Tex. Spec. Dist. Local Laws Code § 3905.054 · Subchapter B. BOARD OF DIRECTORS
CONFLICTS OF INTEREST.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(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.
Notes and commentary — not statutory text
History
Added by Acts 2011, 82nd Leg., R.S., Ch. 358 (H.B. 3857), Sec. 1, eff. June 17, 2011.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/SD/htm/SD.3905.htm
- Text hash
- sha256 5083fa8eaeb4ad351f5cc8cad648550c9fbb06009ea96c5467de38e402d38730
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Local Government Code
- Tex. Loc. Gov't Code ch. 171REGULATION OF CONFLICTS OF INTEREST OF OFFICERS OF MUNICIPALITIES, COUNTIES, AND CERTAIN OTHER LOCAL GOVERNMENTSPrinted as Chapter 171, Local Government Code
- Tex. Loc. Gov't Code § 171.002SUBSTANTIAL INTEREST IN BUSINESS ENTITY.Printed as Section 171.002, Local Government Code
- Tex. Loc. Gov't Code § 171.004AFFIDAVIT AND ABSTENTION FROM VOTING REQUIRED.Printed as Section 171.004, Local Government Code
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.