SRC-AMY S.B. 335 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 335
78R1442 SLO-DBy: Wentworth
Education
2/14/2003
As Filed


DIGEST AND PURPOSE 

Currently, Texas law does not prohibit a school district from entering
into a contract with a business in which a district trustee has a
substantial stake.  This leads to the possibility and possible perception
of a conflict of interest.  As proposed, S.B. 335 prohibits a school
district from entering into a contract with business in which a district
trustee has a substantial stake, and provides a criminal penalty for doing
so. This Act includes exceptions for school districts located in areas
where alternative businesses are not available. 

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 Section 171.003(a), Local Government Code, to make a
conforming change relating to the addition of Section 171.0041 to the
code. 

SECTION 2.  Amends Chapter 171, Local Government Code, by adding Section
171.0041, as follows: 

Sec. 171.0041. CERTAIN SCHOOL DISTRICT CONTRACTS PROHIBITED. (a)
Prohibits, except as provided by Subsection (b),  a school district from
entering into a contract with a business in which a district trustee has a
substantial interest. 

(b) Authorizes a school district to enter into a contract with a business
in which a district trustee has a substantial interest under certain
circumstances. 

SECTION 3.  Makes application of this Act prospective.

SECTION 4.  Effective date: September 1, 2003.