1. (1) No elected or appointed member of the board of trustees of a special district may, while serving on the board, be employed by the district, whether as an employee or under a contract.
2. (2) No person employed by a special district, whether as an employee or under a contract, may serve on the board of that special district.

3. (3) A special district is not in violation of a prohibition described in Subsection (1) or (2) if the special district:

   1. (a) treats a member of a board of trustees as an employee for income tax purposes; and
   2. (b) complies with the compensation limits of Section 17B-1-307 for purposes of that member.

4. (4) This section does not apply to a special district if:

   1. (a) fewer than 3,000 people in the state live within 40 miles of the special district's boundaries or primary place of employment, measured over all weather public roads; and

   2. (b) with respect to the employment of a board of trustees member under Subsection (1):

      1. (i) the job opening has had reasonable public notice; and
      2. (ii) the person employed is the best qualified candidate for the position.
5. (5) This section does not apply to a transit commission of a large public transit district as described in Chapter 2a, Part 8, Public Transit District Act.

Amended by Chapter 486, 2026 General Session