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Conflict of Interest of a Public Officer—Elected Official or Staff Specific to Non-Profit membership and/or leadership roles February 2024 Introduction This memo provides information regarding what constitutes a conflict of interest for a public official. The information is provided to ensure transparency and understanding for both residents and public officers. Given the complexity and nature of the interactions,the memo serves to provide information allowing greater understanding with a deliberate focus regarding non-profits and/or JPA(Joint Powers). Definitions Minnesota Statute provides the following definition for all cities and provides further clarity for statutory cities. Mounds View is a Charter City and thus, our charter provision provides additional clarity. Minnesota State Statute A public officer, who has authority to take part in making any sale, lease, or contract in their official capacity, must not voluntarily have a voluntary, personal, financial interest in that sale, lease, or contract or benefit from it personally or financially'.The term "public officer" certainly includes mayors, councilmembers, or other elected officials. It also may include appointed officers and employees who have influence over the decision-making process. The attorney general has advised that the conflict of interest law applies to any councilmember "authorized to take part in any manner" in the making of the contract. Simply abstaining from voting on the contract is not sufficient.The attorney general reasoned that if the Legislature had only wanted to prohibit interested officers from voting on the contract, it would not have used the word "authorized." The existence of an interest determines whether a conflict exists, regardless of any official influence used to gain the contract. A literal reading of the statute might suggest that it only applies to city officers who enter into contracts on behalf of the city3. However,the attorney general has given the statute a broader interpretation, which could affect more officials than just those directly involved in the decision-making process.As a result, cities may want to take a conservative approach regarding contracts with any city official. Mounds View City Charter Section 12.03 City Officers not to be Interested in Contracts. Except as otherwise permitted by state law, no officer of the City, who is authorized to take part in any manner in any contract with the City, shall voluntarily have a personal financial interest in such contract or personally benefit financially therefrom. 'A.G. Op.470(June 9, 1967) 2 A.G. Op.90-E-5(Nov. 13, 1969)and A.G. Op.90e-6(June 15, 1988) 3 A.G.Op.90e-6 (June 15, 1988)