79R11428 SLO-D


By:  Van Arsdale                                                  H.B. No. 104

Substitute the following for H.B. No. 104:                                    

By:  Eissler                                                  C.S.H.B. No. 104



A BILL TO BE ENTITLED

AN ACT

relating to financial conflicts of interest of superintendents of 
public school districts; providing a criminal penalty.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter E, Chapter 11, Education Code, is 
amended by adding Section 11.2011 to read as follows:
	Sec. 11.2011.  FILING OF FINANCIAL STATEMENT BY 
SUPERINTENDENT. (a)  The superintendent of an independent school 
district shall file a verified financial statement with:
		(1)  the board of trustees of the district; and                        
		(2)  the Texas Ethics Commission.                                      
	(b)  A financial statement filed under Subsection (a) must 
include the information prescribed by Section 572.023(b)(1), 
Government Code.
	(c)  Except as provided by Subsection (b) of this section, 
Subchapter B, Chapter 572, Government Code:
		(1)  applies to a superintendent as if the 
superintendent were a state officer; and
		(2)  governs the contents, timeliness of filing, and 
public inspection of a statement filed under this section.
	(d)  A superintendent commits an offense if the 
superintendent fails to file the statement required by this 
section. An offense under this section is a Class B misdemeanor.
	SECTION 2.  Subchapter B, Chapter 44, Education Code, is 
amended by adding Section 44.045 to read as follows:
	Sec. 44.045.  CERTAIN SCHOOL DISTRICT SERVICE CONTRACTS 
INVOLVING SUPERINTENDENTS PROHIBITED.  (a)  In this section, 
"business entity" has the meaning assigned by Section 171.001, 
Local Government Code.
	(b)  For purposes of this section, a superintendent or a 
retired superintendent has a substantial interest in a business 
entity if the superintendent would have a substantial interest in 
that business entity under Section 171.002(a), Local Government 
Code.
	(c)  The board of trustees of a school district may not enter 
into, with the superintendent, with a person who has retired from 
service as the superintendent of the district during the three-year 
period preceding the date on which the contract is entered into, or 
with a business entity in which the superintendent or retired 
superintendent has a substantial interest, a contract under which 
the district agrees to pay for services provided to the district.
	SECTION 3.  Section 11.2011, Education Code, as added by 
this Act, applies beginning January 1, 2007. A superintendent 
subject to Section 11.2011, Education Code, as added by this Act, is 
not required to include financial activity occurring before January 
1, 2006, in a verified financial statement required under Section 
11.2011, Education Code, as added by this Act.
	SECTION 4.  Section 44.045, Education Code, as added by this 
Act, applies only to a contract executed on or after September 1, 
2005. A contract executed before September 1, 2005, is governed by 
the law as it existed on the date the contract was executed, and the 
former law is continued in effect for that purpose.
	SECTION 5.  This Act takes effect September 1, 2005.