Sec. 3905.054. CONFLICTS OF INTEREST. (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 of board members.
(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 an affidavit with the board secretary declaring the interest. Another affidavit is not required if the director's interest changes.
(c) After the affidavit is filed, 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.
(d) A director who is also an officer or employee of a public entity may not participate in a discussion of or vote on a matter regarding a contract with that same public entity.
(e) 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 2011, 82nd Leg., R.S., Ch. 358 (H.B. 3857), Sec. 1, eff. June 17, 2011.
Section: Previous 3905.005 3905.006 3905.007 3905.008 3905.051 3905.052 3905.053 3905.054 3905.055 3905.056 3905.101 3905.102 3905.103 3905.104 3905.105 NextLast modified: September 28, 2016