A conflict of interest essentially occurs when a public official's or employee's decisions are, or could be, influenced by personal interests. Usually this term references a financial or personal gain for a city official or employee or an official's or employee's relative, non-governmental co-worker, client or political donor. Kentucky law prohibits any city official or employee from being interested, directly or indirectly, in any contract with the city. However, there are a few execptions outlined in KRS 61.252.
Any official adoption of a conflict of interest code should include things like prescribed penalties, recusal requirements and the type of official to whom the code extends. These standards ensure a fair process for establishing public-private relationships, and curb many abuses that could occur while bidding for contractors.