substantial financial interest or using their office in a way that produces or assists in producing a substantial benefit for the official, an immediate family member, or an organization with which the official is associated. (4) Offering or providing influence in exchange for campaign contributions. The underlined terms above are statutorily defined. • “Organization” is broadly defined and includes any “corporation, partnership, proprietorship, firm, enterprise, franchise, association, trust or other legal entity other than an individual of body politic.” Wis. Stat. § 19.42(11). • An official is “associated” with an organization when they or a member of their immediate family is an officer, director, or trustee; owns at least 10% of the organization; or is an authorized representative or agent. Wis. Stat. § 19.42(2). • “Immediate family” is defined to always include an official’s spouse, if they have one. The term also includes relatives by marriage, lineal descent, or adoption if the relative received more than half of their support from the official or vice versa. Wis. Stat. § 19.42(7)(a-b). There is currently no Wisconsin case law clarifying what “support” means in this context, but Black’s Law Dictionary defines supporting someone as supplying them with “a means of survival and livelihood.” Financial support is one clear example. Local Ethics Code Municipalities may enact a local ethics code that is more stringent than the state ethics code. It cannot be less stringent. Local public officials should be familiar with the local ethics code, if their municipality has adopted one. Private Interest in Public Contract Local public officials, and municipal employees, should also be aware of the pecuniary interest prohibitions in Wis. Stat. § 946.13. With limited exceptions, § 946.13 prohibits local public officials from having a private financial interest in public contracts. It covers actions taken in their private capacity and those taken in their official capacity. Section 946.13(1)(a) prohibits public officials and employees, in their private capacity , from negotiating, bidding for, or entering into a contract in which the official or employee has a direct or indirect private financial interest, if the official or employee is authorized or required to participate in their capacity as official or employee in the making of that contract. This prohibition does not depend on whether the official or employee takes official action; what matters is that they are authorized or required to act. Therefore, abstention from voting or refraining from taking action regarding the contract will not prevent a violation. Section 946.13(1)(b) prohibits officials and employees from participating in the making of a contract in their official capacity as official or employee or exercising discretion regarding a
Frequently
Questions
Asked
The League maintains an extensive library of Frequently Asked Questions on our website. It is a great resource to get quick and authoritative answers to your questions, or to learn about a particular topic. The library is organized into over 30 topics from contracts and public records to taxation and zoning. We are constantly updating the FAQs to keep them accurate. Below are some recently updated samples.
Scan to find the Complete FAQs Library
Ethics and Pecuniary Interest 1 What laws govern public officials in ethical matters? There are three primary sources of law governing local public officials in ethical matters. State Ethics Code The state ethics code applicable to local public officials is found in Wis. Stat. § 19.59. It establishes minimum standards of ethical conduct that prohibit local public officials from using their public office to benefit or enrich themselves, their immediate families, or organizations with which they’re associated. The state ethics code prohibits local public officials from engaging in four types of conduct: (1) Using their office to obtain financial gain or anything of substantial value for the private benefit of themselves, their immediate families, or organizations with which they’re associated. (2) Receiving anything of value if it could reasonably be expected to influence the local public official’s vote, official action or judgment, or could reasonably be considered a reward for any official action or inaction. (3) Taking official action substantially affecting a matter in which the official, an immediate family member, or an organization with which the official is associated has a
The Municipality - October 2025 | 26
Made with FlippingBook - professional solution for displaying marketing and sales documents online