Limit Metropolitan District Director Conflicts

For any proposed metropolitan district that has any property within its boundaries that is zoned or valued for assessment as residential, section 1 of the bill prohibits requires the service plan to include a prohibition on the purchase of district debt by any entity with respect to which any director of the district has a conflict of interest necessitating disclosure under current law. Section 2 prohibits a board of county commissioners from approving a service plan for such a metropolitan district unless the service plan includes the prohibition. Section 3 prohibits a court from considering a petition for the organization for such a metropolitan district unless the service plan includes the prohibition. Section 2 4 prohibits a member of the board of a metropolitan district that approved the issuance of any debt while the member was serving on the board from acquiring any interest in the debt individually or on behalf of any organization or entity for which the board member is engaged as an employee, counsel, consultant, representative, or agent unless the debt is acquired indirectly through an investment fund and the member has no input into or control over the individual securities that the fund purchases. Section 3 5 states that proof of a violation of the prohibition set forth in section 2 4 is proof that the violator has breached the actor's fiduciary duty and the public trust. (Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.) (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)