2025 Texas sessionsRegular and both called sessions have ended. This index covers House and Senate bills, not resolutions. Statuses come from official reports.

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2025 · Regular session · House bill

HB3372

HB3372 limits financial benefits that school-district administrators may receive for personal services outside their district duties.

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Official caption: Relating to prohibiting certain personal services performed by school district administrators; providing a civil penalty.

Signed by governorSource-checked explanation published

Official report lists House author(s): Metcalf, Leo Wilson. This does not identify sponsors or amendment drafters.

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Bill explanation published · Version and amendment review scope is stated below · Individual amendment records may not be separately annotated.

Bill highlights

Selected points from the published explanation. Follow each point to its source-linked context; conditions and limits may matter.

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What does it do?

HB3372 limits financial benefits that school-district administrators may receive for personal services outside their district duties. It took effect June 22, 2025, when signed. An administrator who violates the new section is liable to the state for a $10,000 civil penalty for each violation. This is not a criminal penalty or merely a discretionary maximum of $10,000. Final law; history.

The definition covers people with significant administrative duties for a district, campus, program or other district subdivision. It excludes employees whose contracts primarily require classroom instruction, and excludes district trustees. A job title alone is not the statutory test.

Covered administrators may not receive financial benefits for personal services for:

  • A business that conducts or solicits business with their employing district. The new board-approval exception does not apply to this category.
  • An education business providing curriculum or administration services to any school district, subject to the limited exception below.
  • Another school district, open-enrollment charter school or regional education service center, also subject to that exception.

For the second and third categories, an administrator other than a board-of-managers member, superintendent or assistant superintendent may receive the benefit if a written services contract is provided to the employing district’s trustees and the board votes to approve it after finding all three things: the arrangement will not harm the district, creates no conflict of interest, and involves services performed entirely on personal time. The contract is subject to disclosure under the Texas Public Information Act. Board approval is not a way to override the first category’s vendor restriction.

The law repeals the older superintendent-specific provision, Education Code 11.201(e). That provision already prohibited financial benefits for serving district vendors, required case-by-case board approval in an open meeting for other outside work, and expressly excluded reasonable expense reimbursement from “financial benefit.” The new section expands coverage and uses a different exception structure; it does not repeat that express reimbursement exclusion. The bill itself does not define every possible financial benefit, so this omission is not a basis to declare every reimbursement unlawful. Education Code.

What changed along the way?

The introduced bill also named public and private higher-education institutions as prohibited outside-service recipients. The House committee substitute removed that category. That removal does not exempt an institution that independently fits another covered category. Text versions.

Metcalf’s adopted House amendment removed a prohibition on performing personal services themselves, leaving the restriction focused on receiving a financial benefit for those services. Thus, the final provision is not the original blanket bar on both paid and unpaid service. Other conflict-of-interest rules are not displaced by that change. House amendment.

In the Senate, Middleton’s adopted amendment added the written-contract/board-approval exception and public-disclosure provision, while excluding specified senior officials from that exception. Menéndez’s proposal to extend the administrator definition and related language to open-enrollment charter schools was withdrawn; it must not be treated as enacted coverage of charter administrators. Amendment index; adopted Senate F1; withdrawn F2.

The chambers then used a conference committee. The final compromise retained the Senate exception but expressly removed district trustees from the definition of administrator and clarified that the exception applies to category (2) or (3). Both chambers adopted the report on May 31. The conference text matches the enrolled law. Conference report and side-by-side comparison.

For the full amendment record, open the official amendment index.

Official bill versions

Compare the published text versions in the official text index. A change is not attributed to a specific amendment here without a verified record.

Who could benefit—and who could bear the costs?

Students, families and districts could benefit from fewer financial conflicts between administrators’ public duties and paid outside work. Disclosure and board findings give oversight of permitted arrangements. The law does not establish that every outside engagement was harmful or that the restrictions produce a measurable improvement in schools.

Administrators may lose outside earning opportunities or face contract-review obligations; businesses and other school systems may have fewer eligible consultants. District boards must review qualifying proposed contracts. The conference fiscal note anticipated no significant state or local fiscal impact, assuming state costs could be absorbed with existing resources. It did not quantify lost private earnings or predict civil-penalty collections. Final fiscal note.

Review boundary: This briefing explains the enacted categories and exceptions, not whether a particular engagement, reimbursement or individual employee falls within them. It does not extend the withdrawn charter-administrator proposal or invent an enforcement procedure absent from the act.

Official sources

Catalog report retrieved 2026-10-25. Check the official record for corrections or later changes.