What is Conflict of Interest?

Municipal officials and employees must not have a private interest that will be affected by performing an official duty, such as voting as a member of the city or town council or supervising municipal employees. Most commonly, a private interest means an interest held by an individual or relative that is an ownership, directorship or officership interest in a business or real property 2-2‐102(6), MCA. However, certain official acts of a member of a local governing body may be permitted even if a conflict of interest exists if the member’s vote is necessary to form a quorum or otherwise enable the governing body to act. In this instance, the member must disclose the conflict of interest to the Commissioner of Political Practices in Helena before voting 2-2-121(10) and 2-2-131, MCA. The holding of public office or employment is a public trust created by the confidence the electorate reposes in the integrity of public officers, legislators and public employees. A public officer, legislator or public employee shall carry out the individual’s duties for the benefit of the people of the state. A public officer, legislator or public employee whose conduct departs from the person’s public duty is liable to the
people of the state and is subject to the penalties provided in this part for abuse of the public’s trust (2‐2‐103, MCA).

Additionally, and more specifically, the mayor or a member of the council or any officer of the government or any relative or employee of these officers may not be directly or indirectly interested in the profits of any contract entered into by the council 7-5-4109, MCA. The governing body may, upon due consideration of certain factors, grant a waiver of this prohibition by publicly disclosing the nature of the conflict at a properly noticed public hearing.
As a practical matter it is always a good idea to discuss a potential conflict of interest with the city attorney and to do so prior to performing an official act that may be in conflict with a private interest. If, after consulting with the city attorney, an individual believes that he/she will be in a conflict situation and must therefore refrain from participating or voting on the matter, it is a very good idea to avoid surprising the presiding officer and members of
the council by waiting until the voting process to declare abstention. Additionally, declaring a possible conflict of interest when none exists simply to avoid voting on a controversial issue does a disservice to one’s government and to his/her constituents.