Sec. 9054.0204.  DISQUALIFICATION OF DIRECTORS.  (a)  A member of the governing body of another political subdivision is disqualified from serving as a director.
(b)  A director is disqualified from serving as a director if:
(1)  the director is appointed or elected as a member of the governing body of another political subdivision; or
(2)  the board determines a relationship or employment exists that constitutes a disqualification under Section 49.052(a), Water Code.
(c)  A person is disqualified from serving as a director if the person or a relative of the person within the third degree by consanguinity or affinity, as determined by Chapter 573, Government Code:
(1)  received 10 percent or more of gross income for the previous year from a business entity or other organization, other than a governmental entity, that receives money from the district;
(2)  is employed by or participates in the management of a business entity or other organization, other than a governmental entity, that receives money from the district;
(3)  directly or indirectly owns or controls more than a 10 percent interest in the fair market value of a business or other organization that receives money from the district;
(4)  serves as a corporate officer or member of the board of directors of a business entity or other organization that receives money from the district;
(5)  is a creditor, debtor, or guarantor in an amount of $5,000 or more of a person or business entity that receives money from the district;
(6)  uses or receives a substantial amount of tangible goods, services, or money from the district other than compensation or reimbursement authorized by law; or
(7)  is required to register as a lobbyist under Chapter 305, Government Code, because of the person's activities for compensation on behalf of a profession related to the operation of the district.
Added by Acts 2023, 88th Leg., R.S., Ch. 1109 (S.B. 1056), Sec. 1, eff. June 18, 2023.