Lally Resigns as State Small Business Liason Amid Ethics Scrutiny

STATE HOUSE—Former Narragansett and South Kingstown House Rep. Donald J. Lally Jr. has resigned his post as a small business liaison for the state amid continued scrutiny of his appointment that critics say violated the spirit of the state's revolving door law to prevent croynism.

Lally, a longtime member of the General Assembly, was appointed to serve in Governor Gina Raimondo's administration in July of last year, just three months after he gave up his seat citing a desire to spend more time with his family.

Lawmakers are prohibited from getting government jobs for at least one year after leaving office. In defense of the appointment, the Raimondo administration cited an exception in the law for governor appointments for "senior policy-making positions" or as a department director.

Lally's appointment was first reported in September by The Independent, a newspaper that closely cover's Lally's district.

The state GOP filed an ethics complaint in Setpember, alleging that the appointment showed "It appears that we are going back to the good old days with old boy network politics," according to a statement from State Republican Party Chairman Brandon Bell. A decision from the Ethics Commission was expected on an upcoming agenda.

In his resignation letter addressed to the Governor, Lally said he chose to resign because "the validity of my appointment is being questioned and is providing to be a distraction from your economic agenda."

Lally said that during his employment as the liaison, "I saw first-hand how different companies operate and provided them the opportunity to discuss obstacles they face while doing business in Rhode Island."

Lally had served as a state representative since 1989 and ran unopposed for the District 33 seat in 2014, though he earned the nickname “Landslide Lally” over the years for the at-times razor-thin margins with which he held his seat.

Lally ranked second in terms of seniority in the House and was a member of the House leadership team, serving as Speaker Pro Tempore. In the last legislative session, he served as Deputy Speaker of the House and before that, was Chairman of the House Judiciary Committee.

The seat vacated by Lally was filled by former South Kingstown Town Council Member Carol Hagan McEntee, who won a special election in June.