(1) No elected or appointed member of the board of trustees of a local 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 local district, whether as an employee or under a contract, may serve on the board of that local district.

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

(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 local district if: (a) fewer than 3,000 people live within 40 miles of the 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.

(a) fewer than 3,000 people live within 40 miles of the 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.

(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 board of trustees of a large public transit district as described in Chapter 2a, Part 8, Public Transit District Act.