Relating to prohibiting certain personal services performed by school district administrators; providing a civil penalty, the official text

H.B. No. 3372

AN ACT

relating to prohibiting certain personal services performed by

school district administrators; providing a civil penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter A, Chapter 11, Education Code, is

amended by adding Section 11.006 to read as follows:

Sec. 11.006. PROHIBITED ACTIVITIES BY ADMINISTRATORS. (a)

In this section, "administrator" means a person who has significant

administrative duties relating to the operation of a school

district, including the operation of a campus, program, or other

subdivision of the district. The term does not include:

(1) a school district employee whose employment

contract responsibilities primarily include the in-classroom

instruction of students; or

(2) a trustee of a school district.

(b) An administrator may not receive any financial benefit

for the performance of personal services for:

(1) any business entity that conducts or solicits

business with the school district that employs the administrator;

(2) except as provided by Subsection (c), an education

business that provides services regarding the curriculum or

administration of any school district; or

(3) except as provided by Subsection (c), another

school district, open-enrollment charter school, or regional

education service center.

(c) An administrator, other than a member of a board of

managers, superintendent, or assistant superintendent, may receive

a financial benefit under Subsection (b)(2) or (3) if:

(1) a written contract describing the services to be

performed by the administrator is provided to the board of trustees

of the administrator's employing district; and

(2) the board of trustees for the administrator's

employing district votes to approve the contract after determining

that:

(A) the contract will not harm the district;

(B) the arrangement does not present a conflict

of interest; and

(C) the services to be performed by the

administrator will be performed entirely on the administrator's

personal time.

(d) A contract provided to a board of trustees under

Subsection (c) is subject to disclosure under Chapter 552,

Government Code.

(e) An administrator who violates this section is liable to

the state for a civil penalty in the amount of $10,000 for each

violation.

SECTION 2. Section 11.201(e), Education Code, is repealed.

SECTION 3. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I certify that H.B. No. 3372 was passed by the House on May

15, 2025, by the following vote: Yeas 141, Nays 1, 2 present, not

voting; that the House refused to concur in Senate amendments to

H.B. No. 3372 on May 29, 2025, and requested the appointment of a

conference committee to consider the differences between the two

houses; and that the House adopted the conference committee report

on H.B. No. 3372 on May 31, 2025, by the following vote: Yeas 121,

Nays 6, 3 present, not voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 3372 was passed by the Senate, with

amendments, on May 27, 2025, by the following vote: Yeas 30, Nays

1; at the request of the House, the Senate appointed a conference

committee to consider the differences between the two houses; and

that the Senate adopted the conference committee report on H.B. No.

3372 on May 31, 2025, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

APPROVED: __________________

Date

__________________

Governor