SB 439

relating to approval by the commissioner of education of certain
contracts entered into by a school district during the pendency of
certain special investigations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter A, Chapter 39, Education Code, is
amended by adding Section 39.0041 to read as follows:
Sec. 39.0041.  COMMISSIONER APPROVAL OF CERTAIN SCHOOL
DISTRICT CONTRACTS DURING PENDENCY OF CERTAIN SPECIAL
INVESTIGATIONS.  (a) In this section, "severance payment" means any
amount paid by a school district to or in behalf of a district
employee on early termination of the employee's employment contract
that exceeds the amount earned by the employee under the contract as
of the date of termination, including any amount that exceeds the
amount of earned standard salary and benefits, that is paid as a
condition of early termination of the contract.
(b)  This section applies to a special investigation
conducted under Section 39.003(a)(3), (6), or (17) in response to:
(1)  a complaint, allegation, or suspicion of financial
or operational impropriety at a school district; or
(2)  the violation of procurement policies by a member
of the board of trustees of a school district or a district
(c)  Notwithstanding Subchapter D, Chapter 11, or any other
law, during the period beginning on the date on which the
commissioner authorizes a special investigation to which this
section applies and continuing through the date on which the
investigation is concluded or, if applicable,  the date on which an
appeal under this subchapter or Section 39A.301 relating to the
investigation is concluded, the board of trustees of the school
district that is the subject of the special investigation shall,
before entering into a contract or amending a contract, submit the
contract or contract amendment to the commissioner for approval if
(1)  will bind the district for more than one calendar
(2)  entitles an employee of the district to a
(d)  A court may not enjoin a requirement under this section
before the conclusion of a special investigation to which this
section applies or, if applicable, the conclusion of an appeal
under this subchapter or Section 39A.301 relating to the
(e)  If the commissioner makes a determination to appoint a
monitor, conservator, management team, or board of managers to a
school district as a result of a special investigation to which this
section applies, the commissioner may require the district to
submit a contract or contract amendment for approval as described
by Subsection (c) until the date of the appointment.
(f)  Notwithstanding any other law, each contract or
contract amendment that is entered into by a school district during
the period described by Subsection (c) must include a provision
stating that the contract or amendment is voidable.
(g)  A contract or contract amendment that is entered into by
a school district in violation of this section is void.
SECTION 2.  The changes in law made by this Act apply only to
a contract or contract amendment entered into on or after the
SECTION 3.  This Act takes effect September 1, 2025.