The bill, H.B. No. 210, introduces new regulations regarding vendors contracting with school districts, specifically targeting conflicts of interest involving members of the school board. It establishes that a vendor commits an offense if any board member has a substantial interest in the vendor or is closely related to someone with such an interest. A substantial interest is defined as owning more than 10% of the vendor's voting interest or having a significant share in the vendor's profits. The bill outlines a tiered penalty system for violations, ranging from a Class C misdemeanor for the first offense to a state jail felony for subsequent offenses or if the vendor directly compensates the board member for the contract.

Additionally, the bill specifies that any offense is escalated to a state jail felony if the vendor compensates the board member as part of the contract agreement. This legislation aims to enhance transparency and integrity in school district contracting processes by preventing potential conflicts of interest and ensuring that board members do not benefit financially from contracts awarded to vendors with whom they have a personal stake. The act is set to take effect on September 1, 2025.

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