Municipal officers, including all elected and appointed officers, their deputies and assistants, and everyone exercising any of the powers or functions of a municipal officer, are prohibited from being beneficially interested in any contract made for the benefit of their office and from accepting any gift or compensation from any person beneficially interested in such a contract.  There are several exemptions specified in statute allowing municipal officers to have an interest in an awarded contract if the contract is within certain limits.  For example, a municipal officer may have a beneficial interest in contracts in which the total volume of business does not exceed $1,500 in a calendar month.  Additionally, contracts by a second-class city or town, noncharter code city, or a county fair board in a county without a purchasing department, in which the total volume of business exceeds the $1,500 monthly limit, but does not exceed $18,000 in any calendar year, are exempt.

The monthly value for contracts in which municipal officers may have a beneficial interest is increased from $1,500 to $3,000.  The monthly and annual value of contracts in which municipal officers may have a beneficial interest for contracts let by a second-class city or town, noncharter code city, or a county fair board in a county without a purchasing department is increased to $3,000 and $36,000, respectively.