Conflicts of Interest

Sec. 3896.054. CONFLICTS OF INTEREST. (a) Except as provided by Section 3896.053 or 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) A director who has a beneficial interest in a business entity that will receive a pecuniary benefit from an action of the board may participate in discussion and vote on that action if a majority of the board has a similar interest in the same action or if all other similar business 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 a discussion of or vote on a matter regarding a contract with that same public entity. Added by Acts 2011, 82nd Leg., R.S., Ch. 699 (H.B. 427), Sec. 1, eff. June 17, 2011.