| 1 | 1 | | 89R1985 PRL-D |
|---|
| 2 | 2 | | By: Morales of Harris H.B. No. 423 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | |
|---|
| 6 | 6 | | |
|---|
| 7 | 7 | | A BILL TO BE ENTITLED |
|---|
| 8 | 8 | | AN ACT |
|---|
| 9 | 9 | | relating to a prohibition on the board of trustees of a school |
|---|
| 10 | 10 | | district from entering into certain contracts and the disclosure of |
|---|
| 11 | 11 | | certain conflicts of interest. |
|---|
| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 13 | 13 | | SECTION 1. Subchapter D, Chapter 11, Education Code, is |
|---|
| 14 | 14 | | amended by adding Section 11.187 to read as follows: |
|---|
| 15 | 15 | | Sec. 11.187. CERTAIN CONTRACTS PROHIBITED; DISCLOSURE |
|---|
| 16 | 16 | | REQUIRED. (a) Except as provided by Subsection (b), the board of |
|---|
| 17 | 17 | | trustees of a school district may not enter into a contract with: |
|---|
| 18 | 18 | | (1) a member of any school district's board of |
|---|
| 19 | 19 | | trustees; or |
|---|
| 20 | 20 | | (2) a company in which a member of any school |
|---|
| 21 | 21 | | district's board of trustees: |
|---|
| 22 | 22 | | (A) holds an ownership interest; and |
|---|
| 23 | 23 | | (B) expects to receive a significant financial |
|---|
| 24 | 24 | | gain from the contract. |
|---|
| 25 | 25 | | (b) Subsection (a) does not apply to a contract to which |
|---|
| 26 | 26 | | Section 45.204 applies. |
|---|
| 27 | 27 | | (c) A member of the board of trustees of a school district |
|---|
| 28 | 28 | | shall provide a written disclosure to the board and the agency of |
|---|
| 29 | 29 | | any ownership interest described by Subsection (a)(2). |
|---|
| 30 | 30 | | (d) A contract entered into in violation of this section is |
|---|
| 31 | 31 | | void. |
|---|
| 32 | 32 | | (e) The commissioner shall adopt rules to implement this |
|---|
| 33 | 33 | | section. |
|---|
| 34 | 34 | | SECTION 2. Not later than December 1, 2025, the |
|---|
| 35 | 35 | | commissioner of education shall adopt rules to implement Section |
|---|
| 36 | 36 | | 11.187, Education Code, as added by this Act. |
|---|
| 37 | 37 | | SECTION 3. The change in law made by this Act applies only |
|---|
| 38 | 38 | | to a contract entered into on or after December 1, 2025. A contract |
|---|
| 39 | 39 | | entered into before December 1, 2025, is governed by the law in |
|---|
| 40 | 40 | | effect immediately before the effective date of this Act, and the |
|---|
| 41 | 41 | | former law is continued in effect for that purpose. |
|---|
| 42 | 42 | | SECTION 4. This Act takes effect September 1, 2025. |
|---|