H.B. No. 189
 
AN ACT
relating to the receipt of financial benefits by school district
superintendents for services performed for business entities.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 11.201, Education Code, is amended by
adding Subsection (e) to read as follows:
       (e)  The superintendent of a school district may not receive
any financial benefit for personal services performed by the
superintendent for any business entity that conducts or solicits
business with the district.  Any financial benefit received by the
superintendent for performing personal services for any other
entity, including a school district, open-enrollment charter
school, regional education service center, or public or private
institution of higher education, must be approved by the board of
trustees on a case-by-case basis in an open meeting.  For purposes
of this subsection, the receipt of reimbursement for a reasonable
expense is not considered a financial benefit.
       SECTION 2.  Section 11.201(e), Education Code, as added by
this Act, applies only to a contract between a superintendent of a
school district and a business entity that is entered into on or
after the effective date of this Act. A contract between a
superintendent of a school district and a business entity that is
entered into before the effective date of this Act is governed by
the law in effect on the date the contract is entered into, and the
former law is continued in effect for that purpose.
       SECTION 3.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2007.
____________________________________________________________
   President of the SenateSpeaker of the House      
       I certify that H.B. No. 189 was passed by the House on March
22, 2007, by the following vote:  Yeas 146, Nays 0, 1 present, not
voting.
______________________________
Chief Clerk of the House   
       I certify that H.B. No. 189 was passed by the Senate on May 3,
2007, by the following vote:  Yeas 31, Nays 0.
______________________________
Secretary of the Senate    
APPROVED:  _____________________
APPROVED:  _____________________
                   Date          
 
 
          _____________________
                 Governor