2001 Correspondence - Laserfiche WebLink

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The Council does not always take an action or make a decision when the members or the governing body of the Council discharge official duties. Business items or policy issues sometimes are addressed by the Council and its committees on a discussion -only basis; the discussions may be preliminary to formal actions or final decisions. Although the Ethics in Government Act refers to circumstances under which officials must "take an action or make a decision," a Council member who would have a conflict of interest if a particular business item or policy issue were before the Council for action or decision should disclose the potential conflict of interest and refrain from further participation in the matter, particularly when the preliminary discussions are detailed and formulate the bases upon which a future final action or decision will be made. A potential conflict of interest exists when the action or decision in which a Council members is participating will "substantially affect" the member's personal financial interests or the financial interests of some "associated business." The term "financial interest" generally means "any ownership or control in an asset which has the potential to produce a monetary return." The term "associated business" is defined by statute as: any association in connection with which the individual is compensated in excess of $50 except for actual and reasonable expenses in any month as a director, officer, owner, member, partner, employer or employee, or is a holder of securities worth $2,500 or more at fair market value. The specific circumstances under which an action or decision might substantially affect the financial interests of a Council member cannot be stated precisely. Each potential conflict of interest must be considered on a case -by -case basis in light of the particular facts giving rise to the potential conflict. A financial interest probably is substantially affected by an action or decision if the effect of the action or decision on the financial interest is more than remote or inconsequential and materially affects a Council member's ability to faithfully perform the member's responsibilities as a public official. If a potential conflict of interest exists and there is sufficient time to disclose the conflict prior to the agenda item to which the potential conflict relates, a Council member must. "prepare a written statement describing the matter requiring action or decision and the nature of the potential conflict of interest." The statement should be made on a Potential Conflict of Interest Notice form available from the Campaign Finance and Public Disclosure Board. A copy of the form also can be obtained from the Council's Office of the General Counsel. The member must deliver a copy of the completed form to the Chair of the Council. If the Chair has a potential conflict of interest, the Chair probably should deliver a copy of the completed form to the Governor. Sometimes a potential conflict of interest will exist or arise and a Council member will not have sufficient time to prepare and deliver copies of the required statement prior to the time the matter will be considered by the Council. If a Council member with a conflict of interest does not have sufficient time to prepare and deliver the required statement, the member must "orally inform" the official body or committee upon which the member serves and should file the required statement within a week of the action taken. The Council member that has the potential conflict of interest should state at least the general nature of the conflict. -4-