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 adds Section 11.067 to the Education Code, defining 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 any 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 bill categorizes offenses based on the number of violations, with a Class C misdemeanor for the first offense, escalating to a Class A misdemeanor for the third, and a state jail felony for the fourth or subsequent offenses. Additionally, if a vendor compensates a board member through gifts or services as consideration for a contract, any offense is automatically classified as a state jail felony. This legislation aims to enhance transparency and integrity in school district contracting processes, taking effect on September 1, 2025.

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