Ethics: Arizona's Conflict of Interest Definition

This page is intended to provide general information and does not necessarily address all aspects of this topic. Because the facts of each situation may vary, this information may need to be supplemented by consulting legal advisors. It reflects in summary form statutes/constitutional provisions/legislative chamber rules in effect as of 5/31/2008 or statutes set to take effect shortly thereafter.

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Arizona's Policy Statutory Reference

TITLE 38.  PUBLIC OFFICERS AND EMPLOYEES
CHAPTER 3.  CONDUCT OF OFFICE
ARTICLE 8.  CONFLICT OF INTEREST OF OFFICERS AND EMPLOYEES
§ 38-503. Conflict of interest; exemptions; employment prohibition

A. Any public officer or employee of a public agency who has, or whose relative has, a substantial interest in any contract, sale, purchase or service to such public agency shall make known that interest in the official records of such public agency and shall refrain from voting upon or otherwise participating in any manner as an officer or employee in such contract, sale or purchase.

B. Any public officer or employee who has, or whose relative has, a substantial interest in any decision of a public agency shall make known such interest in the official records of such public agency and shall refrain from participating in any manner as an officer or employee in such decision.

C. Notwithstanding the provisions of subsections A and B of this section, no public officer or employee of a public agency shall supply to such public agency any equipment, material, supplies or services, unless pursuant to an award or contract let after public competitive bidding, except that:

   1. A school district governing board may purchase, as provided in sections 15-213 and 15-323, supplies, materials and equipment from a school board member.

   2. Political subdivisions other than school districts may purchase through their governing bodies, without using public competitive bidding procedures, supplies, materials and equipment not exceeding three hundred dollars in cost in any single transaction, not to exceed a total of one thousand dollars annually, from a member of the governing body if the policy for such purchases is approved annually.

D. Notwithstanding subsections A and B of this section and as provided in sections 15-421 and 15-1441, the governing board of a school district or a community college district may not employ a person who is a member of the governing board or who is the spouse of a member of the governing board.

A.R.S. § 38-503 (2008).

TITLE 38.  PUBLIC OFFICERS AND EMPLOYEES
CHAPTER 3.  CONDUCT OF OFFICE
ARTICLE 8.  CONFLICT OF INTEREST OF OFFICERS AND EMPLOYEES
§ 38-502. Definitions

...
10. "Remote interest" means:

      (a) That of a nonsalaried officer of a nonprofit corporation.

      (b) That of a landlord or tenant of the contracting party.

      (c) That of an attorney of a contracting party.

      (d) That of a member of a nonprofit cooperative marketing association.

      (e) The ownership of less than three per cent of the shares of a corporation for profit, provided the total annual income from dividends, including the value of stock dividends, from the corporation does not exceed five per cent of the total annual income of such officer or employee and any other payments made to him by the corporation do not exceed five per cent of his total annual income.

      (f) That of a public officer or employee in being reimbursed for his actual and necessary expenses incurred in the performance of official duty.

      (g) That of a recipient of public services generally provided by the incorporated city or town, political subdivision or state department, commission, agency, body or board of which he is a public officer or employee, on the same terms and conditions as if he were not an officer or employee.

      (h) That of a public school board member when the relative involved is not a dependent, as defined in section 43-1001, or a spouse.

      (i) That of a public officer or employee, or that of a relative of a public officer or employee, unless the contract or decision involved would confer a direct economic benefit or detriment upon the officer, employee or his relative, of any of the following:

         (i) Another political subdivision.

         (ii) A public agency of another political subdivision.

         (iii) A public agency except if it is the same governmental entity.

      (j) That of a member of a trade, business, occupation, profession or class of persons consisting of at least ten members which is no greater than the interest of the other members of that trade, business, occupation, profession or class of persons.

   11. "Substantial interest" means any pecuniary or proprietary interest, either direct or indirect, other than a remote interest.

A.R.S. § 38-502 (2008).

A personal financial interest exists if it is reasonably foreseeable that an action in the discharge of his official duties will have a material financial benefit or detriment either directly or indirectly on the member, his spouse or any minor child of whom he has legal custody, except that no personal financial interest exists if the legislator or such member of his household is a member of a class of persons and it reasonably appears that a majority of the total membership of that class is to be affected by such action.
House Rule 35(E)(2) &

Senate Rule 30(E)(2).

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Center for Ethics in Government