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  89R1985 PRL-D     By: Morales of Harris H.B. No. 423       A BILL TO BE ENTITLED   AN ACT   relating to a prohibition on the board of trustees of a school   district from entering into certain contracts and the disclosure of   certain conflicts of interest.          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   trustees; or                 (2)     a company in which a member of any school   district's board of trustees:                       (A)  holds an ownership interest; and                       (B)     expects to receive a significant financial   gain from the contract.           (b)     Subsection (a) does not apply to a contract to which   Section 45.204 applies.           (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   void.           (e)     The commissioner shall adopt rules to implement this   section.          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.