By Rodriguez H.B. No. 1739
74R6274 ESH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain conflicts of interest involving a member of the
1-3 board of trustees of a school district.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 23.201, Education Code, is amended to
1-6 read as follows:
1-7 Sec. 23.201. Eligibility to Contract With Board. (a) The
1-8 board of trustees of a school district may not enter into a
1-9 contract with a trustee of the district, the spouse of a trustee,
1-10 or a business entity in which a trustee or the spouse of a trustee
1-11 has a significant interest until the trustee's current term has
1-12 expired or until the trustee has resigned and a successor has been
1-13 chosen to fill the vacancy created by the resignation.
1-14 (b) <In this section, the term "business entity" has the
1-15 meaning provided by Section 171.001, Local Government Code.>
1-16 <(c)> For purposes of this section, a person has a
1-17 significant <substantial> interest in a business entity if the
1-18 person:
1-19 (1) owns 10 percent or more of the voting stock or
1-20 shares of the business entity or owns either 10 percent or more or
1-21 $5,000 or more of the fair market value of the business entity; or
1-22 (2) is employed by the entity and:
1-23 (A) is authorized to determine the terms under
1-24 which the entity will contract with the board of trustees; or
2-1 (B) represents the entity in negotiating the
2-2 contract with the board of trustees <has a substantial interest in
2-3 the business entity for purposes of Chapter 171, Local Government
2-4 Code>.
2-5 (c) In this section, "business entity" means a sole
2-6 proprietorship, partnership, firm, corporation, holding company,
2-7 joint-stock company, receivership, trust, or any other entity
2-8 recognized by law <(d) This section prevails over Chapter 171,
2-9 Local Government Code, to the extent of any conflict>.
2-10 SECTION 2. Subchapter A, Chapter 23, Education Code, is
2-11 amended by adding Section 23.202 to read as follows:
2-12 Sec. 23.202. AFFIDAVIT AND ABSTENTION FROM VOTING REQUIRED
2-13 IN CERTAIN REAL PROPERTY TRANSACTIONS. (a) Before a vote or
2-14 decision by the board of trustees of a school district on any
2-15 matter involving a specific piece of real property, a member who
2-16 has a significant interest in the property or whose spouse has a
2-17 significant interest in the property shall:
2-18 (1) file an affidavit stating the nature and extent of
2-19 the interest; and
2-20 (2) abstain from further participation in the matter
2-21 if it is reasonably foreseeable that an action on the matter will
2-22 have a special economic effect on the value of the property,
2-23 distinguishable from its effect on the public.
2-24 (b) The affidavit must be filed with the secretary of the
2-25 board of trustees.
2-26 (c) If a member is required to file and does file an
2-27 affidavit under Subsection (a), the member is not required to
3-1 abstain from further participation in the matter requiring the
3-2 affidavit if a majority of the members of the board of trustees are
3-3 persons who are likewise required to file and who do file
3-4 affidavits of similar interests on the same official action.
3-5 (d) For purposes of this section, a person has a significant
3-6 interest in real property if the interest is an equitable or legal
3-7 ownership with a fair market value of $2,500 or more.
3-8 SECTION 3. Sec. 171.001(1), Local Government Code, is
3-9 amended to read as follows:
3-10 (1) "Local public official" means a member of the
3-11 governing body or another officer, whether elected, appointed,
3-12 paid, or unpaid, of any district <(including a school district)>,
3-13 county, municipality, precinct, central appraisal district, transit
3-14 authority or district, or other local governmental entity who
3-15 exercises responsibilities beyond those that are advisory in
3-16 nature. The term does not include a member of the board of
3-17 trustees of an independent school district.
3-18 SECTION 4. This Act takes effect September 1, 1995, and
3-19 applies only to a contract entered into by the board of trustees of
3-20 a school district on or after that date.
3-21 SECTION 5. The importance of this legislation and the
3-22 crowded condition of the calendars in both houses create an
3-23 emergency and an imperative public necessity that the
3-24 constitutional rule requiring bills to be read on three several
3-25 days in each house be suspended, and this rule is hereby suspended.