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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 or open-enrollment |
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charter school by a vendor with whom a member of the board of |
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trustees or governing body of the district or school 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) In this section, "vendor" means a company, individual, |
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contractor, subcontractor, or professional services provider with |
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whom a school district or open-enrollment charter school enters |
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into an agreement, contract, memorandum of understanding, |
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interlocal agreement, fee schedule, retainer, or similar |
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instrument for goods or services. |
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(b) A vendor that bids on or receives a contract from a |
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school district or an open-enrollment charter school commits an |
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offense if any individual serving on the board of trustees or |
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governing body of the district or school: |
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(1) has a substantial interest in the vendor or a |
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subcontractor hired by a vendor; |
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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; or |
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(3) has received or has been promised a gift or in-kind |
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services with a value of more than $250. |
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(c) 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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(d) 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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(e) Notwithstanding Subsection (d), any offense under this |
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section is a state jail felony if the vendor directly or indirectly |
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through a third party compensated the individual serving on the |
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board of trustees or governing body of a school district or |
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open-enrollment charter school with money, gifts, or in-kind |
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services as consideration for the district or school entering into |
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a contract with the vendor. |
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SECTION 2. This Act takes effect September 1, 2025. |
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* * * * * |