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There is no law in Kentucky that states that local representatives cannot have businesses on the side. In fact many do. In fact, many local councilmen are actually only part time, and concentrate the majority of their time on their business.
It is not a conflict of interest to have a legitimate business and to do business with the city while being on the council. However, one wants to be open about one's affiliation with the business, and may have to bow out of any voting for contracts, etc, due to the affiliation.
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