Limitations on board members and executive director.

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  • (1) As used in this section:
    • (a) "Direct financial benefit":
      • (i) means any form of financial benefit that accrues to an individual directly, including:
        • (A) compensation, commission, or any other form of a payment or increase of money; and
        • (B) an increase in the value of a business or property; and
      • (ii) does not include a financial benefit that accrues to the public generally.
    • (b) "Family member" means a parent, spouse, sibling, child, or grandchild.
  • (2) An individual may not serve as a voting member of the board or as executive director if:
    • (a) the individual owns real property, other than a personal residence in which the individual resides, within a project area, whether or not the ownership interest is a recorded interest;
    • (b) a family member of the individual owns an interest in real property, other than a personal residence in which the family member resides, located within a project area; or
    • (c) the individual or a family member of the individual owns an interest in, is directly affiliated with, or is an employee or officer of a private firm, private company, or other private entity that the individual reasonably believes is likely to:
      • (i) participate in or receive a direct financial benefit from the development of the authority jurisdictional land; or
      • (ii) acquire an interest in or locate a facility within a project area.
  • (3) Before taking office as a voting member of the board or accepting employment as executive director, an individual shall submit to the authority:
    • (a) a statement verifying that the individual's service as a board member or employment as executive director does not violate Subsection (2); or
    • (b) for an individual to whom Subsection 11-58-302(8) applies, the disclosure required under that subsection.
  • (4)
    • (a) An individual may not, at any time during the individual's service as a voting member or employment with the authority, acquire, or take any action to initiate, negotiate, or otherwise arrange for the acquisition of, an interest in real property located within a project area, if:
      • (i) the acquisition is in the individual's personal capacity or in the individual's capacity as an employee or officer of a private firm, private company, or other private entity; and
      • (ii) the acquisition will enable the individual to receive a direct financial benefit as a result of the development of the project area.
    • (b) Subsection (4)(a) does not apply to an individual's acquisition of, or action to initiate, negotiate, or otherwise arrange for the acquisition of, an interest in real property that is a personal residence in which the individual will reside upon acquisition of the real property.
  • (5)
    • (a) A voting member or nonvoting member of the board or an employee of the authority may not receive a direct financial benefit from the development of a project area.
    • (b) For purposes of Subsection (5)(a), a direct financial benefit does not include:
      • (i) expense reimbursements;
      • (ii) per diem pay for board member service, if applicable; or
      • (iii) an employee's compensation or benefits from employment with the authority.
  • (6) Nothing in this section may be construed to affect the application or effect of any other code provision applicable to a board member or employee relating to ethics or conflicts of interest.




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