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Mmn. sloe 44n,ee1. Many home rule charters contain prov' o on conflict of interest in <br />contracts, Some of these go beyond fatale to include any city official, <br />even though the official has no part' making the contract. These charter <br />provisions may apply to situatio where the statute does not. However, the <br />exceptions discussed previous apply to all cities, despite any other statute <br />or city charter. (Because ch er provisions vary from city to city, they are <br />not covered in this doe nt.) <br />Some home rule ch ers contain provisions preventing all officers and <br />employees from ing interested in a contract with the city. Such a provision <br />evidently appli to every city officer or employee whether or not he or she <br />has a part i eking contracts. <br />J. Specific kinds of contracts <br />A.G. Op. 90a-2 (April The unlawful interest statutes apply to all kinds of contracts fo I <br />14,1960); A.G.Op. jnformal, for goods and services. The statute a Iles not onl when the ci rs <br />90E-6 (Aug. 30, 1949). pp y ty <br />the buyer, but also when the city is the seller. <br />1. Prohibited interest <br />A.G. Op. 90E-1 (Mey The law would appear to prohibit a contract with a public official who has <br />12.1976). ~_~.~_ ____~._-~.._ -_n--____.~_._-_ _ra_ ___._.__. __z_ 3__._.__ .r-~ <br />the goveming body. <br />Minn. smr. g a7 tss, Even when a contract is allowed under one of the exceptions_such as fora <br />:uta. s. "contract for which beds are not required by law" (which appears to include <br />sec pan v • an employment contract), council members should be coati ._Employing a <br />lncompmibifiry of councilmember as a city emp oyee may still be prohibited under the <br />a$sea. <br />"incompatibility of offices" doctrine. <br />A.c. op. 9oa-1 (May The attorney general has advised that a councilmember who holds stock in a <br />16.19sz>. corporation that enters into a contract with the city has an unlawful interest <br />A.c. op. got (Ang. s, and that a councilmember who is a subcontractor on a contract has an <br />1969). unlawful interest. The attorney general has also advised that a member of a <br /> goveming body that receives a percentage of the money earned by a court- <br /> reporting firm for jobs done under a contract with the city has an unlawful <br /> interest. <br />A.G. op. 9a><s (Nov. On the other hand, the attorney general has advised that if a councilmember <br />t 3, 1969). is an employee of the contracting firm and his or her salary is not affected by <br /> the contract, the council may determine that no personal financial interest <br /> exists. Thus, such a contract may be made and enforced in a home rule <br /> charter city with no charter provisions prohibiting direct or indirect interest. <br />sngewdev. The Minnesota Supreme Court has held that employment by a company the <br />Afirnrapo(;a ca= co., <br />274 Minn. 556, 142 ci wntracts with ma rve a councilmember an indirect interest in the <br />ty Y g <br />N.W.2d 739 (I966), contract. However, a more recent attorney geneml opinion concluded it is <br />A.c. op.9oa-1(x1.7, uncleaz whether mere employment always gives rise to a conflict of interest. <br />1976). <br />E2 League of Minnesota Cities <br />