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A BILL TO BE ENTITLED
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AN ACT
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relating to contracting with a school district by a vendor with whom |
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a member of the board of trustees of the district or a related |
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individual has certain business interests; creating a criminal |
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offense. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 11, Education Code, is |
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amended by adding Section 11.067 to read as follows: |
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Sec. 11.067. PROHIBITION ON CERTAIN ACTIVITY BY VENDOR. |
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(a) A vendor that bids on or receives a contract from a school |
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district commits an offense if any individual serving on the board |
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of trustees of the school district: |
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(1) has a substantial interest in the vendor; or |
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(2) is related in the second degree by consanguinity |
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or affinity, as determined under Chapter 573, Government Code, to |
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an individual who has a substantial interest in the vendor. |
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(b) An individual has a substantial interest in a vendor if |
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the individual: |
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(1) owns more than 10 percent of the voting interest in |
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the vendor; or |
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(2) has a direct or indirect participating interest by |
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shares, stock, or otherwise, regardless of whether voting rights |
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are included, in more than 10 percent of the profits, proceeds, or |
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capital gains of the vendor. |
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(c) An offense under this section is a Class C misdemeanor, |
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except that a second offense under this section is a Class B |
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misdemeanor, a third offense under this section is a Class A |
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misdemeanor, and a fourth or subsequent offense under this section |
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is a state jail felony. |
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(d) Notwithstanding Subsection (c), any offense under this |
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section is a state jail felony if the vendor directly compensated |
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the individual serving on the school district's board of trustees |
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as consideration for the district entering into a contract with the |
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vendor. |
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SECTION 2. This Act takes effect September 1, 2025. |