The Government is reviewing what it says is outdated legislation governing how conflict of interest rules are managed for members of councils.
Local Government Minister Rodney Hide says the Local Authorities (Members' Interests) Act, which was passed in 1968, is difficult to understand and apply in today's circumstances.
He says a discussion document proposes that members declare conflicts of interest before they are elected on councils and for a register to be kept.
It also questions whether a rigid prohibition on members having an interest in contracts with the council over a certain value, be retained.
Submissions close on the discussion document on 18 November.