Ethics Commission finds probable cause that Lally violated R.I. regulations

PROVIDENCE – The Ethics Commission on Tuesday found probable cause that former state Rep. Donald J. Lally Jr. violated the state’s revolving-door rules when he accepted a state job last summer three months after leaving the General Assembly.
Ethics Commission spokesman Jason Gramitt said that an hour-long hearing was held, and that the commission’s next step is to schedule and hold a trial.
“The parties will get together and discuss an appropriate date for that,” Gramitt said.
“Today’s finding doesn’t mean he violated the code of ethics. It means there’s enough evidence to proceed to a trial,” he added.
Lally, a lawyer, was the small-business liaison in the Raimondo administration until he resigned from the $87,000 position last month. He had been in the position since July, three months after he left the General Assembly. The position, in the Department of Business Regulation, was specifically created for him, according to an investigative report filed by the prosecutor in the case. The report was presented at the hearing.
Lally thought the position was covered under a statutory exemption, the report said.
The report stated Lally’s “acceptance of such state employment prior to the expiration of one year from the date of his resignation from legislative office is in direct violation.” It also said that Lally did not seek an advisory opinion from the commission or contact the commission staff before taking the job, even though he previously contacted commission staff about other, unrelated matters.
The appointment drew criticism from Common Cause Rhode Island, a good-government group, and the Rhode Island Republican Party about how Lally could be hired when the state’s “revolving door” law blocks lawmakers from taking a state job for a period of one year after leaving legislative office.
The ethics complaint was filed by Brandon S. Bell, chairman and president of the state Republican Party, in September.
Probable cause was found for two counts: violation of the statutory revolving-door law and violation of the regulatory revolving door law. Votes were 5 to 3 and 6 to 2, according to the Ethics Commission.
Lally’s lawyer, Patrick Dougherty, could not be reached for comment.
In his resignation letter to the governor, Lally wrote, “Reluctantly, the time has come for me to offer my resignation because unfortunately, the validity of my appointment is being questioned and is proving to be a distraction from your economic agenda.”

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