89R1711 ATP-D
By: Guillen H.B. No. 210
A BILL TO BE ENTITLED
AN ACT
relating to contracting with a school district by a vendor with whom
a member of the board of trustees of the district or a related
individual has certain business interests; creating a criminal
offense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 11, Education Code, is
amended by adding Section 11.067 to read as follows:
Sec. 11.067. PROHIBITION ON CERTAIN ACTIVITY BY VENDOR.
(a) A vendor that bids on or receives a contract from a school
district commits an offense if any individual serving on the board
of trustees of the school district:
(1) has a substantial interest in the vendor; or
(2) is related in the second degree by consanguinity
or affinity, as determined under Chapter 573, Government Code, to
an individual who has a substantial interest in the vendor.
(b) An individual has a substantial interest in a vendor if
the individual:
(1) owns more than 10 percent of the voting interest in
the vendor; or
(2) has a direct or indirect participating interest by
shares, stock, or otherwise, regardless of whether voting rights
are included, in more than 10 percent of the profits, proceeds, or
capital gains of the vendor.
(c) An offense under this section is a Class C misdemeanor,
except that a second offense under this section is a Class B
misdemeanor, a third offense under this section is a Class A
misdemeanor, and a fourth or subsequent offense under this section
is a state jail felony.
(d) Notwithstanding Subsection (c), any offense under this
section is a state jail felony if the vendor directly compensated
the individual serving on the school district's board of trustees
as consideration for the district entering into a contract with the
vendor.
SECTION 2. This Act takes effect September 1, 2025.