Texas Local Government Code - LOC GOV'T § 271.902. Prohibition of Conflict of Interest in Purchase by Municipality or County from Cooperative Associations

If a member of the governing body or an appointed board or commission of a municipality or county belongs to a cooperative association, the municipality or county may purchase equipment or supplies from the association only if no member of the governing body, board, or commission will receive a pecuniary benefit from the purchase, other than as reflected in an increase in dividends distributed generally to members of the association.