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