| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to contracting with a school district or open-enrollment |
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| 10 | 10 | | charter school by a vendor with whom a member of the board of |
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| 11 | 11 | | trustees or governing body of the district or school or a related |
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| 12 | 12 | | individual has certain business interests; creating a criminal |
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| 13 | 13 | | offense. |
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| 14 | 14 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 15 | 15 | | SECTION 1. Subchapter C, Chapter 11, Education Code, is |
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| 16 | 16 | | amended by adding Section 11.067 to read as follows: |
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| 17 | 17 | | Sec. 11.067. PROHIBITION ON CERTAIN ACTIVITY BY VENDOR. |
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| 18 | 18 | | (a) In this section, "vendor" means a company, individual, |
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| 19 | 19 | | contractor, subcontractor, or professional services provider with |
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| 20 | 20 | | whom a school district or open-enrollment charter school enters |
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| 21 | 21 | | into an agreement, contract, memorandum of understanding, |
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| 22 | 22 | | interlocal agreement, fee schedule, retainer, or similar |
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| 23 | 23 | | instrument for goods or services. |
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| 24 | 24 | | (b) A vendor that bids on or receives a contract from a |
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| 25 | 25 | | school district or an open-enrollment charter school commits an |
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| 26 | 26 | | offense if any individual serving on the board of trustees or |
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| 27 | 27 | | governing body of the district or school: |
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| 28 | 28 | | (1) has a substantial interest in the vendor or a |
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| 29 | 29 | | subcontractor hired by a vendor; |
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| 30 | 30 | | (2) is related in the second degree by consanguinity |
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| 31 | 31 | | or affinity, as determined under Chapter 573, Government Code, to |
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| 32 | 32 | | an individual who has a substantial interest in the vendor; or |
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| 33 | 33 | | (3) has received or has been promised a gift or in-kind |
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| 34 | 34 | | services with a value of more than $250. |
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| 35 | 35 | | (c) An individual has a substantial interest in a vendor if |
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| 36 | 36 | | the individual: |
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| 37 | 37 | | (1) owns more than 10 percent of the voting interest in |
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| 38 | 38 | | the vendor; or |
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| 39 | 39 | | (2) has a direct or indirect participating interest by |
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| 40 | 40 | | shares, stock, or otherwise, regardless of whether voting rights |
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| 41 | 41 | | are included, in more than 10 percent of the profits, proceeds, or |
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| 42 | 42 | | capital gains of the vendor. |
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| 43 | 43 | | (d) An offense under this section is a Class C misdemeanor, |
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| 44 | 44 | | except that a second offense under this section is a Class B |
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| 45 | 45 | | misdemeanor, a third offense under this section is a Class A |
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| 46 | 46 | | misdemeanor, and a fourth or subsequent offense under this section |
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| 47 | 47 | | is a state jail felony. |
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| 48 | 48 | | (e) Notwithstanding Subsection (d), any offense under this |
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| 49 | 49 | | section is a state jail felony if the vendor directly or indirectly |
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| 50 | 50 | | through a third party compensated the individual serving on the |
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| 51 | 51 | | board of trustees or governing body of a school district or |
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| 52 | 52 | | open-enrollment charter school with money, gifts, or in-kind |
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| 53 | 53 | | services as consideration for the district or school entering into |
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| 54 | 54 | | a contract with the vendor. |
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| 55 | 55 | | SECTION 2. This Act takes effect September 1, 2025. |
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