Bill > HB423

This bill introduces new restrictions on potential conflicts of interest for school district board of trustees by prohibiting them from entering into contracts with board members or companies in which a board member has a significant ownership interest and expects to gain financially. Board trustees will be required to provide written disclosure of such ownership interests to the board and relevant agency. Any contract entered into in violation of these new rules will be considered void. The bill exempts certain contracts already covered by existing law (specifically Section 45.204) and requires the commissioner of education to adopt implementation rules by December 1, 2025. The new regulations will only apply to contracts entered into on or after December 1, 2025, ensuring existing contracts are not immediately impacted. The bill is designed to increase transparency and prevent potential financial conflicts of interest in school district governance by creating clear guidelines and disclosure requirements for board trustees.

Education

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB423