BILL ANALYSIS

Senate Research Center	H.B. 210
89R20675 PRL-D	By: Guillen et al. (Hinojosa, Adam)
	Education K-16
	5/5/2025
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

In recent years, concerns have grown over potential conflicts of interest in the procurement practices of school districts and open-enrollment charter schools across Texas. Instances where school board members or their relatives hold financial interests in vendors�either directly or through gifts and compensation�have raised questions about the fairness and transparency of public education contracting.

While general conflict-of-interest statutes exist, they often lack specificity or enforcement mechanisms tailored to the unique governance structures of school systems. This has created loopholes that can erode public trust and compromise the responsible use of taxpayer funds.

H.B. 210 seeks to close these gaps by clearly defining prohibited relationships between vendors and members of school boards or charter governing bodies. The bill establishes criminal penalties for vendors who engage in business with a district or charter school when a board member or their close relative has a substantial financial interest or has received improper gifts or compensation. By doing so, the legislation aims to strengthen ethical contracting practices, ensure accountability in school operations, and safeguard the integrity of public education funding in Texas.

H.B. 210 amends current law relating to contracting with a school district or open-enrollment charter school by a vendor with whom a member of the board of trustees or governing body of the district or school or a related individual has certain business interests and creates a criminal offense.

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 Subchapter C, Chapter 11, Education Code, by adding Section 11.067, as follows:

Sec. 11.067.� PROHIBITION ON CERTAIN ACTIVITY BY VENDOR.� (a) Defines "vendor."

(b) Provides that a vendor that bids on or receives a contract from a school district or an open-enrollment charter school commits an offense if any individual serving on the board of trustees or governing body of the district or school has a substantial interest in the vendor or a subcontractor hired by a vendor, is related in the second degree by consanguinity or affinity, as determined under Chapter 573 (Degrees of Relationship; Nepotism Prohibitions), Government Code, to an individual who has a substantial interest in the vendor, or has received or has been promised a gift or in-kind services with a value of more than $250.

(c) Provides that an individual has a substantial interest in a vendor if the individual owns more than 10 percent of the voting interest in the vendor or has a direct or indirect participating interest by shares, stock, or otherwise, regardless of whether voting rights are included, in more than 10 percent of the profits, proceeds, or capital gains of the vendor.

(d)� Provides that an offense under this section is a Class C misdemeanor, except that a second offense under this section is a Class B misdemeanor, a third offense under this section is a Class A misdemeanor, and a fourth or subsequent offense under this section is a state jail felony.

(e) Provides that any offense under this section, notwithstanding Subsection (d),� is a state jail felony if the vendor directly or indirectly through a third party compensated the individual serving on the board of trustees or governing body of a school district or open-enrollment charter school with money, gifts, or in-kind services as consideration for the district or school entering into a contract with the vendor.

SECTION 2.� Effective date: September 1, 2025.