HB 423

relating to a prohibition on the board of trustees of a school
district from entering into certain contracts and the disclosure of
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
(2)  a company in which a member of any school
(A)  holds an ownership interest; and
(B)  expects to receive a significant financial
(b)  Subsection (a) does not apply to a contract to which
(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
(e)  The commissioner shall adopt rules to implement this
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.