89R1711 ATP-D     By: Guillen H.B. No. 210       A BILL TO BE ENTITLED   AN ACT   relating to contracting with a school district by a vendor with whom   a member of the board of trustees of the district or a related   individual has certain business interests; creating a criminal   offense.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter C, Chapter 11, Education Code, is   amended by adding Section 11.067 to read as follows:          Sec. 11.067.  PROHIBITION ON CERTAIN ACTIVITY BY VENDOR.   (a)  A vendor that bids on or receives a contract from a school   district commits an offense if any individual serving on the board   of trustees of the school district:                (1)  has a substantial interest in the vendor; or                (2)  is related in the second degree by consanguinity   or affinity, as determined under Chapter 573, Government Code, to   an individual who has a substantial interest in the vendor.          (b)  An individual has a substantial interest in a vendor if   the individual:                (1)  owns more than 10 percent of the voting interest in   the vendor; or                (2)  has a direct or indirect participating interest by   shares, stock, or otherwise, regardless of whether voting rights   are included, in more than 10 percent of the profits, proceeds, or   capital gains of the vendor.          (c)  An offense under this section is a Class C misdemeanor,   except that a second offense under this section is a Class B   misdemeanor, a third offense under this section is a Class A   misdemeanor, and a fourth or subsequent offense under this section   is a state jail felony.          (d)  Notwithstanding Subsection (c), any offense under this   section is a state jail felony if the vendor directly compensated   the individual serving on the school district's board of trustees   as consideration for the district entering into a contract with the   vendor.          SECTION 2.  This Act takes effect September 1, 2025.