Advisory Opinion No. 2006-57 Advisory Opinion No. 2006-57 Re: Holly Levine QUESTION PRESENTED The petitioner, a member of the Board of Trustees for the Middletown Public Library, a municipal appointed position, and co-owner of a mail service business, requests an advisory opinion as to whether the Code of Ethics prohibits her from employing or providing mail service to employees and public officials within the Town of Middletown. RESPONSE It is the opinion of the Rhode Island Ethics Commission that the Code of Ethics does not prohibit the petitioner, a member of the Board of Trustees for the Middletown Public Library, a municipal appointed position, and co-owner of a mail service business, from employing or providing mail service to employees and public officials within the Town of Middletown, provided that: (1) she does not hire any employee of the Middletown Public Library; and (2) she will not accept any private business from the library while she serves as a member of the Board. The petitioner advises that she was appointed to the Board of Trustees (hereinafter “the Board”) for the Middletown Public Library (hereinafter “the library”) in September of 2006. She informs that pursuant to the Town Charter, while members of the Board are appointed by the Town Council, the Board is completely separate from the Town Council and acts as the governing body for the library. The petitioner advises that the Board has the sole authority to make all decisions regarding the library. The petitioner informs that she and her husband are the owners of Direct Mail Manager, Inc. (hereinafter “Direct Mail”), a mail service company which provides services such as addressing, sorting and mailing items such as newsletters, announcements and invitations. The petitioner advises that Direct Mail is located in the Town of Middletown. The petitioner represents that the customer base for Direct Mail comes from repeat business, referrals and word of mouth. The petitioner informs that customers range from candidates running for political office in the Town, town officials, town political committees, town departments (e.g., tax assessor, town planner, and the senior center), school sponsored organizations, and organizations whose membership might include town employees or library employees. The petitioner further advises that Direct Mail also hires part-time employees who may be either employed by the Town or are elected or appointed officials. However, in a subsequent telephone conversation with Commission staff, the petitioner represents that she will neither hire any employee of the library nor will she accept any private business from the library while she serves as a member of the Board. Given these representations, the petitioner seeks guidance from the Commission as to whether her appointment to the Board prohibits her from employing or providing mail service to employees and public officials of the Town. Under the Code of Ethics, a public official 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). An official will have an interest in substantial conflict with her official duties if it is likely that a "direct monetary gain" or a "direct monetary loss" will accrue, by virtue of the public official's activity, to the official, a family member, a business associate, an employer, or any business which the public official represents. See R.I. Gen. Laws § 36-14-7(a). Furthermore, the petitioner is prohibited from using her public position or confidential information received through her position to obtain financial gain, other than that provided by law, for herself, a family member, a business associate or any business by which she is employed or which she represents. See R.I. Gen. Laws § 36-14-5(d). Business associates are defined as individuals or entities joined together to "achieve a common financial objective." See R.I. Gen. Laws § 36-14-2(3). In addition, Commission Regulation 5011 prohibits individuals subject to the Code from engaging in a financial transaction, including participation in private employment, with a subordinate over whom she exercises supervisory responsibilities in the course of her official duties. See Commission Regulation 36-14-5011. However, that prohibition does not apply where the transaction is initiated by the subordinate. Finally, R.I. Gen. Laws § 36-14-5(i) prohibits any person from giving or offering "any gift, loan, political contribution, reward or promise of future employment based on any understanding or expectation that the vote, official action or judgment of said person would be influenced thereby." Here, the petitioner does not have authority over any municipal agency in the Town, other than the library. The petitioner has represented that she will neither hire any employee of the library nor will she accept any private business from the library while she serves as a member of the Board. As such, the petitioner’s private business would not be financially impacted by her public duties as a member of the Board. Accordingly, the Commission opines that the Code of Ethics does not prohibit the petitioner, a member of the Board of Trustees for the Middletown Public Library and part owner of a mail service business, from employing or providing mail services to employees and public officials within the Town of Middletown, provided that: (1) she does not hire any employee of the Middletown Public Library; and (2) she will not accept any private business from the library while she serves as a member of the Board. Code Citations: 36-14-2(3) 36-14-5(a) 36-14-5(d) 36-14-7(a) Regulation 5011 Related Advisory Opinions: 97-35 Keywords: Business Interest