CONFLICTS OF INTEREST

(a) An initial or appointed director may participate in a board discussion or vote only if the director complies with Subsection (b). (b) 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 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. (d) Section 171.004, Local Government Code, does not apply to the district.