SRC-JLB H.B. 758 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 758
By: Giddings (Wentworth)
Education
5/20/2003
Engrossed


DIGEST AND PURPOSE 

Under current Texas law, members of school district boards of trustees are
not prevented from doing business with the school districts the board
members serve.  Although board members are required to declare their
interests in businesses and abstain from voting on issues that involve
contracts with those businesses, evidence suggests that board members are
benefitting from contracts obtained within these guidelines from business
dealings with the districts board members serve.  H.B. 758 prohibits a
school district from entering into or renewing a contract with a business
entity in which a district trustee has a substantial interest but
authorizes a school district to enter into or renew a contract with a
business entity in which a district trustee has a substantial interest if
certain criteria exists. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 171, Local Government Code, by adding Section
171.0041, as follows: 
 
Sec. 171.0041.  CERTAIN SCHOOL DISTRICT CONTRACTS PROHIBITED.  (a)
Prohibits a school district, except as provided by Subsection (b), from
entering into or renewing a contract with a business entity in which a
district trustee has a substantial interest. 
 
(b)  Authorizes a school district to enter into or renew a contract with a
business entity in which a district trustee has a substantial interest if
certain criteria exists. 

SECTION 2.  Makes application of this Act prospective.
 
SECTION 3.  Effective date:  September 1, 2003.