is under R.I. Gen. Laws Title 36, Chapter 14, while the procurement statute is R.I. Gen. Laws Title 36, Chapter 14.1. He further explained that procurement is largely regulated by statute and the R.I. Department of Administration’s Division of Purchases has rulemaking authority in this area. Executive Director Gramitt noted that the Code of Ethics does regulate the ability of public officials to enter into contracts with public entities through R.I. Gen. Laws § 36-14-5(h). Chair Jones commented that the Office of Attorney General also has jurisdiction in the bidding context. Legal Counsel DeSimone stated that the Office of Attorney General also has enforcement authority over the procurement statute and, therefore, the Commission’s jurisdiction in that area is not exclusive.
Chair Jones inquired whether there was a motion to initiate rulemaking as to the gift regulation, Commission Regulation 520-RICR-00-00-1.4.2. There was none. Therefore, upon motion made by Commissioner Cenerini and duly seconded by Commissioner Susi, it was
VOTED: To deny the petition of Common Cause to initiate rulemaking as to the gift regulation, Commission Regulation 1.4.2, as the Petitioner has not demonstrated a need for amending the regulation.
AYES: Frank J. Cenerini; Matthew D. Strauss; and Holly J. Susi.
NOES: Lauren E. Jones; Emma L. Peterson; Scott P. Rabideau; and Hugo L. Ricci, Jr.
The motion failed. Upon further discussion, Commissioner Peterson requested reconsideration of the initial motion. Upon motion made by Commissioner Peterson and duly seconded by Commissioner Rabideau, it was
VOTED: To initiate rulemaking as to the gift regulation, Commission Regulation 520-RICR-00-00-1.4.2.
AYES: Lauren E. Jones; Emma L. Peterson; Scott P. Rabideau; Hugo L. Ricci, Jr.; and Matthew D. Strauss.
NOES: Frank J. Cenerini and Holly J. Susi.
Chair Jones stated that the motion passed, and the Commission will initiate rulemaking as to Regulation 1.4.2.
Chair Jones next asked whether there was a motion to initiate rulemaking as to the financial disclosure form. There was none.
Discussion next ensued regarding a potential motion to deny the petition of Common Cause Rhode Island to initiate rulemaking as to the financial disclosure form as the Petitioner has not demonstrated a need for amending the form or adopting or amending the financial disclosure regulations. Some discussion ensued regarding what the motion encompassed. Chair Jones began anew with the first motion to initiate rulemaking as to the financial disclosure form. Following Executive Director Gramitt’s suggested language, Legal Counsel DeSimone proposed a motion to initiate rulemaking as to the financial disclosure form to add a question requiring the disclosure of gifts over $25 if, under the totality of the circumstances, it is more likely than not that the person or entity would not have given the gifts but for the official’s or employee’s public office or position. In response to Commissioner Cenerini, Executive Director Gramitt informed that the contents of financial disclosure forms were initially established by the General Assembly. In years since, the Commission has amended its regulations to clarify or amend those disclosures or to add new disclosures, such as the travel disclosure requirement, to the forms through the rulemaking process.
At Chair Jones’s request, Legal Counsel DeSimone repeated the proposed motion. No motion was made. Therefore, upon motion made by Commissioner Rabideau and duly seconded by Commissioner Cenerini, it was unanimously
VOTED: To deny the petition of Common Cause to initiate rulemaking as to the financial disclosure form to add a question regarding disclosure of gifts where the totality of the circumstances suggests that it was more likely than not that the gift was given because of your office, because Common Cause has not demonstrated a need for amending the form or adopting or amending the financial disclosure regulations.
As to the third item in the petition, Executive Director Gramitt noted that Common Cause asks the Commission to study the statute and offer any recommendations to the General Assembly. Chair Jones read Common Cause’s original letter relating to the petition and the procurement statute. Mr. Marion requested that the Commission direct the staff to do research on the subject. Chair Jones queried whether the Commission needed to vote given that this third item was not a request for rulemaking. Chair Jones asked whether there was a motion for the Commission to study the issue of procurement for purposes of either rulemaking or suggesting to the General Assembly changes to the statute. No motion was made.
At 11:00 a.m., upon motion made by Commissioner Peterson and duly seconded by Commissioner Ricci, it was unanimously
VOTED: To go into Executive Session, to wit:
a.) Motion to approve minutes of Executive Session held on January 28, 2025, pursuant to R.I. Gen. Laws § 42-46-5(a)(2) & (4).
b.) Motion to return to Open Session.
Executive Director Gramitt informed that the livestream of the meeting would be stopped during Executive Session.
At 11:02 a.m., the Commission reconvened in Open Session. The livestream of the meeting resumed.
The next order of business was:
Report on actions taken in Executive Session.
Chair Jones reported that the Commission took the following actions in Executive Session:
-
Voted (5-0) to approve the minutes of the Executive Session held on January 28, 2025.
[Reporter’s Note: The vote was as follows:
AYES: Lauren E. Jones; Frank J. Cenerini; Hugo L. Ricci, Jr.; Matthew D. Strauss; and Holly J. Susi.
ABSTENTIONS: Emma L. Peterson and Scott P. Rabideau.]
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Unanimously voted (7-0) to return to Open Session.
The next order of business was:
New Business proposed for future Commission agendas and
general comments from the Commission.
Commissioner Cenerini inquired as to the rulemaking process. He informed that he will not be able to attend the Commission’s next meeting but wishes to be present for discussion on this topic. Executive Director Gramitt explained that any of the Commissioners may contact him with comments and suggestions on this matter without violating the Open Meetings Act, provided that they do not discuss among themselves. Executive Director Gramitt informed that he will gather information from other jurisdictions as well. Chair Jones stated that rulemaking as to the gift regulation should be a continuing agenda item for discussion.
At 11:10 a.m., upon motion made by Commissioner Rabideau and duly seconded by Commissioner Susi, it was unanimously
VOTED: To adjourn the meeting.
Respectfully submitted,
___________________________
Matthew D. Strauss
Secretary
[1] Commission Regulation 520-RICR-00-00-1.4.2 Gifts (36-14-5009).
[2] R.I. General Laws § 36-14.1-1 et seq.