Bill Text: TX HB423 | 2025-2026 | 89th Legislature | Introduced

Texas House Bill 423

Introduced

Bill Title: Relating to a prohibition on the board of trustees of a school district from entering into certain contracts and the disclosure of certain conflicts of interest.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2025-02-28 - Referred to Public Education [HB423 Detail]

Download: Texas-2025-HB423-Introduced.html

	89R1985 PRL-D

	By: Morales of Harris	H.B. No. 423



	A BILL TO BE ENTITLED
	AN ACT
	relating to a prohibition on the board of trustees of a school
	district from entering into certain contracts and the disclosure of
	certain conflicts of interest.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subchapter D, Chapter 11, Education Code, is
	amended by adding Section 11.187 to read as follows:
	Sec. 11.187. CERTAIN CONTRACTS PROHIBITED; DISCLOSURE
	REQUIRED. (a) Except as provided by Subsection (b), the board of
	trustees of a school district may not enter into a contract with:
	(1) a member of any school district's board of
	trustees; or
	(2) a company in which a member of any school
	district's board of trustees:
	(A) holds an ownership interest; and
	(B) expects to receive a significant financial
	gain from the contract.
	(b) Subsection (a) does not apply to a contract to which
	Section 45.204 applies.
	(c) A member of the board of trustees of a school district
	shall provide a written disclosure to the board and the agency of
	any ownership interest described by Subsection (a)(2).
	(d) A contract entered into in violation of this section is
	void.
	(e) The commissioner shall adopt rules to implement this
	section.
	SECTION 2. Not later than December 1, 2025, the
	commissioner of education shall adopt rules to implement Section
	11.187, Education Code, as added by this Act.
	SECTION 3. The change in law made by this Act applies only
	to a contract entered into on or after December 1, 2025. A contract
	entered into before December 1, 2025, is governed by the law in
	effect immediately before the effective date of this Act, and the
	former law is continued in effect for that purpose.
	SECTION 4. This Act takes effect September 1, 2025.