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METROPOLITAN COUNCIL Mears Park Centre • 230 East Fifth Street • Saint Paul, Minnesota 55101 MEMORANDUM DATE: March 18, 1991 TO: Chair Anderson and Members of the Metropolitan Council Chair Kitto and Members of the Metropolitan Parks and Open Space Commission Chairs and Members of Council Advisory Committees FROM: Jay Heffern, General Counsel Dave Theisen, Assistant Counsel SUBJECT: Conflict of Interest (Annotated Copy ) INTRODUCTION This memorandum discusses conflict of interest issues and summarizes recent amendments to the statutory conflict of interest provisions which apply to Council members, members of the Metropolitan Parks and Open Space Commission, and members of the Council's advisory committees. This memorandum updates the general conflict memorandum issued by the legal staff in 1983. The Legal Department is available to assist individuals who have concerns or questions about potential conflicts of interest. I. SUMMARY Members of the Council and Council advisory committees and members of the Metropolitan Parks and Open Space Commission are subject to the state statutory provisions governing conflicts of interest which relate to the performance of official public duties. A conflict of interest exists when an individual holding a public office or position and discharging official duties must take an action or make a decision that substantially affects the individual's financial interests or the financial interests of a business with which the individual is associated. The Ethics in Government Act requires individuals who hold public offices or positions to disclose and report conflicts of interest and sometimes requires an individual to refrain from participating in an official action or decision to which the actual or potential conflict relates. Failure to take the actions required by statute may render a public decision or governmental action invalid. Failure by an individual to fulfill the statutory responsibilities also can result in personal liability or criminal sanctions. Recent state legislation expanded the scope of the statutory conflict of interest provisions and clarified the actions which must be taken by an individual when a conflict of interest arises. Council members are subject to special statutory conflict of interest provisions when the Council is exercising its statutory authority to function as a housing and redevelopment authority. Members of the Council's advisory committees are subject to the conflict of interest provisions contained in the bylaws governing each advisory committee. The appearance of a conflict may be as important as an actual conflict of interest. Council members, members of the Council's advisory committees, and members of the Metropolitan Parks and Open Space Commission should avoid situations which create the appearance of a conflict of interest because even the appearance of a conflict may affect the Council's or the commission's ability to transact public business or make effective public decisions.