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2001 Correspondence
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2001 Correspondence
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commissioner or employee is affiliated is indirect, remote, and <br />insubstantial. A potential conflict of interest is present if the <br />commissioner or employee knows or has reason to know that the <br />organization with which the commissioner or employee is affiliated is <br />or is reasonably likely to become a participant in a project or <br />development which will be affected by the action or decision. Any <br />individual who knowingly fails to submit a statement required by this <br />subdivision or submits a statement which the individual knows contains <br />false information or omits required information is guilty of a gross <br />misdemeanor. <br />Subd. 2. Effect of disclosure. * * * A commissioner who has <br />a potential conflict of interest shall not attempt to influence an <br />employee in any matter related to the action or decision in question, <br />shall not take part in the action or decision, and shall not be counted <br />toward a quorum during the portion of any meeting of the authority <br />in which the action or decision is to be considered. Any individual <br />who knowingly violates this subdivision is guilty of a gross <br />misdemeanor. 51 <br />When the Council is functioning as a housing and redevelopment authority, Council members also <br />are subject to the provisions of Chapter 469 which prohibit individuals from taking part in making <br />any sale, lease, or contract in which the individuals have a personal financial interest. sz <br />The statutory language in the conflict of interest provisions of Chapter 469 is different from the <br />language in the general conflict of interest provisions of Chapter 10A. Chapter 469 defines conflicts <br />more broadly and encompasses more potential conflict situations than does Chapter 10A. For <br />instance, Chapter 469 refers to "organizations" with which commissioners are "associated" or <br />"affiliated." Chapter 10A only refers to an "associated business." 53 Although Chapter 469 does not <br />define the terms "organization" or "affiliated," the language of Chapter 469 suggests conflicts of <br />interest are not limited to situations arising because of some association with a "business" and may <br />encompass situations arising from associations with other governmental entities, trusts, partnerships, <br />nonprofit organizations, or other legal or commercial entities. sa <br />Like Chapter 10A, Chapter 469 does not require any disclosure or require abstention if the effect <br />of a Council decision or action on a Council member or member of a Council advisory committee <br />is no greater than on other members of the individual's business, profession, or occupation. Chapter <br />469 also does not require disclosure or abstention if the effect on the organization with which the <br />Council member or advisory committee member is affiliated is only indirect, remote, and insubstantial. <br />If a Council advisory committee member has a conflict under Chapter 469 the advisory committee <br />member should refrain from participating in the matter giving rise to the potential conflict. The <br />advisory committee member also should prepare a written statement describing the matter requiring <br />action and the nature of the potential conflict and submit the statement to the chair of the advisory <br />committee. If a Council member has a potential conflict of interest under the conflict provisions of <br />Chapter 469 or has reason to know that an organization with which the Council member is affiliated <br />is or is reasonably likely to become a participant in a project or development which will be affected <br />by [a Council] action or decision," the Council member must prepare a written statement describing <br />the matter requiring action and the nature of the potential conflict of interest and submit the <br />statement to the chair of the Council. The Council member with a potential conflict of interest also <br />must refrain from taking part in any Council or committee actions or decisions which relate to the <br />potential conflict. Although not expressly required to do so by Chapter 469, a Council member or <br />
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