A bill now before the legislature would require all municipalities outside Winnipeg, which falls under a separate law, to set standards of behaviour for their elected officials.
Local Government Minister Ron Lemieux says the law would let councillors penalize a fellow member for infractions such as leaking confidential information.
Lemieux says the province has yet to decide exactly what kind of penalties could be imposed.
The bill would also require municipal employees to take a leave of absence if they want to run for office.
It would also force municipalities to notify citizens about large capital projects before they borrow the required money.