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Texas Special District Local Laws Code - Section 3824.054. Conflicts Of Interest; One-Time Affidavit

Legal Research Home > Texas Laws > Special District Local Laws Code > Texas Special District Local Laws Code - Section 3824.054. Conflicts Of Interest; One-Time Affidavit

§ 3824.054. CONFLICTS OF INTEREST;  ONE-TIME 
AFFIDAVIT.  (a) Except as provided by this section:
		(1)  a director may participate in all board votes and 
decisions;  and      
		(2)  Chapter 171, Local Government Code, governs 
conflicts of interest for directors.
	(b)  Section 171.004, Local Government Code, does not apply 
to the district.  A director who has a substantial interest in a 
business or charitable entity that will receive a pecuniary benefit 
from a board action shall file a one-time affidavit declaring the 
interest.  An additional affidavit is not required if the 
director's interest changes.  After the affidavit is filed with the 
board secretary, the director may participate in a discussion or 
vote on that action if:
		(1)  a majority of the directors have a similar 
interest in the same entity;  or
		(2)  all other similar business or charitable entities 
in the district will receive a similar pecuniary benefit.
	(c)  A director who is also an officer or employee of a public 
entity may not participate in the discussion of or vote on a matter 
regarding a contract with that public entity.
	(d)  For purposes of this section, a director has a 
substantial interest in a charitable entity in the same manner that 
a person would have a substantial interest in a business entity 
under Section 171.002, Local Government Code.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      

Last modified: August 11, 2007