Relating to contracting with a school district or open-enrollment charter school by a vendor with whom a member of the board of trustees or governing body of the district or school or a related individual has certain business interests; creating a criminal offense.

Contracts

• Master Service Agreements (MSAs): Amend standard terms to include a representation that no member of the client’s Board of Trustees has a prohibited financial interest in your firm.
• Subcontractor Agreements: Insert a mandatory "No-Conflict Warranty" requiring subcontractors to disclose ownership structures. Include an indemnification clause for legal costs if a subcontractor’s undisclosed conflict triggers a criminal investigation against your firm.
• Renewals: Treat every contract renewal or extension as a "new receipt" of a contract requiring a fresh conflict check.

Hiring/Training

• Sales & Business Development: Train staff on the strict $250 cumulative gift limit. This includes meals, entertainment, and "in-kind" services.
• Bid Team: Implement a "Stop-Gate" procedure. No bid can be submitted until the target district's Board of Trustees roster is cross-referenced against your company's capitalization table.

Reporting & Record-Keeping

• Internal Due Diligence Affidavits: Create a file for every bid containing a dated check of the Board roster against your ownership. This is your primary defense against criminal intent charges.
• Gift Logs: Segregate expense reporting for "Public School Officials" to ensure the $250 cap is monitored in real-time.

Fees & Costs

• Legal Spend: Budget for increased legal costs regarding ownership structure analysis, especially for firms with Private Equity backing.
• Insurance: Anticipate potential coverage gaps. Most D&O and General Liability policies exclude defense costs for criminal acts; consult your broker immediately.