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1.1 Definitions <br />a. "Local public official" means a member of the governing body or another officer, <br />whether elected, appointed, paid or unpaid, of any district (including a school district), county, <br />municipality, precinct, central appraisal district, transit authority or district, or other local <br />government entity who exercises responsibilities beyond those that are advisory in nature. (Note: <br />Persons who exercise "responsibilities beyond those that are advisory in nature" would include, for <br />example, the members of the Planning and Zoning Commission or the Zoning Board of <br />Adjustments.) <br />b. "Business entity" means a sole proprietorship, partnership, firm, corporation, holding <br />company, joint-stock company, receivership, trust, or any other entity recognized by law. <br />1.2 Substantial Interest in Business Entity <br />a. For purposes of this chapter, a person has a substantial interest in a business entity if: <br />(1) the interest ownership of ten percent or more of the voting stock or shares of <br />the business entity or ownership of $2,500 or more of the fair market value of the <br />business entity; or <br />(2) funds received by the person from the business entity exceed ten percent of <br />the person's gross income for the previous year. <br />b. A person has a substantial interest in real property if the interest is an equitable or legal <br />ownership with a fair market value of $2,500 or more. <br />c. A local public official is considered to have a substantial interest under this section if a <br />person related to the official within the second degree by consanguinity of affinity has a substantial <br />interest under this section. <br />1.3 Prohibited Acts; Penalty <br />a. Except as provided by Section 171.005 or 171.006, a local public official commits an <br />offense if the official knowingly: <br />(1) participates in a vote or decision on a matter involving a business entity in <br />which the official has a substantial interest if it is reasonably foreseeable that an <br />action on the matter would confer an economic benefit on the business entity; or <br />(2) acts as a surety for a business entity that has work, business, or a contract with <br />the governmental entity; or <br />(3) acts as surety on any official bond requirement of an officer of the <br />governmental entity. <br />b, An offense under this section is a Class A misdemeanor, <br />