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<br />e <br /> <br />e <br /> <br />b. "Business entity" means a sole proprietorship, partnership, firm, corporation, <br />holding company, joint-stock company, receivership, trust, or any other entity recognized by law. <br /> <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 <br />if: <br /> <br />(1) the interest ownership of ten percent or more of the voting stock or shares <br />of the business entity or ownership of $2,500 or more of the fair market <br />value of the business entity: or <br /> <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 /> <br />b. A person has a substantial interest in real property if the interest is an equitable or <br />legal ownership with a fair market value of $2,500 or more. <br /> <br />c. A local public official is considered to have a substantial interest under this section <br />if a person related to the official within the second degree by consanguinity of <br />affinity has a substantial interest under this section. <br /> <br />1.3 Prohibited Acts; Penalty <br /> <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 /> <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: <br />or <br /> <br />(2) acts a surety for a business entity that has work, business, or a contract with the <br />governmental entity; or <br /> <br />acts as surety on any official bond requirement of an officer of the governmental entity. <br />b. An offense under this seCtion is i Class A misdemeanor. <br /> <br />1.4 Affidavit Required <br /> <br />a. If a local public official has a substantial interest in a business entity that would be <br />peculiarly affected by an official action taken by the governing body, the official sball file, <br />before a vote or decision on the matter, an affidavit stating the nature and extent of the interest <br />and shall abstain from further participation in the matter. <br /> <br />b. The affidavit must be filed with the official record keeper of the governmental entity. <br /> <br />5 <br />