NCSL - National Conference of State Legislatures

04/30/2024 | Press release | Distributed by Public on 04/30/2024 10:36

Conflict of Interest Definitions

Related Topic:Ethics

A legislator may face a conflict of interest when a personal interest affects their actions in the legislature. Legislative ethics rules often prohibit legislators from taking certain actions or require them to disclose matters that might create either a conflict of interest or the appearance of a conflict. Conflicts of interest might include hiring a family member, having a personal financial interest in a matter before the legislature, or any of countless other situations.

Circumstances that could create a conflict are too numerous to list, so most states' statutes are written generally to capture a range of possible conflicts. They accomplish this by providing specific examples and describing general courses of conduct that might give rise to a conflict. In-depth information on other subjects related to conflicts of interest-such as nepotism, representing others and misuse of public funds-can be found on NCSL's Ethics resources page.

A few states provide explicit definitions of a conflict of interest: Alabama, Georgia, Idaho, New Hampshire, Oregon, Utah and Vermont. The remaining states describe some scenarios or conduct that may give rise to a conflict of interest. These states often provide non-exhaustive lists or general examples of potential conflicts.

While many states address potential conflicts of interest for legislators by constitution or statute, some have further regulations in chamber rules. The table below covers only statutory and constitutional definitions.

NCSL provides these statutory resources for informational purposes only. This does not constitute legal advice.

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"Conflict of Interest" Defined
State Statute Conflict of Interest Definition Exclusions from Definition

Alabama 

Ala. Code § 36-25-1

A conflict of interest involves any action, inaction or decision by a legislator in the discharge of their official duties that would materially affect their financial interest or those of their family members or any business with which the person is associated.

A conflict of interest does not include: a financial effect that is no different than the effects on other members of the group; a loan or financial transaction conducted in the ordinary course of business; certain awards; reimbursement for certain necessary travel and subsistence; or campaign contributions that do not influence their official duties.

Alaska 

Alaska Stat. § 24.60.030

A conflict of interest exists if a legislator's vote is likely to substantially benefit or harm the financial interest of themselves, the legislator's spouse, or a person with whom the legislator or the legislator's spouse is employed or is negotiating for employment.

Arizona 

Ariz. Rev. Stat. Ann. § 38-503

A legislator shall refrain from voting or participating in any decision by a public agency, contract, sale or purchase in which they or a relative has a substantial interest .

A conflict of interest may not exist if the interested party has only a " remote interest ."

Arkansas 

Ark. Stat. Ann. § 21-8-803

A legislator shall prepare a statement or make it publicly known if an action through their official duties will affect them or the financial interests of a business with which they are associated.

A conflict of interest does not apply if the effects of the legislator's actions are not distinguishable from the general public or a broad segment of the public.

California 

Cal. Government Code § 87100, 87103

A conflict of interest exists if a legislator uses their official position to influence a governmental decision in which they know they, an immediate family member or a business they are associated with have a financial interest .

Colorado 

Colo. Const. art. 5, § 43

A legislator may have a conflict of interest if they have any personal or private interest in any measure or bill.

Connecticut 

Conn. Gen. Stat. § 1-85

A conflict of interest may exist if a legislator has an interest that substantially conflicts with the proper discharge of their duties. This may be the case when the legislator has reason to believe that they, a member of their family or a business they are associated with will incur a direct monetary gain or loss as a result of the legislator's activity.

Delaware 

Del. Code Ann. tit. 29, § 1002

A conflict of interest exists if a legislator or a close relative may see a financial benefit or loss as a result of a bill. Also, a conflict may exist if a legislator has a financial interest in an enterprise that may be affected by a bill. A conflict of interest may exist if a close relative is a lobbyist that has an interest in the bill.

A conflict of interest does not exist if the effect on an enterprise they have a financial interest in is no more substantial than other similar enterprises.

Florida 

Fla. Stat. § 112.3143

If an economic benefit or loss would occur to a legislator, their relative, business associate or principal, the legislator shall consider the size of the affected group and how they are affected, the nature of the interests involved and how they are affected compared with other members of said group. They shall also consider the nature or degree of the economic benefit or loss.

Georgia 

Ga. Code § 45-10-90

A conflict of interest exists if a legislator has multiple interests and uses their official position to exploit, in some way, their position for their own direct, unique, pecuniary and personal benefit.

Hawaii 

Hawaii Rev. Stat. § 84-14

A conflict of interest may exist when a legislator receives compensation for representing another's interests before a state or county agency in a transaction involving the state, including in a matter before the legislature related to a bill the legislator participates in.

Idaho 

Idaho Code § 74-403

Conflict of interest means any official action or any decision or recommendation by a legislator, the effect of which would be to the private pecuniary benefit of the person or a member of the person's household, or a business with which the person or a member of the person's household is associated. A legislator may not use their position for financial gain for themselves, a family member or a business associate.

Illinois 

Ill. Rev. Stat. ch. 5, § 420/3-202

A conflict of interest may exist if a legislator's official action threatens their independent judgment; affects public confidence in the legislature; if their participation is likely to have a significant effect on the disposition of the matter; or if there is no need for their contribution on the matter.

Indiana 

Ind. Code § 35-44.1-1-4

A conflict of interest exists if a legislator has a pecuniary interest or derives a profit from a contract or purchase connected with a governmental entity.

A conflict of interest does not exist if employment or compensation is provided by law, the interest is worth $250 or less, or the legislator files a disclosure.

Iowa 

Iowa Code § 68B.2A

A conflict of interest may arise if a legislator uses public resources to give themselves or a member of their family an advantage or pecuniary benefit; if a legislator's outside employment involves payment for duties they are already required to perform as a legislator; or if a legislator's outside employment is subject to their own control, audit or enforcement.

A conflict of interest may not exist if the advantage or benefit is available to other similarly situated individuals.

Kansas 

Kan. Stat. Ann. § 46-233

No one who has been a legislator within the last year shall have a pecuniary interest in any contract with the state which is funded by a law passed during their term.

This does not apply to contracts with competitive bidding or contracts for property and services with prices fixed by law. No conflict exists in certain contracts if disclosed in their disclosure statement.

Kentucky 

Ky. Rev. Stat. §§ 6.731 , 6.761

A legislator may not use their position to influence a matter in which there is a substantial conflict between their duties and personal interests. They may not engage with a decision in which they or a member of their family will derive a direct monetary gain or loss. They may not engage in a decision that relates to a business they own or control.

Louisiana 

La. Rev. Stat. Ann. §§ 42:1112 , 42:1120

No legislator shall participate in a government transaction in which they know they, an immediate family member, a person they know, a business partner or subordinate, a person they are negotiating employment with or a person they are in a prior contract with may have a substantial economic interest.

No conflict of interest exists if the legislator recuses themselves from voting on the matter.

Maine 

Me. Rev. Stat. Ann. tit. 1, § 1014

A conflict of interest exists if a legislator votes or attempts to influence the outcome of a question the legislator, their immediate family member or an enterprise they have a close economic association with has a substantial personal financial interest. A conflict of interest also exists if a legislator or their immediate family member accepts a gift or employment that may influence their decision.

A conflict of interest does not exist if a legislator's financial interest is not distinct from the public's interest.

Maryland 

Md. Gen. Prov. Code Ann. § 5-512

A conflict of interest exists if a legislator has a direct interest in an enterprise that would be affected by their decision or if they benefit financially from a close economic association .

A conflict of interest does not exist if the interest is common to a profession to which the legislator is a member of, is common to the general public, or is common to like enterprises.

Massachusetts 

Mass. Gen. Laws Ann. ch. 268A, § 6A

A conflict of interest may arise when a legislator would be required to knowingly take an action that would substantially affect their financial interests.

A conflict of interest does not exist if the effect on the legislator is no greater than the effect on the general public.

Michigan 

Mich. Comp. Laws §§ 15.302 , 15.304

A conflict of interest exists only if a legislator's personal interest is of such substance as to cause them to promote a contract for their own personal benefit.

A conflict of interest does not exist under certain amounts and types of ownership of a corporation. A conflict of interest does not exist if the contract is awarded to the lowest bidder so long as the bid is sealed, or if a contract is awarded for a public utility whose rates are regulated by the government.

Minnesota 

Minn. Stat. § 10A.07

A conflict of interest exists if a legislator makes a decision that would substantially affect the financial interests of themselves or an associated business.

A conflict of interest does not exist if the financial effect in no greater than that on other members of the legislator's business classification, profession or occupation.

Mississippi 

Miss. Code Ann. § 25-4-105

While a legislator is in office and for one year thereafter, the legislator may not have any interest in a contract with the state or a locality if the contract was authorized by a board the legislator may have been a member of.

Missouri 

Mo. Rev. Stat. § 105.452

A legislator may not favorably act on a matter designed to provide a special monetary benefit to the legislator or their family. A legislator may not use or disclose confidential information for their own or another's financial gain.

Montana 

Mont. Code Ann. § 2-2-112

A legislator may have a conflict of interest when they have a personal or private interest in a matter that would give rise to an appearance of impropriety. This may be the case if, for example, the conflict impedes the legislator's independent judgment; has an adverse effect on public confidence in the legislature; or if the legislator or their family may benefit from the matter in some way.

A conflict of interest does not arise from legislation or legislative duties that affect a particular profession, occupation or group.

Nebraska 

Neb. Rev. Stat. § 49-1499

A legislator may have a conflict of interest when a matter involves a financial benefit or detriment to the legislator, a member of their immediate family or a business with which the legislator is associated.

To give rise to a potential conflict, the benefit or detriment must be distinguishable from the matter's effect on the general public.

Nevada 

Nev. Rev. Stat. § 281A.420

Legislators are governed by the standing rules of the legislative department of state government, not by state ethics statutes.

New Hampshire 

N.H. Rev. Stat. Ann. § 14-B:1

A conflict of interest exists when a legislator has a special interest in a matter that could affect or influence the legislator's official duties or actions.

New Jersey 

N.J. Rev. Stat. § 52:13D-13

Interests subject to New Jersey's conflict of interest policies for legislators include, but are not limited to, ownership or control of an entity over a certain amount or in a certain industry .

New Mexico 

N.M. Stat. Ann. § 10-16-3

Conflict of interest issues might arise when a legislator is unduly influenced or abuses their office.

New York 

N.Y. Pub. Off. Law § 74

A conflict of interest may exist if a legislator has any interest or obligation or engages in business or a transaction that is in substantial conflict with the legislator's duties.

North Carolina 

N.C. Gen. Stat. § 138A-35 , 138A-37 , 138A-39

Conflicts of interest could arise from a legislator's personal, financial and professional affairs, especially when the interest is significant enough to prevent a legislator from fulfilling a portion of their duties. A conflict of interest may also arise when a legislator or a person they are associated with may incur a reasonably foreseeable financial benefit from the legislator's action.

North Dakota 

N.D. Cent. Code § 54-66-18

A potential conflict of interest may arise out of any bill in which a legislator has a direct, unique, substantial, or individual interest.

Ohio 

Ohio Rev. Code Ann. § 102.02(A)(7)(B)

A conflict of interest may exist if a legislator's private interests might interfere with their legislative duties. The Ohio ethics commission reviews financial disclosure statements to determine if a potential conflict of interest exists.

Oklahoma 

Okla. Const. art. V, § 21

Legislators must refrain from having interests that conflict with their legislative duties in accordance with state law.

Oregon 

Or. Rev. Stat. § 244.020

A conflict of interest exists when a legislator takes any action in their official capacity that results in a private pecuniary benefit or detriment to the legislator, their relative or any business with which the legislator or their relative is associated.

Even if a legislator or their relative receives a financial benefit or detriment as a result of the legislator's action, a conflict of interest does not exist if the benefit or detriment is related to the legislator or relative's membership in a particular occupation they are required to belong to in order to hold their position; if the benefit or detriment affects an entire group to which the legislator or their relative belongs; or if the benefit or detriment arises out of the legislator or their relative's membership in a nonprofit.

Pennsylvania 

Pa. Stat. tit. 65, § 1102

A conflict of interest exists when a legislator uses their authority or confidential information gained in their official capacity to incur a financial benefit for themselves, a member of their immediate family or a business with which the legislator or their family is associated.

A conflict of interest does not exist if a legislator's action has a de minimis economic impact or has the same effect on the interested party as it does on a larger group to which the interested party belongs.

Rhode Island 

R.I. Gen. Laws § 36-14-7

A conflict of interest exists when a legislator has reason to believe that they, a member of their family, a business associate, their employer or a business they represent will incur a direct financial benefit or loss as a result of the legislator's official action.

A conflict of interest does not exist when the legislator's action affects a particular group to which the interested party belongs and the interested party is affected to no greater degree than other members of the group

South Carolina 

S.C. Code Ann. § 8-13-700

A legislator may not participate in or attempt to influence a government decision in which the legislator, a family member, an associate or a business associated with the legislator has an economic interest . A legislator also may not use their official position to obtain an economic interest for themselves or any of the aforementioned parties.

A conflict of interest does not exist if the economic interest that would otherwise create a conflict is held in a properly disclosed blind trust. A conflict also does not exist when a legislator is legally required to appear as a business owner or a member of the General Assembly.

South Dakota 

S.D. Const. art. 3, § 12

A legislator may not have an interest in any contract with the state or any county if the contract was authorized by law while the legislator was in office. Conflicts of interest are further governed in chamber rules.

Tennessee 

Tenn. Code Ann. § 8-50-502

Legislators must disclose a variety of interests, including but not limited to major sources of private income; investments over a certain amount ; information about contributions from private sources used for expenses related to legislative duties; certain travel expenses paid for by a person with an interest in a public policy; loans over a certain amount ; and the name of any multicandidate PAC established or controlled by the legislator. A legislator must also disclose these interests when a member of their family is the interested party.

In certain circumstances , legislators need not disclose their loans.

Texas 

Tex. Gov't Code Ann. § 572.001

Legislators may not have any interest, engage in a transaction or professional activity, or incur any obligation that substantially conflicts with the legislator's duty to act in the public interest.

Utah 

Utah Code Ann. § 20A-11-1602

A conflict of interest exists when a legislator takes an action they reasonably believe may result in a direct financial benefit or detriment to themselves, a member of their immediate family or an individual or entity the legislator is required by law to disclose.

For a conflict of interest to exist, the financial benefit or detriment at issue must be distinguishable from the general effects the legislator's action has on the public or on the affected party's profession, occupation or association.

Vermont 

Vt. Stat. Ann. tit. 3, § 1203

A conflict of interest exists when a legislator has an interest or knows a member of their household or a business associate has a direct interest in a matter before the legislature or that is otherwise in conflict with the legislator's performance of their duties.

A conflict of interest does not exist if the legislator or their associate's interest is no greater than the interest of other individuals affected by the matter.

Virginia 

Va. Code § 30-108

A conflict of interest may exist when a legislator has some personal interest in a transaction.

Washington 

Wash. Rev. Code § 42.52.020

A legislator may not have any interest, engage in a transaction or professional activity or incur any obligation that conflicts with the legislator's official duties.

West Virginia 

W. Va. Code § 6B-2-5

A legislator, a member of their immediate family or a business with which they are associated may not have an interest in a contract over which the legislator has control.

A legislator, member of their family or business the legislator is associated with can lawfully have a limited interest as an owner or shareholder if the interest does not exceed $1,000 per calendar year in benefits of any public contracts. In some circumstances , legislators may also be able to lawfully contract with a governmental body.

Wisconsin 

Wis. Stat. § 19.46

A legislator may not take any official action that substantially affects a matter in which the legislator, a member of their immediate family or an organization the legislator is associated with has a substantial financial interest.

Wyoming 

Wyo. Stat. § 6-5-106

A legislator is prohibited from requesting or receiving any financial benefit in relation to any contract.

A legislator may request or receive lawful compensation from a contract without giving rise to conflict of interest issues. In some circumstances, banking and deposit contracts also might not give rise to a conflict of interest.

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