Conflicts of Interest

California's Proposition 11 raises an interesting conflict of interest issue for local governments whose council members represent districts. Proposition 11 is "a plan to set up a 14-member citizens commission to draw district boundaries for state Senate, Assembly and Board of Equalization seats. State lawmakers currently have that power."

According to an article in yesterday's Baltimore Sun, the Baltimore County Council narrowly failed in its attempt to change the county charter to allow council members to work for the state of Maryland. Five of seven council members voted for the charter amendment (the charter currently forbids this), including one who "inadvertently" worked for the state for five months in 2003.

According to an article in today's Denton (TX) Record-Chronicle, the Denton (pop. 106,000) council voted 4-2, with the mayor recusing himself, to give the city's tax collection contract to the mayor's law firm (he is one of two partners in the four-lawyer firm).

Back in January, I wrote a blog entry focusing on the lack of transparency in the credit rating business so central to the subprime mortgage mess that has brought the world economy to its knees. Transparency, it has become clear, is all important.

See below for two updates

I've written a lot about politicians' charities, and how they allow lobbyists and others to get around limits on campaign contributions. But an article in today's New York Times presents a new form of abuse of a politician's charities (although it's not as different as it first seems).

According to an article in today's New York Times and in yesterday's Huffington Post, the investigator charged by Alaska's Legislative Committee, before Sarah Palin was even being considered as a vice presidential candidate, found in a report that, among other things, Gov.

When does an interest become an interest? When an official starts thinking about entering into a contract? When she starts negotiating the contract? When she agrees on the details? When she actually signs the contract? Or is this not really the question to focus on?

According to an article in the Aspen (CO) Daily News, this issue arose recently on the Aspen City Council.

Sometimes a conflict of interest can help a community save money. An official with a relationship to a company might be able to negotiate a better deal for his town, as long as his company gets the business and the credit. But is this legitimate, and even if it is, how should it be handled?

Sometimes it's very difficult for a government official to deal with a conflict of interest involving a member of his or her immediate family. The common approach to ethics is to assume that an official will favor a family member, but sometimes an ethics law can take an official out of the uncomfortable position of having to reject a family member. And sometimes the situation with a family member can have elements of both.

A difficult aspect of government ethics is the percentage of a company that must be owned by a government official in order for there to be a conflict of interest. The figure chosen for ethics codes is usually 5%.

The City Ethics Model Code uses the following language in defining "outside employer or business":