H.B. No. 3372 introduces new regulations regarding the personal services that school district administrators can perform. It defines an "administrator" as someone with significant administrative duties within a school district, excluding those whose primary responsibilities involve in-classroom instruction or trustees of the district. The bill prohibits administrators from receiving financial benefits for personal services rendered to businesses that conduct business with their school district, education businesses related to curriculum or administration, or other school districts and educational entities, unless specific conditions are met. These conditions include obtaining a written contract approved by the board of trustees, ensuring that the contract does not harm the district or create conflicts of interest, and confirming that the services are performed on the administrator's personal time.

Additionally, the bill establishes a civil penalty of $10,000 for each violation of these provisions. It also repeals Section 11.201(e) of the Education Code, which may have previously addressed similar issues. The act is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that vote is not achieved.

Statutes affected:
Introduced: Education Code 11.201 (Education Code 11)
House Committee Report: Education Code 11.201 (Education Code 11)
Engrossed: Education Code 11.201 (Education Code 11)
Senate Committee Report: Education Code 11.201 (Education Code 11)
Enrolled: Education Code 11.201 (Education Code 11)