Tex.
Spec. Dist. Local Laws Code Section 3887.058
Conflicts of Interest
(a)
A director may participate in all board votes and decisions, subject to the requirements of this section.(b)
Section 171.004 (Affidavit and Abstention from Voting Required), Local Government Code, does not apply to the district.(c)
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.(d)
After the affidavit is filed, the director may participate in a discussion or vote if:(1)
a majority of the appointed directors have a similar interest in the same entity;(2)
all other similar businesses or charitable entities in the district will receive a similar pecuniary benefit; or(3)
the appointed director is a property owner in the district.(1)
provided by the general laws relating to conservation and reclamation districts created under Section 59, Article XVI, Texas Constitution, including Chapters 49 (Provisions Applicable to All Districts) and 54 (Municipal Utility Districts), Water Code;(2)
provided by the general laws relating to road districts and road utility districts created under Section 52, Article III, Texas Constitution, including Chapter 441 (Road Utility Districts), Transportation Code, except that the district may exercise any power granted by this chapter without regard to any provision or requirement of or procedure prescribed in Chapter 441 (Road Utility Districts), Transportation Code;(3)
that Subchapter A (Short Title), Chapter 372 (Improvement Districts in Municipalities and Counties), Local Government Code, provides a municipality or a county;(4)
provided by Chapter 375 (Municipal Management Districts in General), Local Government Code;(5)
that Chapter 505 (Type B Corporations), Local Government Code, provides a corporation created under that chapter; and(6)
that Chapter 1371 (Obligations for Certain Public Improvements), Government Code, provides an issuer.
Source:
Section 3887.058 — Conflicts of Interest, https://statutes.capitol.texas.gov/Docs/SD/htm/SD.3887.htm#3887.058 (accessed Jun. 5, 2024).
