H.B. No. 210 introduces new regulations regarding contracts between vendors and school districts or open-enrollment charter schools, specifically targeting potential conflicts of interest involving board members. The bill defines a "vendor" as any entity that enters into agreements for goods or services with these educational institutions. It establishes that a vendor commits an offense if a board member has a substantial interest in the vendor, is closely related to someone with such an interest, or has received gifts or services valued over $250 from the vendor.

The legislation categorizes offenses based on the number of violations, with a first offense being a Class C misdemeanor, escalating to a Class A misdemeanor for a third offense, and a state jail felony for a fourth or subsequent offense. Additionally, if a vendor compensates a board member through gifts or services as a means to secure a contract, the offense is automatically classified as a state jail felony. This bill aims to enhance transparency and integrity in the contracting process within Texas educational institutions, taking effect on September 1, 2025.

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