Employment Requirements and Restrictions: Conflict of Interest

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• Administrator Definition: H.B. 3372 (2025) added a new section to Texas Education Code § 11.006 that defines who counts as an 'administrator' for purposes of this rule. The policy copies that definition directly, including clarifications that classroom teachers and school board members are not covered.
• Financial Benefit Prohibition: Under TEC § 11.006 as updated by H.B. 3372, administrators are prohibited from receiving personal payments for services provided to businesses that work with the district, education-related companies, or other school districts and charter schools. This policy reflects that statutory prohibition.
• Board Approval Exception: State law allows an administrator to receive outside pay in limited cases if the school board approves a written contract, determines there is no harm to the district and no conflict of interest, and confirms the work is done entirely on the administrator's personal time. This policy includes each of those conditions as required by TEC § 11.006.
• Superintendent Exclusion: TEC § 11.006 does not allow the board approval exception to apply to superintendents or assistant superintendents, meaning those positions may not receive outside financial benefits under any circumstances. This policy applies that same restriction.
• Civil Penalty: H.B. 3372 set a civil penalty of $10,000 per violation for administrators who receive prohibited financial benefits. This policy states that penalty amount, which comes directly from TEC § 11.006.
• Implementing Procedures: The policy directs the district to create internal procedures for carrying out these new rules. This step was not required by state law and reflects a local decision to help put the policy into practice.

AI-generated assessment. Verify citations independently before relying on this analysis.

AI-generated assessment. Verify citations independently before relying on this analysis.

• Administrator Definition: Texas House Bill 3372 (H.B. 3372) required school districts to define which employees count as 'administrators' under a new financial ethics rule. The definition in this policy follows state law exactly, and does not include classroom teachers or school board members.
• Financial Benefit Prohibitions: H.B. 3372, codified as Texas Education Code §11.006, prohibits administrators from receiving personal payments or other financial benefits from companies doing business with the district, education service providers, or other school districts and charter schools. This policy restates those three categories of prohibited relationships directly from the statute.
• Superintendent-Level Restrictions: Under TEC §11.006, superintendents and assistant superintendents face a stricter standard than other administrators — there is no approval process available to them, meaning they may not receive these types of financial benefits under any circumstances.
• Board Approval Process: For administrators other than superintendents and assistant superintendents, TEC §11.006 allows the school board to approve outside financial arrangements if certain conditions are met — a written contract must exist, the board must confirm there is no harm to the district, no conflict of interest, and that the work is done on personal time, and the contract must be made available to the public.
• $10,000 Civil Penalty: State law sets a civil penalty of $10,000 per violation for administrators who break these rules. This policy restates that penalty amount directly from TEC §11.006 without adding to it.
• Implementation Procedures: The policy directs the district to create internal procedures for carrying out this new rule. While the overall compliance framework comes from H.B. 3372, the specific procedures the district will develop are a local decision made by the school board.

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