(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) 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) A special district is not in violation of a prohibition described in Subsection (1) or (2) if the special district: (a) treats a member of a board of trustees as an employee for income tax purposes; and (b) complies with the compensation limits of Section 17B-1-307 for purposes of that member. (4) This section does not apply to a special district if: (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 (b) with respect to the employment of a board of trustees member under Subsection (1): (i) the job opening has had reasonable public notice; and (ii) the person employed is the best qualified candidate for the position. (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.
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